2020 Financial Literacy Supplement by The Washington Informer

2020 FINANCIAL LITERACY SUPPLEMENT

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In Memoriam Dr. Calvin W. Rolark, Sr. Wilhelmina J. Rolark THE WASHINGTON INFORMER NEWSPAPER (ISSN#0741-9414) is published weekly on each Thursday. Periodicals postage paid at Washington, D.C. and additional mailing offices. News and advertising deadline is Monday prior to publication. Announcements must be received two weeks prior to event. Copyright 2016 by The Washington Informer. All rights reserved. POSTMASTER: Send change of addresses to The Washington Informer, 3117 Martin Luther King, Jr. Ave., S.E. Washington, D.C. 20032. No part of this publication may be reproduced without written permission from the publisher. The Informer Newspaper cannot guarantee the return of photographs. Subscription rates are $45 per year, two years $60. Papers will be received not more than a week after publication. Make checks payable to: THE WASHINGTON INFORMER 3117 Martin Luther King, Jr. Ave., S.E Washington, D.C. 20032 Phone: 202 561-4100 Fax: 202 574-3785 news@washingtoninformer.com www.washingtoninformer.com

PUBLISHER Denise Rolark Barnes STAFF D. Kevin McNeir, Editor Ron Burke, Advertising/ Marketing Director Shevry Lassiter, Photo Editor Lafayette Barnes, IV, Assistant Photo Editor John E. De Freitas, Sports Photo Editor Dorothy Rowley, Online Editor ZebraDesigns.net, Design & Layout Mable Neville, Bookkeeper Dr. Charles Vincent, Social Sightings columnist Tatiana Moten, Social Media Specialist Angie Johnson, Circulation REPORTERS Stacy Brown (Senior Writer), Sam P.K. Collins, Timothy Cox, Will Ford (Prince George’s County Writer), Jacqueline Fuller, Hamil Harris, D. Kevin McNeir, Kui Mwai, Lee Ross, Dorothy Rowley, Brenda Siler, Lindiwe Vilakazi, Sarafina Wright, James Wright, PHOTOGRAPHERS Ja’Mon Jackson, Shevry Lassiter, Roy Lewis, Jr., Robert R. Roberts, Anthony Tilghman

Wells Fargo is extremely proud to sponsor the Washington Informer’s Financial Literacy supplement, particularly this year when so many people are taking a different look at their finances and financial goals because of the current economic climate. Many people continue to deal with economic stresses because of COVID-19 and money issues are front and center. Taking care of your financial health can help you build a foundation to get you through tough times and prepare for the future. Some of us may be looking at how we save differently or even considering how to prioritize significant financial goals like buying a home or opening a business. We are fortunate that publications like the Washington Informer create supplements like this one to inform its readers on a number of topics related to financial health. It’s important to understand that your financial health is a journey and unique to each individual. Small changes can easily turn into habits that have a big impact on your financial health and support is available. Many people continue to deal with No matter your situation, there are many places to look for financial information and economic stresses because of COVID-19 guidance even during these uncertain times. It’s a great time to take advantage of websites and money issues are front and center. and online tools that can help educate you on a number of financial topics. At www. Taking care of your financial health can wellsfargo.com/financial-education/ you can explore information on topics like saving, help you build a foundation to get you budgeting and even big goals like purchasing a home. There also are financial health rethrough tough times and prepare sources by phone. It’s easy to call a Wells Fargo financial health phone banker to discuss for the future. your financial goals. Your financial wellness is important for planning to reach your financial goals. In addition, no matter how you have been impacted by this pandemic, it’s never too late for education and guidance to help you navigate the way forward and prepare to handle other financial issues you may have to experience. FS

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WORDS FROM THE EDITOR

5 Dr. Shantella Sherman (Photo by India Kea)

By Dr. Shantella Sherman WI Special Sections Editor We are all creatures of habit and this includes the myriad of ways in which we manage our finances. So, as new and innovative technologies claim to make financial transactions faster, easier, more efficient, or even safer, resistance proves the natural inclination. Trees be damned, I love most things paper made – hardbacks over E-readers, notepads over laptops, and checkbooks or cash over electronic payments. However, like most global consumers, my love of paper has hit a technological wall, and in an increasingly electronic world the prevalence of Cash App, Quick Response (QR) codes, mobile banking, and digital payments has forced me to integrate the new with traditional financial matters. According to Consumer Reports, eight in every 10 Americans

prefer banking digitally to visiting a physical branch, which explains the improving mobile and online banking adoption statistics in the country. Mobile and online banking by age statistics reveal that consumers aged 50 and above will make up nearly a third of mobile banking logins two years from now. But with the adoption of more digital platforms, many fear the loss of jobs for human bankers, associates, and customer service representatives. This belief, fueled by headlines like: Robots to Cut 200,000 U.S. Bank Jobs in Next Decade (Bloomberg, 2019), Europe’s Banks Slash 60,000 Jobs as Outlook Turns Negative (Financial Times, 2019), and U.S. Bank to Cut Thousands of Branch Workers in Digital Push (American Banker, 2019), continue to feed the fears of traditional bankers. But as Forbes reported earlier this year in the article, “Journey

