When you get kicked in the stomach during a week like I just had, well, you have to pick yourself up, dust yourself off, and remember all the blessings and joy in your heart and in your life.  I began my bounce back to a joyful place by gaining perspective.  Perspective is the great equalizer.  When the rolling stone gathers moss and dirt and mud, forcing oneself to remember all that is great will quickly serve to getting back to the right side of the ledger.  Somebody always has it worse.

In the Bible, in the Book of Genesis, there is reference to a famine on top of a famine.  Sort of laughs in the face of my bad week.  See, the power of perspective.  I told you it was the great equalizer.  Famine upon famine – now that would be tough.  Reminds me of our current recession and the ongoing jobless recovery.  For too many people in our community, their bad week has turned into a bad month, into a bad quarter, into a bad year, into a bad couple of years.  “Devastating” is the word that comes to mind.  See, my week wasn’t so bad.  Somebody always has it worse.

St. Louis Community Credit Union continues to work with our members.  Borrowing from biblical principle, those in our community who are scraping to make ends meet don’t need to be abandoned in their time of need.  They need to have people sow into their lives.  Even though the landscape may be barren and it would appear that any seed sown would be too little too late to make a difference, we continue to sow.  It’s what we do.

We’re helping people who can’t get checking accounts elsewhere to open accounts.  We’re fixing folks’ credit score.  We’re holding fees at super low levels.  We’re expanding services and products, including our own economic stimulus package of sorts with a Skip-a-Pay offer coming in May.  We’re keeping dividends on savings and investment products at some of the highest in the region.  And we’re expanding our financial education outreach to even more people than ever before.

Look back to the biblical principle for a second: When you sow, you reap.  That’s what St. Louis Community Credit Union does in our great region.  The result is that we help to create economic empowerment in the neighborhoods we serve.  The cooperative, not-for-profit spirit of our Credit Union is designed to help.  Somebody always has it worse.  We’re here to help.

A professor stood in front of his philosophy class with a number of items in front of him.  Without any discussion, he put some golf balls in the mayonnaise jar until it was full.  He asked the class if it was, in fact, full. They all agreed.

He then picked up a box full of pebbles and proceeded to pour them into the jar.  He shook the jar until the pebbles filled in the gaps between the golf balls.  He then asked the students if the jar was full. They again agreed it was.

Next, the professor took a small pail of sand and began pouring it into the jar.  The sand filled in nicely the small crevasses and cracks left from the many pebbles.  The mayonnaise jar was definitely full to the brim and the students unanimously agreed.

Then from under the counter, the professor produced two cups of coffee.  He poured them into the jar and they were absorbed by the pebbles and sand.  Obviously, the jar was completely filled and every student awaited the results of the professor’s “show & tell.”

“Now,” the professor said, “this is your life.  The golf balls represent the big things – faith, family, friends, service to your fellow man and your good works.  These are the things that if everything else was lost, your life would still be full.  The pebbles represent the important things in life – job, home, car.  The sand is everything else, the little stuff.”

He continued.  “If you filled up the jar with sand first, you would have no room for the pebbles and, worse yet, no room for the golf balls. Life is exactly the same way.  If you spend all the time on the small stuff, you have no room for what really matters.  How sad that would be.”

The lesson is obvious and was a great reminder to me.  I was reminded that I should love God, enjoy my kids, take care of my health, enjoy my wife and take her to dinner.  There is always time to vacuum, mow the lawn, do the dishes, fix the faucet, etc. etc.

One student asked, “What does the coffee represent?”  “Easy,” said the professor.  “There is always room for a couple of cups of coffee with a good friend.”

Wow!  The first time I read this, it drilled into me.  What a great reminder of what really matters.  I have to get going – got coffee with a great friend.  By the way, to my wife and kids, I love you very much! You’re what matters.

Nobody argues with joining forces to help kids.  Children are our future and they (as much as anyone) should feel hope – especially those who are sick.  When the doctor’s news is a kick in the gut and those young people and the parents who love them are zapped of their hope, Children’s Miracle Network (CMN) kicks into gear.

CMN helps to fill the void of hope for those families who are suddenly stricken with the worries of their child’s illness.  This hope comes in many forms, and it’s heartwarming to see the credit union community join forces with a great business partner, Enterprise Car Sales, to raise money to support the families of sick children.

