This guest post from Aldra is part of ShoreBank’s new 5th Tuesday ShoreBank Fan post series. Aldra is a grant writer who found her way into the non-profit sector via her membership with AmeriCorps VISTA. With more than 10 years in the non-profit industry, she learned the fine art of living a good life with a small salary and a commitment to social justice. She is the author of Consciously Frugal and a ShoreBank Facebook Fan.
Although personal finance books are quite popular, few have garnered the notoriety enjoyed by Your Money or Your Life by Joe Dominguez and Vicki Robin (later editions include author Monique Tilford). Even though Your Money or Your Life was first published nearly 20 years ago, you can still find a study group in virtually every city working the book’s holistic, nine-step program.
The program asks participants to base their earning, saving and spending patterns on their core values. My core values are simple. I believe that my purpose on this spinning blue ball is to ensure that all people have the right to health, safety, security, and happiness. If I truly believe that, then I must pay attention to the how and who of the products that I purchase (Is it sourced from sustainable practices? Are the workers fairly treated and compensated?). It eventually dawned on me that this sort of thinking should extend to all my fiscal activities, not just when I buy stuff. But in a culture devoted to upward mobility and the material trappings of “success,” reorienting our financial lives to an internal compass is a radical concept.
As I began to align my finances with my values, I investigated the world of banking. What was my monolithic bank doing with all those billions of dollars? Who was benefiting from my deposits and the interest I paid on loans? To whom did they market their credit cards?
I didn’t like much of what I found. I discovered that I was putting my money into a system that seemed to disempower and exploit people. I knew that there had to be a better way. The primary thing I wanted to see in a financial institution was an active engagement in bettering the community. I also wanted to see a measure of respect for clients, regardless of income levels or portfolio dollars. Community reinvestment is a concrete example of that respect.
After spending a few months hunting for a bank that invested in communities, I found ShoreBank. Through ShoreBank Direct’s online savings account, I am earning interest on my savings far above that being offered by my previous bank while knowing that my money is also being put to good use.
However, what I have most enjoyed about transitioning to a community development financial institution is the human connection. Through blogs, email correspondence, and Facebook interactions, I have been able to engage with staff and fellow ShoreBank customers, and discuss political, environmental and social issues important to us all. It gives me hope that amidst all the economic doom and gloom of late, we can find ways to create a values-based economy in which all of us are respected and empowered.
Love ShoreBank Voices? Help me tell others that where they bank does make a difference and leave a comment or subscribe to the ShoreBank Voices feed.
“If saving money is wrong, then I don’t want to be right.” ~ William Shatner
You don’t need Scottie to beam you up to know that financial savings is important! Saving $7 daily and investing in a savings plan for 40 years at 10%, compounded quarterly, can accumulate $1.3. million by retirement.[1] As American consumption is increasing at a faster rate than incomes, I am sleuthing for green changes I can make to my daily routine to save $7 a day. Here are 7 easy eco-friendly savings that add up to $7 that I have found thus far:
Don’t drive by yourself– $0.14 to $3.00 savings. Although there are a variety of alternatives you can take (i.e. walking, car pooling, biking, etc.), public transportation most likely has the next highest cost to driving, which in Chicago, is $2.86/day (on a 30 day pass). Driving 4 miles/day, 5 days/week costs approximately $3.00/day[2].
Bring your own organic lunch – $1.92 savings. A homemade organic turkey sandwich and apple costs $4.75. A regular processed turkey sandwich and apple from a chain costs $6.67.[3]
Workout outside and forgo your monthly gym membership – $1.60 savings, assuming you pay $50/month for a gym.
Drink water from your own glass – $1.50 savings (minimum). Filling a glass with water rather than purchasing one bottle of water daily saves money while increasing your water consumption (we are suppose to have 8 glasses/day, right?).
Watch media on your laptop instead of your television – $1.19 savings. The average American watches 5 hours of television every day[4]. Assuming a $2.19/day cable cost[5], the cost of watching a 125 Watt 32” LCD television for 5 hours day at $0.11/kWh costs $2.26[6]. Assuming a $1/day internet cost, watching media online on a 125 Watt laptop at $0.11/kWh for 5 hours costs $1.07.[7]
Decrease your heat/air conditioning setting by 3-4 degrees – $0.66 savings. You can save 10% by cutting 3-4 degrees off of the thermostat. That equates to $20/month on a $200 bill or $0.66 per day.
