SafeAmerica Credit Union

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• By Lisa

Black History Month and Credit Unions

"We are truly living the people helping people motto. Credit unions are uniquely positioned to lead the United States in eradicating racism." - African-American Credit Union Coalition President and CEO, Renée Sattiewhite

"Credit unions were born out of adversity." - African-American Credit Union Coalition President and CEO, Renée Sattiewhite

"Diversity, equity and inclusion is not moment, it's a movement" - African-American Credit Union Coalition President and CEO, Renée Sattiewhite

The month of February brings awareness to Black History Month and allows the opportunity to learn and celebrate the culture and history of Black Americans. Did you know, credit unions have been fundamental with providing accessible financial resources to Black Americans throughout our nation’s history?

How It Started

In the early 1900’s, Alphonse Desjardins and his wife Doriméne Roy Desjardins provided the foundation for financial cooperatives to serve and assist underserved communities. The Desjardins’ were also vital in forming the first North American credit union in Manchester, New Hampshire, where they also provided financial guidance to immigrant mill workers from the area and shared the benefit of banking with a credit union.

On March 3, 1909, the Desjardins’ formally assisted Massachusetts banking Commissioner, Pierre Jay, to draft a bill to incorporate credit unions in the state. On April 15, 1909 with the support of the Boston Merchants Association and the Senate Banking Committee, the Massachusetts Credit Union Act became law and was defined as “A Cooperative Association formed for the purpose of promoting thrift among its members.”

By the 1920’s , the first set of credit unions began to provide lending opportunities to Black American communities and urban groups of farmers, educating them and improving the financial lives of those in the communities.

Influential Black Americans and Accessible Financial Institutions

Despite the success of establishing accessible financial resources and services for all, racial injustice was an obstacle in the path of healthy expansion and growth of the credit union movement.

In 1955 the Montgomery Improvement Association (MIA) was created to manage the successful campaign of the Montgomery Bus boycott. Under the leadership of Martin Luther King Jr., Edgar Nixon and Ralph Abernathy, the MIA applied with the federal government to become a federal charter for a credit union. However, the application was rejected due to the association’s field of membership being too broad.

Once the 1960’s arrived, President Lyndon B. Johnson and his administration formed the “Great Society Initiative” with the goal to eliminate poverty and racial injustice in the United States. This initiative led to the formation of credit unions’ in low-income areas, predominantly in Black neighborhoods along with the formation of numerous banks and credit unions owned by Black Americans. This broke down barriers in terms of encouraging Black Americans to purchase homes, create businesses and establish lines of credit.

The Modern Age - Where We Are Now

The philosophy of people helping people has been and remains an important part of the credit union movement.

In 1999, the African American Credit Union Coalition (AACUC) was created to increase the strength of the global credit union community. They are a non-profit organization of African-American Professionals and volunteers in the credit union industry whose mission is to increase diversity within the credit union community through advocacy and professional development.

Black Americans continue to have a strong influence in the world of finance with leaders in the National Credit Union Foundation (NCUF), World Council of Credit Unions and Credit Union National Association (CUNA), all serving with the purpose of creating a financial community of People Helping People. Black history month offers us all the opportunity to learn and celebrate the many contributions of the black community.

To learn more, get involved or make a donation to commit to change click below:

African American Credit Union Coalition

• By Lisa

Pay Off Your Debt

Information brought to you by our partner, GreenPath Financial Wellness

If you are dealing with debt, you aren’t alone. The average American household has an average balance of about $6,600 in credit card debt,  and that’s not taking into account home, auto, and student loans. Paying off your debt isn’t always easy, but having a plan can go a long way in achieving your financial goals.

Two of the most popular strategies for paying off debt on your own are the snowball method and the avalanche method. Both methods require making the minimum monthly payments on all but one debt, which you put extra money towards.

The Snowball Method

With the snowball method, you begin by paying off your smallest debt first. This method creates a sense of motivation and accomplishment from being able to pay off smaller bills at a higher frequency.