In the name of hope, I witnessed a bowling alley filled to capacity; where not a lane was available; where teams of five from credit unions all over the area slipped on rented shoes and rolled rented balls (most less than gracefully) in the name of fund-raising.  It was really something to behold.  Credit unions that compete at financial services during the week put down the gauntlet for a fun Saturday evening that was filled to the maximum with camaraderie and compassion.  As the clock struck midnight, CMN became the benefactor of thousands of dollars – all in the name of providing hope for families in our area.

Of course, St. Louis Community Credit Union had a couple of teams there.  Good bowlers, bad bowlers, young and old – it didn’t matter.  We were there for another reason: to raise money and the hopes of kids who have been dealt a bad hand.  Enterprise Car Sales staff was everywhere serving as gracious hosts and hostesses and peddling raffle tickets at a fever pace.  Good news…everybody in the room was buying big.  Very special thanks to Enterprise for footing the bill for much of the evening in order that the lion’s share of the money went directly to the intended party – the kids of Children’s Miracle Network.

Every time the call goes out from the great folks of CMN to the staff of my favorite credit union, there we are providing money, time, energy, and most importantly, hope.  These are some of the finest people I know.  They are hard working men and women trying to make a difference.  Their generosity is punctuated by their continued willingness to give.  They never cease to amaze me when it comes to providing hope.

I know what they make, and trust me, nobody’s getting rich – at least with money.  Hope on the other hand was everywhere in abundance.  That’s a good thing.

Just to insure even more understanding, not only are there “things we don’t do,” there are also “things we don’t know.”  It’s not often you will hear a credit union guy readily admit that we don’t know certain things, but you know what?  We’re different, and we’ll do whatever it takes to make our relationship with our members the absolute best it can possibly be – and that includes the admission to “what we don’t know.”

So here goes…

We don’t know your balance.  Only you know your true balance.  Sure, we know the amount in your account, but that doesn’t account for checks or debit card transactions that have yet to clear.  Only you know your balance.

Along those same lines, we don’t know what checks or debit card transactions you have outstanding.  Keep thorough records of what you’ve spent – we don’t.  We keep track of what clears or attempts to clear, but we don’t know what you’ve written.

Some more on the subject of checks and debit card transactions: We don’t know when they will be presented to clear your account.  If you don’t keep records of what’s outstanding, we have no clue.

We don’t charge insufficient fund fees or overdraft fees if your account stays positive.  If items clear that draw your account negative, we will charge a fee.

We don’t clear checks all day long.  If checks haven’t cleared your account by 9:00 a.m. (when we open), then they will not clear during the work day.  There is no need for you to call or go into home banking many times during the day – check the next day.

We don’t balance your account – that’s your responsibility.  Remember, we have no clue what you’re doing out there.

We don’t know or have any control over what the merchants send through the system to debit your account.  We do, however, have an obligation to process whatever they send through.  It doesn’t happen very often, but they (the merchant) do make mistakes on occasion.  When there is a mistake, you must take it up with merchant.  It’s their error and they should refund fees related to their error.

Just some thoughts to make our relationship the very best it can be.

Early in January of this year in an article emphasizing taking action over waiting for better times to emerge, he wrote on the overall direction needed to revitalize our economy and be successful in the upcoming decade.  His thoughts struck me as eerily similar to a business model with which I’m intimately familiar – that being credit unions. 

Mr. El-Erian discussed with great eloquence that in post-crisis periods (I think we all agree we’re currently in this place), democracies will inevitably redistribute away from folks that have weathered the storm to those that have suffered the most.  Because we are giving, caring people, this action should be viewed as understandable and desirable.

The caveat to Mr. El-Erian’s comments however focused on the idea that any redistribution of income and wealth must not crowd out the importance of creating both (income and wealth).  TV’s talking heads have been wildly opining on this “redistribution” issue.  I wish Mr. El-Erian could do the talk show circuit and slow down the rhetoric with his simple yet effective understanding of what needs to happen.  Basically, help out those who need it the most in this critical time, yet allow those who are good at creating income and wealth to do what they do best: make money.  Win-Win.  Brilliant!  And therein, ladies and gentlemen, is the issue at hand and the point of conversation of so many: “How do you do this?”  We’ll leave that discussion to those whose lot in life is to debate the pros and cons of such an undertaking.  We only have so much room in this blog.

