SafeAmerica Credit Union

money-smart

• By Kevin Alvarez

What Influences your Money Habits?

Information brought to you by our partner, GreenPath Financial Wellness

When our financial counselors speak with members about specific challenges they might be facing, it can be helpful to have a conversation about the factors that influence money habits and behaviors. 

From family experiences to other factors such as the media, a range of influences shape our views of the world – including the money habits we put into practice each day. 

Whether we have patterns of spending, saving, investing or even budgeting, these habits are usually shaped by our past experiences. 

As the webinar highlight notes, there are three key influences when it comes to money habits:

Family

How we regulate to finances is very much related to what we experience in our families, and the money lessons people experience across generations.

Perhaps our parents were not comfortable spending money and had a distrust when it comes to taking on debt. Or maybe we witnessed a family where there was a high tolerance for spending and taking on loans for purchases both big and small. whether we were in families that were big spenders or big savers, or somewhere along the spectrum, many people can identify with the role their family's played in their money habits.

Media

Movies, television shows and social media often romanticize the appeal of beautiful homes, nice cars, new gadgets, and brand-name clothing and jewelry. The media plays a big role in emphasizing the desire to have the latest and greatest of everything - despite the realities of our financial situation.

While the entertainment industry is a big part of our media diets, our social media feeds serve up a never-ending stream of photos and updates showing off expensive vacations, cars, elaborate events and more. As a result, many of us are tempted to "keep up with the Joneses" and by ramping up our spending. This is a significant influence on our money habits.

Culture

Attitudes and perceptions about how we handle our money are also influenced by the larger culture. For those living in a culture of consumption, the "buy now, pay later" philosophy is everywhere. For those in a culture that puts an emphasis on economic restraint, that philosophy and influence is likely quite different.

While cultural influences affect how we view money, we also have the power to choose how we interpret cultural exceptions. Many people turn the "conspicuous consumption" influence into a positive effect to encourage good money habits. They might see the cultural behaviors as life lessons on what not to do.

Know Your Money Habits

Where do you stack up when it comes to money habits - especially when it comes to credit card debt?

All told, knowing your money habits is a good step towards financial health and wellness. If spending is getting out of hand, for instance, due to the pressures of keeping up with a friend's social post, it might be time to slow down and take a hard look at spending.

Take the next step - check out the educational course - Redesign Your Money Habits

Learn More

• By Lisa

Four Simple Money-Smart Actions You Can Take in Financial Literacy Month

Did you know that April is Financial Literacy Month? An entire month devoted to learning about money may sound extreme… until you read the stats. According to a recent survey, only 57% of adult Americans understand basic financial concepts.

A lack of knowledge isn’t just bad for your brain; it’s dangerous for your wallet. So here are some simple actions (based on fundamental financial concepts) that will boost your saving power.

  1. Start an emergency savings account
    Car repairs, medical emergencies, last-minute necessities… we all get hit with surprise costs from time to time. The best way to ensure that you stay prepared is to start an emergency savings account. If possible, try to keep this separate from your regular savings account, so you don’t have to drain funds for those future costs that you can actually predict.
  2. Review your student loan repayment options
    When’s the last time you checked your monthly student loan payment? Is it so high that you can’t pay the rest of your bills? If it’s too low, you may end up paying more in interest over the life of the loan than you need to. If you need to adjust your payment, you may be able to negotiate your monthly sum with your servicer.
  3. Open a retirement account
    Saving for retirement is critical (unless you plan on working full-time forever). If your employer offers a 401(k), make sure you take advantage of it. Even putting small sums away every month can make a big difference later once you lose full-time income. Likewise, if you don’t have access to an employer-sponsored retirement plan, open an IRA with a financial servicer.
  4. Set financial goals
    Setting financial goals will ensure that you get what you want in life, and help you save money in the long run. Goals should fall into three categories (short, medium and long-term). For example, a new computer may be a short-term goal, while a new home will take months or even years of consistent savings; this would be a long-term goal. Once you set your goals, create a realistic timeline for achieving them.

You can schedule an in-branch appointment with a SafeAmerica service representative to discuss how we might be able to save you some money each month.