Participants: Cordell Thomas
Series Code: TITTB
Program Code: TITTB000039
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00:01 On Take It To The Bank,
00:02 you'll find ways to get out of debt... 00:09 ..solve your credit card problems, 00:14 how to make and stick with the budget, 00:19 simple ways to save, 00:24 buying or selling a home 00:27 and many more financial matters on Take It To The Bank. 00:31 Hi. My name is Cordell Thomas 00:32 and welcome back to this program 00:34 called Take It To The Bank. 00:36 I'm really excited to talk to you today 00:38 because it's about an important topic 00:39 that we all should be very, very aware of. 00:43 The context is the targeted demographic. 00:46 You as an individual, 00:49 you have been targeted 00:51 in many different forms and formats. 00:54 I can recall some information I came across 00:57 about how the media targets you as a group. 01:00 Now that group could mean 01:01 you're targeted as where you buy, 01:03 what you do, what your income level is. 01:06 And it could be a variety of different things 01:08 that you're not even quite aware of 01:10 because they have all of this data 01:12 that's being collected about you. 01:14 But the interesting thing about what was said was in fact, 01:17 that this whole thing on media 01:19 and what they're trying to do through advertising 01:22 is to manipulate you 01:24 and they will say it straightforwardly, 01:26 "We want to get you to do what we want you to do." 01:29 And it's quite interesting 01:30 because it appears that they have been successful. 01:32 Since 1984, the regulation of advertising industry, 01:37 we've seen a parallel 01:38 between the amount of personal savings 01:40 and the amount of, of expenditures 01:44 that those individuals who have been impacted 01:46 by the advertising have actually done. 01:48 So out of pocket, we've seen people's savings 01:51 drop precipitously from 1984 to 2006 01:55 of which it's dropped continually 01:57 to a negative savings rate. 01:58 And negative savings rate 02:00 which means we're spending more than we actually bring in, 02:04 which is very interesting because this game 02:06 that they think of is something you should be aware of. 02:10 Everything that you do, 02:12 wherever you go, whatever you transact, 02:15 unless you pay for it via cash, 02:19 your information is being logged somewhere. 02:22 So if you use your credit card, 02:24 people can track certain type of behavior patterns. 02:28 If you sign a warranty card, people get a pretty good idea 02:32 of who you are as an individual 02:34 and there are some very interesting 02:36 as well as devastating stories about people 02:39 who shared so much information about their personal lives 02:42 and they are not in touch with those 02:45 or don't realize those people 02:47 who are actually reviewing the data and the information. 02:51 We have gift cards, you have cards for specific stores 02:56 that you can, uh, reduced prices or discounts. 02:58 And don't be misled 03:00 because they try to make it or paint it 03:03 as a service to you. 03:06 It's not about what you have and what you do 03:10 because it's never kept private. 03:11 Those companies are looking for specific information 03:16 regardless of if they say 03:19 we're going to give a warranty to cover your product, 03:21 regardless of if they say, 03:23 we're going to give you a discounted price, 03:25 regardless of what they say, 03:27 we're going to give you a benefit 03:29 for signing up with our organization or corporation, 03:33 they have your information in their targets. 03:36 All they want is access to your data, 03:39 where you live, how much money you make, 03:42 are you married, how many kids do you have, 03:45 what's the level of affluence of your community. 03:47 They need this data so they can begin to track you 03:50 and begin to find tune their ads toward you 03:54 as an individual. 03:56 When they talk about consumer confidence, 03:58 when they talk about, um, how people are spending, 04:01 they begin to paint a picture and use terminology 04:06 that may tend to mislead you as an individual. 04:08 Consumer confidence means that I feel comfortable 04:12 with what's going on in the economy 04:14 so I feel now that I can go out and spend. 04:17 That's not consumer confidence, 04:19 that's actually buying into 04:21 what they're actually telling you. 04:23 Go and buy, buy, buy and we, as consumers, 04:27 have fit right into that overall mentality 04:30 that what they tell us to do, we will do. 04:34 You need to understand that this whole dynamic 04:37 is to track the patterns 04:39 that we have in our expenditures 04:41 and they can begin to predict behavior. 