My point in sharing Mr. El-Erian’s thoughts is that St. Louis Community Credit Union (SLCCU) is very good at helping those in need, as well as allowing for everyone to increase their income and wealth.  The cooperative nature of the Credit Union is that we return as much of our earnings as possible to the member.  When the whole of our members, all 38,000-plus of you, use the Credit Union in a variety of ways, we put the money we earn from your activities to the best possible use – we give it back to you. How’s that give-back work?  Well, here’s just one example.

Mr. Jones is a saver.  SLCCU pays Mr. Jones a great interest rate on his savings.  Mr. Jones’ deposit is loaned out to Mrs. Smith.  She pays more interest for her loan than he gets on his savings.  We take the difference and pay better rates on investments and charge lower loan rates than the competition.  We also build branches, provide free services, build capital, hire great people, develop products that meet member needs and generally increase everyone’s standard of living.  Mr. Jones benefits; so does Mrs. Smith.  And so does everybody else who is a member.

The more we all use the Credit Union, the more everyone benefits and we accomplish Mr. El-Erian’s goal: To help out those who need it the most during these difficult times while allowing people to create wealth.  So if you bring us all of your business, we all will benefit.

Sports fans know that it was just over a decade ago that the St. Louis Rams returned from Atlanta, Georgia carrying the coveted Lombardi Trophy – signifying our position as the greatest in the world of American football.  The emotion was significant as I sat in a suspended stupor calling upon my memory bank to make all the necessary withdrawals of the best football memory of my life.  The clarity in my mind’s eye was crystal clear.  I stood in the middle of my family room beside my son for the last quarter, too nervous to sit.  My heart rate was pumping through my Ram’s shirt as if I was pedaling a bike.  And when the final horn sounded, I welled-up with joy.  My wife laughed.

The same welling-up filled my eyes this past Friday (my wife’s too) when the little heralded quarterback of that worst-to-first season, Kurt Warner, retired.  He’s my all-time favorite quarterback on the field, and an even better man off the gridiron.  As the local media broadcast Kurt’s story, his accomplishments and his humanitarianism, the emotions rushed in all over again.

Kurt was only one chapter in this week’s book of memories.  I turned the page and here we went again.  On January 30, I celebrated 23 years as an employee of St. Louis Community Credit Union.  It is fun to think back on the employees, the members, the good times, the bad, and the feelings attached to each.  SLCCU has basically served as the backdrop to my adult life.  Imagine all the emotions, scenery, people and events as brushstrokes from a thousand swatches of color – with SLCCU as the bold, blue canvas framing the 23 years.  It’s been great helping people.

Finally, as my wife retrieved and catalogued our music discs from years of accumulation, I found my Bob Seger & the Silver Bullet Band LIVE CD (circa 1975).  I listened and sang at the top of my lungs as I rocked the interior of my car.  I stepped back to the mid-seventies and loved every second of it.  In one of his songs, “Traveling Man,” the lyrics say: “I see the faces, I see the traces they left on my soul, and those are the memories that make me a wealthy soul” – serious chicken skin.  That’s my week in a nutshell.

As I traveled back in time over the past week, those lyrics best depicted all I thought of during the week.  It was a great week – as a “Traveling Man”.  I loved the journey that once was, and to recapture a piece of it this past week was well worth the time.  Might I recommend the occasional trip down memory lane?

Providing Basic Financial Services Creates Economic Stimulus

The prosperity of our region is needlessly at risk when individual households are financially unstable. The facts are brutal. St. Louis residents who don’t use a credit union or bank spend an additional $1,042 a year in check-cashing services according to the Pew Charitable Trust. 
 
An estimated 88,000 households in the St. Louis area do not have a checking or savings account according to a December report from the Federal Deposit Insurance Corporation (FDIC). African-American and low-income households are disproportionately affected. The Pew number multiplied by the household count means this region loses $91.7 million a year in consumer purchasing power.

Families that live in the cash world without access to financial services are at higher risk of theft and robbery. In addition to the costs of check cashing, there is little chance to save. Without the capacity to build assets, which includes buying a home or saving for education, our local economy ultimately takes a hit.

