SafeAmerica Credit Union

advance planning

• By Lisa

Back-to-School on a Budget: 10 Ways to Shop Smart

While America’s students aren’t strolling into math class quite yet, here are some numbers to consider: school spending is expected to reach around $31.2 billion in 2023. Per child, that’s a cost of $597. Translation? Inflation has made back-to-school shopping a spendy venture.

If this gives you pause, don’t panic! Here are some simple ways you can save more this season.

1. Plan Ahead

Before you start shopping, jot down a list of the necessary items you need to purchase for the upcoming school year. Every student’s needs are unique, but some categories to consider are classroom supplies, clothing, electronics, and extracurricular materials. Having a spending list will help you estimate the costs involved and allocate your budget accordingly.

2. Set a Budget

Determine a maximum amount for your back-to-school shopping based on what you need, what you currently have in the bank, and your other expenses. It’s natural to overspend (anyone else experience nostalgia surges at the sight of pencil boxes?) but aim to stay within your budgetary limits so you aren’t surprised when it’s checkout time.

3. Do Your Research

Scope out back-to-school deals and compare prices across different retailers before making any purchases. Take advantage of sales and discounts, many of which happen shortly after school begins, in August and September. If you’re online shopping this year, do a little research on promo codes you may be able to use at checkout.

4. Prioritize Essentials

Identify the “must-haves” on your list and focus on purchasing those first, starting with the most expensive items (electronics, for example.) Knowing you’ve got the essentials covered will save you stress when it’s time to buy the remaining items on your list. You might find that you can stagger some of these other purchases and save up in the short term.

5. Use Cash

While credit cards allow us the convenience of shopping now and worrying later, it’s smart to use cash whenever possible. Not only will you have a clearer idea of what you’re spending as you go, but you’ll avoid having surprises on your statement balances with potentially high interest rates attached.

School Shopping

6. Get Thrifty

Dollar stores, teacher supply websites, and online community groups like OfferUp often offer new and gently used items at lower prices. And when it comes to items like clothes, lunch boxes, and clothing, consignment stores in your neighborhood could be a great budget-friendly alternative to big box retailers…vintage denim, anyone?

7. Involve Your Kids

The start of another school season offers an opportunity to teach your kids about the basics of budgeting. Depending on their age, you can enlist their help in creating lists and shopping. Remind them of your budget expectations and encourage them to make thoughtful choices. They’ll appreciate having some say in what they bring to school on day one, and they’ll gain some real-world context on money management—win win!

8. Scope Out Alternatives

Sometimes, there are less expensive alternatives to popular brands or items, especially when it comes to clothing and electronics. Explore store brands or generic options, which can be just as functional but cost significantly less. Reading product reviews can help reassure you that you’re not sacrificing quality where it actually counts.

9. Track Expenses

Keep track of your spending by saving receipts or maintaining a record of your purchases through a personal money management app—chances are you may have one you use already. This will help keep you accountable and allow you to review your expenses as you knock out your shopping list to ensure you’re staying within your budget.

10. Enlist Help

Need some guidance when it comes to mapping out school spending? Through our partners at GreenPath Financial Wellness, many of us aren’t just financial counselors, we’re parents juggling school costs, too. Check out their interactive budgeting worksheet and connect with GreenPath if you’d like to create a personalized plan that puts you (and your student) at the center.

This information is brought to you by our partner, GreenPath Financial Fitness

GreenPath financial Wellness

• By Lisa

Budgeting Basics For Purchasing Your First Car

If you’re purchasing your first car, this purchase represents an important milestone in your adult life. Owning a car gives you the freedom to travel as you please, but it also brings certain responsibilities. As a car owner, you’re tasked with tackling all the expenses associated with purchasing and maintaining your vehicle.

You can avoid unnecessary hassles and stress if you manage this endeavor in a structured and organized way. In other words: prepare a budget.

