Tips, News & Updates to Help You Manage Your Money

We’re here to provide a financial community, where our members and the general public can mutually benefit from our financial news and updates. Here you will find information on savings, investing, insurance, car loans, home loans, online security, tax advice and more!

Credit card myths – and how to spot them
There are a lot of credit card offers out there, from banks, credit unions, building societies, airlines and department stores, to name a few, but how do you identify the really good offers from the rest?

Here are a few tips to help you spot some of the credit card myths:
- Low rate credit cards have a low rate – it’s all relative and still best to shop around. The so-called low rate card from one organisation might still have a higher rate than those from other institutions. Also don’t forget the annual fee in this equation and make sure the low rate is not just an introductory offer.
- Low interest balance transfers are a good deal – they can be but you might find that you’ve switched to an expensive card once the honeymoon is over. Make sure you check how long the low (or no) interest balance period is and which interest rate applies after that period.
- Reward schemes are worth a slightly higher interest rate – reward schemes are great if you pay your card off each month to avoid interest but, if you don’t, the rewards are often negligible relative to the extra interest you have to pay. Also, be careful of the monthly card fee!
- Interest free days apply to all purchases – not true! Generally interest free periods only extend to the next repayment date. This could be up to 55 days for purchases made just after a statement cut-off date but can be as little as 10 days for purchases made just before a cut-off date. Make sure you are aware of the cut-off dates for your cards so you can manage your card activity.
- The higher interest rate on a credit card is not significant because the debt amount is usually small – be careful, it all adds up! Even if you’re carrying forward and paying interest on as little as $1,000 each month you’d be better off drawing down on your home loan, or taking out a personal loan to pay this off, as interest rates on those loans are much lower. Avoid paying interest on your credit card and focus on paying back the higher loan as quickly as possible.
- It’s just too tempting to spend on the credit card – the repayment pain comes later! This is not a myth and is exactly how credit card providers make money. The key is spending discipline. Credit cards are a convenient way to buy but the golden rule is to not spend what you can’t afford to pay in full when the credit card bill arrives.
^Wayne - Chief Financial Officer
Posted on February 20, 2012 Financial News & Updates Money Expert Saving Leave a Comment
Teaching children the value of a dollar

Credit cards, ATMs and EFTPOS have made our lives easier in one respect, but spare a thought for the challenge our cashless culture poses to parents. Teaching children the value of money today requires care, persistence and setting a good example.

It all starts from when a child first begins to count. Teach them about the different currency denominations and explain how everything has a price, from the gingerbread man in the bakery to the latest toy.

Teach them how to count their money to see if they have enough to make the purchase. It’s also important to talk to them about ‘needs’ and ‘wants’. Use shopping trips as an opportunity to teach them that everything in a shop costs money and so we must decide what is really needed and what isn’t.

To show that money is a reward for effort, pay pocket money in exchange for children helping around the house.

On ‘pay day’, provide pocket money in denominations that encourage children to save a portion. For example, if a child has earned $5, give them five $1 coins so they can save $1.

Start the saving habit early by opening a savings account for your child and encourage them to make deposits and watch the balance grow and earn interest.

If children are keen on a big ticket item, such as an iPod touch or Nintendo DS, encourage them to save up for it. Show them that by saving a fixed amount of pocket money each week for a certain period, they will have enough to fund their purchase. Once they reach the goal, make a special outing of going to the shop to buy the item.

It’s also important to give them some autonomy to make their own spending decisions so they learn through experience.

If they want to spend all their pocket money at once, explain that this means they won’t have any money until the next pay day to buy anything else they might like.

By educating our children and encouraging them to learn through action, they can grow up with the necessary skills to manage their money.

^CS

Posted on February 8, 2012 Financial News & Updates Money Expert Saving Leave a Comment
5 simple reasons why you should switch to online e-statements
Get serious about becoming a leader in the fight against climate change and join the journey. There are many simple and easy things we can all do to reduce our carbon footprint and registering for e-statements is one of them!

Most major organisations offer online or email statements/billing options. If you haven’t already made the switch this is a really simple step you can take to reduce your impact on the environment. It’s amazing just how much paper is used to produce statements.

