Periodic articles for financial know-how!

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Three-Digit Code Makes Shopping More Secure

Q: Recently, when I’ve made purchases over the phone, merchants have asked for the three-digit security code on the back of my credit card. Why is this?

A: This is to verify that the card definitely is in your possession. It generally follows the 16-digit card number on the back of the card. It’s information that wouldn’t be available to someone who has intercepted your card number and expiration date.

That said, make sure you know to whom you’re giving this information over the phone or on Web sites.

Con artists often are able to obtain partial information about a potential victim’s account, and then contact the person masquerading as a company representative to “verify” the account by requesting additional details such as the three-digit security code. But they might just as well ask for other pertinent details–for example, they may provide the last four digits of your account number (which typically show up on sales receipts) and request the other 12 digits to “confirm” it. Or they already may be in possession of your full account number and request the expiration date of the card, or your billing address. Any of these individual bits of information may be just what the scammer needs to “fill in the blanks” and gain full access to your account, so beware.

Keep in mind, though, that legitimate businesses or financial institutions may request your three-digit security number (known as “CVC2″ by MasterCard and “CVV2″ by Visa) to authenticate a transaction. Just be sure you know whom you’re talking to before giving it out.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The latest article is inspired by our own CALCOE staff. They have embarked on a journey to not only lose weight but learn how to keep it off. This is no small feat considering holiday food favorites will be in full force for at least the next month. But they are not going alone; the CALCOE staff has entered in Selah Fitness Challenge and has challenged themselves to be the fittest Credit Union in town.

GO CALCOE STAFF!!

Get Fit on a Budget

It can be easy to get in shape without feeling the financial burn of expensive equipment and gym memberships. Here are ideas for getting a low-cost workout:

* Walk or jog. Walk or jog outside—or, if the weather’s against you, walk in your local shopping mall.

* Play with your pup. Taking the dog for a walk is a great way to get some exercise. Playing catch or Frisbee with your pooch also will get your heart pumping.

* Buy a training stand for your bike. Turn your outdoor bike into a stationary bike with a training stand. Look for a deal on eBay, Craigslist, or at discount sporting-goods stores.

* Use a workout DVD. Browse Amazon.com for inexpensive exercise DVDs, or check out the free selection at your local library. Another alternative is to swap DVDs with a friend to change up your routine.

* Find cheap equipment. Items like dumbbells, resistance bands, and jump ropes can be inexpensive—check discount sporting-goods stores. For items like exercise bikes or treadmills, try eBay, Craigslist, or your local classifieds to find affordable used equipment. Just be sure to inspect closely for condition and safety before you buy.

* Use community resources. Many high-school or middle-school swimming pools offer low-cost open swim sessions for community members. Local high-school or college fitness centers may offer affordable rates to residents. You also can often find discounted fitness classes through your local recreation department.

* Join a fitness group. Do a Web search to find a club in your area that focuses on an activity you enjoy—whether it’s hiking, biking, or running. For a free alternative, organize an informal group with friends, family members, or neighbors.

* Look for deals on gym memberships. You may be able to get a discounted rate through your employer or organizations you belong to. Some health insurance plans provide reimbursements for gym memberships. Many gyms also offer their own deals, so ask what’s available.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Let’s All Cooperate

Credit unions are not-for-profit financial service cooperatives, owned and controlled by their members, and operating in a democratic way. What difference does that make?

Co-ops are businesses, in many ways like any other business. But a cooperative operates solely for the members’ benefit. All co-op businesses run in accordance with seven basic principles, many of which have been part of the co-op philosophy from their beginnings more than 150 years ago.

1. Open and voluntary membership. It’s important that members voluntarily choose to become members. Ideally, according to the principles reaffirmed at the Manchester (England) Congress of the International Cooperative Alliance in 1995, cooperatives are “open to all persons able to use their services and willing to accept the responsibilities of membership….”

2. Democratic member control. Members ultimately control their cooperatives. When you attend your credit union’s annual meeting or vote for the board of directors, you’re exercising your member-owner control.

3. Member economic participation. According to the Manchester Congress, “Cooperatives operate so that capital is the servant, not the master, of the organization.” This statement means that credit unions do not operate for profit, rather for the member.

4. Autonomy and independence. While governments determine the legislative framework within which co-ops function, this principle asserts that co-ops also have an “essential need to be autonomous in the same way that enterprises controlled by capital are….”

5. Education, training, and information. This principle says members can play their role in the cooperative only when they understand that role and the co-op. That’s one reason, for example, that your credit union provides you with this information and other educational tools.

6. Cooperation among cooperatives. Cooperators believe that co-ops have a unique opportunity to protect and expand the interests of ordinary people. This kind of one-for-all and all-for-one idea is unique among businesses. Even in localities where they compete, it’s common for them to also cooperate on numerous activities.

7. Concern for community. Cooperatives exist primarily for the benefit of their members. Because of this strong association with members, they also are often closely and actively tied to their communities