Here are some tips to consider as you put together a budget for purchasing your first car:

1. Set a Purchase Price

Your first step in making a car purchase involves deciding how much you’re willing to spend on your vehicle. Most car purchases involve financing. When going this route, a good rule of thumb is to set a loan payment that is no more than 20 percent of your monthly income. This will help ensure you have enough resources on hand to meet other financial obligations. One of the biggest factors of purchase price comes down to choosing between a new or used vehicle. New cars offer the benefit of having never been driven, and this will delay certain types of repairs. New cars also come with manufacturer warranties that protect you from repair expenses. These warranties vary from automaker to automaker. On the other hand, used cars are often a much more affordable choice. Most cars lose about 19 percent of their value to depreciation after just one year of ownership. This makes used cars a compelling alternative from a financial perspective. If purchasing a used model, it’s important to have a mechanic inspect the vehicle. Set aside roughly $100 (about the cost of an hour’s labor for a mechanic) to cover this inspection. Certified Pre-Owned (CPO) cars are used cars that have been thoroughly inspected and refurbished, and bring less repair risk than the average used car. Look for a CPO program that is backed by the manufacturer, since these CPO models come with manufacturer warranties.

2. Include Registration and Title Fees

Each state requires that a newly purchased vehicle be registered by its owner, and this registration comes with certain fees. The method of calculating these fees varies from state to state, and your local Department of Motor Vehicles or town office will be able to give you an idea of what these fees look like in your neck of the woods. Keep in mind that these fees can be quite significant, so they should not be an afterthought.

3. Consider Sales Tax

Most states collect statewide sales taxes, and the rate can climb as high as 7.5 percent. If you live in a state that collects sales taxes, you will be taxed on the total cost of your vehicle purchase, so it’s important to factor it into your budget calculations. If you finance the car from a dealership, chances are the taxes will be included in your monthly payment, but if you purchase the car from a private seller, you may have to pay them separately when you register your car.

4. Make Room for Car Insurance

Car insurance is required by law, but the minimum coverage required varies from state to state. Keep in mind that state minimums are often quite low, and they may not be enough to meet your needs in an accident. Consult with an insurance professional to get a sense of the coverage that best suits your needs. Your driving record and the neighborhood you live in will have an effect on the cost of your car insurance. Your insurance rate also hinges on the vehicle itself: In most cases, the lower a car’s price tag, the lower its insurance rate. As you weigh how much you can afford to pay in car insurance, keep in mind that you can reduce this financial burden by purchasing a less-expensive vehicle. As a member of SafeAmerica Credit Union, you have access to exclusive member-only pricing on auto insurance. Learn more >>

5. Put Aside Money for Maintenance and Repairs

Over time, your vehicle will suffer wear and tear, and parts will need to be replaced and repaired. You can stay ahead of these expenses by including them in your budget. The amount required for maintenance will depend on several factors. One is the age of the car. All other things being equal, the newer the car, the less money you’ll have to spend on maintenance. The cost of the car is another factor. An affordable hatchback will be cheaper to maintain than a costly luxury sedan, since the parts for these economy cars are less expensive. Data gathered by AAA reveals that the average annual cost of maintaining a vehicle stands at $766.50 per year, or about $64 per month.

Preparation Is Key

From a financial perspective, car ownership sometimes brings a few bumps in the road. Some expenses are easy to predict, while others may be more unexpected and unusual. However, with prescient financial planning, you’ll be ready for all outcomes.

Thinking of getting your first car? We're here to help. SafeAmerica Credit Union offers members competitive rates, flexible terms and tools & resources to help get you started.

Learn More about our auto Loans

This information is brought to you by our partner, GreenPath Financial Wellness

GreenPath Financial Wellness

• By Lisa

Sun’s Out, Funds Out: 10 Tips for Summer Spending

 

Summer is here! And while warmer months are a great time for outdoor fun and travel, they can also be a time of overspending (staycations, anyone??) To minimize financial stress, it’s a good idea to have a spending plan for your summer itinerary.

Trimming down on expenses doesn’t have to mean trimming down on good times. Here are ten tips for building a spending plan that will help you enjoy the season (without breaking the bank).

1. Build A Budget

Create an activities or vacation budget that allows you a big picture view of your current income and how much your activities will cost—if you’re road-tripping for example, what will you need to spend on lodging, tourist attractions, and meals?

