Financial Literacy

January 2019

Personal Budgeting Worksheet: https://www.consumer.ftc.gov/articles/pdf-1020-make-budget-worksheet.pdf

Fixed Expenses

Fixed expenses are items you have little or no control over. You will pay a fixed amount for these expenses each month. Remember, you have some control over certain expenses before you sign a contract, for example, a short-term or payday loan, car loan, or home mortgage.  You should shop for the best value before committing to the payments.

Examples:

• Health insurance, car insurance, life insurance, and homeowners or renters insurance
• Rent or mortgage
• An auto loan or lease payment

Flexible Expenses

Flexible expenses are expenses that you can control. When thinking about flexible expenses, think about what you need and what you want. Is it a necessity or a discretionary expense? This will help you control your spending in this category. What are some ways that you could control the costs of these expenses? Also, make sure to pay yourself first. Set aside money from each paycheck and put it towards your savings.

Examples:

• Groceries, coffee or restaurants
• Utilities
• Gasoline, internet, cable, phone or cell phone
• Car or home repair
• Activities or hobbies
• Savings
• Emergency Savings

Link to mycreditunion.gov article: https://www.mycreditunion.gov/financial-resources/personal-finance-worksheets/budgeting

Car Buying: Getting Started

A new car is second only to a home as the most expensive purchase many consumers make. That’s why it’s important to know how to make a smart deal.

Researching Your New Car

Think about what car model and options you want and how much you’re willing to spend. Do some research. You’ll be less likely to feel pressured into making a hasty or expensive decision at the showroom and more likely to get a better deal.

Consider these suggestions:

• Check publications online, at a library or bookstore that discuss new car features and prices. These may provide information on the dealer’s costs for specific models and options.
• Shop around to get the best possible price by comparing models and prices in ads and at dealer showrooms. You also may want to contact your credit union or a car-buying service to make comparisons.
• Plan to negotiate on price. Dealers may be willing to bargain on their profit margin, often between 10 and 20 percent. Usually, this is the difference between the manufacturer’s suggested retail price (MSRP) and the invoice price.
• Because the price is a factor in the dealer’s calculations regardless of whether you pay cash or finance your car – and also affects your monthly payments – negotiating the price can save you money.
• Consider ordering your new car if you don’t see what you want on the dealer’s lot. This may involve a delay, but cars on the lot may have options you don’t want – and that can raise the price. However, dealers often want to sell their current inventory quickly, so you may be able to negotiate a good deal if an in-stock car meets your needs.

Link to mycreditunion.gov article: https://www.mycreditunion.gov/life-events/buying-car

 

November – Week 3 and 4

Data Breaches and Phone Scams

Data Breaches

You may hear about it on the news or receive a notice from a store or financial institution you use telling you about a data breach. A data breach occurs when your information is stolen or accidentally left vulnerable to theft, enabling thieves to steal your identity. Data breaches can result from computer hacking, computer virus, the physical theft of documents or computer equipment, or by accident (such as emailing information to the wrong address). Companies and government departments are required to notify you once they discover a breach, but the notification period varies by state. Read more  if you suspect, or have been notified, that your information has been compromised due to a data breach.

Pretext Phone Scams

Scam artists may call you pretending to be from your credit union or another institution you’ve used in the past. The scam artist gives you a false reason for the call, which is known as a “pretext.”

If scam artists succeed in tricking you to give them personal information, they can then sell it to debt collection services, attorneys, and private investigators to use in court proceedings. Identity thieves may also engage in pretext calling to obtain personal information to create fraudulent accounts.

Link to mycreditunion.gov article: https://www.mycreditunion.gov/fraud/Pages/identity-theft.aspx

 

November – Week 2

If you think you are a victim of Identity Theft

If you suspect you are a victim of identity theft, use the Identity Theft Checklist.

