EAST BRANCH4701 E. 26th St.

Fax: (605) 371-3153

Lobby: 9:00-5:00 M-FDrive-up: 7:30-5:30 M-F

NORTH BRANCH901 N. West Ave.

Fax: (605) 331-3658Lobby: 9:00-5:00 M-F

Drive-up: 7:30-5:30 M-F

SOUTHWEST BRANCH5010 S. Solberg Ave.Fax: (605) 367-4344

Lobby: 9:00-5:00 M-FDrive-up: 7:30-5:30 M-F

vSat. Lobby & Dri e-up:9:00-12pm

vSat. Lobby & Dri e-up:9:00-12pm

VA BRANCH2501 W. 22nd St.

Fax: (605) 335-3976Lobby: 8:00-5:00 M-F

Mailing Address:P.O. Box 90240

Sioux Falls, SD 57109-0240

To ReachANY BranchPlease Dial:

(605) 367-7070

MAIN OFFICE5010 S. Solberg AvenueSioux Falls, SD 57108Phone: (605) 339-2152Fax: (605) 338-4060

Ryan KarstInsurance Agent5010 S. Solberg AveSioux Falls, SD605-275-2011

www.siouxempirefcu.org

UnconsolidatedAssets:

$63,403,849Loans:

$46,517,187Members:9,440

June 2010

Tips for Parents ofCollege-Bound Students

High-school students bound for college will embark on many new experiences--including financial independence. Here are some tips for parents to help kids prepare for what's in store.

Explain how credit works. If your son applies for a credit card at a campus table promotion, he'll not only take home a free T-shirt, but a credit line he may not be able to afford, and may not know how to manage. A credit card is not free money; it's instead a means of putting off paying for purchases until a later date. Accompany him to the Credit Union for the best rates on credit cards and consider urging him to use a debit card instead.

Create a spending plan. Write down all college expenses such as tuition, books, room and board, toiletries, entertainment, and so forth. Determine which expenses you'll be paying and those for which your child will be paying.

Come to a no-bail-out agreement. If your daughter ends up charging more than she can afford, or runs out of money before the end of the month, your first reaction may be to send money and bail her out. Don't do it. If she needs to figure out a way to get out of debt, such as working or staying home on weekends, chances are good she won't make the same mistake twice.

Copyright 2008 Credit Union National Association Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.

Financial Considerationsof a Career Change

The recent economic slowdown has churned up some rough waters for job seekers. But, with preparation and research, you can weather the financial considerations of a job or career change.

1. If possible, look for your next career opportunity while still employed in your current post.

2. If your new career will mean a significant change in income and lifestyle, start adjusting your spending habits now and sock away an emergency fund of at least three month's worth of bills, house payments, and car payments.

3. While you're still in your current position, consider buying disability insurance.

4. If you're about to hit a vesting milestone with your pension or 401(k) plan at your current job, consider sticking around a few more months to pocket that extra money.

5. Once you receive a job offer from another employer, review it with care before signing on. Look at long-range salary prospects and closely examine benefits packages.

No matter what your career decision, remember that you don't have to leave Sioux Empire Federal Credit Union when you leave your job--once a member, always a member.

Copyright 2009 Credit Union National Association Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.

Straightforward steps reduce spending, increase savingThe point of living beneath your means is to avoid debt and save for what is most important to you--homeownership, freedom to spend time with your kids, early retirement, or whatever makes you look forward to getting up in the morning. Keeping your reward in mind will make adopting these tips and techniques for frugal living perfectly painless.

Make saving automatic. According to David Bach's book "The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich," the key to accumulating wealth is to pay yourself first, automatically. That's easy to do: Just ask at your Credit Union to set up a funds transfer from the account where your paycheck is deposited to a savings or investment account. You choose the day and the amount. If you do this, and you don't use credit or tap savings, you'll automatically be living beneath your means.

Track your spending. The point of writing down everything you spend is not to make you obsessive about your money, it's to make you aware of your choices. "It's easy to run on automatic," says Seid, who has been tracking his expenses in a small notebook since 1992. Your routine--do you go out to dinner every Friday and Saturday night?--may be one of the biggest obstacles to reducing your spending.

The point of living beneath your means is to avoid debt and save for what is most important to you.

Challenge every expense. Compile a list of everything you spend money on. Then look at every essential expense, from housing and food to transportation and phone service, and determine how you might be able to reduce each one. Then make a list of your nonessential spending (for example, entertainment, meals out, and vacations) and determine which expenditures deliver the greatest bang for your buck and which may be enjoyable but not essential to your happiness. Continue spending only on those things that are most important to you, but brainstorm ways to save money in those areas too. For example, if you love eating out, you could substitute a less-expensive brunch for dinner.

