Three Things To NOT Use a Credit Card To Pay For

Credit cards can be valuable tools to help cover unplanned expenses and can help really boost your credit score when used correctly.  At the same time, though, credit card debt can spiral out of control easily leading to a damaged credit score, a lot of stress, and hefty interest on a large balance.  Here's three things to avoid using your credit card to pay for:

1.     Down Payments – If you are looking at a large purchase that requires some sort of down payment, it’s best to opt for your own cash instead of a credit card or cash advance.  With purchases that require down payments, you are likely going to have a loan with a monthly payment and interest already, so paying interest on the down payment too only hurts you in the long run. 

2.   College Tuition – College debt is a very real situation for many students, but avoiding credit cards as part of that debt will help you graduate to the best financial situation possible.  Opt for student loan options that typically have lower interest rates, more manageable monthly payments, and offer the flexibility of waiting until after graduation to begin repayment. 

3.  Special Events – Whether it’s a big family vacation or a wedding that you are faced with financing, take a look at other finance options before swiping that credit card.  Don’t damper your special event from the get go with the interest rate that comes along with many credit cards.  If you don’t have the cash to pay for that vacation or wedding, look at other ways to finance like a secured fixed rate loan or even a home equity option that could give you a clearer repayment plan and often much lower interest rate.

A best practice on using credit cards is to only use them to purchase items that you know you can pay off in full.  We know that can sometimes that can be easier said than done though, so if you find yourself in a credit card situation that you aren’t sure how to handle give Honor a call.  Debt consolidation and balance transfer options might be an option that your local credit union, like Honor, can offer to make credit card repayment a realistic and manageable goal. 

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

Teaching Your Teenager To Make Wise Financial Decisions

You have a young teenager that is just old enough to start making decisions on their own, but you are still a little nervous to cut them completely loose to make their own financial decisions.  So what do you do?  Well, you are in luck!  There are easy ways that your credit can can help with to provide your teenager financial freedom to set them on the right path to wise adult financial decisions. 

1.     Prepaid Cards – Prepaid cards function essentially like debit cards except they aren’t tied to a checking or savings account so they cannot be overdrawn.  Your teenager can only spend what’s available on the card to spend.  So you have the peace of mind that your child isn’t overspending and your teenager gets to learn how using a card works!

2.  Debit Card Customization – Think your teenager is ready for a debit card?  While debit cards are tied to a checking account and can be overdrawn, you can set limits to help minimize the odds this happens.  Customizing the options on your teenager’s debit card with features like low daily limits, pin or signature only transactions, and no cash withdrawals can help graduate your teenager to a real functioning debit card without all of the features that could get them financial trouble if they don’t quite know how to manage them. 

3.  Online Banking & Budgeting – There is no better way to grasp the concept of money in-money out than reviewing what you have spent each month.  Have your teenager “balance” their account and look at what they have spent their money on.  The concept of how quickly money can be spent will sink in very quickly when your teenager looks at the big picture using online banking or a budgeting tool, like Honor’s Money Desktop! 

What other ways do you help your teenager learn about responsibly managing their money?  Let us know and don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

It's Time For Your Financial Physical

It’s time for your annual finance physical!  Great news, though!  This physical is one you can do from home without having to don a medical robe.  Honest self-reflection and setting clear goals are both included in this physical, though, and asking yourself these three questions will help get you started on assessing your financial health:

1.     How much did I save last year?  Look at your last twelve months and tally up what you were able to save.  Did you touch that savings or let it keep stacking up?  Automatic deposits from each paycheck directly in to your savings can help you stay on track, and keeping a solid budget and savings plan can help you keep that savings growing.

2.   What are my bad money habits?  Doctors can’t help cure you if they don’t know your ailments, and the same goes for your finances.  What are three things you did over the past year with your finances that you would do differently next year?  It could be as simple as keeping a more up to date budget to keep your spending in line.  Budgeting tools, like Honor’s Money Desktop, can help you look at your overall financial picture including what you spend on, what you save, and your total debt.

3.  What is my financial health goal?  Goals are important both in your health and your finances.  Do you want to save more? Spend less? Pay off debt?  Everyone’s definition of success is different, but part of every physical should include looking ahead and setting goals and benchmarks of where you want to be by the time your next physical rolls around.  Once you set your goals, make a plan to get achieve them.  Need help with this?  Stop by your local credit union.  Tell us your goals and we can help you make a plan that fits your situation to get there!

Self-reflection isn’t always pretty, but trust us – if you are honest about your financial situation with yourself, identifying your goals and making a plan to get there will be a lot easier!  Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

Treat Your Valentine - On A Budget!