How it Works

Let’s say you have the following debts:

  • Credit Card A: $3,500, 17.99% APR
  • Credit Card B: $7,500, 15.00% APR
  • Personal Loan: $1,000, 10.05% APR

Using the snowball method, you would pay the minimum monthly payments to the credit card debts, and pay any extra that you can to the personal loan until it is paid off. You would then apply the extra payments to Credit Card A until it is paid in full.

Pros and Cons

With the snowball method, you are able to see progress faster. Quick wins can help you stay motivated to keep going. However, with this approach, it will take you longer to pay off your largest debts—and those are often the ones that carry the highest interest, so you’ll likely end up paying more overall.

The Avalanche Method

The avalanche method takes into account the fact that high-interest debts cost you the most money over time. Using the avalanche method, you pay off your highest interest debts first.

How it Works

Let’s look at the same scenario as above.

  • Credit Card A: $3,500, 17.99% APR
  • Credit Card B: $7,500, 15.00% APR
  • Personal Loan: $1,000, 10.05% APR

With the avalanche method, you’d pay the minimum monthly payment on Credit Card B and the Personal Loan, and pay extra towards Credit Card A, since it has the highest interest rate. Once it was paid off, you’d move on to Credit Card B.

Pros and Cons

This is the fastest way to eliminate debt and save on interest payments. However, it can take years to eliminate this debt while other smaller bills still trickle in.

Which option is best for you?

It comes down to what you feel most comfortable with. Ultimately the best method is the one you can stick to. If you’re motivated by quicker victories, the snowball method may be the right option for you. If you want to pay the lowest amount of interest, you’re likely better off choosing the avalanche method.

Learn More

• By Lisa

International Credit Union Day October 15, 2020

On October 15, 2020, SafeAmerica Credit Union will join with 86,055 credit unions from all around the world in celebration of International Credit Union (ICU) Day®.  There are more than 100 million members in the U.S. alone and SafeAmerica Credit Union joins them in celebration of the not-for-profit cooperative spirit that all credit unions share.

This cooperative spirit has led to life-changing opportunities for people all over the world who’ve wanted to start a small business, own a home or continue their education but were denied access to other financial institutions. In many parts of the world, people’s first taste of democracy is through their credit union, where “one member, one vote” is the governing structure.

At its most basic level, a credit union is people pooling their money to provide each other with affordable loans—it is literally people helping people. This is why SafeAmerica Credit Union celebrates ICU Day. Because credit unions empower people, wherever they are in the world or life, to take control of their financial future.

A little history behind the credit union movement

The movement began in the 1840s as a democratic consumer cooperative by weavers in Rochdale, England. Frustrated by bankers who denied them loans simply because they weren’t wealthy, the weavers and workers decided to pool their incomes and loan money to each other. In time, this cooperation put each member on solid financial ground and encouraged their own businesses to flourish.

The need for equitable financial institutions grew and, in 1971, the World Council of Credit Unions, Inc. (WOCCU) was created to help establish and maintain viable credit union movements. It has become the leading voice for advocacy and governance on behalf of the international credit union community.

Today, 291,432,972 people are served by credit unions in 118 countries and 6 continents.

So, today, we celebrate you, our loyal members and we thank you for your continued support in making this institution what it is today.

Learn more about #ICUDAY here.

• By Lisa

Financial Literacy Tips for Kids

We all want our kids to grow up to be financially savvy, but in today's culture it's become increasingly difficult.  Many schools no longer include financial literacy in their curriculum and parents can find it difficult to start the conversation.  But, getting started is really quite simple.  You can teach your kids a few important concepts by participating yourselves.

Saving

The concept of "money doesn't grow on trees" goes a long way here.  It's important that kids understand money is earned.  Teach your kids that when you receive money, either through a job or an allowance, to set aside a small amount for savings each time.  Over time, they'll start to see how their savings can grow.

Spending

Just because you have money, doesn't mean you should spend it all.  Teach the importance of budgeting and responsible spending.  Showing your children how to make a dollar stretch can really pay off.  Teach the concept of needs versus wants and knowing the difference.