2. Prioritize Activities

Make a list of the summer activities you want to do and prioritize them based on how important they are to you (and others, if you’re planning with friends or family.) This puts a financial focus on the activities that matter most and makes it less likely that you’ll be short on cash where it really counts.

Mission Peak Hiking Trail

3. Scout Freebies

Whether you’re staying local or hitting the road, there are often plenty of free summer activities you can take advantage of. Hiking, picnics, open air concerts, and spray parks are a few examples.

Sign up for local calendars or email newsletters that spotlight community happenings or, if you’re only in town for a little while, do some online sleuthing beforehand. City recreational websites are one place to start.

4. Find A Host

When deciding what plans you might make (or trips you might make) this summer, consider whether you have friends or family members who would be happy to play host or even swap homes with you if they’re also wanting a change of scenery.

Hotel and vacation rental costs typically comprise a sizeable percentage of travel expenses plus you have the added benefit of catching up with close ones.

5. Use Coupons And Discounts

Look for coupons and discounts for summer activities, such as amusement parks, museums, and water parks. You can often find discounts on online coupon sites or promo code sites and some businesses will advertise direct specials if you sign up for their newsletter or emails (you can always unsubscribe after you’ve taken advantage.) SafeAmerica Credit Union offers members exclusive discounts on select attractions. Learn more.

6. Plan Ahead

While last-minute excursions are exciting, you might want to consider some advance planning if saving money is a goal. Doing your research on hotel and flight discount periods, coupons, and park discounts—even what days of the week are ideal—requires some research on the front-end but could ultimately save you hundreds.

7. Save On Food

Summer’s warm weather makes creativity in dining even easier—packing picnics for a daytrip or a cooler full of food and drinks for longer trips can cut down considerably on dining costs (especially in larger metropolitan areas where restaurant dining can come with premium price tags).

8. Consider A Staycation

If airfare or even gas pump sticker shock has you second-guessing distant destinations this summer, an alternate approach could be a staycation at a hotel or vacation rental.

Be a tourist in your own town (is there a new hiking trail or restaurant you’ve been meaning to try but just haven’t gotten around to?) Changing up the scenery even locally—can be an affordable way to save money and still escape the house.

9. Use Cash

While it’s tempting to rely on credit cards when you’re on vacation and not wanting to worry about costs, this also creates a greater likelihood of overspending.

Decide what you’re willing to spend across categories and then set aside those amounts. Using cash instead of credit cards can help you stay on budget and help curb anxiety when you receive your next credit statement.

10. Explore Resources

If you’re getting ready to make summer plans and could use a little financial guidance, connect with us here at GreenPath. In addition to our interactive budgeting worksheet, you can also chat with Coach Lea who can offer tips on utilizing cash wisely, paying down debt and building better habits for summer and beyond.

This information brought to you by GreenPath Financial Wellness.

GreenPath financial wellness

• By Lisa

Share Certificate Vs. CD — What’s the Difference?

Share Certificate Vs. CD (Certificate of Deposit)

You may have heard these two terms used interchangeably, but do you know the differences between them?  Are they the same thing?  Is one better than the other?  Here’s everything you need to know when shopping around for a term savings account.

Both Share Certificates and CDs are a type of savings accounts with a set term and withdrawal restrictions. Typically, the longer your term commitment, the higher the dividend you’ll earn. If you have money sitting in a regular savings account (or under your mattress) that you won’t need for while, you can set that money in a Share Certificate or CD for a set term and receive a higher interest rate.  Plus, your funds are insured! More on that later.

How are they similar?

  • Both offer a variety of term options, depending on your financial timeline
  • Both are a longer term solution to earning more for your money
  • Both offer guaranteed returns
  • Both are insured

How are they different?

While these two types of accounts are widely similar, their difference is that Share Certificates are offered by credit unions and CDs are offered by banks. Because credit unions are not-for-profit, their profits are returned to their members/shareholders in the form of dividends (which are usually higher than banks because of their profit-sharing model).

Share Certificates CDs
Offered by credit unions Offered by banks
Pay in dividends Pay in interest
Insured by NCUA or private insurance Insured by FDIC

How Are These Accounts Insured?