New Age Commerce: Resistance Proves Futile to Digital: Banking in 2025,” the industry will never do without human workers. “As advanced as conversational interfaces and emerging technologies have become, the likes of Robo-advisors currently act to facilitate and streamline customer engagement rather than replace humans altogether. They are, therefore, a fantastic example of machines augmenting employee roles within the workplace. Currently, these technologies are not and will possibly never be at the stage at which they can replace humans entirely.” A great case and point: My annual European vacation runs seamlessly from one country to another using a single money card that allows me to load U.S. dollars, British pounds and European Union euro. The card allows the

transfer of one currency to another, access to ATMs, and contactless point of sale purchases, without a hitch. Until there was a hitch in 2018 – and I needed to speak with a customer service representative. Thousands of miles away from home, I did not want to press a bunch of buttons or listen to automated instructions. Only a person would do. Consumers agree. In an informal Washington Informer poll of 200 area bank visitors, 85 percent said that the major drawback to digital banking is losing interaction with human customer service agents. In fact, comments aligned sharply with stories conducted in this edition by Lindi Vilakazi, who charted the shift from traditional banking platforms by D.C. residents to new age ones. “It feels like overkill for a lot

of people – irrespective of their ages – who enjoy the ease of paying for items through PayPal or transferring money through Cash App, but who also want the specialized courtesies and interaction with bank tellers, store clerks, and friends,” Vilakazi said. “I think some people have disconnected from the ‘ritual’ of shopping or some banking transactions, which can make it feel less pleasurable for consumers. That amounts to ‘bad business.’” Like it or lump it, new age banking and commerce is here to stay. This Washington Informer Financial Literacy supplement offers a guide to understanding some of the latest technologies and hopes to warm our readers to many of the benefits to ‘going digital’ – a bit at a time. Read, Learn, Grow.

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5 Traditional bank books (like the one pictured) from Peoples Savings Bank circa 1970 are true relics of the past. (Courtesy photo)

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Consider This Guidance if you are Ready to Jump into the Homebuying Market Donna Greene Market Development ConsultantWells Fargo Home Mortgage

When you’re ready, so are we Your home is more than just four walls, it’s where you create the moments that make up daily life. When you’re ready to buy or refinance a home, we’ll provide personalized guidance to help you compare loan options, including features, interest rates, monthly payments, and more. To learn more, call 1-866-875-7068. Or visit wellsfargo.com/mortgage.

Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2020 Wells Fargo Bank,N.A. All rights reserved. NMLSR ID 399801. AP5158583 6/25/20 REV 6/20

This year’s homebuying season has been like no other. It got off to an early start followed quickly by an abrupt stop as states locked down during the early days of the pandemic. Then, it roared back with historically low interest rates and many lockdown-weary buyers looking for space to better fit their needs to work and entertain at home. As we settle into the fall and a time of year when some buyers usually retreat, you may be wondering what’s happening in the marketplace now. Is it still a good time to buy? True to what we’ve been seeing all year, buyers have been bucking the usual trends and continue to actively buy as summer winds down and we head into cooler weather months. Across the industry, demand for mortgages to buy a home has been running higher than a year ago, according to mortgage application data from the Mortgage Bankers Association for the first part of September. In addition, preliminary data shows contract signings for the four weeks ending Sept. 20 were up 23 percent compared to a year ago1, according to the National Association of REALTORS®. Buyers are still in the market, though the number of properties for sale has been low. Even so, fall and winter months may provide a good time to look and traditionally provide buyers a chance to shop in an environment that may offer a little less intense competition. If you are ready to buy and want to begin house hunting, here are a few important considerations to keep in mind. Don’t get carried away when bidding on a house in this competitive environment. You need to know your buying budget and stick to it. It’s really easy to get emotional about a home and want to buy at all cost, but keep

Don’t get carried away when bidding on a house in this competitive environment. You need to know your buying budget and stick to it.

the focus on the smart financial decisions you’ve made about budget and manageable payments. Remember that there are more ways than one to take advantage of the current rate environment. Talk with your home mortgage consultant about your goals and what financial options work best for you. For example, are you looking for the lowest possible payment or is you biggest concern the lowest possible closing cost? These are all part of a good discussion as you set out to buy. Finally, think about buying a home as a series of financial trade-offs you will need to make. Most people don’t get their dream home right out of the gate. It’s usually a discussion of what’s the best possible home I can buy based on the budget I have. As you get close to finding that home, you’ll find yourself trading your dream kitchen for a bigger garage or discover you’re OK with just a onecar garage because the house comes with a swimming pool. It’s all part of the process. The fall and winter months really can be a great time to buy a home, if you’re ready. As a buyer, take your time, do your financial homework and dive into the opportunity. 1. Copyright ©2020 “Weekly Housing Market Monitor.” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. Reprinted with permission. https:// cdn.nar.realtor/sites/default/files/documents/2020-09-21-weekly-housing-market-monitor-09-24-2020.pdf FS