Avoid temptation. The easiest way to do that is to abandon shopping as a recreational activity. It's harder to ignore the media. Many celebrity and style magazines have more pages of luxury-item ads than they do editorial content. And Juliet Schor, in her book "The Overspent American: Why We Want What We Don't Need," concludes that the more TV a person watches, the more he or she is likely to spend. It's not all because of commercials. Schor says we're no longer striving to keep up with the Joneses, we're emulating the lifestyles portrayed on our favorite programs. Relatively few Americans can live beneath their means and still afford to keep up with the characters on shows like "Frasier" and "Sex and the City."

One key to accumulating wealth is to pay yourself first, automatically.

If you're looking for a way to simplify and improve your life, put the kitchen cabinets and your to-do list on the back burner for a while and work first on living beneath your means. You'll be surprised, once you achieve that, how many other things in your life will just fall into place.

The rest of this article can be found by going to our website www.siouxempirefcu.org, clicking on the education tab and clicking general. Under resources, choose Home and Family Finance Resource Center, from there you can search by the title,

“Tough Times Series: Live Simply to Reap Savings.”

Reminder of Saturday HoursYour Credit Union has two locations open on Saturdays, the East Branch (4701 E. 26th Street) and the Southwest Branch

(5010 S. Solberg Avenue). These locations are open both in the lobby and drive-up from 9am-Noon. However, during our Saturday hours we are not available via the telephone. In order to check your account via the telephone outside of normal hours of operation please feel free to call CU*Talk by dialing 605-335-0723 or 888-818-0019 or log into ItsMe247 via our

website, www.siouxempirefcu.org.

Create Financial Checklist to Ease Transition to College by Judy DahlIntroductionWhen it comes to paying for your child's college education, tuition's not the only expense to consider. There's also housing, books and supplies, travel, and more. You'll want to involve your student in the planning and payments.

We thought we had payment for our kids' college education all planned out. Then the unexpected expenses started kicking in, and our already tight budget was squeezed tighter than we'd thought possible. (Good-bye vacations, dinners out, new clothes...you get the picture.) We hope this checklist will help you avoid making the same mistake.

First things firstWith your student, determine your family's financial resources, looking at college savings accounts, your current incomes, and the amount you're willing to borrow. "It's good to involve your student, because they'll often end up borrowing too, or working part time, and you can decide together what makes sense," says Cindy Bailey, senior policy analyst at the College Board in New York. The College Board's "Trends in College Pricing 2009" shows that, on average, a student living on campus at a four-year public university not in her home state spends $18,548 on tuition and fees each year, $8,193 on room and board, $1,122 on books and supplies, $1,079 on transportation, and $1,974 on other expenses, for a total of $30,916. An in-state student spends, on average, $7,020 on tuition and fees and the same amount as an out-of-state student on other expenses, for a total of $19,388.

Billable expensesCollege Web sites list their specific costs for tuition, room and board, and fees, and estimated costs for books, supplies, and miscellaneous expenses. "Generally they include separate amounts for resident students, those living off-campus, and commuters," Bailey notes. "The tuition and room and board numbers are accurate, billable expenses; the others are ballpark amounts based on student surveys." Families have discretion in managing the nonbillable, variable expenses, so it's important to identify each expense and determine how to handle it. "Sit down with your student and determine what's really needed, what's a luxury, and what amounts would constitute barely surviving," Bailey advises.

Other costsWhen discussing expenses with your student, be sure to include these nonbillable items in the conversation: • Books—The cost will vary depending on your child's field of study. Our daughter who's studying acting requires very few books, while our daughter who's an engineering student needs books

that cost about $600 a semester. Look into renting textbooks at sites such as CampusBookRentals.com or Chegg.com, or buy used books when possible at your school's bookstore or from sites such as CheapestTextBooks.com or Barnes & Noble. Your student should sell textbooks promptly at each semester's end, before instructors switch to new editions.

When discussing expenses with your student, be sure to include nonbillable items in the conversation. • Fees—These, too, may vary based on field of study. Our acting daughter pays studio fees; our engineering daughter pays lab fees. There also may be fees for attending orientation, and annual

fees for things such as student activities, health services, and telecommunications. "These types of fees are increasing faster than tuition is," says Bailey. • Supplies—Again, there's a wide variance. Art students need to buy many more supplies than literature students, for example. • Health insurance—Your policy may cover your student, but, if not, most colleges require purchasing insurance.