Invest your $7 daily in a savings account – $0.17 extra savings! If you invest $7 every day in the ShoreBank Direct savings account at 1.07% APY,* compounded quarterly, you could save approximately $2,620 in the 1st year.[8]
Total Savings: $7.18. It may seem like only pennies, but a penny (or $7) saved, can really be earned. What are other eco-friendly daily savings you can take?
Love ShoreBank Voices? Help me tell others that where they bank does make a difference and leave a comment or subscribe to the ShoreBank Voices feed.
“You manage online marketing and social media for a bank?” You may be surprised that any organization in as traditional an industry as banking would ever enter the untraditional arena of social media. But I’m not. Social media is about building community regardless of whether it is online or offline. I believe that it is only logical then that a community development bank, like ShoreBank, would start to engage in social media to develop online communities.
I am consistently surprised by how grounded the online community is in meeting in physical locations. At social media club events, the speakers are often drowned out by attendees’ passionate discussions about their favorite causes. People are no longer ‘Tweeting’ or ’Facebooking’ merely to stay connected with their existing friends. Instead they are implementing social media to find and make new like-minded friends and to invite them to join the conversation. That online conversation often fuels a desire for an action that rallies the most unlikely of allies to a particular location. The impact social media can have on building a crowd is phenomenal.
Take the success of Twestival. On January 8, a ‘tweet’ (or online message sent using Twitter.com) went out asking cities to join in hosting a Twestival on February 12 with the goal of bringing local Twitter communities together both online and offline to kickoff a fundraiser for charity: water. I did not think twice about going. So, with $10 in hand for my donation, I joined the more than 10,000 people across 200 worldwide cities, which raised over $250,000. And almost every person I spoke with at Chicago’s Twestival said, “You manage online marketing and social media for ShoreBank? That is so cool.”
They recognized that ShoreBank’s mission is one about which many people are passionate. We build relationships to develop neighborhoods. Why would we not engage in social media to invite like minded friends to join our conversation? We look forward to building our community with you, your passion, and your ideas.
And we want your ideas to help us turn this blog green in April! David, Joel, and Michelle will blog on environmentally friendly practices that can save valuable financial and natural resources. From economic analysis to green design, there is much that a financial institution can do to positively change behaviors to protect the planet. And no one has a monopoly on good ideas which is why we are inviting you to build a blog post around your input!
Please tell us how are you using the internet and online social networks to help save money and protect the environment.
Comment to this thread or contact me independently and let’s see what impact we can make through our online community.
Inauguration Day 2009 brings more than just a new president. It brings a turning point in the way our society approaches community development.
Most political scientists agree that President Obama’s outside-of-the-box campaign strategy incorporating social media elements was one of the things that forged his path to the presidency. As ShoreBank Online Channel Manager, I felt honored that a blogger recently compared Obama’s nontraditional strategy to that of ShoreBank’s. She blogged that Obama should create a committee of cutting edge practitioners, including “someone from ShoreBank in Chicago,” in order to realize his promise of change.
Ironically, it was ShoreBank’s commitment to providing customers with “good, old-fashioned banking” that inspired us to enter the social media space. In Friday’s blog entry, my colleague Karen recently discussed how online banking’s ability to broaden the way we at ShoreBank can connect with people does create a community. It is through the community of social media that you can help to positively impact your online and offline community.
I believe that one of social media’s core functionalities is to connect users to determine the importance of topics. Commenting on a blog, Digging an article, linking to a website, and joining a Facebook Group or Fan Page promulgates the causes you think are important across the web as it stimulates reactions. This ongoing electronic conversation can make a serious impact in the real world.
Online networks can help find people emergency housing, enable microdonations to causes, bring real-time awareness to international human rights violations, or elect a president. Creating internet connection and communication between those who share your beliefs can galvanize you to move from online communities to coordinating offline change.
President Obama changed the face of American presidential campaigning with his historic use of social media (a Facebook Page, multiple MySpace Pages, mobile text updates). However, he used these new technologies to advance traditional American political themes of optimism, service, and the need for change. ShoreBank’s social media (a Facebook page, blog, websites, and more) likewise aims to use new technologies to connect our customers to what our cofounder Ron Grzywinski calls “good, old-fashioned banking -” a tradition that builds communities, allows families to create wealth, and creates neighborhoods where people choose to live, work, and play.
Now it’s your turn. Tell us: how can ShoreBank better use social media to help you to generate change?
35 years ago ShoreBank was founded on the South Side of Chicago to provide people unfairly denied credit with access to financial resources and information. And next week a new President with be sworn in – one who started his career in the same areas ShoreBank has been active.
ShoreBank has always been committed building sustainable communities That mission continues today as ShoreBank is one of the nation’s only triple bottom line financial institutions.