1. Place a fraud alert with the credit reporting agencies.
2. Order credit reports from the credit reporting agencies to review and identify inaccuracies.
3. Create an identity theft report, which involves obtaining an Identity Theft Affidavit from the Federal Trade Commission (FTC) and filing a police report.

Additionally, order new credit or debit cards for any accounts involved in the theft. Or, you may want to close the accounts altogether.

For more information about what to do next, visit the Federal Trade Commission’s identity theft center, or call the identity theft hotline at 877-ID-THEFT (438-4338).

Identity Theft Protection Services

Identity theft protection services can help you monitor your accounts, place fraud alerts or freezes on your credit reports, and remove your name from marketing mailing lists. Some people find it valuable and convenient to pay a company to keep track of their financial accounts, credit reports and personal information. Many people choose to do this on their own for free. Before you pay for a service, evaluate it and its track record before you pay any fees.

Identity theft protection companies may help you: 

• “Lock,” “flag,” or “freeze” your credit reports
• Place a fraud alert or credit freeze on your reports
• Renew or update your alerts or freezes automatically

An identity theft victim can place a fraud alert or renewal for free.

Some companies, including consumer reporting agencies, offer subscriptions to credit monitoring services. These services track your credit report, and generally send you an email about recent activity, like an inquiry or new account.

Other companies offer services to help you rebuild your identity after a theft. Typically, you give these services a limited power of attorney, which allows them to act on your behalf when dealing with consumer reporting agencies, creditors, or other information sources.

Many companies offer additional services, including removing your name from mailing lists or pre-screened offers of credit or insurance, representing your legal interests, “guaranteeing” reimbursement in the event you experience a loss due to identity theft, or helping you track down whether your personal information has been exposed online.

Link to mycreditunion.gov article: https://www.mycreditunion.gov/fraud/Pages/identity-theft.aspx

 

November – Week 1

Identity Theft 

Identity (ID) theft is a crime where a thief steals your personal information, such as your full name or Social Security number, to commit fraud. The identity thief can use your information to fraudulently apply for credit, file taxes, or get medical services. These acts can damage your credit status, and cost you time and money to restore your good name. You may not know that you are the victim of ID theft until you experience a financial consequence (mystery bills, credit collections, denied loans) down the road from actions that the thief has taken with your stolen identity. Learn what steps you can take to prevent and report identity theft.

How Thieves Get Your Information

Identity theft affects people of all ages, races, and nationalities. Anyone can be a victim. Thieves use many tactics to get your information. Some of the most common are:

1. Stealing wallets that contain personal identification information and credit cards.
2. Stealing credit union statements from the mail.
3. Diverting mail from its intended recipients by submitting a change of address form.
4. Rummaging through trash for personal data.
5. Stealing personal identification information from workplace records.
6. Intercepting or otherwise obtaining information transmitted electronically.

Preventing Identity Theft

1. Do not share personal information. Whether over the telephone, through the mail, or on the Internet, do not share your financial account information or Social Security numbers unless you know the person requesting the information is who he or she claims to be.
2. Control access to your financial information. Store your personal information in a safe place, and tear up or shred old credit card and ATM receipts, old account statements, and unused credit card offers before throwing them away.
3. Protect your PINs and other passwords. Avoid using easily available information such as your mother’s maiden name, your birth date, the last four digits of your Social Security number, or your phone number, as identity thieves can use this information to access your accounts.
4. Carry only the minimum amount of identifying information and number of credit cards that you need.
5. Monitor billing cycles and statements. Contact the credit union if you do not receive a monthly bill. It may mean that an identity theft diverted the bill.
6. Check account statements carefully. Ensure that you authorized all charges, share drafts, or withdrawals on the statement.
7. Guard your mail from theft. If you have the type of mailbox with a flag to signal that the box contains mail, do not leave bill payment envelopes in your mailbox with the flag raised. Instead, deposit them in a post office collection box or at the local post office. Remove incoming mail promptly.
8. Monitor your credit report. Consumers are entitled to one free credit report from each credit reporting agency annually.
9. Opt out of pre-approved credit cards, direct mail lists, and telephone solicitation.