04:43 Did you hear about the next big thing? 04:46 What was that? 04:47 Well, it was an article that I had seen 04:50 that talked about credit card companies. 04:53 They know based on your buying patterns 04:56 what's going on in your life. 04:58 They can put together specifics and connect the dots. 05:02 In fact, the next big area that you can go into for employment 05:06 is being able to write programs for companies 05:09 that can bring together 05:11 all of this different type of data 05:13 and begin in track your specific behavior patterns 05:17 and give you a preview 05:19 of what can be going on in your life. 05:21 For example, what if they looked at you 05:25 and your buying habits? 05:26 They contacted your credit card company 05:28 and the credit card company said something like this, 05:30 "Well, we've noticed that he lives in this city 05:33 but he has a home in the suburbs 05:36 but he seems to be purchasing more hotel stays." 05:39 "He's buying more flowers 05:41 which seems out of the ordinary." 05:43 Or the fact that he has just begun a new gym membership. 05:46 They are going to tie together that information 05:48 because this new change in your behavior patterns 05:52 and your purchase habits tells us 05:54 that something is going on in your life. 05:57 And it could mean that this individual now 06:00 from a predictive standpoint is headed for divorce. 06:03 What if they saw the fact 06:08 that you are on a social network 06:10 and you love to give people updates 06:12 on a every 15, 20 minutes, 06:14 the fact that you're living online 06:15 and doing a lot of social networking. 06:18 And then all of a sudden 06:19 over the course of the next couple of days, 06:21 that type of behavior drops off of substantively? 06:24 There are couple of things that, that could go in there. 06:27 They would know things like, 06:29 well, this individual has diabetes. 06:31 How do they know that? 06:33 That information may have been shared 06:34 through their, their insurance company 06:36 or their medical doctor. 06:39 That information is out there, 06:41 it may not be tied to a name but they have an idea, 06:43 this individual may have a certain type of illness 06:45 that may predict that he may be going through something 06:49 and we need to trigger an alert. 06:52 What if you see certain other elements 06:55 such as, you know, this individual took a debit card 06:58 and he started charging certain things 07:00 like diapers and razor blades and champagne? 07:03 What is it telling you 07:04 from the standpoint of predictive behavior? 07:06 Well, it can tell you 07:08 that this person probably stole the card 07:11 because several things are at play here. 07:15 If you are buying via debit card or credit card, 07:19 things like diapers or things like champagne 07:22 or those type of things, 07:23 it tells you that the champagne 07:25 and the razor blades are easy to resell 07:28 and the diaper seems to, to help the counter person 07:33 who is selling to you feel a little softer to you 07:35 thinking that, "Oh, he's in a rush to go home to his baby." 07:38 Those kind of things happen and it causes people to hold on 07:43 and begin to predict certain things 07:44 and it's actually kind of good 07:46 because this type of predictive behavior 07:48 triggers an alert to your credit card company 07:51 wherein you get these call saying, 07:53 "Hi, Mr. Thomas. 07:54 We know that you don't typically go to Palm Springs 07:58 but we have seen certain type of behavior on your credit card 08:03 and want to ensure that 08:04 you are actually in Palm Springs 08:06 making that purchase." 08:08 These things are actually going on. 08:10 And the more information that's being collected, 08:12 the more information that there is about you, 08:15 when you take a look at all of the information 08:17 that you need to be aware of, 08:19 you have to also understand 08:20 that wherever that data is being provided, 08:24 you have to opt out of those companies 08:28 allowing your information to be sold 08:31 and that's how they make their money. 08:34 It's quite interesting when you look at 08:36 how that information is used and why you are targeted. 08:41 It's all about information and they're trying to gain more 08:45 and more of those details. 08:48 So you, as a demographic are targeted so much 08:52 so that you have no idea 08:54 how much information is actually out there about you. 08:58 There are certain websites 08:59 that have actually been spawned by that, 09:01 that you can actually sign up with where you can go in 09:04 and put your name, certain information and say, 09:06 "Could you trigger an alert to me 09:08 if certain information of mine is actually out there 09:11 on the net in a negative perspective?" 