The new health-care legislation requires plans to provide dependent care coverage up to age 26 as plans are renewed after Sept. 23, 2010, if the child does not have access to his or her own employer coverage. Check with your employer for details. • Transportation—There's the cost of moving a resident student to school, potentially including hotels, gas, and meals, as well as trips home for holidays and parental visits to colleges. Students

also may want to visit friends in other locations. Commuting or off-campus students will need to travel to campus for class. Most schools have "ride-share boards" so students can arrange to travel together and share expenses. Using public transportation is another way to cut costs.

• Athletics, sororities and fraternities, and clubs—These programs usually charge fees, and there may be costs for outings. • Laptop computer—These days just about every student needs one, but it doesn't have to be top of the line. Campus libraries also have computers available for students to use. • Printing/photocopying—While many professors accept assignments via e-mail, others require hard copies. But printers usually are available on campus, so it's not always necessary to buy

one. • Cell phone—Many students don't use the landlines in their residence halls and instead use their cell phones, a cost you or they already may be covering. Make sure your student's plan is

competitively priced and has sufficient coverage where his or her college is located. • ATM fees—These can cost several dollars per transaction at bank ATMs if you don't have an account there. Credit unions that participate in shared nationwide networks, however, don't charge

fees to other credit unions' cardholders. • Housewares—You'll likely need extra-long sheets to fit dorm-room beds. The cost of rugs, lamps, posters, and other items can really add up. Many students also rent or purchase refrigera-

tors, microwaves, and small furniture items, as well. Try yard sales and discount outlets to lower costs.

It's a good idea for your student to open a checking account before leaving for college. • Toiletries—From toothpaste and deodorant to hair products and cold remedies, your student will need his or her own supply. • Cleaning products—Some dorms provide vacuum cleaners; if not, your student may need one. He or she also will need dust cloths or wipes to clean desks and bookshelves. With suite-style

housing, residents at some colleges also are responsible for cleaning their own bathrooms. • Laundry supplies—At the very least, students will need detergent, dryer sheets, and a supply of quarters for washers and dryers. A compact drying rack also may be helpful as a cost-friendly

alternative to machine dryers. • Food and groceries—Dining halls are open only at certain hours, but students are hungry at all hours. • Social life—Every student needs the occasional pizza or movie night...but not necessarily fine dining or Broadway plays.

Who will pay for what?After estimating your student's college expenses, discuss who will cover which ones, and where the money will come from. "There's no rule; it depends on your family," Bailey observes. She says parents of traditional-age students often pay for tuition, room and board, and possibly books and supplies.

Students may pay for their miscellaneous expenses with their summer earnings or through a part-time job during school. "This gives students the opportunity to make good choices—they're closest to the situation and can compare costs," says Bailey.

Most students use checking accounts with debit cards to manage their money. It's a good idea for your student to open an account before leaving for college, so you can help educate him or her about using the account and about money management. Your credit union staff can provide guidance as well.

And remember to keep the lines of communication open. "Have family conversations regularly so everybody is on the same page," Bailey recommends. Discuss how your plan is working, and make adjustments as needed. Does your student need to work full time next summer so he or she will have more spending money? Have you encountered surprise costs that you'll want to factor in next year? Careful planning will keep your student's budget—and your own—on track.

Find Good Travel Deals Even in a Bum Economy by Neil Bartlett

If you're like most Americans, you're thinking about ways to cut back on expenses—and vacations often are first on the chopping block. An early 2009 USA Today Gallup Poll revealed that nearly three of five Americans who normally take a vacation say they'll either shrink their 2009 vacation spending or not go at all. For example, some are opting for "staycations"-staying home and going on short trips near home.

But along with the tough economy comes travel opportunity. There are good reasons to still consider heading to a vacation destination. While finding good deals is a challenge, with a little research and flexibility there are good travel bargains to be had—if you have the money to spend.

In fact, in some ways consumers are in the driver's seat. That's because, thanks to cutbacks due to the economy, business travel is slumping. And that means travel operators are doing more to lure consumers to fly and stay with them. Hotels especially are vulnerable, as their inventory grows because properties, planned several years ago and now built, need to be filled.

Hotel and motel managers are working to place vacation travelers in their rooms. "Everybody's trying to do something to entice you to do business with them," says Tim Leffel, Nashville, Tenn., travel expert and author of "The World's Cheapest Destinations." "No matter where you're heading, you can probably find a bargain." Leffel predicts airline ticket prices will continue to stay competitive in the foreseeable future. "There's extreme price sensitivity, and some traveler aversion to flying," he says. "If airfares get too expensive, consumers can say, 'Forget it, I'll drive.'"

