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! 

How Long Can You Live On Your Savings?

If you lost your job, could you cover your bills?  When consumers were asked that question in a survey this year by RetailMeNot, the discount coupon site, nearly half confessed that their savings would last for just one month!  The root may be simple…many people just don’t know how to save.  But learning to save doesn’t have to be difficult.  Here are six tips to get you started: 

        

• Create A Budget – Track your expenses, figure out how much you need to cover essentials and identify where you can make cuts.

• Prioritize Your Savings – With your budget in place, calculate how much is left for savings, and set priorities!

• Make A Savings Habit – Pay yourself first with very paycheck by contributing to your savings account!  The easiest way to do so is with automatic deductions. 

• Capitalize On Compound Interest – Put your money in accounts paying interest, leave it there, and watch your money potentially grow.  Honor Financial Group can help you take a look at options that might fit your unique financial situation. 

• Pay Off Credit Cards – Paying high interest rates on your balance is money you could otherwise be investing or saving.

• Save Your Raise – Painful as it may seem, one way late starters can play catch up is to put most of that extra money into savings. 

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!

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.

Tips For A Fun And Frugal Fourth

No matter how you spend Independence Day weekend, it’s likely to cost money. Whether you will be traveling, entertaining or simply staying home with family, the Fourth of July is a time of celebration, and celebrations can be pricey.  But it doesn’t have to be! Here are some tips to cut costs without trimming the fun!

1. Keep The Guest List Small OR Go Potluck Style! Planning to have a barbecue? One simple way to keep your costs in check is to avoid inviting too many people. The more people you have over, the more food you need to buy, the more drinks you’ll need, etc. A smaller gathering might be more fun anyway, because it will give everyone more of a chance to talk and really enjoy one another’s company. But if you are a social butterfly and just can’t choose between friends, go the potluck route and have everyone attending pitch in!

2. Borrow Items You Need Short on punch bowls, dishes, tables, chairs, glasses or other party staples? Rather than rushing out and buying a whole bunch of stuff that could clutter your home, ask some of your guests to let you borrow those items for that evening.  Disposable plates and silverware can be convenient, but it can be pricey and fill up the landfill.  Borrowing these items will save your pocketbook and the environment…a win/win!

3. Stay Safe Don’t bother to spend money on potentially dangerous – and in some cases, illegal – fireworks. Even if the fireworks themselves don’t set you back too much, an unexpected trip to the emergency room could cost you hundreds if not thousands of dollars. Attend a free fireworks show in your area instead, or splurge on a few boxes of inexpensive sparklers for the kids. They’re just as much fun, anyway!

No matter how you celebrate Independence Day, having a safe, fun and festive holiday experience can be done on a budget. There is no need to go overboard! At the end of the day, the real fun is more about being with family and friends.

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 Wild Bill and Honor’s Scott McFarland talk about frugality on the Fourth, listen to the Mason Jar Monday episode below.

 

Summertime Savings

It’s easy to let your summer spending get a little crazy. The kids are out of school, vacation is on the minds of people everywhere, and retailers are advertising summer sales every other day. However, you can breeze through summer without straining your wallet if you follow these simple money-saving tips, without sacrificing an awesome summer.

1.      Turn down your hot water If you're like most people in Michigan, you crank up your hot water heater during our frigid winter months.  Getting into a hot shower while it’s a blizzard outside can feel pretty great. But you probably forget to turn down the temperature settings during the summer. According to the USDE, we spend $310 to $400 or more every year on hot water in our homes. Turning back the settings on your hot water heater is a simple way to save those big bucks

2.      Plant a garden You probably hear about rising food prices daily. So what better time to plant a home garden and grow your own fruits and vegetables instead? Gardening is not only great exercise, it's also the best way to get clean, organic produce. According to the Wall Street Journal, for every $1 you spend on green bean seeds, you'll grow an average of $75 worth of produce. For every $1 you spend on potato seeds, you'll net an average of $5 worth of crop. Burpee Seeds estimates that $50 spent on vegetable seeds will save an average family $1,250. That’s a nice chunk of pocket change.

3.      Plan a staycation According to AAA's 2008 Vacation Costs Survey, the average cost for a couple on vacation, including lodging and meals, is $244 per day. Add kids in the mix, and costs go up even more. So, why spend when you can save? Plan a staycation instead! Take the kids to the beach for the day, go on a hike and have a picnic, or be lazy at home, relaxing. Not only would you save a ton of money, but it would likely be far more relaxing than spending a week flying to and navigating through an unfamiliar city. Plus, any money you do spend at restaurants or attractions would stay local- big plus!

Making a few small changes to your summer routine can be easy (and fun!) for the whole family. The end result is that you'll have some extra padding to add to your savings account or monthly budget for those summer trips you just can’t miss!

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 Wild Bill and Honor’s Kaylee Williams talk about summertime savings, listen to the Mason Jar Monday episode below.