Link to mycreditunion.gov article: https://www.mycreditunion.gov/fraud/Pages/identity-theft.aspx

 

 

October – Week 4

Don’t Let Checking Your Credit Score Become Scarce, You Can Check Your Credit Score Anytime With Secure Checking

October – Week 3

3 Ways to Treat Yourself and Your Finances

 

1. Treat yourself to home-cooked meals for lunch.  

Treating yourself to home-cooked meals for lunch is a great way to save money and enjoy quality food at work. On average, Americans spend $10 on lunch, five days a week. That might not sound too bad, but over the course of one month, that adds up to $200. One year of spending $10 on lunch will cost you $2,400. With that in mind, start bringing food from home.

A good way to get all of your cooking for the week done in advance is to meal prep. Meal prepping is often included in a health and fitness plan, but you don’t have to be on a diet to want to save money. How it works is, you prepare all of your meals for the week on the same day, like Sunday.

For example, you can prepare a pasta dish for the week. Once you’ve cooked your meal, portion it for five days and pack each serving into a lunch container. Meal prepping is a great tool for saving money.

 

2. Treat yourself to movie nights at home.

Don’t you love watching a good movie? Movies are fun and exciting, filled with plot twists and adventures. Going to the movies is a popular way to spend a Friday night, but it can get costly.

By the time you purchase your ticket, snacks and a drink you could easily be looking at a $30 bill. Not to mention, higher-end movie theaters with deluxe seating and special effects could cost $30 for your ticket alone.

You can bring the movies to your home. With so many affordable streaming services available online, the cost of one night at the movies could get you three months of your favorite shows and movies on your computer, phone or TV. You could even partner up with a friend or family member and split the cost of your monthly subscription.

When you have movie nights in your home, you might not have 3D glasses or a reclining seat, but you do have the comfort of your own space. You can curl up under the blankets, treat your pet to quality time, or eat a home-cooked steak. That’s better than movie theater popcorn if you ask me!

 

3. Treat yourself to free workouts.

Do you have a gym membership that you never use? If so, the money you’re spending to maintain that membership could go towards savings. Even if you don’t have a gym membership, including a few workouts in your week won’t cost a thing. Besides, part of treating yourself is taking care of your body.

Exercise is great for the body, and it’s known to improve your overall mood. Free workouts are available on YouTube. You can follow along with the instructor. You can also search online for various workouts you can do both indoors and outdoors.

While you’re busy treating yourself, be sure to keep your long-term savings goals in mind. After your hard earned savings have accumulated, you’ll be so glad to discover that sticking to your financial plan is the best treat of all.

Link to americasaves.org: https://americasaves.org/blog/1654-3-ways-to-treat-yourself-and-your-finances

 

October – Week 2

This week’s financial literacy is so full of savings it may spook you! 

Halloween is just around the corner, which means it’s time to start shopping for costumes or planning your party! If you’re prepping for October 31, finding ways to save money will be helpful. After all, Halloween is just the beginning of the end-of-the-year holiday rush. Here are five easy-to-follow tricks and treats to help you save money this Halloween.

• Recycle last year’s decorations.

Recycle, recycle, recycle! This is a great trick to keep in your box of savings treats for every holiday, not just Halloween. If you have any tablecloths, candy bowls, lights or scary decorations from last year that are still in good condition, dust them off and reuse them.

Don’t feel pressure to buy all new decorations in fear that your returning party guests might notice. They’ll be too busy having fun. Besides, your new jointed skeleton decor is probably a replica of the one you used last year. Don’t spend money on duplicates, you can use that money on other things, like savings!

• Do it yourself (DIY) whenever possible.