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5 Dr. Sophia Sparks

Home is where the heart is. It’s also the heartbeat of a community. A home is so much more than brick and mortar. It can feel like the heartbeat of your community. It says, “I belong here.” We understand that successful homeownership helps make individuals, families, and communities stronger. That’s why we’re working hard to support homebuyers by preparing them to become homeowners. Let’s keep our communities growing strong together. To learn more, call 1-866-875-7068. Or visit wellsfargo.com/mortgage

Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2020 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS5144182 Expires 01/2021

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How to Raise Kids with Money Smarts They’re not really being taught how to be financially responsible once they leave the house and become independent. What steps can parents take to teach both sensitivity and responsibility about money? Step 1: Find teachable moments. It can be difficult to find time to sit down and talk specifically about wealth, but natural opportunities to teach pop up every day. For example, you can incorporate financial responsibility into

By John Marshall Financial Advisor Wells Fargo Advisors Parents have a responsibility to teach their children about finances—and that’s true for wealthy families and less affluent families alike. Kids are smart enough to pick up on signals that their family may have more than others. But if the conversation stops at the benefits that money can bring, you’re missing out on important life lessons.

Donating approximately $400M to help small business owners recover, especially minority-owned businesses.

an impromptu math lesson about money: If you find something that originally cost $100 and it’s on sale for 30% off, you can ask kids how much the new price is—and, now that they are only spending $70, what they might do with the $30 that’s left. Step 2: Take a lifelong view toward financial literacy. Every child, and especially those who will one day inherit substantial wealth, should have a tool kit of basic financial literacy skills by age 18, including concepts such as how to spend, how to save, how to give, and the value of a dollar. This can start very early with an exercise as simple as a three piggy banks analogy. You encourage the child to divide any money he or she receives into three piggy banks: spending, saving, and community/ charity. This shows the concept of different types or purposes of money as opposed to all being for spending. Repeating this exercise can help ingrain the habit of saving regularly. By late childhood or adolescence, parents can add concepts such as what it means to invest, what companies one might invest in, and how you assess risk with an investment. You can encourage children in high school to think about college expenses logically by examining the costs and coming up with a credible college budget. Ask them to consider basic questions: What will you need in order to make this happen? What will the family need to supply, and what is the student expected to supply, in terms of tuition, books, room and board, transportation, and normal spending money? And parents and grandparents can continue to encourage responsible, long-term financial responsibility by giving young adults an incentive to begin saving for re-

tirement early. If you’re able, and they have earned income, offer to match what they save into a Roth IRA. It’s also wise to coax contributions to a 401(k) at work. Step 3: Show your kids how it’s done. Your child’s healthy relationship with money begins with an open and honest relationship within a family that models good money behavior. These discussions can be challenging, but the fruit is well worth the labor. Stress education and expect them to do well in school. The parents who do really well in teaching financial literacy typically lead by example—they tend to be savers, and they’re more careful with spending money. Remember to be that example. This article was written by Wells Fargo Advisors and provided courtesy of John Marshall, Financial Advisor, in Washington, DC at 202861-4458. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. © 2019 Wells Fargo Clearing Services, LLC. All rights reserved. FS

You can encourage children in high school to think about college expenses logically by examining the costs and coming up with a credible college budget.

Wells Fargo is donating all gross processing fees from the Paycheck Protection Program to nonprofits helping small businesses recover from the impacts of COVID-19. The Open for Business Fund will help small business owners keep their doors open, retain employees, and rebuild. The first wave of grants is aimed at empowering Black and African American-owned small businesses. Learn more about the Open for Business Fund: stories.wf.com/helping-entrepreneurs-stay-open-for-business

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New Age and Traditional Banking Converge for Washingtonians By Lindiwe Vilakazi WI Staff Writer Traditional brick and mortar banking systems are gradually falling to the wayside amid an uncertain COVID-19 landscape. Particularly among millennials, the greater use of mobile banking activity opposed to traditional banking platforms separates them from their Generation Z and Baby boomer counterparts. According to 2018 LeadsCon research, millennials were ten times more likely to coordinate borrowing transactions via peer-to-peer banking, compared to consumers 50 years and older. Simultaneously, 27 percent of these millennials have never visited a physical banking branch before. LeadsCon, the annual conference of marketing and business development firms, analyzes consumer behaviors – including banking to help insiders create best practices for those industries. “I feel like online banking is more versatile for online businesses actually, and I use it myself. I sell a lot of products online, and it’s just easier to collect money from different people using apps like Cash App, Venmo, and PayPal especially, and when you’re able to link them into your social media as well,” said 26-year-old D.C. music producer Tyrone Johnson. While millennials like Johnson have seemingly acquiesced to the modern luxuries and advancements of mobile banking opportunities, many baby boomers still find greater comfort in utilizing traditional banking institutions to manage finances. Some baby boomers who spoke with the Washington Informer said they associated visiting physical bank branches with a type of ‘ritual’ that kept them personally connected with the financial institutions, lenders, and associates with whom they entrusted their hard-earned money. “I’m old school; I still go to my branch for my banking needs like transfers, money orders, deposits, and other things,” said Tasha Braxton, a native Washingtonian baby boomer. “A few of my peers do use new age banking methods, but I have a lot more friends who still have those old, core values like myself.” Still, most Americans search for a happy median between shifting and new financial innovations and tradi-