Ask your financial institution to switch you to online statements now.
1. It’s convenient! You can view or print your e-statements any time you choose.
2. It’s simple! You will receive an email when your e-statement is ready to view online.
3. It’s fast! Your e-statement is available before paper statements get through snail mail.
4. It’s secure! Your e-statement will not be lost or stolen in the mail.
5. It’s environmentally friendly! Reduces paper waste.
We know we can all do more. Embrace the change and take your first and simple step towards reducing your paper consumption, register for eStatments today.

Ross

Environment Management System Committee Chair
Posted on February 3, 2012 Community Money Expert Leave a Comment
#1 Clubs, Groups & Charities Fundraiser Tool for 2012
We know you have spent many Saturdays turning sausages for your local footy team or filling your freezer with pies or lamingtons after the inaugural bake sale.

Now there is an easier way to fundraise for your local not-for-profit club, group or charity- the Community Reward Account.

This account takes the average annual balance of all Community Reward Accounts nominating your club, group or charity as the beneficiary, and donates up to 1.5% of this balance directly to your registered organisation!

How to benefit:
1. Find out about becoming a recipient for the Community Reward Account*.
2. Register your club, group or charity as a recipient.
3. Encourage all of your members and supporters to open an account to support your club, group or charity.
4. At the end of each financial year the amount raised is deposited straight to your registered organisation.
What your supporters need to do:
1. Open a Community Reward Account.
2. Select your club, group or charity to receive the benefits.
3. Start saving!
4. Be happy knowing they are supporting their favourite club, group or charity.
We know it works:

Over the past few years many clubs, groups and charities have been recipients of this account with great success. In 2011 approx. $150,000 was donated to registered organisations.

This could easily be your not-for-profit club, group or charity!

Luke – Product & Segment Analyst

*Only available within our Branch network. Full terms, conditions, fees and charges are available in the Product Guide and Fees and Charges booklets
(communitycps.com.au). These booklets are available on request, on the website and will be provided at the time of acquiring the product. Before acquiring the product you should consider if the product is appropriate for you.
Posted on February 2, 2012 Community Financial News & Updates Money Expert Saving Leave a Comment
Are you bushfire ready?
Record rainfall last year has resulted in a blanket of grass transforming large parts of Australia, which could prove to be a significant fuel source for bushfires this summer. ¹

Now is the time to take some precautionary steps to protect your home and loved ones before a bushfire threat develops and ensure your Home Building and Contents Insurance is up to date and that it provides enough cover to replace your home and all its contents should the unthinkable happen.

Here are a few simple measures you can take:
- Regularly clean leaves from gutters and downpipes;
- Keep woodpiles and other flammable materials well away from the house;
- Trim any long grass or dense scrub near your property;
- If possible, have a 20 metre safety buffer around your home free of rubbish;
- Take time with your family to sit down and develop a plan, ensuring all family members know what to do in the event of a fire;
- Consider purchasing a portable pump to use from your swimming pool or water tank;
- Have a first aid kit and protective clothing ready should fire approach.
These simple steps can make all the difference in protecting your home, business and family from a fire. And, if you are unsure whether your insurance is up to date or if it provides enough cover, talk to us or use our Home Building Replacement Cost Calculator or Home Contents Replacement Cost Calculator which can help you estimate the full replacement value of your home and contents.

Stay safe. ^Derek, Insurance Manager

1 http://watoday.domain.com.au/real-estate-news/be-prepared-for-bad-bushfires-says-emergency-service-20101028-174hh.html

Our insurance is issued by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708. Community CPS Australia Ltd (incorporating United Community, Companion Credit Union and Wagga Mutual Credit Union), AFSL 237856 ABN 15 087 651 143 acts as an agent of Allianz and not as your agent. Any advice here does not take into consideration your objectives, financial situation or needs, which you should consider before acting on our recommendations. Before making a decision about this insurance please refer to the relevant Product Disclosure Statement available on 13 25 85 or www.communitycps.com.au.

Sydney Morning Herald, 29/10/2011 – After the floods, grassy plains fuel fears – http://www.smh.com.au/environment/conservation/after-the-floods-grassy-plains-fuel-fears-20111028-1mo2l.html#ixzz1jDMCq1V8
Posted on February 1, 2012 Financial News & Updates Insurance Money Expert Leave a Comment
Land Rent Scheme eases Canberra’s housing affordability

In partnership with the ACT Government, we developed and implemented the Australian Capital Territory’s Land Rent Scheme two years ago now. The aim of the scheme is to offer the local community home loans for houses built on land rented from the ACT Government.