For the items you can’t recycle, you might be able to make them yourself. This is especially true for simple items like your candy bowl. Do you have a salad bowl or mixing bowl in the kitchen? Decorate it with stickers or paint! You can turn your bowl into a jack-o-lantern or traditional pumpkin. All you’ll need is orange and green paint. You can also make it spooky using old lipstick and eyeliner. The possibilities are endless when you’re decorating on a budget.

You can also create fun signs for the door or make other festive decorations out of construction paper, glue, glitter, and markers. Visit your local store to get cheap arts and craft supplies. You can turn Halloween into family fun even before October 31 by making your decorations together. 

Don’t want to spend money on a Halloween mask that you know will only be worn once? You don’t have to! You can use face paint or good old-fashioned makeup to create a one-night-only mask. Once Halloween is all said and done, just wash it right off knowing you didn’t waste the extra money. 

• Buy discounted candy and practice portion control. 

Candy is the one inevitable expense of Halloween. Even if you don’t plan to participate by wearing a costume or throwing a party, you can expect to get a few knocks from your neighborhood trick-or-treaters.

Be sure to stock up on discounted candy beforehand. Visit your local grocery store to cash in on marked down candy. Assorted candies are usually the lowest price, and they also make it look like you tried hard because you have all sorts of candy to give out. You might find candy on two-for-one sales or buy one get half off deals. Either way, discounted candy is a better use of your money than buying it full price. 

If you want to stretch your dollars on candy this year, allow each trick-or-treater just two or three pieces of candy. This way, you don’t have to worry about anyone taking a handful of your treats. Portioning your candy will make it last longer.

If you don’t want to be bothered this year, feel free to create a cute sign that lets trick-or-treaters know that your house isn’t participating. You can make a sign that says “Sorry, no candy :)” or print a sign from the internet. Either way, they’ll get the message. 

• Wear your own clothes.

One way to save money on costumes is by wearing modified versions of your own clothes! Dressing as a television show or cartoon character is easy because they wear pretty generic clothes. Two easy to imitate characters are Steve Urkel and Pam Beesly. 

You can also dress like a TV show family with your folks. For example, you and your family can dress as the Simpsons, Griffins, Winslows or Belchers from Bob’s Burgers. Since each character wears the same thing every day, most people will recognize your costume, even though it’s not a real one!

Another classic costume that you can make out of your clothes is tourists! All you need is a floral shirt, khakis, and a satchel. You can also be an employee of a store that has an easy to duplicate uniform, like Target or Walmart. You just need khakis and a red or blue shirt. Get creative, but don’t blow your budget!

• Avoid the extra.

So you’ve followed all of our savings tips and tricks for Halloween. Here’s one more all-encompassing secret. Avoid spending money on the extra! If your costume requires whiskers because you want to be a cat, don’t buy whiskers that you’ll throw away after one use, draw whiskers using makeup. If you want a spooky tablecloth but you know you’ll never use it again, use bleach and paint on an old bedsheet. Don’t spend money on one-hit-wonder items. You won’t regret cutting corners when the day is over and your finances are still intact.

Link to americasaves.org: https://americasaves.org/blog/1653-halloween-savings-tricks-and-treats

 

October – Week 1 

Making the most of your money starts with five building blocks for managing and growing your money — The MyMoney Five. Keep these five principles in mind as you make day-to-day decisions and plan your financial goals:

Building Block 5: Borrow

Sometimes it’s necessary to borrow for major purchases like an education, a car, a house, or maybe even to meet unexpected expenses. Your ability to get a loan generally depends on your credit history, and that depends largely on your track record at repaying what you’ve borrowed in the past and paying your bills on time.  So, be careful to keep your credit history strong.

Actions You Can Take

• Track your borrowing habits.
• Pay your bills on time.
• When you need to borrow, be sure to plan, understand and shop around for a loan with a low Annual Percentage Rate (APR).
• Learn about credit and how to use it effectively.
• Pay attention to your credit history, as reflected by your credit score and on your credit report. 