Charitable Giving

Giving back is just as important as saving for yourself.  This concept may take some getting used to but it's important to see the ways in which they're making a difference.  It will make them feel good about what they're doing and teach the importance of responsible spending.

Investing

Experts say that you can start teaching the idea of investing around age 10.  The important part here is that they understand what it means to invest in something long-term.  Tucking your money away for longer periods of time can pay off big in the long run.  Show them how interest accrues on products such as a term share certificate.  Over time, your initial investment will grow, essentially providing you free money.  Who doesn't love that?

Budgeting

It's essential to understand the concept of budgeting.  It not only shows how to be responsible but it teaches kids not to over spend.  Knowing that money isn't about instant gratification but rather about long-term successes is key.  Spending money wisely takes patience, but it can really pay off in the end.

SafeAmerica Credit Union can serve as an important ally for parents in their mission to teach their kids to be financially responsible.  We offer youth savings accounts, share certificates and checking accounts designed just for kids and young adults.

Learn About our Youth Program

• By Lisa

International Credit Union Day October 17, 2019

On October 17, 2019, SafeAmerica Credit Union will join with 56,000 credit unions around the world in celebration of International Credit Union (ICU) Day®.  There are 200+ million credit union members around the world—more than 100 million in the U.S. alone—and SafeAmerica Credit Union joins them in celebration of the not-for-profit cooperative spirit that all credit unions share.

This cooperative spirit has led to life-changing opportunities for people all over the world who’ve wanted to start a small business, own a home or continue their education but were denied access to other financial institutions. In many parts of the world, people’s first taste of democracy is through their credit union, where “one member, one vote” is the governing structure.

At its most basic level, a credit union is people pooling their money to provide each other with affordable loans—it is literally people helping people. This is why SafeAmerica Credit Union celebrates ICU Day. Because credit unions empower people, wherever they are in the world or life, to take control of their financial future.

A little history behind the credit union movement

The movement began in the 1840s as a democratic consumer cooperative by weavers in Rochdale, England. Frustrated by bankers who denied them loans simply because they weren’t wealthy, the weavers and workers decided to pool their incomes and loan money to each other. In time, this cooperation put each member on solid financial ground and encouraged their own businesses to flourish.

The need for equitable financial institutions grew and, in 1971, the World Council of Credit Unions, Inc. (WOCCU) was created to help establish and maintain viable credit union movements. It has become the leading voice for advocacy and governance on behalf of the international credit union community.

Today, over 235 million people are served by credit unions in 109 countries and 6 continents.

So, today, we celebrate you, our loyal members and we thank you for your continued support in making this institution what it is today.

• By Lisa

International Credit Union Day October 18!

​Thank you for being a part of the credit union movement. Today we celebrate you!

October 18, 2018, marks the 70th anniversary of International Credit Union Day. This year’s theme is “Find Your Platinum Lining.” It combines the traditional gift of platinum for 70th anniversaries with a play on the saying “every cloud has a silver lining.”

Credit unions all over the world will be celebrating the history and the success of the “People-not-Profit” philosophy. This year’s theme emphasizes the credit union movement’s loyalty to its members and its mission to provide them financial support and guidance.

A little history behind the credit union movement

The movement began in the 1840s as a democratic consumer cooperative by weavers in Rochdale, England. Frustrated by bankers who denied them loans simply because they weren’t wealthy, the weavers and workers decided to pool their incomes and loan money to each other. In time, this cooperation put each member on solid financial ground and encouraged their own businesses to flourish.

The need for equitable financial institutions grew and, in 1971, the World Council of Credit Unions, Inc. (WOCCU) was created to help establish and maintain viable credit union movements. It has become the leading voice for advocacy and governance on behalf of the international credit union community.

Today, over 235 million people are served by credit unions in 109 countries and 6 continents.

So, today, we celebrate you, our loyal members and we thank you for your continued support in making this institution what it is today.

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