09:13 And they can actually help you clear that information out. 09:16 You need to know about these things 09:18 because not only is your, your smartphone, 09:22 um, information being sold 09:24 but also your landline information, 09:26 as well as medical information, 09:28 as well as so many other bits of information 09:31 that, that tells us that we need to be 09:33 very, very vigilant 09:35 about how we protect our information 09:37 and what we need to do to keep our families 09:40 and our personal data safe. 09:44 There is an interesting verse in the Bible 09:48 that I just came across 09:49 and I think it's quite interesting 09:51 because when we look at this area called consumerism, 09:55 we get this perspective that we as targets are actually, 10:00 um, very good targets 10:03 because we are capitulating to the behavior 10:06 they want us to do. 10:08 We are consuming at a large degree 10:11 and we lose sight of the fact 10:13 that we should be planning for the future 10:16 and we should be happy with where we are at. 10:19 We should be content of what's going on in our lives 10:22 and use those, those assets, those things 10:26 that God has given us to build a future 10:28 in whatever way we possibly can. 10:31 That verse is in 1Timothy 6:6 and the verse starts out with, 10:36 godliness with contentment is great. 10:39 Actually to quote the verse, it says, 10:42 "But godliness with contentment is great gain. 10:46 For we brought nothing into the world, 10:48 and we can take nothing out of it. 10:50 But if we have food and clothing, 10:52 we will be content with that. 10:55 People who want to get rich fall into temptation and a trap 10:59 and into many foolish and harmful desires 11:02 that plunge people into ruin and destruction. 11:04 For the love of money is a root of all kinds of evil. 11:08 Some people, eager for money, 11:11 have wandered from the faith 11:12 and pierced themselves with many gods." 11:14 Small g, gods. 11:16 It's a relevant verse. 11:19 Be content with where you are at. 11:21 Be vigilant. Save your money. Plan for the future. 11:24 Do the things God would have you do with it 11:27 and wait on Him. 11:28 Wealth is a wonderful thing. Many of us search for wealth. 11:33 We follow what the media tells us to follow. 11:36 We follow the individuals in the media 11:39 and what they wear, what they do, the next big car. 11:42 And we don't necessarily have to do so. 11:44 Do you really need a new car? 11:46 Do you really need that bigger house 11:48 because you had the promotion at work? 11:50 Be thankful for the promotion, 11:52 be thankful for that extra money 11:54 because with that extra money, you can do great things for God 11:58 if you're content with where you are at. 12:02 There are many wealthy people in this world 12:04 that don't make more than $60,000 a year. 12:07 There are many wealthy people 12:09 and content people in this world 12:10 because they haven't bought off on this apple 12:14 that the world has given them 12:15 that buying things makes you happy. 12:18 When you see those stories on, 12:20 in the media and on the Internet 12:23 about the fact that the economy is growing, 12:25 people are, are, are, um, encouraged 12:30 by what's going on in the economy 12:32 and now they're going out 12:34 and using their savings and spending more. 12:37 You begin to get a context that this thing is beyond us 12:41 and many people in this world are hurting. 12:43 The prime reason I talk about that 12:46 is did you know of some of the studies 12:48 that are out there about happiness? 12:50 Happiness has nothing to do with what you have. 12:53 In fact, one article talks about 12:55 happiness comes with respect, not wealth. 12:59 Happiness comes from knowing that you're something 13:02 and creating a legacy, not having a lot of money. 13:07 And then you begin to understand 13:09 that you as an individual, 13:10 have to make those decisions on an on-going basis 13:13 about what you need. 13:14 The Bible says that if you have food on the table, 13:17 if you have a roof over your head, 13:19 you should be very content 13:21 to know that God has blessed you with these things 13:23 but hey, when I came into this world, 13:26 I had nothing, so you have a little bit right now. 13:28 And when you leave this world, 13:30 you are not going to have anything either. 13:31 So the 70 to 80 years 13:34 that Psalms 90 actually talks about, says, 13:37 "Help us to number these days that we have, 13:40 so that we can gain wisdom." 13:43 So now, who are you as a demographic? 