According to an August 2009 report from the FDIC, a lack of access to mainstream banking is a large contributor to the use of alternative credit services like payday loans and pawn shops. Over the past five years, banks added more than 10,000 full service branches nationwide. Yet, barely one in ten of those new branches were placed in low-income, minority neighborhoods. Considering that the majority of individuals choose a financial institution based on proximity, this leaves poorer communities and minority neighborhoods at higher risk.

Offering services in these neighborhoods is a challenge, but the FDIC report closes by calling government and industry across the country to jointly demonstrate a serious commitment to expanding cost-effective and safe financial services, as well as education to low-income and minority households.

Locally, collaborative efforts are already underway. The U.S. Department of Treasury used St. Louis as one of eight sites for a 2009 Community Financial Access Pilot (CFAP). Twenty-two banks, credit unions (including St. Louis Community Credit Union) and community service organizations participated. Results of the project which ended in December will be out soon.

This past week, The Greater St. Louis United Way coordinated a Martin Luther King Financial Education Blitz in conjunction with the National Day of Service. A wide range of community partners worked together to offer more than 20 financial stability workshops. It is the first of three such efforts this year. Businesses throughout the region should take this opportunity to get involved. Details are online at www.stl.unitedway.org/mlkday.

As we search for a means to jump-start our region’s economic engine, working in concert to provide meaningful financial education is a logical starting point. Information is power and may represent the needed catalyst to transform the unbanked and the under-banked households in our region to greater financial stability. There are $91.7 million reasons to make this happen.

When I think of the great numbers, I think of the ones that stand out.  1 is a great number; everyone wants to be number one. Ozzie Smith was #1.  16 is a great number – it’s when you can drive.  21 is pretty cool.  It usually means an awesome party.  But 15 – it is just kind of there; totally insignificant unless you think of April 15th (when taxes are due) and then it conjures up a lot of negative thoughts.

But at St. Louis Community Credit Union, we’ve been pressing forward to take 15 from the nothing world of just being another number to one of the best numbers foremost in the consumer’s mind. Yep, 15 (as in dollars) is about to be renowned as one of the best, most economical numbers in the St. Louis region – right up there with the current local favorite of 6.  You know, if the Cardinals score 6 runs, we all get 25 cent drinks at the local gas station.  That’s some economic stimulus worth noting.  Go Cardinals, go!!!  As the ad pitchman says: “6 is a serious number.”

$15 is all St. Louis Community Credit Union charges for an “insufficient funds” check.  That’s official speak for a “bounced check.”  That same $15 is all that is charged if a member activates their overdraft protection through a debit card transaction or a written check.  Compared to the average of other financial institutions, that’s just about half as much. See I told you – $15 just increased in popularity.

Now, we’re not big on you bouncing checks or using overdraft protection.  St. Louis Community Credit Union would much rather you balance your checkbook, keep track of your transactions, and live within your means.  In fact, we provide free debt counseling services to you, free financial education seminars and free credit counseling – all with improving your money management skills foremost in our mind.

Most folks don’t bounce checks; maybe never.  But “stuff” happens, and isn’t it nice to know that we’ve got your back – at only $15? Seriously, the national average cost for overdraft protection for the first item is $29.58.  That’s a $14.58 cent savings to the consumer.  That’s economic stimulus.

$14.58 saved equates to just under six gallons of gas.  $14.58 saved equates to almost three $5 foot-longs at Subway.  So what’s that, about 2 ft. 7 inches of sandwich?  $14.58 is a couple of Netflix.  $14.58 is a couple of on-demand movies and some popcorn.  $14.58 is more pizza (it doesn’t matter how much – any amount of pizza is good).  $14.58 is a whole bunch of texting.  $14.58 is a couple of Starbucks – and throw in a blueberry muffin.

Yeah, don’t bounce a check.  And for the sake of your long-term financial well-being, get off the overdraft elixir.  But seriously, if you screw up, isn’t it better to have your checking account with us than those guys who charge twice as much?  Maybe 15 is a serious number after all!

You might suggest that I take a chill pill.  After all, that’s what the TARP money, aka government bailout, is all about – propping up a banking industry that was in deep need of some help.  (By the way, as a sidebar to this discussion you should probably know that St. Louis Community Credit Union didn’t need any TARP money.  Why not?  Well, we never took the risks associated with chasing the exotic world of mortgages and/or investments.  Without the risks there was no need for the bailout…You’re welcome.) 

