In this Issue:
Tread Carefully Online   Help Kids Get Money-Savvy   Loans on the Lawn

DENVER (5/16/07)--Internet dating services have helped countless couples find true love, but if you use an online dating service, be vigilant. Less-than-honest people pose as 'singles' and leave victims with more that just a broken heart--they often deceive victims into handing over large sums of money (cbs4denver.com April 30).

The U.S. State Department recently issued a warning advising Americans to watch out for Internet dating scams. One popular version is when scam artists from Nigeria and other countries use stolen pictures, create false identities, and then build relationships with their targets. After the online daters have communicated several times, scammers will tell their so-called 'love interest' that they actually live in Africa and are in need of money (romancescams.org).

You shouldn't write off online dating altogether--there are plenty of honest people out there looking for love. You should, however, exercise caution to protect yourself from fraudulent online dating services:

• Be wary of bad grammar. Many of these scammers are not from the U.S. Their English often is awkward or filled with errors that native speakers wouldn't make.


• Be suspicious of requests for money. Scammers may ask you to help them pay for a plane ticket, or they might present you with business or investment opportunities. Unless you know exactly whom you're talking to, don't send any money.


• Keep personal information to yourself. Never, ever give out your full name, age, address, phone number or credit card number to anyone online.


• If it looks too good to be true, proceed with caution. Scammers use photos of beautiful people and shower their targets with compliments. These con artists are skilled at making relationships feel real, but trust your gut instinct if something doesn't feel right.


• Educate yourself. Romancescams.org has examples of common scams and many tips to stay safe online. The website also has a "scammer search," where you can type in the name, e-mail address, or phone number of a suspicious person to see if he or she already has been reported as a scammer. Note: Not all scammers have been registered or identified, so just because a name doesn't show up in a search doesn't mean the person is trustworthy.

For more information, read "If It Looks Too Good to Be True ... Recognizing and Preventing Mail Fraud" in Home & Family Finance Resource Center.

Copyright © 2006 - Credit Union National Association, Inc.

WASHINGTON D.C. (5/15/07)--Given Americans' negative savings rate and sky-rocketing credit card debt, it's now more important than ever to teach children--even as young as three years old--basic money skills. The sooner children begin financial education, the greater the likelihood they'll avoid the mistakes many adults make today (Washingtonpost.com April 15).

American children get more than $14 billion dollars each year from allowance, jobs and gifts. If parents help their children save and manage this money wisely, these young consumers will be better prepared to navigate the increasingly complex financial world as they grow older (The Daily News April 21).

Educating your kids about money matters isn't as hard as you might think. Here are some simple ways to start teaching your kids the value of money:

• Open a savings account in your child's name. Kids as young as five years old can begin to understand the idea of saving. It doesn't matter how much money is deposited--what matters is creating a regular savings habit. Take your kids to the credit union with you and let them take an active role in saving. They'll understand more than you think.


• Set goals with your kids. Having a reason to save makes kids want to save. Their goals don't have to be huge--for many kids, watching their money grow is a reward in itself.


• Consider your child's age and find appropriate ways to communicate. While it's important to start early, make sure activities or discussions are age-appropriate. Younger children learn through books, online activities and simple saving, while older children can create budgets and manage allowances.


• Include older children in family financial planning meetings. Some parents feel uncomfortable talking about their budget or other money matters with their kids, but letting them witness your habits before they are forced to make their own decisions gives kids a solid financial foundation.


• Show kids your money values through your actions. Forget "Do as I say, not as I do." Kids watch their parents and mimic their habits. If your money management habits are less than perfect, use this as an opportunity to educate yourself about financial matters, and then share what you learn with your kids.

Copyright © 2006 - Credit Union National Association, Inc.