Flexibility is keyCredit union credit and debit cards, and savings plans and loans, can make your vacation a hit no matter your destination.

In today's travel environment, if you're flexible, you'll do better. One example: In one week in early 2009, for 15 minutes each day the Web site LastMinuteTravel.com sold rooms at more than 15,000 hotels around the world for $1 a night.

"There's no reason why you need to plan more than two or three weeks out to get a decent deal," says Leffel. "Sometimes waiting until the last minute will give you the best deal of all. It depends on supply and demand." For example, if frolicking in popular Key West for spring break is your idea of fun, plan well in advance. But generally, you can coast a bit. "Most places aren't packed at any time of the year," Leffel says.

If you're loose about your destination for a getaway or vacation that will help, too. If your heart's set on Disney World, there's not a lot of give and take as far as making last-minute plans. But if you're a couple that simply wants to get away or take your family on a vacation somewhere, you can find better deals. Sites such as Airfarewatchdog.com, Travelocity.com, lastminute.com, and hotwire.com post deals for last minute bookings. And if one main airline serves your airport, subscribe to its e-mail newsletter for specials.

The rest of this article can be found by going to our website www.siouxempirefcu.org, clicking on the education tab and clicking general. Under resources, choose

Home and Family Finance Center, from there you can search by the title,“Find Good Travel Deals in a Bum Economy” .

CUNA Mutual: CUs, system need changesMADISON, Wis. (5/18/10)--The economic downturn has created opportunities and challenges for the credit union system, but credit unions--and the system--may need to change if they want to meet the challenges and take advantage of the opportunities, say CUNA Mutual Group.

John Lass, senior vice president of strategy at CUNA Mutual, delivered that message to members of the Wisconsin Credit Union League at the league's annual convention.

Lass provided an overview of the economic crisis and the financial health of the credit union system to make his case.

"We have come through a truly historic period of economic crisis," Lass said. "As we now move into a recovery period, the question is how the credit union system can grow as a result of the upsurge in member trust that credit unions are experiencing and the decline in confidence in the large national banks." His discussion explored practical ways "to take advantage of this unique opportunity."

Lass illustrated the need for a strong and competitive credit union system: 1. Credit unions have a local presence and are funded locally, making them not as dependent on

the capital markets as banks and finance companies. As a lending institution, credit unions use local underwriting and decision-making. In many cases, the credit union staff know the borrower on a first-name basis, which is typically not true of national bank lenders.

2. The cooperative ownership structure makes it difficult for any group of outside individuals to exert undue influence on credit unions' strategic decisions. By comparison, many bank holding companies have institutional ownership.

3. Credit unions offer the affordably priced products and services that consumers require now more than ever. Credit unions provide an average benefit of $198 per member household, or $104 per member, according to the Credit Union National Association's Benefits of Membership Report of December 2008.

4. The credit union system is not nearly as concentrated as the banking industry. Today the five largest bank holding companies control nearly 40% of total bank deposits in the U.S. The credit union system, by comparison, has less concentration.

5. The credit union system entered the economic crisis with strong capital. Despite combined impacts of assessments and loan losses, the average capital ratio on Sept. 9, was 300 basis points above the National Credit Union Administration's (NCUA) "well-capitalized" benchmark.

6. The cooperative structure does not reward excessive risk-taking, resulting in lower delinquencies than banks. Banks reported a 4.94% delinquency ratio, according to the Federal Deposit Insurance Corp.'s Quarterly Banking Profile from third quarter 2009. During the same reporting period, according to NCUA's 5300 data, credit unions reported a 1.69% delinquency ratio.

7. Credit unions can successfully pursue a customer-intimate strategy in a way that's more difficult for a bank to achieve. Customer intimacy is considered the most powerful value proposition an organization can build. It not only commands the deepest and longest lasting customer loyalty, but enables the organization to better anticipate the needs of its customers.

8. Credit unions consistently achieve high consumer trust ratings in independent surveys, including the Financial Trust Index of Jan. 27, in which credit unions earned a trust rating of 58%, compared with local banks at 53%, national banks at 31% and banks in which government has a stake at 21%. The trust factor ranked credit unions seventh among top-ranked companies in Forrester's 2010 Customer Experience Index.

9. Credit unions did not cause the current economic crisis. Recent credit union losses are more a result of being caught in the backwash of the broader financial and real estate markets. As a result, credit unions--for the most part--avoided the subprime and related lending practices that led to the current financial crisis.

10. Credit unions were formed in 1934 in federal legislation enacted in response to a similar economic crisis. Times like this are why credit unions were formed, Lass said.