Hints and Tips 

• Borrowing money is a way to purchase something now and pay for it over time. But, you usually pay “interest” when you borrow money. The longer you take to pay back the money you borrowed, the more you will pay in interest.
• It pays to shop around to get the best deal on a loan. Compare loan terms from several lenders, and it’s okay to negotiate the terms.
• When repaying a loan, it may be better to pay more than the minimum amount due each month, so you will have to pay less in interest over the life of the loan.
• One of your most important aids when shopping for a loan is the APR – the Annual Percentage Rate. This is the total cost, including interest charges and fees, described as a yearly rate.
• Paying your bills on time will help increase your credit score. Even if you fell into trouble with borrowing in the past, you can get on solid footing and rebuild your credit history by making regular payments as agreed.
• You are entitled to a free copy of your credit report every 12 months from each of the three nationwide credit bureaus. Go to www.AnnualCreditReport.com or call toll free 1-877-322-8228 to order the free reports. Beware of impostor sites. 

Link to MyMoney.Gov: https://www.mymoney.gov/borrow/Pages/borrow.aspx

 

September – Week 4

Making the most of your money starts with five building blocks for managing and growing your money — The MyMoney Five. Keep these five principles in mind as you make day-to-day decisions and plan your financial goals:

Building Block 4: Spend

The fundamental concept of Spend is: make a budget or a plan for using your money wisely. It’s helpful to set short and long-term financial goals and manage your money to meet them. 

Actions You Can Take

• Live within your means.
• Be a smart shopper, and compare prices and quality.
• Track your spending habits and develop a budget or spending plan.
• Plan for short-term and long-term financial goals.

Hints and Tips

• A good way to take control of your spending is to set the maximum amounts you plan to spend each week or each month. Once you’ve set the maximum, stick with your plan.
• It’s helpful to track your spending over a few weeks or months to get a handle on how you are using your dollars and cents. Look into using on-line systems or phone apps for keeping track of your spending – you will be amazed at what you’ll learn about your habits!
• Be careful not to let a sale or discount coupon persuade you to purchase something you don’t really need and that isn’t in your spending plan.
• When planning a big purchase, take time to comparison shop and check prices at a few different stores, by phone or online.

Link to MyMoney.Gov: https://www.mymoney.gov/spend/Pages/spend.aspx

 

September – Week 3

Making the most of your money starts with five building blocks for managing and growing your money — The MyMoney Five. Keep these five principles in mind as you make day-to-day decisions and plan your financial goals:

Building Block 3: Protect

The Protect principle means taking precautions about your financial situation. It stresses the importance of accumulating savings in case of an emergency and buying insurance. Be vigilant about identity theft, and keep aware of your credit record and the credit score.

Actions You Can Take

• Keep your financial records in order.
• Watch out for fraud and scams, and protect your identity.
• Choose insurance to meet your needs, including healthcare insurance.

Hints and Tips

• A good system for keeping personal money records will include copies of important documents like your will, property ownership documents, information about savings and insurance, and other documents. It should include an overview of what happens to property after a major life event occurs.
• Assume that any offer that “sounds too good to be true” – especially one from a stranger or an unfamiliar company — is probably a fraud.
• Look at your bank statements and bills as soon as they arrive and report any discrepancy or anything suspicious, such as an unauthorized withdrawal or charge.
• Be wary of request to “update” or “confirm” personal information, especially your Social Security number, bank account numbers, credit card numbers, personal identification numbers, your date of birth or your mother’s maiden name in response to an unsolicited call, letter or email.

Link to MyMoney.Gov: https://www.mymoney.gov/protect/Pages/Protect.aspx

 

September – Week 2

Making the most of your money starts with five building blocks for managing and growing your money — The MyMoney Five. Keep these five principles in mind as you make day-to-day decisions and plan your financial goals:

Building Block 2: Save and Invest

Saving is a key principle. People who make a habit of saving regularly, even saving small amounts, are well on their way to success.  It’s important to open a credit union account so it will be simple and easy for you to save regularly.   Then, use your savings to plan for life events and to be ready for unplanned or emergency needs.