13:45 And they have labeled different groups 13:48 and I would like to give you 13:49 context of what that actually is. 13:52 When you take a look at the I-generation, 13:55 which we just labeled right now, 13:57 I-generations are those young people 13:59 that were born post 2000 up until this point in time. 14:02 So they're probably between 12 and 13 years of age, 14:05 up to that age. 14:07 Now we're still trying to distinguish that group 14:09 because we don't know much about it. 14:11 This is still evolving on that young group 14:13 but what we do know is they are the only group 14:16 that have grown up in the Internet age 14:19 where they're completely surrounded 14:21 with this type of technology 14:23 and where they have parents who are relatively comfortable 14:26 with what the Internet Age is all about. 14:29 So these guys are completely connected. 14:32 As an individual that has I-generation young people, 14:35 I am completely aware of how they have accommodated 14:39 or have acclimated to this technology. 14:42 They can come to the, they know how to tap on apps, 14:45 they know how to do things. 14:46 I mean, I have this look on my face sometimes where, 14:50 how do I do this? 14:52 How do I, how do I access this thing? 14:54 And my son will come up. "Oh, Dad. It's just like this." 14:56 Boom, boom, boom, boom, boom. And it's done. 14:58 So I'm amazed at how they have just adapted to it 15:01 because that's all they've ever known. 15:05 And of course, you have the Gen Y generation. 15:07 These are called the Millennials 15:09 or Echo Boomers. 15:11 These are children of um, boomers 15:14 ages probably to 13 to 28, 13 to 32 15:18 depending on what type of study you look at. 15:20 The cause of the higher cost of living in some cases, 15:23 most of these kids have gone back 15:25 to live with their parents and of course, with the, um, 15:29 recession that we had in 2006 through 2008, 15:32 many of these young people may have been caught 15:35 in the recession losing their home 15:38 and trying to consolidate to make ends meet. 15:41 Now the fact that they're living with their parents, 15:42 I believe, um, a total amount 15:46 of 26 percent of these young people 15:48 are actually residing with their parents 15:51 which now tells us that this group of individuals 15:54 have access income to spend 15:56 and they are spending in unique ways. 15:59 But when you take a look at these Millennials individuals, 16:01 there's some other things that are going on with that. 16:04 For example, Millennials now are a targeted group 16:07 because people want to study them. 16:09 Not only are they moving up in corporate life, 16:13 they are also changing the dynamics 16:16 of how we utilize financial services. 16:20 For example, the story that came out back in 2010, 16:24 I believe it is, talks about 16:25 Millennials are using alternative financial services. 16:30 They are called underbanked, they are called individuals 16:33 who are using alternative sources 16:35 because of their lack of understanding of, of checks, 16:39 of banks, of financial services 16:42 and many of these individuals are called 16:45 the cash strapped 20-somethings. 16:47 There are many individuals that are involved 16:50 in this grouping 16:51 because they are the ones that are apt 16:53 to use payday loan centers. 16:55 And it's interesting when you go online 16:58 and look at some of these stories. 17:00 What I like to see is some of the responses 17:03 and the comments in those stories. 17:05 For example, here's one individual saying, 17:08 "After having my financial meltdown in 2008 and 2009, 17:12 my wife and I swore off banks. 17:15 We have a specific retailer debit card 17:19 that we used to pay bills with. 17:20 We don't have any credit cards anymore 17:22 and if we don't have any cash, then we don't buy the item." 17:26 They have learned a lesson 17:28 that without understanding the fact 17:32 that getting into debt is not the way 17:34 to go about doing things and because they've been there. 17:37 Once you've been there, once you've done that, 17:39 or once you have talked to someone 17:41 who's been through that situation, 17:42 you begin to understand 17:44 that it's a very difficult thing to get through 17:47 and many of those Millennials 17:49 are beginning to change their behavior patterns 17:51 and do certain things 17:53 so much so it has changed the way 17:57 that financial service organizations 17:59 are actually adapting to them. 18:01 For example, from a financial services' standpoint, 18:04 there are certain retailers 18:06 that have now developed certain product 18:08 for that type of client. 