The Scheme is becoming increasingly popular, particularly with first homebuyers and young families. Because buyers only need to borrow the money for the house and not the land, it reduces the deposit required substantially. Without the Scheme the dream of owning a home would remain elusive for many.

As a mutually owned organisation housing affordability is an issue very close to our hearts, and we are pleased that, together with the ACT Government, we can help more people to break out of the rent-cycle and get into their own home sooner.

So far we have approved land rent loans to the value of $40 million, with loans advanced approaching $10million.

Wayne – Chief Financial Officer

Posted on January 27, 2012 Financial News & Updates Home Loans Money Expert 2 Comments
Managing the Christmas credit card hangover

It’s that moment in the New Year that so many Australians dread – the credit card statement that clearly spells out how much you’ve spent at Christmas.

Many consumers get caught up in the Christmas spirit and arrive in the New Year with credit card balances they simply can’t pay off.

If you’ve woken up to the holiday debt hangover, you should focus on avoiding high interest charges, which are often much higher on credit cards, by clearing the debt as quickly as possible. If you can, clear the balance completely when due, but if you don’t have savings or the cash flow to do this, then investigate alternatives such as refinancing the debt at a lower interest rate.

Some might have the capacity to redraw on their home loan, where the interest rate is much lower than a credit card, or consider taking out a personal loan. For this strategy to succeed it is vital for consumers to increase loan repayments so the credit card portion of the owed amount is cleared as quickly as possible. Make a mini budget that allows you to repay the holiday debt over a few months, otherwise you wind up stretching a $2000 debt over a 20-year home loan, which will cost more in interest and extend the life of the debt.

While you’re clearing the balance, be careful about how you use your credit card and only spend what you can afford to repay at the end of the month.

If you’re facing back-to-school expenses, then take advantage of any interest-free period on your credit card, provided you can pay the outstanding amount at the end of that period. If you don’t think you can do this, consider cheaper sources of credit, such as the home loan, but like the Christmas debt, you need to increase your repayments.

While clearing the 2011 debt, consumers should also focus on preparing for the 2012 festive season. If you have landed in January with a nasty credit card debt, the important thing is to avoid the same thing happening next year.

So if you know that you usually spend, say, $1500 at Christmas, then set up a Christmas savings account where you make a $30 weekly deposit and are discouraged from withdrawing funds early.

By preparing a plan and sticking to it and spreading the cost over the year you can avoid the pain of a large lump sum cost at Christmas.

Wayne – Chief Financial Officer

Things you should know>

Posted on January 20, 2012 Financial News & Updates Money Expert Saving Leave a Comment
Find the best home loan product – with key fact sheets
As of 1 January 2012, the Australian Government requires all lenders (banks, credit unions and building societies) selling standard home loans to provide consumers with a Home Loan Key Facts Sheet (HLKFS) about their standard variable and fixed rate home loans, if they ask for one.

The HLKFS have to be presented in the same format and layout regardless of the lender, and are designed to enable consumers to easily compare home loans provided by different lenders.

The HLKFS are prepared based on consumers’ individual requirements for their loan amount, loan term and interest type (fixed or variable) and summarises information about the loan, including:
- The interest rate (nominal and comparison rate i.e. including fees)
- Total amount to be repaid (including loan amount and fees)
- Amount repaid for every $1 borrowed
- Establishment and ongoing fees
- Repayments per month and per year
They also include information about how your monthly repayments will change if interest rates increased by one per cent and how much sooner you could repay the loan if you increased your repayments by $200 per month.

I’m pleased to see initiatives like this implemented that help people find the best product for their personal circumstances. Every lender uses a different language to describe its products and features it can be quite difficult for people to compare them directly to one another.

Buying a home is a big decision for most Australians, and they will spend a good time of their adult life paying it off – so it is very important to pick the right product. We feel the HLKFS are a great tool, empowering consumers in their choice of product without the bells and whistles distracting from the actual basic features of the loan.