Actions You Can Take

• Start saving, form a savings habit, and pay yourself first!
• Open and keep an account at a credit union that meets your needs.
• Track your savings and investments, and monitor what you own
• Plan for short-term and long-term goals
• Build up emergency savings for unexpected events
• Consult with a qualified professional on investments and other key financial matters
• Save for retirement, children’s education, and other major items

September – Week 1

Making the most of your money starts with five building blocks for managing and growing your money — The MyMoney Five. Keep these five principles in mind as you make day-to-day decisions and plan your financial goals:

Building Block 1: Earn

The Earn principle is about more than the amount you are paid through work.  This principle is about knowing the fine print and details about your paycheck, including deductions and withholdings.  To put it another way:  In order to make the most of what you earn, it helps to understand your pay and benefits. 

Actions You Can Take

• Learn about the details of your paycheck, including any deductions
• Review the taxes that are withheld, including Social Security and Medicare taxes
• Explore and sign up for workplace benefits
• Invest in your future – with education and training.

Hints and Tips

• Remember, your employer has to subtract certain taxes and other items from your wages every pay period. Your take-home pay (net income) is what you receive after any taxes and deductions are subtracted.
• Usually, your deductions and withholdings include federal, state and city income taxes, Social Security and Medicare taxes, your contributions for retirement savings, and payments for health insurance provided as part of your job.
• Be sure you take advantage of all the credits and deductions that help lower your taxes.
• It’s a good idea to sign up if your employer offers a retirement savings program. If so, you can arrange to have retirement savings automatically moved from your paycheck to a retirement account. Many employers will match part of every dollar you save this way, and you will benefit from it when you retire.

Link to MyMoney.Gov: https://www.mymoney.gov/earn/Pages/earn.aspx

 

August – Week 4

Lesson Plans and Resources

 

August – Week 3

Test Your Money Memory

How well do you know the faces on dollars and coins? Here is something fun to do. Can you match the money on the left with the name on the right? Answers appear below. (Hint: two Presidents appear both on a coin and on a bill.)

Follow the link to play: https://www.mycreditunion.gov/Pages/pocket-cents-test-your-money-memory.aspx

 

August – Week 2

​Hit the Road: A Financial Adventure Game

A throwback to The Oregon Trail® type gameplay, “Hit the Road” takes you on a virtual road trip across the country, but the journey is not an easy one. You must save and spend your money wisely to complete challenges along the way.

Follow the link to play: https://www.mycreditunion.gov/Pages/pocket-cents-game.aspx

 

August – Week 1

World of Cents

Match coins to earn money, then decide how to spend it building a magical world!

World of Cents is a fun and engaging, kid-friendly game for ages 5 and up designed to help teach the value of money through the concepts of earning, saving and spending money while incorporating basic math concepts.  

Follow the link to play: https://www.mycreditunion.gov/Pages/world-of-cents-game.aspx

 

July – Week 4

Paying Off Credit Cards

When your monthly statement comes, there’s a great temptation to pay only the minimum. Don’t do it. Read your statement carefully for information about how long it would take to pay off your account balance if you only pay the minimum payment. It can take years, even decades, to pay it off. If possible always pay the balance in full every month or pay more than the minimum amount. Doing so will help you to establish an excellent credit rating, a score used by lenders to determine the rate you will pay on your loan.

Suppose when you’re 18, you charge $1,500 worth of clothes and DVDs on a credit card with a 19 percent interest rate.

If you repay only the minimum amount each month, and your minimum is 4% of the outstanding balance (the lowest amount permitted by some issuers), you’ll start with a $60 payment. You’ll be more than 26 years old by the time you pay off the debt. That’s 106 payments, and you will have paid more than $889 extra in interest. And, that’s if you charge nothing else on the card, and no other fees are imposed (for example, late charges).