18:11 Did you know 18:13 that there are now these specific type of credit cards 18:16 associated with really good brand, organizations 18:21 and they have partnered with some of these major retailers 18:25 to have not only the debit card 18:28 and, or credit card associated with 18:31 linked into an account that they set up with this retailer. 18:34 Not into a specific bank system but so they have access 18:39 and they pay their bills with that card 18:41 so that card is their actual bank system 18:44 because they don't trust the banks like they used to. 18:48 I've heard stories of an individual coming to me 18:50 and telling me about his experience with a bank 18:54 coming in and saying, "I started a bank account. 18:56 They promised that the bank account was free. 18:59 And they didn't tell me 19:00 that there were these type of fees 19:03 that would be associated with it, 19:04 so I put some money into the account. 19:06 I didn't know that I had to keep 19:08 a specific balance in the account 19:10 and if I didn't have, 19:13 let's say $100 in the account and maintain that balance, 19:16 they would charge my account, um, some fees. 19:20 And I left the country because I went to do service for my, 19:25 my country and by the time I got back, 19:27 I found I had close to $400+ in fees 19:32 that I owed up and above the fact that my, 19:35 my, bank checking account had been over drafted 19:39 so many different times." 19:40 So it took a, a lot of time to get out of that debt 19:43 to pay back what need to be paid 19:45 because of misinformation that may have been given him 19:48 through the system 19:50 or the fact that he may not have understood 19:52 what he was signing up for um, at the bank. 19:55 And I'll tell you it's critical to understand 19:58 that what organizations tell you, 20:01 you need to study on your own to see if it's actually 20:04 viable information and if it's actually true. 20:07 There are a lot of fine print bits of information 20:11 that we tend lose sight of 20:13 and, and if we lose sight of those things 20:17 that we don't read, we're held responsible to it. 20:19 I constantly go back to the story 20:23 of when I was presenting to a group of youngsters 20:26 and I came into the room to talk to these kids 20:30 but before I could get up, there was a bank 20:33 that was up there talking to young people 20:35 and they came in and very calmly said, 20:38 "Look, we're going to give you 20:41 something that we don't give everyone. 20:43 We're going to give you access to a free checking account. 20:47 All we ask that you do is directly deposit your money 20:50 from your work right into account 20:52 and we'll manage your money for you. 20:54 Now there are couple of things that are there. 20:56 Banks are there to manage your money. 20:58 In fact, your funds up to $250,000 are, 21:02 is guaranteed and protected. 21:03 It's insured, so that if something happens, 21:06 you should be able to get up to $250,000 back 21:08 depending on how much money you have in that account. 21:12 So it's protected. 21:13 It's nothing perfect but it's supposedly protected, 21:16 which is true but when you put money in that account, 21:20 people tend to not realize 21:24 what actually happens to those funds. 21:26 Those funds are leverage. What is leverage? 21:28 The funds are actually used as kind of a collateral 21:32 to take those funds and reinvest 21:36 in other type of investment products. 21:39 So your money goes in, 21:41 they give one to two percent simple interest. 21:44 You are comfortable 21:45 that your money is gaining a little bit of value 21:47 while it's sitting in that account safe. 21:50 But they take that funds, leverage it and reinvest 21:54 so if you have, 21:55 you know, how many hundreds of thousands of customers 21:58 and that amount of money in the bank, 22:00 they turn around and they being a business 22:04 are in business to make money, 22:06 so they reinvest at a higher interest rate 22:09 upwards to 20 to 25 percent return on their investment. 22:12 But what is most important is this. 22:18 When you open a bank account, 22:21 be sure or whenever you go to any type of corporation 22:25 and try to do business with them, 22:27 try to realize this 22:28 that business is in business to do business 22:32 and that business is to make money. 22:35 So no matter what they tell you to make you feel good, 22:38 realize they are making money one way or the other. 22:42 And one of things I told those young people 22:45 as I got up after the banker left is this, 22:47 don't be mislead. 22:50 You signed up for a free checking account. 22:52 You put your money directly into that account 22:55 but I want you to read the fine print 22:58 but even before you read the fine print, realize this. 23:01 You guys are smart. 