SafeAmerica Credit Union

Achieve their goals

• By Kevin Alvarez

America Saves Week – Save for the Unexpected

The Coronavirus pandemic has made saving a priority for most Americans, especially those most vulnerable with low to moderate earnings. In fact, a recent study by Edelman Financial Engines, in conjunction with America Saves and the Bipartisan Policy Center, found that:

  • 40% of working Americans report they had difficulty paying for a personal expense in 2020.
  • 1 in 3 working Americans say they would run out of savings on hand in 1 month or less if their income suddenly stopped.
  • Nearly 1 in 2 working Americans (45%) would have difficulty paying for a $400 emergency expense, meaning they say they would not cover it with savings or put it on their credit card and pay it off at the next statement; 11% say they would be unable to come up with the money.

While saving provides us with a much-needed financial cushion, it also helps ease the emotional burden of worrying about what’s around the corner.

Save for Opportunities

Day Two of America Saves Week encourages us to save for the unexpected. While saving for emergencies is always a much discussed topic in personal finances, here’s something that’s not as widely discussed: saving for opportunities.

If you are in the position to save, you’re not only saving for an unexpected car repair, medical bill, or appliance breaking down — you’re also saving for the last minute dinner invite with friends and family, the concert for your favorite artist, or the ability to grab a birthday gift for your child’s classmate.

Today we want you to consider reframing saving for the “dreaded emergency,” and recognize that you’re also saving for fun and positive opportunities! Doesn’t it feel better to contribute to an OPPORTUNITY FUND vs. an EMERGENCY FUND?

If you haven’t, we encourage you to take the America Saves Pledge. After making your new savings plan, you’ll receive support, reminders, and tips from America Saves that will help keep you on track towards achieving your goal.

Make the Pledge

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• By Kevin Alvarez

How To Raise Financially Healthy Kids

Information brought to you by our partner, GreenPath Financial Wellness

As a parent, you may be wondering what type of conversations you may begin to have in order to develop financially healthy kids. Coming out of the unprecedented year we all endured, it may serve as a good opportunity to begin sharing valuable life-lessons about money.

Here are some tips that will show you how to raise financially healthy kids.

Talk About Money

Let’s change the narrative around money.  You can introduce the concept of money to your kids at an early age.  As your children grow, continue to deepen the conversation and help them understand the concepts of money.

If you're unsure of where to start, you can also ask a trusted friend or family member to have these conversations with your kids.  It’s also ok to let your kids know that you don’t have it all figured out.  Explain the things you’ve done and what you would or wouldn’t do again and why.  Sharing is how we learn!

Involve Your Kids in Major Purchases

Deciding where to go on vacation?  Buying a new appliance?  Include your kids in the process. They can help with the research.  You can show them the factors that go into making the decision.  You can help them compare the options before making the purchase.  Even better, allow your kids to pay for the major purchase.  Imagine how your children will feel knowing they did the research to make the best decision for the entire family.

Teach Your Children Math and Money

Most people don’t learn about budgeting until it’s too late.  Imagine what the future will look like for your children, if you teach them the value of savings today.  Show them how compounding interest works. When you go to the store, could you give your kids a $10 bill and ask them to purchase part of the grocery list?  When could you teach your children about credit?  Could you educate them about how credit cards work before they go to college?

Teach Your Children to Record Their Spending and Saving

Remember the main reason for teaching our children about how to track their spending is to allow them to better understand where their money goes.  More importantly, this allows our children to successfully handle their money and achieve their goals.

Don’t worry, teaching your kids about money doesn’t have to be a daunting task.  If you’re like most people, the hardest thing to do is to start the conversation.  We are here to help.  Share these posts with them, discuss the articles on GreenPath’s site or simply reach out to us for ideas.

GreenPath

SafeAmerica's Youth Program

Set up your children for financial success! Learn about our Youth Program and implement tips from this blog to jumpstart your children with healthy financial habits.

For more financial tips and education, visit GreenPath Financial Wellness.

Youth Program