Communities, of course, change . As Joel, our manager of triple bottom line innovations, noted in an earlier post, all he has to do is look out his window to see the transformation that has taken place in the local community – other banks have appeared on many street corners. But not just the neighborhoods have changed – the way people want to bank is also evolving too.
When I speak at events here in Chicago I often meet people who are very interested in the way ShoreBank does banking. And they want to invest in this work. They love the stories of local entrepreneurs creating green collar jobs , green businesses, and of homeowners making energy efficient improvements – and they love that we work with borrowers in-person. But like people across the nation they want to manage their savings from a computer at home. And on a freezing day like today I am definitely in this camp.
Banking online is part of “green banking” and it supports our mission to preserve scarce resources and leave as small an environmental footprint as possible. We provide statements electronically instead of in the mail and we don’t need to build extra branches to serve our customers. But how do we create a sense of community when, increasingly, we like to bank alone?
We saw this same challenge in politics this year as now President-elect Obama found a way to engage people using technology – but he still met with countless individuals face to face. We too are working to broaden the ways we connect with the community of people interested in supporting our traditional personal, one-on-one lending. So our online presence is changing. You have already seen some of these initiatives; in fact, you may have opened an Online High Yield Savings Account because of them. We have created a website with stories and videos of our customers and we have included features that make it easy to share items that interest you. We launched this blog and welcome your comments. We hope these stories and information are useful, so please share with us your comments and what other features and subjects you would like covered here too And don’t forget to visit our new Facebook page (Admittedly it is not as well known as the Obama page). This is all relatively new for us and somewhat unusual for a bank.
Even with these new electronic channels, ShoreBank continues to partner with borrowers with traditional personal, one-on-one service. Our ability to be a part of the community – working with potential borrowers, understanding their stores and finding them the best product for long term success – is, and will always be at the heart of what we do.
But in a world were my friend’s three month old daughter already has an email account we know online capabilities will be a significant part of the our future. We look forward to building community in this space too.
Happy New Year! For those of you undecided on your New Year’s resolution, you might consider one that will help to change the world in 2009. The homeless and “at-risk” population is greater than ever. Nonprofits, which often depend upon decreasingly wealthy corporations and philanthropists, find themselves supporting this unprecedented demand with an ever-decreasing coin coffer. Even if you cannot give huge sums of money to your favorite cause, you can still make a difference by contributing your spare change. Small donations, one donation at a time adds up and can play a large role in transforming peoples’ lives and building stronger communities. That is why in 2009, I am pledging to help change the world by becoming a social microfunder.
Social MicroFunding is the process of using social media websites, such as Facebook, MySpace, and Twitter, to make very small donations (starting at a penny). According to Leslie Poston, founder of Uptown Uncorked, “the power of social media has never been about solely about the conversation. . . Instead the power of social media is the ability to make genuine and valuable connections between businesses or people in a matter of moments.” You generate actual capital for your cause, simply by adding it to your social capital (i.e. befriending it on a social media site).
Consider these features of Social Microfunding:
• Low Personal Cost. The average micofunding donation range is from $0.25 to $4.50. That amount is less than a cup of coffee. You can skip the barista stand one-day a week and dontate the savings.
• Speed. It is quicker to donate then it is to brew a cup o coffee.
• Easy to Generate Greater Awareness. Click ‘Share with a Friend’ on Facebook or ‘Tweet it’ on Twitter to easily garner support for your favorite causes from across your degrees of separation.
• The “peace of mind” that derives from most social microfunding sites that use only trusted e-payment sites, such as PayPal, to collect your donation.
• Real Time Impact Evaluation. Most applications provide real-time funding updates so a donor can immediately see the impact of their microdonation.
The impact of Social Microfunding is truly astounding. In only two days time, Social MicroFunding raised $10,000 for a Tanzanian classroom and over a little longer period of time $2,200 was raised for the Salvation Army and $3,500 ws raised for Charity: Water. To learn more, please click here.
As somebody once told me when I said I could not give that much, “if everybody gave ‘not that much,’ imagine how much a cause could receive.” So let us resolve in 2009 to become a family of social microfunders.
Guest Contributor: Donna Pfeil, VP, Associate Director, Network & Information Security Svcs
The holidays and winter drives many people into hibernation. Who in their right mind wants to brave the snow and ice to buy yet another gift for a distant relative or down egg nog with co-workers whom 40 hours a week with is already too much time spent together? With the Internet you can do both–shop and network–from the friendly confines of your own home. Thanks to social networking sites, such as Facebook, MySpace, LinkedIn, Twitter and others, we can get connect with friends, discover lost classmates and real bargins, even find a new job perhaps with co-workers we might want to one day share an egg nog with, or perhaps make new friends who share similar interests.