Both accounts are insured at their respective financial institutions. Credit unions are either federally insured by the National Credit Union Administration (NCUA) up to $250,000 per depositor, or privately insured. SafeAmerica Credit Union is privately insured through American Share Insurance (ASI) up to $500,000 per account.

Banks are federally insured by FDIC up to $250,000 per depositor.

Let Your Money Work For You!

As a member of SafeAmerica Credit Union, you can take advantage of our competitive rates on all our share certificates, including our rate specials. Click below to view all of today’s rates and starting earning more today!

Share Certificates

• By Lisa

Smart Money Moves: Financial Action Items for High School Grads

Congratulations to the Class of ’23

It’s graduation season! For all you readers who will be donning caps and gowns soon (or for those who have a graduating family member) we’ve compiled some money management action items that can pave the path to future financial wellness. While everyone’s financial circumstances are unique, sometimes it helps in knowing where to start.

Build A Budget.

Creating a budget is the foundation of effective money management. Start by tracking your income and expenses for 30 days. Most finance apps provide a visual breakdown of spending trends with suggestions on where to save. One common budgeting method? Allocating 50% of your income towards necessities like rent, groceries, and transportation, 30% towards discretionary spending, and 20% towards saving. Depending on where you live, this rule may be challenging to follow. Consider your own financial picture and determine how you might include savings as a regular part of your budget.

Spend Mindfully.

While graduation is a season to celebrate (and you should!), this is a great time to practice mindful spending, especially if college–and the accompanying costs–are going to be part of your financial picture in the coming months. Differentiate between wants and needs and make an effort to only buy items you can afford to pay off promptly. This will help you avoid the accumulation of credit card debt in the future.

Set Up A Checking Account.

If you haven’t already crossed this one of your financial bucket list, graduation season is the perfect excuse to do so. Opening a checking account is the first big step towards financial independence and to open one you’ll just need a few things on hand:

  • Proof of mailing address
  • Your social security number
  • Government-issued ID (Like a passport or driver's license)

Important to note: You can open your own account once you turn 18. If you are under 18, you'll need to have a joint account with your parent or guardian or set up a high school account with your financial institution.

Research Loans.

If you’ve decided to pursue higher education, it literally pays to do your research when taking on student loans. Consider federal loan options first, as they often offer more favorable terms and interest rates. Take time to read the fine print on repayment options associated with your loans and create a plan to pay them off efficiently. Student loan obligations can lead to long-term financial burdens (not to mention personal stress), so your future self will be glad you did your homework!

Establish Healthy Credit.

Building a positive credit history early on lays the essential groundwork for solid financial health. Start by finding a credit card that fits your needs: do you value cash back rewards? A card with no annual fees? Consider using a secured credit card which requires an upfront cash deposit—usually equal to your credit limit—that you draw from when making purchases. Make payments on time and keep your balances low. Building good credit will benefit you when applying for loans, renting an apartment, or even securing certain job roles.

Shop Insurance.

Insurance is a crucial aspect of financial planning that many recent grads may overlook. Protect yourself and your assets by obtaining health insurance, renter’s insurance, or car insurance as needed. While it may seem like an additional expense, insurance provides a financial security buffer in case of accidents, illnesses, or property damage. Take the time to research and compare different insurance options to find coverage that suits your needs and budget.

Create An Emergency Fund.

As of this writing, more than 53% of Americans don’t have emergency savings. Building an emergency fund is a vital financial safety net. If possible, aim to save three months’ worth of living expenses in a separate savings account—and if this isn’t possible just yet, don’t sweat it! You can always start with smaller deposits. This fund will help protect you during unforeseen circumstances like medical emergencies and provide some peace of mind.

Embrace Financial Guidance.

Embracing independence is exciting and potentially nerve-wracking since the post-graduation period brings more financial burdens and considerations. Talking about money doesn’t have to be intimidating or loaded with jargon. Whether you need guidance on student loans or want to start chipping away at your money goals for the coming year, our empathetic team of counselors at GreenPath are NFCC-certified and excited to help make it happen.

Take Advantage Of Your Credit Union, SafeAmerica Credit Union!