You’re probably familiar with Ally Bank.  They’re the ones that have those clever commercials with kids, ponies, model cars and bikes.  The ads tease the youngsters with the spoils of being a kid only to have the full joy of receiving such great present(s) taken away by some hidden, undisclosed set of rules.  The less than subliminal inference is that banks tease you with their attractive offers and then dampen your joy by applying account restrictions.  Of course, Ally is different – or so they claim.  It’s a page straight out of the credit union playbook except Ally is for-profit and we’re not-for-profit, a thought you should tuck away and remember forever and ever and ever and ever.

Here’s the crux of my discontent.  Our members’ (mine and your) tax dollars are being used to create and run some really clever ads both on TV and in print to entice consumers (who include credit union members) to move their money to Ally Bank.  Let me get this straight…I’m helping Ally Bank to be successful at the expense of the credit union and my own well-being.  To draw a parallel, wouldn’t you think it crazy if I told you that Pepsi gave Coke some money to help them run more TV ads?  Yep, crazy is the right word.

Now here’s where I really get fussy.  The clever, thought-provoking ads are offering really high deposit rates.  I mean really high deposit rates.  Super-duper, out of the market, out of the world rates compared to SLCCU and the other banks and credit unions throughout our area.  So again, let’s do the math.  They can offer higher rates because you and I are providing tax dollars that allow them to do so.  What in the wide, wide world of sports is going on here?

You’ll find it interesting that the FDIC (bank insurer) is not pleased with the high-cost deposits that Ally Bank is placing on their balance sheet.  Why might the FDIC be concerned and order a “cease & desist” action?  Remember, the FDIC is the insurer and maybe (just maybe) they have interest in the potential risk related to Ally’s actions.

What’s next, more tax dollars going to assist (bail out) the bad banking practices currently being perpetuated by Ally?  Yep, it’s getting ready to happen: $5 billion more to Ally.  I just thought I’d let you know what’s happening.

My buddy “Hoos” is one of my favorite playing partners.  He doesn’t take himself or the game very seriously – that’s a prerequisite for playing golf with me.  I’m not very good and usually find myself wanting to be home about 20 minutes into the round.  Work is serious.  Golf, not so much.

Don’t misinterpret Hoos’ lax manner on the golf course for a lack of competitiveness.  A putt more than a foot or two, and the cat gets his tongue.  He gives up putts – far and few between.  The man does not have the word “gimme” in his vocabulary – especially on any putt outside of the leather or as Hoos likes to call them, those with “a little chicken on the bone.”  That’s Hoos’ vernacular for “you got some work to do.”

Well, as consumers enter the New Year, many have a financial picture that has some serious “chicken on the bone.”  Here are some ideas to assist in making 2010 a financial success:

Start a budget.  Make a commitment and stick to it.  Just like taking a shower or eating, make effective money management something you do on a daily basis.  To help commit, involve a trusted confidant who can assist with keeping you on the straight and narrow.  Between commitment and a trusted confidant to help, you can start cleaning up your personal financial statement.  Telling someone forces your hand to perform.

Slow the cash leaks.  Vending machines, newspapers, a cup of coffee, lunch, dinner out three nights a week, etc.  You get the idea.  There’s a hole in your pocket – fix it.

Save some money.  Start with the cash leaks just mentioned.  While never easy, it is essential to save for that “rainy day.”  Have something to fall back on when the proverbial “stuff hits the fan.”  When you design your budget, be sure to put “saving” as a line item somewhere near the top.  Start small and celebrate your progress.  $5 per week is $260 per year – that equates to an emergency car repair.  Your new-found “rainy day fund” keeps you from borrowing or overdrawing your account; now you’re getting ahead.

Stay off the credit card.  Understand the difference between what you need and what you want.  Cash at the register makes much more sense than adding to a credit balance that has a half-life of eternity.  They call it a cash register, not a credit register.  Put the plastic away or use it sparingly – please!

Yep.  As Hoos would say, there is “some chicken on the bone.”  Many folks have some work to be done.  Another golf reference is “keep it in the short grass.”  That means don’t end up out-of-bounds.  Yep, that applies as well.  Get busy and make 2010 a great year.