But before you are lulled into the false sense of security or comfort that is easily derived from using social networking sites, remember to guard your privacy carefully while communicating. Sometimes, like in any conversation, we can share more than we need to or what is good for us. Social networking sites unfortunately like many other things today, are also targeted by a new wave of cybercriminals, or those who are looking to take advantage or defraud users for their own gain.
So before you begin “hibernating” and surfing the Internet this holiday season, please be aware of some of the dangers lurking online:
· Identity Theft—Social networking sites often include prompts for information like things like age, date of birth, e-mail address, phone number, and mother’s maiden name in order to steal one’s identity that will “open the doors” for others to defraud you. It is wise to never share or publish passwords, social security numbers and other pertinent information that makes it easier for thieves to gain access to programs for doing business online that will end up costing you money and your good credit score.
· Malware—The use of images and video clips by spammers to infect your computer with malware (malicious software, which includes computer viruses, Trojan horses, adware, and spyware). It is easy for a cybercriminal to pose as a member of a social networking site, and then send his “friends” a message containing a link that will silently download harmful software when it is opened. Only open those attachments and programs from people you really know.
· Impersonation—Social networking sites typically don’t authenticate new members. That means the people you meet on a site may not be who they claim to be. Criminals and mischief-makers can also copy photos and information from your profile, and use it to masquerade as you—either online or offline (for instance, by creating a fake ID in your name). Watch out for impersonation in all its forms.
· Social Engineering—Information gathered from social networking sites by criminals seemingly involved in a legitimate enterprise who will steal your identity and use it for their own benefit. Therefore, do not respond via online, despite how much they seem to know about you.
Tips for Safe Social Networking
· Limit the information you post—Be careful about posting facts that might be used by other sites (such as a credit card or bank site) to verify your identity. For your personal safety, avoid posting too many details about your future plans and whereabouts. These details can leave you vulnerable to stalkers, burglars, etc..
· Be discreet—Don’t post anything that you do not want everyone to see. Avoid confidential information whether yours or that of the company you work for.
· Be skeptical—A lot of good information is available online, but there is also a lot of disinformation, rumor, and opinion. Don’t believe everything you read online, and double-check your facts before taking any action.
· Be wary—It’s easy for people on social networking sites to impersonate someone else, such as one of your friends or acquaintances, or to misrepresent the facts about themselves including age, gender, and intentions. Don’t trust someone you have just met online any more than you would trust a stranger encountered in an offline setting.
· Check privacy policies and settings—Take the time to read the privacy policy of a social networking site which will tell you what types of information they will share or sell to third-parties. If you don’t agree with a site’s policies, don’t use it. If the site allows you to adjust how much information about you is available, for instance, by allowing only close friends to view your profile, consider using this feature.
· Validate information requests – Many companies, including ShoreBank, will never solicit you for private information outside of the normal course of business. If you receive any email from ShoreBank or any company asking to verify private information or collecting information and passwords, do not respond to the email. Instead, call the official customer service center of the company and validate the request with a known source.
For more information on identity theft, malware, and ways to protect yourself online, the FDIC has generously allowed us to share this fun and useful video with you–just click http://www.fdic.gov/consumers/consumer/guard/index.html.
Last holiday season, I was in graduate school during what the National Bureau of Economic Research recently declared the “start of the economic recession.” Yet despite my declining bank account balance and lack of income, I had one of the happiest holiday seasons ever. Why? Because I had devised a strategy to minimize my expenses while maximizing my gift giving and holiday festivities.
In this economy, it seems that almost everybody has these same goals. The trick is to find and practice the holiday thrift tips that best suit you. On that note, I interviewed ShoreBankers at our headquarters in the South Shore neighborhood of Chicago, and asked them what advice they would give shoppers hoping not to overstrain their holiday budgets. Here is what ShoreBankers recommend:
1. Save throughout the year. For example, saving just $25/month in a high yield savings account at ShoreBank each month will build a $300 kitty for holiday shopping in December. In addition, you can buy an extra treat with the interest you earn.
2. Stick to your holiday shopping budget. Several ShoreBankers use an Excel spreadsheet that lists who they plan on giving to this holiday season, the dollar amount they have allocated to that person’s gift, a list of budget appropriate gift options, and the final cost of the gift. This kind of tracking helps to avoid negative surprises on credit card bills in January. The key is to be disciplined $25 does not mean $26.