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5 Lindiwe Vilakazi (Courtesy photo)

tional methods of doing business. Jermaine Wright, father of four and native Washingtonian, has learned to merge both traditional and new-aged banking habits into his financial habits, however, he still prefers original brick and mortar services. “It makes things a lot easier in terms of things like Cash App, and Zelle, but I also think it’s very risky too. I have only had Cash App for about 8 or 9 months, and I wouldn’t get one initially because I was sure of its security,” Wright said. “But now everyone uses these apps, so it kind of forces you to have some form of digital platform from which to manage financial transactions.” Digitized transactions have spilled over into in-store product accessibility, as the District has already seen the emergence of cash-less businesses – that only accept payment for goods and services through apps, credit and debit cards, or gift cards. “I actually think it’s ridiculous. If you want me to come into your store and purchase something, but you don’t have an option for me to pay cash, it impedes business and denies access. It makes no sense whatsoever,” Wright said. Millicent McDermott, 77, an Alexandria grandmother said the new technology has been a blessing as her mobility has lessened and the pandemic forced the temporary closure of several bank locations in her immediate area. Like Braxton, McDermott told the Informer she was hesitant about new financial innovations but found that her resistance was futile. “You could see the people in the grocery stores ready to beat me every time I pulled out my checkbook. They would hiss and suck their teeth

at me, and I didn’t really care because I felt in control of that checkbook,” McDermott said. “I didn’t want to push buttons and swipe a card. In hindsight, I was just being stubborn. Eventually the store stopped taking checks and they opened self-checkout lines to speed the process up, so I had no choice.” McDermott said fortunately a neighborhood store with senior hours afforded her time to try out her debit card when few people were in the store to make her feel anxious. After a few times, she became a pro at self-checkout and now cannot

imagine life with a checkbook. “I still write everything down in my checkbook to keep the balance sheet accurate, but innovation is our friend.

I can now check my balances online,” she said laughing. “I even deposited a check using my cellphone. I feel like one of these young folks now.” FS

DYK: Did You Know…? By Lee Ross WI Contributing Writer

According to Business Insider, U.S. mobile banking stats reveal that 89 percent of American bank account holders use mobile banking for account management. For 70 percent of them, mobile banking is the primary way of managing accounts.

Based on U.S. banking online data, Bank of America made history in 2001 as it became the first U.S. financial institution to gain more than 3 million online banking users. At the time, online banking customers accounted for 20 percent of its total client base. A recent U.S. internet banking survey by Consumer Affairs, revealed that only 20 percent of consumers would rather pay a visit to a physical bank location than do their business via digital channels. It also found that younger users turn to mobile banking features more than their older peers. Approximately 30 percent of consumers under the age of 54 use mobile payment services like Venmo and Apple Pay at least once a week, while only 12 percent of those older than 54 do the same.

Juniper Research noted that digital banking stats predict that the total number of online and mobile banking users will exceed 3.6 billion by 2024. Mobile and online banking growth are expected to experience a 54 percent increase compared to 2020.

Deloitte, the British multinational professional services network found that global online banking statistics reveal that 73 percent of customers use online banking channels at least once a month, compared to 59 percent who use mobile banking apps equally often. They also determined through their consumer banking data, that most account holders use either mobile (56 percent) or desktop (29 percent) banking platforms for balance inquiries.

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DCHFA Relaunches Mortgage Assistance Program to Provide COVID-19 Relief Submitted by DCHFA The District of Columbia Housing Finance Agency’s DC Mortgage Assistance Program (DC MAP) is now providing mortgage relief to homeowners affected by the COVID-19 pandemic. Helping Washingtonians maintain their status as homeowners is as important to the agency as creating new homeowners. As businesses in the Washington, D.C. region have had to close and/or reduce staff due to the effects of COVID-19, DCHFA recognized an opportunity to help D.C. residents remain in their homes. “DCHFA is committed to helping D.C. homeowners sustain during the COVID-19 pandemic,” said Christopher E. Donald, Interim Executive Director, DCHFA. “With more than 100 calls in the first couple weeks of re-launching the program, we saw just how great