 

Valentine’s Day 2015 netted a whopping 18.9 BILLION dollars! Whether you think that’s crazy or not, odds are you probably contributed to a bit of that spend in one way or another.  Did you treat your loved one, your best friend, your dog, or yourself last year?  If the answer is yes, and you are planning on doing something special again this year consider these ideas to treat your valentine without breaking the bank:

·         Giving flowers?  Not surprising, the largest chunk of change spent on Valentine’s Day is on flowers.  Get the most value from the petals you choose by selecting a less popular bloom.  Roses are beautiful, but choosing a more unusual but still beautiful flower on Valentine ’s Day can save you big.  Make sure you inspect whichever flowers you choose for stale or less than energized petals to get the most out of the bouquet you give after the holiday passes.

 

·         Cook Your Fancy Feast At Home – One of the biggest areas that you can save not only on Valentine’s Day, but every other weekend too is as easy as getting creative in the kitchen.  Make your Valentine’s favorite meal together and enjoy a meal together in the comfort of your own home.  Switch it up from any other dinner by taking your feast to the living room or another room out of the ordinary to make the evening feel more special!

·         Pampering your pooch? Try homemade treats instead!  Don’t forget your furry family members this Valentine’s day!  If you want to show your family pet some love on a budget this Valentine’s Day, try some homemade treats in their favorite flavor.

                                                                                                                      

How else are you saving pennies this Valentine’s Day?  Let us know!  Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

Keep Identity Theft At Bay

According to a new nationwide survey by Experian, awareness of identity theft and concerns about becoming a victim have increased. However, despite this, consumers don’t plan on taking the steps to prevent identity theft from happening to them! Here are a few ways that you can protect yourself and your family from identity thieves:

• Protect (& shred) Your Garbage - Everything you toss, including credit card offers, ATM receipts, bank statements, credit statements/receipts and utility bills, all contain personal information. To protect yourself, buy a shredder and use it- better yet, attend one of Honor’s Community Shred Days! This is an effective, FREE way to safely & securely dispose of confidential or secure info. Look for the schedule on our website, coming out soon!
• Protect your Social Security Number - Your SSN is critical personal info. Do not print it on any form of personal ID. Never carry your SS card in your wallet, and avoid using it as a personal identifier if at all possible.
• Beware of the Telephone - NEVER give out ANY personal info over the phone, unless YOU initiated the call and know who you’re talking to.
• Protect your Computer - Always use virus protections & passwords. Change passwords frequently & never share them.
• Protect your Wallet - Keep a close watch on your credit card balances/statements. This way you can catch any unusual activity immediately, and get the issue resolved as quickly as possible. An easy way to stay on top of any strange card activity is to check your credit score, often. Honor members can simply sign in to online banking and view their current score, which is updated quarterly.

Becoming a victim of identity theft can be completely devastating. Your money, your possessions, and you, yourself, are stolen. ID thieves are very skilled at finding out personal information, so don’t let yourself become a victim! Take these steps to prevent it!

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

9 Essential Estate-Planning Documents

Dying without a will leaves your family and heirs with a potential mess. But without one, a probate court will decide where your property goes, which can take months, and sometimes, years. Money that you intended for family and good causes may go to pay lawyers. Additionally, if you have young children, unless you name their guardians in a will, a court will do it. And what about your pets? Their future is up for grabs if your will doesn’t spell it out.

To truly sort out your estate planning, prepare these nine documents, and your heirs will thank you eternally:

1.       Will- A will gives you a voice when you’re gone. You can appoint guardians, distribute your possessions, and make requests.

2.       Trust- A trust allows you to pass assets your heirs, sidestep probate court, reduce your estate tax, and minimize potential lawsuits.

3.       Healthcare Power of Attorney & Living Will-  These documents allow you to name someone to make medical decisions for you and enforce your wishes about treatments.

4.       Dependable Power of Attorney- This allows you to appoint someone you trust to make legal decisions if you can’t.

5.       Beneficiary Designations- This document names beneficiaries who will inherit your assets.

6.       Life Insurance- If you purchase life insurance, it will help those who would be financially devastated by your death pay for expenses.

7.       Provision for Digital Assets- This document outlines what you want done with your computer’s hard drive, electronic photos, data stored in the cloud, and online accounts once you've passed. Be sure to include passwords!

8.       Letter of Intent- A letter of intent is used to convey private requests, thoughts, wishes, or other information.

9.       List of documents- Make a list of the important stuff: Life insurance policies, deeds, pensions, retirement accounts, bank accounts, all of it. Include account numbers & passwords and where they’re stored.

If you have questions and would like to meet with a financial representative, Honor Financial Group is a great first step.  Give us a call to set up an appointment today. 

 

And, don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

To listen to 97.5 Y-Country's Mark Durocher & Honor Credit Union's Greg Hildebrand talk about Estate Planning, click on the Mason Jar Monday episode below!

 

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.  Honor Credit Union and Honor Financial Group are not registered broker/dealers and are not affiliated with LPL Financial.

Not NCUA Insured -Not Credit Union Guaranteed -May Lose Value

 

Most Common Budgeting Mistakes

It’s no wonder that January is the number one month for people to begin new financial endeavors, and nearly a third of people surveyed by GoBankingRate said their 2016 goals include “saving more and spending less.” At Honor Credit Union, this is music to our ears, as we love helping members save their money! BUT the big question is HOW are these people going to stick to their budget and be financially successful? By having a fail-proof budget in place, and knowing what the most common budgeting mistakes are and how to avoid them!