We're here to help you unlock life's possibilities (including college). No matter where life takes you, we have the right product to help you get there. Credit unions aren't just for loans. We are a comprehensive financial institution that offers everything a bank does. Here's how you benefit:

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GreenPath Financial Wellness

• By Lisa

Thinking About Splurging On A Vacation Using Your Tax Refund?

It’s that time of year: Many who are receiving a tax refund are weighing what to do with it. Will you use your tax refund to plan for a summer getaway? Put it away for the holidays? Splurge? Spend? Save? GreenPath counselor Kathryn Bossler discusses the pros and cons of using your refund for a spring or summer getaway:

Is it okay to use your tax refund to pay for a vacation?  There is nothing necessarily wrong with using your tax refund to take a vacation but first ask yourself if the vacation is the best way to use your refund?  Many times, a vacation falls under the “wants” category of expenses, not the “needs”.

So, I would suggest taking time to review your entire financial situation before putting your refund towards a vacation.

What’s a better approach?  Ask yourself a few more questions:

  1. Do I have any high interest debt (credit cards, loans, etc.) that I need to pay off? 
  2. How much do I have in emergency savings? 
  3. What other major expenses are coming up and how will I pay for them? 
  4. Do I have money saved in case of a home repair, car repair, medical emergency? 
  5. Were there expenses last year that came up that I struggled to pay for or that I regretted not setting some of my refund dollars aside for?

If you decide that the refund is really better spent on paying down debt and saving for emergencies, consider reviewing your budget and work towards saving for that vacation out of your paycheck.

For example, if you want to take a vacation in August that will cost $2000, consider that $2000 by the number of paychecks that you will have until August and work to save that.

Even consider having funds go directly into a savings account specifically for a vacation.

How much of a tax refund should go towards debt and how much towards vacation ideally and how much towards savings?  This is really hard to answer.  The key here is that there needs to be a plan.  For example, if you do have debt, is there a clear plan to pay that debt off?  Do you have a system in place for building savings and are you sticking to it?  The vacation is something that needs to be considered, in relation to these other issues.

What’s the danger of splurging on a vacation with your tax refund?  The danger is that it could be a blown opportunity.  A tax refund can be used to really make a significant difference in someone’s entire financial situation.  It could be a way to make a major dent in credit card debt, or a way to be able to build some emergency savings that many struggle to build throughout the year with a paycheck.

So, take some time, weigh the pros and cons and see how you can put together a vacation plan wisely.

This information is brought to you by our partner, GreenPath Financial Wellness

GreenPath FInancial Wellness

• By Lisa

The Importance Of Keeping Your Apps Updated

Keeping Your Apps Updated

It happens to us all.  We’ve become more and more dependent on our smart phones and devices. The responsibility of owning one is nearly similar to that of owning a vehicle. While you won't be changing your spark plugs every 100,000 miles, you do need to update your operating system and apps to continuously keep your information safe and apps running smoothly.

Did you know that 82% of the United States' population owns a smart phone? That's 270 million people! And one of those people probably includes you.  That’s why we want to stress the importance of keeping your financial information secure with the latest app updates.  At SafeAmerica Credit Union, we’ve recently updated our mobile banking app with even more security and new app features.  Without an update to your app, those features don’t get pushed out to you.

Here Is Why You Should Keep Your Apps Updated:

  • Updating your app keeps your personal information protected by improving the security of your smart device. Having an outdated version allows for hackers to find areas which are vulnerable.
  • When enough users report the same encountered issue to their respective device's app store, developers will look to immediately eliminate and introduce a bug fix to keep their app user's happy.
  • The older an app is and the longer it has gone without updates will typically result in the same app running at a much slower pace. Updating your app will immediately improve it's performance, meaning faster load times. 
  • Over time developers notice what does and does not work for their user base. From tools that make accessing information much easier, to an updated design, new features are always a nice change of scenery.

Here Is What iPhone and Android Users Can Do — Set it And Forget It

Both Apple and Android recommend turning on your "Automatic Updates" in your system and app store settings. When app developers release updates, they are patching different vulnerabilities to protect users from security threats. Think of this similarly to vehicle recalls, but the "fix" happens rather quickly and through an internet connection.

