Shopping Local Pays

Local credit unions, like Honor CU, are here to support the local communities and so are locally owned businesses!  Just this month, we celebrated CU Lunch Local, a cash mob that encouraged everyone to spend their lunch hour at a locally owned restaurant to support their local community.  Credit unions believe in people helping people and shopping locally is a great example of how you can help support the people and businesses in your own community.  Here are three reasons that should make you reconsider the places that you prepare to spend your money as the 2014 holiday shopping season fast approaches:

•       Your pennies stay local – You’ve worked hard to save the pennies in your mason jar, so when it comes time to take a few out don’t you want them benefit the community live in?  45%-58% of a local business’ profit stays in the local community versus only 13%-33% of a national business’ profit!
•       Local Passion – Many locally owned businesses have been started from the ground up by owners that are truly passionate about what they do.  With that passion comes a level of expertise and customer service that you can often not find in the big box stores.
•       Main Street Economics – On the same lines of keeping profits local, local businesses fuel the local community with local job opportunities.  So when you spend your pennies local, you are not only supporting that particular business but your own local economy!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu!  

Source - http://www.cuinsight.com/top-5-reasons-credit-unions-should-encourage-shopping-locally.html

Four Money Myths That Can Lead To Money Problems

Last week we talked about common financial problems in America, and this week we are continuing on the same track with some money myths.  Here are four money myths that can lead to money problems if taken too literally*.

Myth #1 – Two incomes are better than one.  It’s obviously the case that two incomes give you more money than one.  Counting on both of those incomes to pay your families bills often the case for most families, but make sure you don’t get caught in a situation if one of those incomes goes away unplanned.  You can avoid this by watching your monthly expenses to leave more room for savings.  Stacking that nest egg up will protect you from getting in real financial danger should your double income be suddenly cut in half.

Myth #2 – Owning is always better than renting.  While owning means your payments are building up your equity vs. your landlords in the case of a house, renting is not always a bad thing.  Everyone’s financial situation is unique and owning a home is not for everyone.  If you think you may not be in the same city in 3 years, buying would probably not be the best option for you at that time.  The key is to look at your own unique situation and really assess what your finances will allow to meet your long term goals. 

Myth #3 – A near-perfect credit score will get you the best loan rate.  Technically speaking, the higher the score the better, but there really is no “magic” number.  When determining a loan rate, many factors are taken into consideration in addition to your credit score.  Different loans and different lenders have different criteria and standards.  Having good credit is never a bad thing, though.

Myth #4 – You need to earn more to save more.  Earning more may increase your ability to stack more away for savings IF you are disciplined enough to do so.  Your ability to save is determined more on your discipline and responsibility with your budget than how much your paycheck is.  Make a budget, include savings in that, and then stick to it regardless of how much you earn each month.

Listen to Honor's Scott and 97.5 Y-Country's Wild Bill talk about money myths on Mason Jar Monday! 

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu!

*Source - http://www.nasdaq.com/article/why-these-4-personal-finance-myths-perpetuate-money-problems-cm396086

Top Three Money Problems Americans Face

Did you know that 4 out of 5 American adults are faced with economic uncertainty at some point in their lives*?  That’s 4 out of 5 people that live and work where you live and work…maybe even including you and your family.  Money problems are not something to shy away from, but rather tackle head on.  Here are the top three money problems that American’s face:

• Problem #1 – I just can’t make ends meet every month comfortably.  As the number one money problem in America, if you worry about meeting your regular financial obligations (i.e..bills, mortgage, rent, ect.) you are not alone.  To start tackling this problem, make a list of all of your bills.  Prioritize by wants vs. needs, and you may be surprised of the things you could cut from your list of bills, at least until you get back on your feet. 
• Problem #2 – Thinking too short term.  While it is only natural to be thinking about this month’s expenses vs. saving for five years from now, it is important to incorporate some form of savings into your monthly budget.  No matter how small, getting in the habit of even putting away $10/month will add up and lead to a larger monthly allowance for savings as you get into a better financial place.
• Problem #3 – I have too much debt.  When asked what they would do with a free 10k, 41% said they would pay down debt.  A high dollar amount of debt is concerning to many Americans, but there are solutions.  Debt consolidation options and debt management tips and advice are only as far away as your local credit union!  Consolidating your debt into one more manageable payment and then being disciplined to stay on track with a new debt plan will get you out of the debt hole faster than you think!

The biggest point we can emphasize is don’t hide from your financial concerns, but rather come down to your local credit union for some free, unbiased, responsible advice and solution options!  We want to get you in the best financial situation possible!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

*Source - http://www.usatoday.com/story/money/personalfinance/2014/09/20/wall-st-cheat-sheet-money-problems/15832929/

Three Financial Tips For College Freshmen

Now that most college students have been at it for a couple weeks now, they can start thinking about a bit more than getting through the first day jitters.  For all of you college freshmen out there, or if you have a student that is a college freshmen, it is not too early to start getting those finances in line!   Before you know it you will be donning the cap and gown on graduation day, and you will thank yourself then for thinking about a few of these things now:

1. Get organized!  This sounds like a no-brainer, but staying on top of the little things like avoiding parking fines and late fees for library books can really add up!  There is nothing worse than watching you bank account diminish because you were running late and had to park in the “Permit Only” zone crossing your fingers you would fly under the meter monitor’s radar.  Those fines can add up when they could have been a cushion in your savings!  Plus, with outstanding parking tickets or library fees, some colleges may put a hold on your account and not let you sign up for your next semester of classes!
2. Avoid ATM fees!  Wherever in the United States you are attending school, there is no excuse to pay those pesky ATM fees.  You may be thinking, “but my family credit union is a state away, what am I supposed to do?” The answer is simple…Benefits Checking!  Get up to $20 a month in ATM fees reimbursed by meeting a few simple requirements.  More details on www.honorcu.com.
3. Don’t get caught up in a gimmick!  You are going to start getting mail and offers for these seemingly fabulous credit cards and loan offers that will give you a free t-shirt or a even cash for signing up.  Don’t get fooled!  Often these offers are incredibly high interest rate cards targeted at students.  Stick with your local credit union options where you know all of the details and can still get some pretty cool perks with…check out Honor’s Visa rewards program for example!

We just can’t reiterate enough that it is never too early to start thinking of putting yourself in a great financial position.  We know you have a lot going on in that first semester away at school, but following a few of these simple guidelines can really add up. 

What other tips would you give a college freshmen?  Let us know by commenting on this post or by following us on Twitter @honorcu using #askhonorcu!