If your minimum payment is based on 2.5% of the outstanding balance, you’ll start with a $37.50 payment. You’ll be over 35 years old when you pay off the debt. That’s 208 payments, and you will have paid more than $2,138 in interest, even if you charge nothing else on the account and have no other fees.

Wondering how long it will take to pay off your debt? Based on the information you supply, this credit card repayment calculator estimates of how long it will take you to pay off your credit card balance.

Follow these guidelines to avoid credit card debt and create good credit at the same time.

• Know your financial means and limits, and don’t go beyond them. Only charge items that you know you can pay off each month.
• If you already carry a balance, pay more than the minimum payment (or the most you can afford) to bring down your principal balance. Try to keep your balance as low as possible.
• Shop around before accepting a credit card offer.
• Compare APRs. They range from 7.99% to 30.25%.
• Carry only 1 or 2 major credit cards and avoid using your full credit limit.
• Read the fine print and disclosures.
• If you are making payments on several credit cards, try to consolidate them into a single card with a low APR. Alternatively, you should pay off the card with the highest interest rate first.

 

For more advice and tips about paying off your credit card, please click on the following Link: https://www.mycreditunion.gov/what-credit-unions-can-do/Pages/paying-off-Credit-Cards.aspx

 

July – Week 3

Preparing for Retirement

Between longer life expectancies and fewer employers offering traditional pension plans, it’s a good idea to take an active role in planning for retirement. You can talk with your local credit union about retirement savings vehicles, including Traditional IRAs and Roth IRAs. Here are some other things to consider.

Planning Ahead – 10 to 15 Years Before Retirement.

It’s time to figure out how much money you will need to retire – and where you will find this money to support yourself. It’s good to consider the kind of lifestyle you will want to support, such as budgeting for travel or new pastimes.

• Complete this worksheet from the U.S. Department of Labor to help with planning your retirement savings.
• Take advantage of the time value of money. Put your money to work for you while you are still working by investing in a retirement account.
• Make sure you diversify your investments with a mix of stable “fixed” investments, such as a bond, and potentially higher-yielding, but riskier investment, such as a stock mutual fund.
• Look into “catch up” retirement contributions, which allow people age 50 and older to contribute more to their 401(k) and other retirement accounts each year.

Upon Your Retirement

There are a number of important milestones around this time, as you move from accruing income to tapping into your savings to support yourself over the years to come.

• At age 65, you are eligible for Medicare. Remember to enroll or you may be limited on when you can enroll later and may pay more in premiums.
• At age 66, you are eligible for full Social Security benefits, if you were born between 1943 and 1954.
• At age 70½, you should start taking minimum withdrawals from most retirement accounts to avoid heavy tax penalties in the future.
• Visit the Post Retirement Worksheet

After Retirement – 30 Years or More

The average 65-year-old American male will live 17 more years and the average 65-year-old American female will live 20 more years, so planning for 30 years of retirement will protect you from exhausting your savings.

• Plan a withdrawal strategy so you pay less tax on money you take out of your retirement account and continue to grow the money you leave in.
• Determine whether to take your pension or retirement plan benefit in a lump sum or in an annuity. Read your plan documents to learn about your options.
• Try to grow your remaining money to at least keep pace with inflation.

For more retirement resources, visit the U.S. Department of Labor’s Take the Mystery Out of Retirement Planning brochure, the Social Security Administration’s guide to understanding retirement benefits and the Internal Revenue Service’s Individual Retirement Arrangements guide to retirement plans.