the need for assistance is right now. Our goal at the agency is to help as many homeowners as possible.” Through DC MAP COVID-19, qualified borrowers can earn up to $5,000 in assistance per month for up to six months to put toward their mortgage. The assistance will be made to qualified homeowners in the form of a zero-interest recourse loan, secured by a deed of trust. Qualified borrowers must be applying for assistance on his or her primary residence and the residence must be located in the District of Columbia; must be current as of the March 1, 2020 payment; must be able to document income affected by COVID-19; must be the borrower on the home loan, not just a member of the household; and, must show proof that the borrower is not eligible for forbearance or other types of relief offered through the loan servicer. Mayor Muriel Bowser an-

nounced the relaunch of DC MAP in a press release in early August. “We know that for many DC families, keeping up with their monthly mortgage payments has been a tremendous struggle during these unprecedented times,” said Mayor Bowser in the release. “By repurposing this existing assistance program, we can provide homeowners with some peace of mind and help relieve some of the financial burden during this public health emergency.” DCHFA originally launched DC MAP in 2019 to provide assistance to furloughed federal government employees during the partial government shutdown. DC MAP was a pilot program designed to provide mortgage support during an unanticipated financial hardship. Through setting up this pilot, DCHFA created a defensive program structure that guided the development of the additional as-

sistance component encompassing COVID-19 and homeownership in the District. District homeowners seeking assistance through DC MAP COVID-19 should call 1-833429-0537 to begin the applica-

tion process. Questions regarding DC MAP COVID-19 relief can be emailed to DCMAP@dchfa. org. For more information about borrower requirements and loan terms, visit www.dchfa.org. FS

Are you a D.C. government employee interested in buying a home in the District? DC4ME provides D.C. government employees a first trust mortgage at a reduced interest rate. The rate comes with or without the option of three percent down payment assistance with a zero percent deferred subordinate loan. Learn more at www.dchfa.org/homeownership

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The Reverse Mortgage Insurance and Tax Payment Program (ReMIT) by the District of Columbia Housing Finance Agency allows qualified homeowners to receive up to $25,000 in financial assistance for delinquent property taxes, homeownerâ&#x20AC;&#x2122;s insurance, condominium fees/homeowners association fees and certain property related expenses paid by your Servicer that have put the homeowner at risk of foreclosure. To apply, contact Housing Counseling Services:

(202) 265-2255

For additional information or questions about the program email,

remit@dchfa.org.

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Office Equipment Bills Giving You The Blues? Money-Saving Tips To Get You Back In The Green By James Page During the COVID-19 pandemic, many have transitioned from the office to the home and adjusted to a new normal. This has left many businesses with underutilized office equipment. This effect is compounded when applied to churches, schools, and government-assisted programs where people would gather frequently in large numbers. This has caused some to wonder why they have to pay for equipment or services that they are not fully utilizing. Below are tips that can be applied to a business or organization of any size to save money. • Copier Machines - Refinance copier machine and downgrade to a smaller, less expensive machine with a lower interest

5 Page Global Founder and CEO James Page

rate. - Negotiate early buyout of the machine. This can be done by

Page Global™ has been in business for over 25 years and we are a leader in state-of-the-art office equipment in the Washington, Maryland, and Virginia area. We have a strong track record of high-performing machines and excellent customer service. All of our local technicians are certified and experienced with the latest equipment. Given our local presence, we are committed to being faster, simpler, and easier to do business with. We offer competitive pricing, price matching, and a 100% money-back guarantee if you are unsatisfied. Simply, Page Global™ helps organizations improve performance through a more efficient document management system.

calling your local authorized office equipment dealer. - Take advantage of the “early closeout” clause which can be negotiated by your equipment representative. Get reimbursed for the intrinsic value of the machine (25% - 50% full market value).

programs, architectural drawings, and more). - Be sure you are getting the lowest price. Some larger companies do not offer the best price per copy ($0.15 - $0.30) when compared to their local counterparts ($0.05 - $0.07).

• Maintenance and Supplies - Renegotiate current maintenance agreements. - Cancel all annual maintenance/service agreements and go on a “cost per copy” agreement. Sometimes called “pay as you go” plans. - Gather all supplies and offer them back to your supplier through a buyback program

Page Global is an AwardWinning industry provider of office solutions, strategic communications and information technology with capabilities to support businesses Nationwide. FS

This effect is compounded when applied to churches, schools, and government-assisted programs where people would gather frequently in large numbers. This has caused some to wonder why they have to pay for equipment or services that they are not fully utilizing.

• Printing - Outsource larger print/copy jobs (e.g., books, flyers, church

Page Global™ Certifications: • Minority-owned business (CBE) • Disabled veteran-owned business (DVOB) • GSA supply schedule (8a Certified)

65 Copier and Printer (split the caption)– Whether it is for home or office, today’s networked world demands document solutions with greater speed, power, and productivity

Call today for your free individualized assessment of your current equipment costs and ways to start saving money now. 202-296-7247 - www.PageGlobal.com

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THE POWER TO

make a difference At Bank of America, we help people accomplish the things that matter most to them. Helping businesses grow the right way. Supporting today’s entrepreneurs and tomorrow’s innovators. Standing by the ones who day in and day out are putting in the hard work to make things happen.

