SafeAmerica Credit Union

money

• By Kevin Alvarez

Make Money Resolutions That Stick

Maybe you only have one resolution this year. Maybe you have a laundry list of resolutions and a goal of being so self-actualized your friends and family will hardly recognize you! Maybe your resolution is to not have a resolution.

Set A Goal (and Write It Down)

Goal setting gives you direction. You can decide on your destination and make a plan to get there. This might seem small, but it’s not. Not only is goal setting found to be linked to higher achievement and self-confidence, but writing down your goal can also make you 42% more likely to succeed.

Get Clear

Getting clear on your priorities and deciding on a specific goal are two keys to success. When it comes to your money and your financial situation, set aside some time to reflect on what you really want to accomplish – and be specific.

Ask yourself three “W” questions:

  • What do you want to accomplish?
  • When will you achieve it?
  • Why does it matter to you?

Visualizing a dollar amount can lead to success, whether it is a specific figure to save, pay off or earn in the year ahead. Keep that figure alive by writing it down or tracking it in an app. A real dollar amount makes for a real goal. Give yourself a deadline while you’re at it, to motivate you even further.

Be Positive and Realistic

Goals can challenge you and help you grow into a new future. Choosing a goal that is attainable is another important part of success. Let’s say you’ve chosen a clear goal – with a positive outcome – such as: “In five years, I will be debt free. I will pay off my entire debt of $12,000 so that I can focus on enjoying my family instead of worrying about money.” Be sure it’s a realistic goal given your specific situation. Given your income, debts and expenses, is it realistic to spend $200 on your goal each month? Is it possible to pay it off even faster by spending $250 a month? Or does your budget allow for $100? Staying positive and realistic shows you how much you can devote to achieving your money resolution.

Money Resolutions That Stick

Hit Those Milestones

Making your goal measurable will help it stick. Keeping track of your progress can help you stay focused and motivated. Tracking progress on an app or spreadsheet, or a simple notebook, helps you see your future getting closer and closer. Break your goal into smaller milestones. This makes it easier to see your progress and it’s less intimidating. For example, a mini-resolution might be to pay off one consumer credit card. Making smaller changes over time is often easier than trying to make a massive change all at once. Celebrate your success along the way. Celebrating wins actually “trains your brain” by reinforcing your new habits, which in turn makes it easier to stay on track if you hit a bump in the road at some point.

Make (and Work) The Plan

Money resolutions often go by the wayside if they serve as a goal without a plan. A plan outlines how you will accomplish your goal. Keep it simple. The plan might dearly define how much you will spend toward your goal, how often you’ll make deposits on it, and the method you’ll use to transfer money toward your goal. For instance, automating monthly payments or savings goals is proven to help people stick with money resolutions.

Choose one habit at a time to change. For example, if you need to reduce your credit card spending, focus on making that change as your first milestone. Then move on to setting money aside for payoff.

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

GreenPath Financial Wellness

• 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

• By Kevin Alvarez

Free Webinar: Family Lessons About Money

Register Now

This free, one hour webinar about Financial Transformation is presented by GreenPath Financial Wellness

Join us for a lively discussion about tips, challenges, and resources needed in order to raise financially healthy kids. Be part of our audience for our live podcast, Real Stories: Journeys of Financial Wellness. Our panel will feature GreenPath clients who are inspiring their children to be financially resilient. We'll also chat with Professor Bernard Dillard. Come along with GreenPath Financial Wellness for an enlightening session on how we might support the next generation in their financial in their financial wellness journeys.

Who should attend

  • Parents who would like to learn from others' experiences about kids and money
  • Anyone who wishes to mentor a young person about money
  • Teens or young adults who wish to jump start family conversations about money

What You'll Learn

  • How to communicate with your kids about money
  • How to overcome family financial challenges
  • About resources to share with your family and community

Details

Date: Wednesday, July 28, 2021

Time: 10:00 am PST - 11:00 am PST

Register Now

• By Kevin Alvarez

Free Webinar: Buying a Home in a Seller’s Market

Register Now

This free, one hour webinar about money concepts is presented by GreenPath Financial Wellness

Do you have a financial wellness goal of becoming a homeowner? With interest rates at a record low, you are not alone. Let us help you navigate this important milestone during a seller's market. The goal is for you to secure a good home, without jeopardizing your financial future.

What You'll Learn

  • What is important to most sellers in today's real estate market
  • The realistic timeline of how long buyers, lenders, and other real estate professions may impact the home buying process

Who should attend

  • Those providing guidance to home buyers (real estate agents, housing counselors, parents, grandparents, etc.)
  • Potential home buyers
  • Lenders

Details

Date: Wednesday, June 23, 2021

Time: 10:00 am PST - 11:00 am PST

Register Now

• By Kevin Alvarez

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

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.