Here are the top five mistakes (and how to avoid them!):

1.      Failing to set a realistic budget- Many times, people feel overwhelmed by how long it takes to tack expenses and set a budget. Make time to sit down and tackle this project, as it will only help you in the long run.

2.      Using the exact same budget every month- This is a big mistake, as expenses differ each month, depending on holidays, birthdays, vacations, energy costs during warmer or cooler months, or unexpected home or auto repairs. Plan each month one month ahead, so you can make be sure to allot money for these particular expenses that aren’t recurring.

3.      Never allowing for wiggle room-  If your budget is too set, as in every penny is set aside for some specific expense, you won’t have anything left to pay for that unexpected car repair or other surprise expense. Be sure to set aside some money for these extra expenses.

4.      Relying on credit cards- If you’re relying on credit cards to make payments on necessary expenses, but then failing to make payments towards the cards themselves, you’re just digging yourself a huge debt hole that you may not be able to get out of. To avoid this, use cash only for the first few months of your budget so you can see where the money is going.

5.      Quitting your budget too soon- Many times, people will stick to their budget for a couple of months, then quit. Don’t do this! Successful budgeting takes time. You need to mess up a little in order to figure out what you really need each month.

Remember- if you stick to your budget as closely as possible and make budgeting a part of life and a long-term commitment, you’ll ultimately end up financially successful!

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

To hear 97.5 Y-Country's Mark Durocher and Honor's Kaylee Williams talk about New Year's Financial Resolutions, click on the Mason Jar Monday episode below!

 

Tax Time Tips

Tax Time 2016 is almost here, so it’s important to begin thinking about filing your tax return! But something most don’t consider when filing, are if mistakes are made. If you make a mistake on your tax return, it usually takes the IRS longer to process it, and they may have to contact you about that mistake before your return is processed, causing a delay in the receipt of your tax refund. And nobody likes that!

Here are a couple of tips to avoid common mistakes when filing:

1.      Tax season opens January 19^th, 2016- You can begin filing your tax returns immediately on this date!

2.      Deadline is April 18^th, 2016- Taxes are due this day. However, if you failed to do so, don’t fret- you can still file and receive your refund! If you are not due a refund and instead owe, the sooner you file, the less your late filing penalty fee will be.  The fee could be anywhere from 5% to 25% of your unpaid balance per month! If for some reason you can’t file right away, immediately file for a tax extension. This way, you have until October 15^th to file without penalties.

3.      When filing online, install anti-virus and firewall protections on your computer and encrypt tax files- This ensures thieves won’t get your personal information, and end up stealing any money you may be due!

4.      Remember to sign it!- Missed signatures are more common than you think, and this qualifies as an incomplete return- meaning it will be returned to you for a signature and the process will be delayed.

5.      Double check your social security number entry, name, & financial institution routing number/your account number, calculations (these are all simple but common errors). And, if you misspell, have a typo, or otherwise, your return will be returned to you and the process will be delayed.

If you are going to be e-filing your tax return, Honor Credit Union can help! Once tax season opens, we’ll have a link to TurboTax, an e-filing tax service, right on our website homepage for your convenience! AND if you decide to e-file with TurboTax through our website, all Honor Credit Union members will receive a discount- up to $15 off! For more details, visit honorcu.com.

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

New Year’s Financial Resolutions

 

First of all, Happy New Year, 2016 is here! If you haven’t yet, you’re probably thinking about some New Year’s Resolutions. And, statistically speaking, you probably have at least one financially related resolution that may include saving more, spending less, investments, loans, etc.

If you haven’t figured out exactly what you’d like to work on financially in 2016, here are a couple of things to think about:

1.       Did you have good saving habits last year?

It doesn’t matter if you make 20K or 100K, you can’t accomplish your financial goals if you spend all of your money. The best way to increase savings is automatically making payments to yourself. Have a set amount or percentage automatically go into your savings account from every paycheck you receive.

2.       Were you financially responsible?

Late or skipped payments not only generate fees and interest charges, but they also can damage your credit score. A low credit score means higher interest rates on future financial endeavors, denial of loans, and a lot more negative stuff. Be responsible in 2016- always make payments on time, or better yet, make these payments automatic, too!

3.       What’s your debt like?

If you’re like the majority of Americans, you probably have some sort of financial debt. If you carry too large of a debt balance, and only make minimum payments, this can negatively impact you as well. Try working with a financial planner to get yourself on track, spend less and save more, and make a budget, and stick to it!

Follow these tips, and you could make 2016 your best financial year yet!

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

To hear 97.5 Y-Country's Mark Durocher and Honor's Kaylee Williams talk about New Year's Financial Resolutions, click on the Mason Jar Monday episode below!