  • Go to Settings.
  • Tap App Store.
  • Turn on or turn off App Updates.
  • Open the Google Play Store app .
  • At the top right, tap the profile icon.
  • Tap Settings  Network Preferences  Auto-update apps.

Select an option:

  • Over any network to update apps using either Wi-Fi or mobile data.
  • Over Wi-Fi only to update apps only when connected to Wi-Fi.

Helpful Links and Sources

Cybercrime Numbers From Around The World.

Total Apple Users In the USA

Apple Security Vulnerability

Android Security Vulnerability Bulletin

Android Security Vulnerability Article

5 Reasons To Keep Your Apps Updated 

Glue and Tap ATM Card Scam

• By Lisa

Steps To Take To Figure Out Your Finances

According to most definitions, the term financial literacy refers to understanding how to effectively manage household finances, handle debt, create a budget, and build savings.

Working toward financial literacy is the foundation of your relationship with money and can set you up for a lifetime of financial health and wellness.

As a trusted national nonprofit, GreenPath Financial Wellness can be part of your lifelong journey to financial literacy, especially in the areas of managing personal finances, budgeting, saving, and managing debt.

Figuring Out Your Finances – Part of Financial Literacy

A situation we see here at GreenPath Financial Wellness when we talk to clients – a gradual increase in credit card debt balances over time with high-interest rates and the ability to make only low minimum payments each month.

A recent client shared with GreenPath about her journey to overwhelming credit card debt. After moving to a new home, she faced expensive purchases such as window blinds, new kitchen appliances, bathroom fixtures and other essentials. She used both her bank-issued credit card and a store credit card to make the purchases. Unfortunately, she experienced a sudden drop in household income during this time, and on top of it all, had to replace a faulty water heater – so it was a quick journey to maxed out, high interest credit card balances.

Many of us can see ourselves in this situation. Perhaps your cards are maxed out, and you are experiencing calls from collection agencies.

The average credit card interest rate is 16.04% according to Creditcards.com. A recent study has shown that about 23% of existing credit cardholders have added to their current debt because of the pandemic.

For people utilizing credit more and having problems making payments or meeting the minimum payments on credit cards, a high balance and accruing interest make it more difficult to get out of debt.

Start Here to Figure Out Your Finances

Figuring out your finances can be tricky. While each person’s situation is different, some steps to take to figure out your finances include:

  • Monitor your bills regularly. If your creditor has granted a payment deferment or waived fees, interest could still be accruing. Annual fees could also still apply. It pays to examine each creditor’s terms and fees, to understand where to start paying down first.
  • Monitor your credit report to ensure your credit history is accurate. Studies show 1 in 3 Americans never check their credit report yet knowing credit history is key to financial literacy.  Regularly monitoring your credit can alert you to errors, protect you from fraud, and provide you important information to strengthen your credit score. GreenPath’s NFCC-certified credit counselors can walk you through a free review of your credit report. You’ll understand how to read your report and how credit scoring works.
  • Pay attention to interest rates. If you must utilize credit, try to use credit cards with low interest. Or request a reduction in your interest rate as a hardship option. Not sure how to open the conversation? GreenPath’s caring counselors can help you plan to connect with your creditors for the best options.
  • Take action. Don’t ignore the problem! Don’t delay in speaking to your creditors to see what hardship assistance programs are available.
  • Review your income and your expenses. Set a simple spending plan. It can be eye-opening when you start to track how much you spend on essential things, like bills, rent/mortgage, and food. A simple budget helps you stay on top of what you are spending. It also shows your progress in setting aside money to manage debt payments.
  • Don’t do it alone. Having a fresh set of eyes to review your situation is never a bad idea. Talk to a trusted national nonprofit like GreenPath, who can contact your creditors with you, and ensure you understand your options.

Your Total Financial Picture

For those facing financial challenges, credit cards are typically only part of the picture.

Counselors can help focus on your total financial situation and make a personalized plan to address the debt moving forward.  Having a clear strategy for handling your credit card debt can help you feel more in control of the situation and reduce stress.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.
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