Link to article on mycreditunion.gov: https://www.mycreditunion.gov/what-credit-unions-can-do/Pages/Preparing-for-Retirement.aspx

 

July – Week 2

Understand Your Credit Card Statement

A credit card statement is a summary of how you’ve used your credit card for a billing period. If you’ve ever looked at credit card statements, you know how difficult they can be to read. Credit card statements are filled with terms, numbers, and percentages that play a role in the calculation of your total credit card balance.

To be a responsible credit card user, it’s important to read all the fine print and understand the numbers and terms on the statement. If you don’t, you may end up with more credit card debt than you can handle.

It’s also important to read your credit card statement carefully to spot any unauthorized charges or billing errors. Your liability for those charged may be limited if you report them in a timely manner.

Click the following link for examples of information that generally appears on a credit card statement: https://www.mycreditunion.gov/Pages/pocket-cents-understanding-credit-card-statement.aspx

 

How to Read the Schumer Box

July – Week 1

6 Simple Ways to Rev Up Your Savings

• Save for specific goals:
  • You should have a savings plan for large future expenses that you anticipate — perhaps education costs, a home or car purchase, starting a small business, or preparing for retirement (even though that may be many years away). And, young adults just starting to be responsible for their own expenses should build up an emergency fund that would cover at least six months of living expenses to help get through a difficult time, such as a job loss, major car repairs, or unexpected medical expenses not covered by insurance.

 

• Commit to saving money regularly:
  • This is important for everyone, but especially if you are supporting yourself financially.

 

• Aim to save a minimum of 10% of any money you earn or receive:
  • Putting aside a designated amount is known as “paying yourself first,” because you are saving before you’re tempted to spend.

 

• Put your savings on auto-pilot:
  • Make saving money quick and easy by having your employer direct-deposit part of your paycheck into a federally insured savings account. Your employer or your financial institution may be able to set this up for you. If you don’t yet have a steady job, you can still set up regular transfers into a savings account.

 

• Make use of tax-advantaged retirement accounts and matching funds:
  • Look into all your retirement savings options at work, which may come with matching contributions from your employer. Chances are your retirement savings will hardly reduce your take-home pay because of what you’ll save in income taxes, and the sooner you start in your career, the more you can take advantage of compound growth.
    If you’ve contributed the maximum at work or if your employer doesn’t have a retirement savings program, consider establishing your own IRA (Individual Retirement Account) with a credit union or investment firm and make regular transfers into it. Remember that you can set up an automatic transfer from a checking/share draft account into a savings/investment account for retirement or any purpose.

 

• Decide where to keep the money intended for certain purposes:
  • Consider keeping emergency savings in a separate federally insured savings account instead of a checking/share draft account so that you can better resist the urge to raid the funds for everyday expenses. Be sure to develop a plan to replenish any withdrawals from your emergency fund.
  • For large purchases you hope to make years from now, consider share certificates and U.S. Savings Bonds, which generally earn more in interest than a basic savings account because you agree to keep the funds untouched for a minimum period of time.
  • For other long-term savings, including retirement savings, young adults may want to consider supplementing their insured deposits with low-fee, diversified mutual funds (a professionally managed mix of stocks, bonds and so on) or similar investments that are not deposits and are not insured against loss by the NCUA or FDIC. With non-deposit investments, you assume the risk of loss for the opportunity to have a higher rate of return over many years.
  • For future college expenses, look into 529 plans, which provide an easy way to save for college expenses and may offer tax benefits.
  • For healthcare, find out whether you are eligible for a health savings account (HSA), a tax-advantaged way for people enrolled in high-deductible health insurance plans to save for medical expenses.

 

Think about ways to cut your expenses and add more to savings. For your financial services, research lower-cost checking/share draft accounts at your credit union and some competitors. And, if you are paying interest on credit cards or fees for spending more money than you have available in your checking/share draft account, develop a plan to stop.

More broadly, look at your monthly expenses for everything from food to phones and think about ways to save.

 

Link to article on mycreditunion.gov: https://www.mycreditunion.gov/protect/Pages/Tips-for-Young-Adults.aspx