If you’re thinking about taking out a home loan, make sure you ask for a HLKFS from several lenders to enable you to shop around for the best deal. Financial institutions are also required to make the HLKFS available on their website if they provide information about home loans or enable home loan applications online. You’ll find ours here:-

http://www.communitycps.com.au/calculators/homeloankeyfactsheet.aspx

Wayne – Chief Financial Officer
Posted on January 18, 2012 Financial News & Updates Home Loans Money Expert 2 Comments
Give your accounts a health check!
The start of the year is an ideal time to give your bank accounts a quick health check.

You may have made a certain New Year resolution such as getting out of debt or buying a house, or you simply may want to ensure you are receiving the maximum benefits out of your current situation. Either way, regular reviews of your bank accounts can provide you with valuable extra savings.

If the New Year has also coincided with a change to your personal and lifestyle circumstances, reviewing your bank accounts is even more important. You may have started a new job, bought or are buying a house, started or plan on starting a family or be retiring from work.

These, and similar changes, may alter your day to day banking behaviour and needs. For example, they may alter the way you transact on your account, the amount and frequency of deposits and direct credits which you receive, or if withdrawals and direct debits coming from your account. This could change the amount of fees you are charged and the interest you may earn.

Reviewing your accounts will ensure that you:
- have the right account for your banking needs;
- are not paying any unnecessary bank fees; and
- have the best savings options to maximise the interest which you can earn.
To get started, review your bank statements for the past few months. This can be easily done by reviewing your transaction history or e-statements within Internet Banking. Check to see what fees you have been charged at the end of each month. If you have been charged excess fees and/or don’t understand the fees you have been charged, contact us so we can explain how you can minimise your fees each month and check to ensure the account(s) you have best suits your current needs.

Interested in maximising the interest you earn? Many people hold large, excess balances in everyday access accounts. The nature of these accounts means they pay very little, if any, interest. There are many at call deposit products offering a higher rate of interest and better return for your money.

Speak to us today to see if you can get more out of your everyday banking and maximise the interest you can earn.

Luke - Product & Segment Analyst

Things you should know>
Posted on January 10, 2012 Financial News & Updates Money Expert Saving Leave a Comment
New Year’s investment resolutions
Over the holiday season many of our members will be thinking about their finances and making New Year’s resolutions to improve them.

We have highlighted the top 10 investment tips to help meet your longer term goals.

Top 10 investment tips
1. Clarify your investment goals – having a clear understanding of your goals will help you select the most appropriate investments to achieve them.
2. Pay yourself first – Set aside some of your pay packet for your longer term goals. List all your expenses then work out how much you can afford to save each month. With the surplus put this money aside first so that you don’t spend it on other miscellaneous items. That way you will be able to meet your longer term goals.
3. Set up an automatic payment – to help you organise your contributions to your investment(s) so you save automatically!
4. Invest your savings to grow – make the most of your savings by investing them. The type of assets you invest in will depend on your financial needs and objectives.
5. Harness the power of compound interest – each dollar you invest earns a return. If you reinvest that return, it can earn more dollars, allowing your investment the potential to grow much faster.
6. Diversify your wealth – spread your risk across each of the main investment types (for example shares, property, fixed interest and cash) with an aim to achieve more consistent returns. In other words, ‘don’t put all your eggs into one basket’.
7. Choose tax advantaged investments (not tax driven investments) – consider sound investments that can also offer you tax benefits.
8. Time in, not timing the market – it’s not timing the market that’s key, but rather the amount of time you’re in the market.
9. Get some advice – speak to an expert who can help assess your needs and goals.
10. Do something now – the sooner you get your investment started the sooner you’ll achieve your goals.
Happy Investing!

Michael – Practice Development Manager

Investment Performance: Past performance is not a reliable guide to future returns as returns may differ from and be more or less volatile than past returns. The ten tips were sourced from Colonial First State www.colonialfirststate.com.au Eastwoods Wealth Management Pty Ltd, ABN 17 008 167 002, AFSL 237853. Things you should know>
Posted on January 6, 2012 Financial News & Updates Investing Money Expert Saving Leave a Comment
Keeping a lid on Credit over Christmas

The festive season is synonymous with overindulgence. But along with some unwanted kilos, Christmas can also leave us lumbered with a bloated credit card debt.