Three Ways to Save This Spring

Now that it’s finally starting to warm up, Michigan Spring can begin! That also means it’s time to start spring cleaning! Out with the old, in with the new.  But I'm betting your garage and basement aren’t the only areas you need to do some spring cleaning. Your budget could probably use a little sprucing up, too! Now is the ideal time to review your finances and give wasteful spending the boot! Here are three ways to save more this spring.

1.      Make Lists – Before you head to the grocery store or other shops, make a list of items you need. Then, stick to it from that list. The stores can be tempting with their big sales and price slashing, but don’t let that sway you from what you really need, and what you want. Also, don’t be afraid of generic options; There are plenty of alternative brands of the same product available of the same quality, but are much cheaper.

2.      Take a look at your expenses – Is there anything that you could adjust to save some monthly cash?  Maybe your cable bill… Do you really need 1500 channels when you only watch about 5? It might be relaxing to unwind in front of the television after a long day’s work or over the weekend but the amount of time that we actually spend watching television does not always warrant the expense. Check with your provider (or other providers) to know and understand all of your options.

3.      Garage Sale!  Yes, we have turned “garage sale” into a verb.  Whether your interpretation means hosting one yourself to clean out the clutter AND make a few bucks, or attending the abundance of garage sales in your area to get some really cool stuff for a fraction of the full price, garage sales are a fun way to save (or make) money!

Spring cleaning is a lot like saving money: Start small and do what you can, and soon enough you’ll see results. By spending a little time cutting costs, making lists, or “garage sale-ing” you can add to your savings account and improve your mindset.

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 Wild Bill and Honor’s Kaylee Williams talk about spring cleaning your budget, listen to the Mason Jar Monday episode below.

 

Three Ways To Be Green And Save Green

When many Americans first hear about “going green,” they may think this means they’ll be dropping a lot more cash for everyday needs and wants. But not so!  There are simple ways to SAVE money by going green! Here are a few ways to be green and save your green.

1.   Don’t drive, walk  Is the grocery store just down the road? Walk. Is work just a bit too far to walk? Ride your bike.  Not only will you be saving money on gas and vehicle maintenance, you’ll also be saving the atmosphere from those harsh emissions. Taking many short driving trips which could just as easily be walked is a severe drain on your pocketbook which also contributes to the degradation of our natural environment.

2.   Shop green  From diapers to cleaning products to food, there are so many ways to shop green and save money. There are a multitude of green-centered companies out there, like The Honest Company  and Seventh Generation. Companies like these specialize in providing quality green products at an affordable price.  You’ll save a bundle on pricey, non-biodegradable products, and you’ll refrain from filling up your local landfill.

3.   Turn off the lights  Electricity usage is another environmental threat that also costs the average person a large sum of money every year. Keep the lights off if you’re not in the room or using them. Unplug appliances or electronics when not in use. Turn off the TV and go outside! These simple steps will keep your utility bills lower, and your electricity usage down. Win-win!

Like any endeavor, the prospect of going green will be as financially beneficial as you make it, and through a combination of thorough research, innovation and open mindedness you can save the environment and save money at the same time!

To listen to 97.5 Y-Country’s Wild Bill and Honor’s Scott McFarland talk about how to go green and save green, listen to the Mason Jar Monday episode below.

Three Things You’re Already Doing That Can Teach Money Management To Your Kids

Teaching children the importance of money early is arguably one of life’s most valuable lessons. If you teach your child about money management while they’re young, they are more likely to become financially responsible adults. Here are three things you’re already doing to teach your kids about money, without even realizing!

1.    Visiting your local credit union. Your child is learning about money just by going to your credit union with you. Seeing the transactions being made and the money exchanging hands is a great way for kids to learn about how money works. Showing older children your balances on your deposit slips is another way to show them how money adds up when you put it into your savings.

2.    Grocery Shopping. This is another great, and tangible, way to teach children about money. When you buy groceries, your children see you giving the cashier money, and you bagging up and taking your groceries home. You’re giving money to get something in return. You also teach your children a valuable lesson about stretching their dollars when it comes to price per unit and brand names. Why do you buy the certain products that you buy?

3.    Utility Bills. Show older children your utility bills and explain that money is used to pay for the use of electricity or water or the cable that brings their favorite TV shows to life. Show them how they can reduce the costs of electricity. This is another effective way to teach the kids that they can conserve and help the family save money, because it is tangible; Something they can see and easily understand.

 

Basic money management skills are essential in everyday life. And personal finance lessons for your child are hidden in your daily agenda! Pick out the things you do daily (stopping by the store, your credit union, paying bills) and turn it into a financial lesson for your child. This will ensure you’ve given them the tools they need to succeed financially in the future!

To listen to 97.5 Y-Country’s Wild Bill and Honor’s Kaylee Williams talk about how you're teaching your kids to save, listen to the Mason Jar Monday episode below.