What would you like the power to do?®

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Identifying and Avoiding Online Student Loan Scams By A. Elisabeth Currie WI Staff Writer Under the COVID-19 pandemic, with increased unemployment in most every major US city, the stress of barely making or an inability to make student loan repayments is acutely felt nationwide. The US Bureau of Labor Statistics indicates, the national unemployment rate for December 2019 was 3.5 percent, in the District of Columbia it was 5 percent. As of August 2020, the national unemployment rate soared to 8.4 percent, and 8.5 percent in the District of Columbia. In the midst of the pandemic and rising joblessness, relentlessly aggressive and unscrupulous businesses prey on the fear and anxiety of student loan borrowers. “Hey this is Jack with the Student Loan Defense Center. It looks like we have on record that your federal student loans may be eligible to have the payment reduced, or possibly, even eliminated. So, give us a call back when you get a chance. We would be happy to see if you qualify.” After receiving four identical messages to the one above, curiosity got the best of me and I returned the call using the one phone number that was consistently left in each message. After all, everyone wants to eliminate their student loans. About 30 seconds and several automated messages into the call, I was transferred to Mason. Initially he was very polite but went straight in on asking for my full name and student loan details. In response I gave him only my first name and tried to get a sense of whether the Defense Center was affiliated with a government agency, did the Defense Center charge fees, and how they could possibly eliminate my debt. Unsurprisingly, Mason could not or would not answer any of my questions and after several tense minutes he wished me a “good day” and hung up. The Defense Center’s website offers an ebook of student loan repayment information on “Pay as You Earn”; “Income Based”;

5 A. Elizabeth Currie (Courtesy photo)

“Income Contingent”; and “Life Coaching,” services for $49.99. The Defense Center explicitly declares on its front web page, “We do not solicit anyone by phone.” According to the Better Business Bureau, the Student Loan Defense Center, advertises under an address in Cheyenne, Wyoming. However, they have been unable to confirm the existence of the Defense Center at this location. In addition, several complaints of phone harassment and incorrectly informing potential customers that the Defense Center is associated with the US government have been filed within the past months. Federal Student Aid, an office of the US Department of Education offers insight on how to recognize a potential scam and gives information on who you may contact to assist, free of charge, to consolidate and manage your student loans. First the most common practice, and how scammers make their money, is to ask for an upfront payment or for you to arrange to pay these business monthly fees. FSA advises, valid US Dep of Ed servicers never charge a fee. Scammers may request personal information such as your social security number, which may be used for further identity theft, or your FSA ID password. FSA instructs, the US Dep of Ed nor a valid loan service provider will not ask you for your FSA ID. Your FSA ID has legal binding, equal to your written signature. Do not give this password

to anyone or allow anyone to create this password for you. Another claim is to promise immediate loan forgiveness. FSA advises, “no one can promise immediate and total student loan forgiveness or cancellation. Most government forgiveness programs require many years of qualifying payments and/or qualifying employment in certain fields before loans can be forgiven.” USA Today reports that $1.6 trillion in student loan debt is owed, spread out among approximately 45 million American borrowers. In response on March 20, 2020 the White House declared a suspension on student loan repayments for loans held by the Department of Education and set the accruing interest rate to 0 percent. In August the Student Loan Payment Relief, the suspension of student loan repayments, was extended until December 31, 2020. For the remaining months of this year borrowers may breathe a small sigh of relief. But beginning January 1, 2021 be careful who you contact to manage your student loans. Federal Student Aid lists the following valid loan servicers for US Department of Education loans: CornerStone; FedLoan Servicing (PHEAA); Granite State

(GSMR); Great Lakes Educational Loan Services; HESC /Edfinancial; MOHELA; Navient; Nelnet; OSLA Servicing; ECSI; and the Default Resolution Group (also known as Maximus Federal Services). Contact your school’s financial aid office regarding the status of

your loans and for information regarding loans you may have that are not held by the US Department of Education. For assistance please call the Federal Student Aid Information Center on 1-800-433-3243 or visit their website https://studentaid.gov/ FS

In the midst of the

pandemic and rising

joblessness, relentlessly aggressive and

unscrupulous businesses prey on the fear and anxiety of student loan borrowers.