The pre-Christmas spending season traditionally sees Australians give their credit cards a solid workout. Last year we collectively spent $3 trillion more on our cards in November and December than in any of the previous ten months.*

Rather than undo all the healthy budgeting efforts made during the year, some simple strategies can help you keep credit under control over the festive season. Read more…

Posted on December 19, 2011 Financial News & Updates Money Expert Saving Leave a Comment
7 Christmas Tips for Smart Phones & Tablets

It’s an exciting time of the year unwrapping that new smart phone or tablet and charging up the batteries for its first test run. But there are 7 Christmas tips you need to keep in mind before taking your smartphone or tablet on its first test drive: Read more…

Posted on December 5, 2011 Money Expert Security 2 Comments
When Your Parents Really Want You to Leave the Nest!

More younger Australians are taking up Parent Equity home loans as they look to take advantage of today’s favourable market conditions for first homebuyers.

This trend has occurred for a variety of reasons such as the difficulty in saving up such a large deposit, required to enter the home buyers market.

Read more…

Posted on December 5, 2011 Financial News & Updates Home Loans Money Expert Leave a Comment
What is Trauma Insurance?
Trauma Insurance is about protecting you and your family’s lifestyle whilst also providing you with choice when it matters most – choice to receive the best treatment available, choice to allow your spouse to take some time off work to help you rehabilitate and choice to use the money however you want.

No one thinks it is ever going to happen to them – but what if one day, you unexpectedly had a heart attack like one of our members Jan. Jan was 50 years old and fit and healthy, but one day after suffering from stress, Jan had a heart attack. Jan was told she was ‘half a centimetre away from death’ that day.

Luckily Jan had taken out trauma insurance as there was a history of breast cancer in her family. She received payment six weeks later and was able to choose what she wanted to do with the funds, such as pay off debt, or set aside the money for retirement as she may need to retire earlier.

“I now see why it is so important to be adequately insured to protect against unforeseen events in life particularly where health is involved, because it has a major impact on your life,” says Jan.

Some people are aware that they are at higher than normal risk due to family history. Sadly the majority of people who are diagnosed with cancer, cardiovascular disease or serious illness did not know they were at risk.

Dealing with the emotional consequences of suffering a serious illness can be hard enough, but adding financial stress on top of this can be devastating. Trauma Insurance eases the financial burden allowing you to focus on getting well.

Trauma insurance pays a cash lump sum payment in the event of contracting a specified disease or trauma and covers up to 58 defined events such as cancer, heart attack and stroke.

Trauma insurance gives you a lump sum payment to ease the financial pressures of not working and could be used to cover things such as:
- To pay for a specialist or possibly receive international medical attention
- The cost of modifications made to the home or relocating to more suitable accommodation
- Financial obligations whilst recovering (living expenses, debts) • Rehabilitation and recovery costs
- Paying off outstanding debts or providing an ongoing income
- A professional carer
- Enabling your partner or family member to reduce their working hours to look after you.
Posted on October 26, 2011 Insurance Money Expert Leave a Comment
Renovate or Buy
Whether you have outgrown your existing home, or you’re looking for a larger or modern home, you might be weighing up whether to renovate your present house or buy a new one.

It may make more sense to renovate than to move if your property is unique in its location, size or design qualities, or if you love your home but it’s just not big enough.

Renovating is a great way to get the house you want. You have the freedom to add design features that suit you and your family whether it’s for an addition to the family, the ensuite you’ve always wanted or a games room for the kids.

The aspects of a house most likely to capture buyers’ attention are bathrooms, the kitchen, entertaining areas and landscaped garden spaces.

Benefits of Renovating:
- You can stay in the house that you like and make improvements according to your individual choice and style
- Your renovated house may be worth a lot more in the real estate market
- You can avoid the costs associated with selling (such as stamp duty, legal and agency fees).
Benefits of Buying:
- Buying a new home is usually quicker and easier than undertaking a renovation
- When you buy you know exactly what you’re willing to spend and choose a house to meet your requirements
- You can avoid the risk of improving your current home beyond the increased value you might get from the sale of the home.
Before you make the final decision, look at the real estate market, get an appraisal on your house and look at prices of houses that you would consider buying instead. Ask a construction professional what your desired renovation is likely to cost. A small investment in good advice can really pay off when you decide to sell your home in the future.

Whether you decide to renovate or buy it is important to remain focused on your finances and more importantly, choose the right loan.
Posted on October 16, 2011 Home Loans Money Expert Leave a Comment