3. Give your time. One ShoreBanker said, “Give time. It’s the most precious gift you can give.” Bake cookies. Make dinner. Give a month of backrubs. For many, the little (and least costly) things have the most meaning.
4. Differentiate between what you “need” and what you “want.” You can then allocate your budget more effectively. If you have a soft spot for certain seasonal products (mine is for seasonal lattes), make a schedule for your treats and stick to it.
5. Primarily use ATMs and debit cards, and account for each transaction. Multiple ShoreBankers said “If you only need $40 from the ATM, resist the temptation to take out $80.” Use a debit card, write down every ATM transaction in your checkbook, and look at your account balance daily. It’s difficult, but even the attempt at completing this task can help you watch your budget.
6. Comparative Shop. Something we all know we should do but it is increasingly relevant as many stores are adding competitive match offers. Plus, you might be able to buy items in a store at online prices without paying for shipping.
7. Discount and Coupon Shop. Some ShoreBankers recommended going to thrift stores, goodwill, or discount racks at brand stores to buy top tier brands at low prices. Search for coupons and “percent off days” for necessary items on your lists. Remember, if you can get a good price on a quality item, it’s still a quality item.
8. Search for free seasonal activities. Most city halls have lists of free events. Who knows, you might even stumble upon a children’s choir performance!
I love the holidays and I hope one of these tips helps you to enjoy the season just a little more. As one ShoreBanker said, “We know the economy is bad. It is what it is. You just have to pay attention and use your money more wisely.”
Chicago got hit with its first snowfall and the forecast calling for rough sledding ahead for the nation’s economy means homeowners will consume more energy at a time when they can least afford to.
Don’t put a ‘bah’ in your ‘humbug this winter. Invest in a solution that has the potential to create good paying jobs and to reduce energy costs by up to 45 percent—making energy-efficient improvements to your homes and offices. This is ShoreBank’s mission because it makes good economic sense—costs are rapidly recouped by the energy-savings whole adding value and comfort to the home—it reduces greenhouse gas emissions which is good for the environment.
On occasion, we want to tell you about our customers who share our values and believe in our mission whose own work is inspiring others. We are very excited that Van Jones, the founder and president of Green for All and a fellow with the Center for American Progress is a high yield savings account customer. In 2007, Van worked closely with U.S. House of Representatives Speaker Nancy Pelosi (D-CA), U.S. Rep. Hilda Solis (D-CA), U.S. Rep. John Tierney (D-Mass.) to pass the Green Jobs Act of 2007, authorizing $125 million to re-train 35,000 people in how to build new green design homes, thereby creating new “green-collar jobs that will be around in the days ahead. Other green jobs include adding insulation and double-paned, low-e windows to increase energy efficiency, and attaching solar panels to homes to reduce electric bills.
It is exciting time because the new administration has sent strong signals that it is committed to an alternative energy strategy that significantly reduces our dependence on foreign oil and safeguards the environment while it helps to put people to work.
As these issues continues to heat up, we encourage you to actively engage in the discussion and check out what Van has to say:
ShoreBank and Van’s organization, Green For All, understand environmental sustainability is essential to the present and long-term health and well-being of our economy and our communities
If you would like to learn more about ShoreBank’s thoughts on this and other issues, please subscribe to our RSS feed. The more people who visit our blog, the greater the impact we can make. Share this link and please let us know what you think!
Although personal finance books are quite popular, few have garnered the notoriety enjoyed by Your Money or Your Life by Joe Dominguez and Vicki Robin (later editions include author Monique Tilford). Even though Your Money or Your Life was first published nearly 20 years ago, you can still find a study group in virtually every city working the book’s holistic, nine-step program.
I didn’t like much of what I found. I discovered that I was putting my money into a system that seemed to disempower and exploit people. I knew that there had to be a better way. The primary thing I wanted to see in a financial institution was an active engagement in bettering the community. I also wanted to see a measure of respect for clients, regardless of income levels or portfolio dollars. Community reinvestment is a concrete example of that respect.
“If saving money is wrong, then I don’t want to be right.” ~ William Shatner
Inauguration Day 2009 brings more than just a new president. It brings a turning point in the way our society approaches community development.
Ironically, it was ShoreBank’s commitment to providing customers with “good, old-fashioned banking” that inspired us to enter the social media space. In Friday’s 
35 years ago ShoreBank was founded on the South Side of Chicago to provide people unfairly denied credit with access to financial resources and information. And next week a new President with be sworn in – one who started his career in the same areas ShoreBank has been active.