23:02 Each one of you young people have smartphones. 23:04 You have these tablet devices that can trigger alerts. 23:07 Use those apps appropriately. 23:10 Make sure you know what your bank account balance is. 23:14 And then there are few things 23:15 that you should be aware of with your bank 23:18 as you work out a strategy to manage your checking 23:22 because if in fact, you bounce a check 23:25 or have insufficient funds in your account, 23:27 they're going to charge you $35, 23:30 not just a one-time fee because however many days that, 23:34 that account stays delinquent within sufficient funds, 23:37 they will continue to charge again and again and again 23:41 until you bring that account even. 23:44 That's critical to know 23:46 because many of us don't stay in touch with our accounts. 23:48 We believe everything is okay 23:50 and like Cordell did way back in the day in his college days 23:53 before we had debit cards, 23:54 I'm, I'm dating myself but it, you had up in your head like, 23:59 um, I know I have about 24:01 this amount of money in the account, 24:03 so I should be okay to write the check. 24:05 Fortunately, I was accurate on most situations 24:08 but it only takes that one time 24:10 to change your behavior patterns 24:12 about how the bank system works. 24:14 Strategies that can include things like, 24:17 how do I handle overdraft situations? 24:19 The bank is going to tell you, "It's no problem, Mr. Thomas. 24:23 It was what we'll do. 24:24 What we can do is associate your savings account 24:27 to your checking account. 24:29 And if you have insufficient funds in your checking account, 24:31 what we'll just do is overdraft into your checking 24:35 and pull it into your, into your checking, 24:37 oh, into your saving account, 24:38 pull into your checking account and cover that cost." 24:42 But they will still charge you one overdraft fee. 24:46 They will still get some money out of that although, 24:50 when they transfer the funds then, 24:52 it will cover the account. 24:53 Did you know that if you say, 24:56 "Look, if there's no money in my account, 24:59 I don't want any money pulled out, um, 25:02 I don't want any type of transaction from my account." 25:07 If you don't want any transactions 25:09 from your account, you tell a bank that 25:11 and you write a check 25:13 and it goes through and no money in your account. 25:15 You're going to be charged an insufficient funds fee. 25:19 If you go to 25:20 a retail establishment and swipe your card, 25:23 what should happen is the bank should, 25:26 the card should be declined. 25:28 But there are always different things you need to think about 25:31 how the bank system works. 25:34 You need to ask 25:35 that individual who is opening up your account, 25:38 how does it work. 25:39 And this type of scenario, am I really that safe? 25:44 So I sit and think and look at the kids 25:47 and say, "Have you really ask that gentleman on the questions 25:50 that you are willing to ask?" 25:52 And these kids are smart. 25:53 They said, "No. We didn't ask that. 25:54 We didn't even know that." 25:56 And that's key 25:57 because if you don't know something, 25:59 you're going to be held responsible 26:02 for that type of behavior, 26:04 which is what many people are doing today. 26:07 They are filling out warranty cards 26:10 and providing personal information 26:12 that they don't necessarily have to provide. 26:15 They are getting caught up in this thing called 26:19 consumerism 26:21 and they are being "manipulated" 26:23 as a quote by the media and saying, 26:26 "We know how to increase sales at these retail establishments. 26:30 We know how to tell people 26:32 that they're valuable for the money that they spend. 26:35 We know how to get people to go out and do 26:38 what we want them to do." 26:40 And as I come to you today, 26:43 I ask you to reflect on that verse in 1 Timothy 6:6. 26:49 "Godliness with contentment is great gain." 26:52 You have everything when you're content 26:54 with what you have. 26:56 If you have food on your table, be happy. 26:59 If you have a roof over your head, be happy. 27:02 If you have what you need and you have a budget in place, 27:06 be very happy 27:08 because everybody wants you to do what they want you to do. 27:12 Control your life, control what you are doing. 27:15 Control your money. 27:16 Invest it, budget, save, put it in a place 27:21 that can do good things for other people 27:25 because that's what God wants you to do 27:28 and that's why He told you that. 27:31 "Teach us to number our days, so that we may gain wisdom." 27:35 Take that to the bank and save. 27:38 God bless you. |
Revised 2016-02-11