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Everything I Need to Know about Credit, I Learned from My Motorcycle By Maceo Clark You can learn a lot from being on two wheels. I’m not talking about “born-to-be-wild.” This is the mechanics of staying upright. Maneuvering to good credit, like riding a bike of any sort, comes with habits you can learn in order to own the road. Look where you want to go, not where you’re going. Any biker can tell you not to look at the handlebars. Look ahead and the body will guide the bike naturally. Likewise, don’t lose sight of where you want to be with credit wellness. Make goals --be it higher credit score, lower monthly payments, or saving for the future. Access a free credit report from www.annualcreditreport.com which will map out the road ahead. While this secure website doesn’t give a credit score, many financial institutions offer to provide the score as a courtesy, and apps exist that will do the same. A good credit score is generally 680-700 and above. A lower score doesn’t mean the end of the road; it can paint the starting line even if it means a delay in achieving goals. Don’t be afraid to get your hands dirty. Credit scores determine the rate lenders offer and whether a loan is extended at all. Scores make a big impact on car payments and auto insurance rates, with companies charging more for lower scores. Credit scores can even play a role in getting a job now that some companies use them as part of the hiring process. It doesn’t take a mechanic to fix credit. If you see a creditor has reported incorrect information, send a dispute letter to the credit bureau and to the company who initially made the error. Request the error

be removed and include supporting documentation. If the dispute results in a change to your score, the credit bureau must give you a free copy to review. There is no quick fix to improving credit. It takes time and effort. As always, keep an eye out for financial scams and never share your Social Security number with anyone other than a legitimate lender or financial institution. Be aware of others in traffic. The three big credit bureaus are certainly aware of you. Equifax, TransUnion, and Experian are collecting data on each payment made or missed, where you live, and whether you’ve filed for bankruptcy or been sued. They keep tabs on every credit inquiry. The more times you apply for new credit, the lower the score can go. Keeping balances under 50% of credit limit should be a given. To improve scores more quickly, pay down balances and maintain them at under 30% of the limit. Making the minimum payment each month is important but will not improve a credit score. Credit card offers can be too good to be true. Research a card before applying, as maybe the annual fee outweighs the potential rewards. Don’t slow down on the curves. Gravity demands that you maintain speed so the bike doesn’t come out from under you. Borrowing rates are at historic lows right now, resulting in lower monthly payments. Don’t be afraid to look into the many first-time home buyer programs the area offers. It’s also a good time to consider refinancing a home or vehicle. Lower monthly payments can shorten the trip to financial well-being. If slower speeds are needed fi-

nancially, what matters most are good payment history and lower outstanding debt. Start by paying off the smallest debt first, as a paid-in-full account will raise scores. Settle collections unless they are old and may soon cycle off the report. Don’t close old accounts– they show a history of credit worthiness even with a zero balance. Safety above all else. Remember that any loan you co-sign is just like you took the loan out yourself. Any and all missed payments will go on your credit report and will be included in any debt-to-income calculation for a loan application. Finally, enjoy the ride. The road can get bumpy but with a good

grip, you can embrace the challenge with an understanding of credit fundamentals. For credit and payment calculators, go to EagleBankCorp.com/mortgages. And for more detailed credit information, go to https://myhome.freddiemac.com/resources/ creditsmart.html. Maceo Clark NMLS# is a Senior Mortgage Banker at EagleBank NMLS# 440513, one of the largest community banks in the DC area. As a community lender, Maceo offers

expert knowledge of Affordable Housing and First-Time Home Buyer resources, as well as refinance services. Contact him at MClark@EagleBankCorp.com or 301-850-2655. EagleBank Residential Lending is not a credit counseling or financial advisement firm. This information is for educational purposes only and is not to be taken as guidelines or guarantees to improve your credit or financial situation or eligibility to secure a home loan. EagleBank is an Equal Housing Lender. FS

Let’s work together.

Mortgage bankers build community. EagleBank’s Residential Lending team offers competitive loan products and services, and options that answer the needs of Washington, DC’s home owners and buyers. Contact us to learn more.

Maceo Clark

Senior Mortgage Banker NMLS# 807001

301.850.2655

EagleBankCorp.com 202.292.1568 All loan applications are subject to credit and property approval. NMLS# 440513

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Recent & Recommended Books about New Age Banking By Lee Ross WI Staff Writer

Technology and traditional banking have forged a rather complimentary relationship since the 1990s when banking was defined by physical brick and mortar branch structures. In addition to the slow demise of tradition and regulation, wherein cash and checks were the central transaction currencies, a new generation of consumers have never seen a bank ledger and use digital methods for everything from money transfers and purchases, to depositing payroll checks. Here are a few texts that will help Informer readers navigate the new age of banking technology with ease. The Digital Banking Revolution, by Luigi Wewege Over the past decade financial service innovations have contributed to a completely new way in which customers can bank, threatening the status quo of traditional retail banks, and redefining a banking model which has been in place for generations. These new technological advancements have facilitated the rapid emergence of digital banking firms and FinTech companies, leading to established banks being forced to swiftly increase their pace of digital adoption to stay relevant and

stop mass client attrition to these agile financial start-ups. These threats come at an inopportune time for banks due to mature markets currently experiencing stagnant growth. This coupled with decreasing profit margins due to the competitive pricing of new entrants, and financial customer loyalty becoming ever increasingly more tenuous. Bankruption: How Community Banking Can Survive Fintech, by John Waupsh The discussion separates futurist thinking from today’s realities,

and dispels common myths surrounding the U.S. community banking model in order to shed light on the real challenges facing community banking institutions. It follows with clear solutions, proven strategies, and insight from experts across banking and fintech. All arguments are backed by massive amounts of data, and the companion website provides presentation-ready visualizations to help you kickstart change within your team. In the U.S. and around the globe, fintech companies and non-banks alike are creating streams of banking services that are interesting, elegant, and refreshing—and they’re winning the hearts and minds of early adopters. Not a onesize-fits-all approach, this book offers many different tactics for community banks and credit unions to compete and flourish in the new world. Bank 4.0: Banking Everywhere, Never at a Bank by Brett King The future of banking is already here — are you ready? Bank 4.0 explores the radical transformation already taking place in banking and

follows it to its logical conclusion. What will banking look like in 30 years? 50 years? The world’s best banks have been forced to adapt to changing consumer behaviors; regulators are rethinking friction, licensing and regulation; Fintech start-ups and tech giants are redefining how banking fits in the daily life of consumers. To survive, banks are having to develop new capabilities, new jobs and new skills. The future of banking is not just about new thinking around value stores, payment and credit utility — it’s embedded in voice-based smart assistants like Alexa and Siri and soon smart glasses which will guide you on daily spending and money decisions. The coming Bank 4.0 era is one where either your bank is embedded in your world via tech, or it no longer exists. Doing Digital: Lessons from Leaders by Chris Skinner There has been lots of discussion of digital and open banking, banking-

as-a-service, banking platforms, FinTech and TechFin and more over the past decade. This all indicates that we are in a decade of rapid cycle change that presents huge challenges and huge opportunities. Billion-dollar unicorns appear rapidly, whilst internet giants achieve global domination. How are banks dealing with these changes and are any banks showing leadership? Well yes, a few are. With all the gloom merchants saying that traditional banking is doomed, a few banks have made radical moves to adapt and survive. Chris Skinner, world-leading commentator on banking and technology, has selected five of those banks—JPMorgan Chase (USA), BBVA and ING (Europe), and DBS and CMB (Asia)—to share their experiences. In detailed interviews, and with wide-ranging commentary, he has discovered the secrets of how not just adapt and survive, but how to thrive in this sea change of finance and technology. FS

Service. Convenience. Personal Touch. From the convenience of making a deposit from your mobile device to the personal touch of a one-on-one discussion, we’re proud to offer a wide array of quality banking products and services to help you reach your goals. We take pride in knowing the communities and people we serve, and tailoring our services to meet their needs.

Personal Banking Checking I Savings I Credit Cards I Lending

For more information, visit your local United Bank or reach us at 800.327.9862. BankWithUnited.com

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By the Numbers: Crypto-Mania! By Lee Ross WI Staff Writer A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation. The

highest cryptocurrency global market cap was estimated at $800 billion, in January 2018. This value is a market cap for all cryptocurrencies, according to the 2018 Finance Magnates global market report. Cryptocurrencies are volatile and change at incredible rates. For instance, the global cryptocurrency market cap nearly halved and was $417 billion in February 2018. A cryptocurrency is a new form of digital asset based on a network that is distributed across a large number of computers. Despite its volatility, cryptocurrency may be here to stay. Here are a few things you should know, by the numbers.

This decentralized structure of cryptocurrency allows them to exist outside the control of governments and central authorities. Bitcoin remains the king of cryptocurrency, despite falling to 40.07% of the cryptocurrency market share in 2018. Bitcoin is synonymous with cryptocurrency, and it has always been the most lucrative of them all.

The word “cryptocurrency” is derived from the encryption techniques which are used to secure the network.

According to E-Crypto News, the market cap for all cryptocurrencies in June 2020 was higher than $271. 58 billion. Still, it was impossible to guess how much their value would explode over time.

Cryptocurrency market growth is guaranteed, and at a CAGR of 11.2 percent for the forecast period, it should reach the estimated numbers.

The popularity of crypto is booming, and with the integration of blockchain technology, the growth is imminent due to faster and safer transactions.

Blockchain statistics show that while the industry is still young and in development. The market grew approximately by a billion dollars every year (around one, two, and three billion, in total, in 2018, 2019, and 2020, respectively).

WE’LL ALWAYS STRIVE TO BE YOUR ADVOCATE. DAY IN, DAY OUT. Every day can bring changes, challenges and opportunities. Some are big, others small, but all of them can also alter your personal or business financial goals and priorities. What can make it all easier is a true financial partner. Someone who really listens, understands and then creates solutions with you, from managing your personal finances to running your business. That’s real banking for real life. And real business. Call 833.987.REAL or visit sandyspringbank.com/real. Looking to get more savvy with your money? Visit sandyspringbank.com/station.

P E R S O N A L

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I N S U R A N C E

M O R T G A G E

Member FDIC. Equal Housing Lender. Sandy Spring Bank NMLS # 406382. Wealth and Insurance products are not FDIC insured, not guaranteed, and may lose value. Sandy Spring Bank and the SSB logo are registered trademarks of Sandy Spring Bank. Real banking for real life.SM © 2020 Sandy Spring Bank. All rights reserved.

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