Archive for Savings Hacks – Page 2

Energy Saving Tips When Buying New Appliances

Limiting Household Appliances’ Energy Use Can Save You Big Bucks!

Ecologists are always searching for ways to save our environment. Focusing on energy-efficient appliances is one aspect of this endeavor.
washing machine and dryer

Photo Credit: http://ow.ly/SQGS30j5gio

In fact, 30% of the charges on your electric statement stem from your appliances. That’s why the government and many appliance manufacturers are replacing standard devices with new energy-saving models.
 
Is one of your appliances on the blink? Before running out to purchase a new model, consider if it’s worth contacting a technician to fix your machine. Since prices for electrical appliances have decreased over the years, it might be worthwhile to buy a new model. Besides, the costs of a new part for your old apparatus and the technician’s visit can be high.
 
Also, remember that the new energy-efficient appliances will save you money on a monthly basis.

What Does Energy-Efficient Mean?

In simple terms, this means the process that is used to make the appliance function is using less energy.
Now that you decided to go with a modern, energy-efficient refrigerator, how can you be sure you’re getting the best product at the most cost-effective price?
 
Here are some tips to guide you in your search:
 
1. Determine the total cost. The first thing to consider is the operating cost. This amount, along with the actual purchase price, should give you the real cost of the appliance.
 
2. Check the energy rating. There are several reliable rating services that provide information about appliance energy consumption. The federal government uses the Energy Star Standard sticker to inform consumers of the operating cost and the annual energy consumption of each appliance.
 
3. Select the right size appliance. Running a large machine – even the most energy-efficient one – uses more electricity than a compact one.
 
4. Look for economy choices. Many dishwashers and washing machines offer a variety of different cycles. If you find one with an economy cycle, you’ll save money when you only need to wash a small load of clothes or dishes.
 
5. Stay Simple. When it comes to choosing a refrigerator, go easy on the add-ons. Top-to-bottom fridge/freezer models are more energy efficient than side-by-sides. Features like water dispensers, ice-makers and auto-defrost use lots of extra electricity. This holds true for self-cleaning ovens, too.
 
6. Contact your utility supplier for the latest ways to save on utility charges. With today’s smart devices, appliances can be programmed to use less energy at certain times of the day.
 
7. Check out your home. Hire a home assessor to identify ways you can save on your overall energy and water costs.
 
8. Comparison shop. Never buy the first model you see. Household appliances are not cheap, and to find the most energy-efficient one at the best price, you’ll need to comparison shop. Don’t pay for the name in a specific model; compare the details of each machine.

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A Different Breed Of Diversification: What Multiple Certificates Can Do For You

Earn More with a Share Certificate!

Coins

Photo Credit: https://pixabay.com/en/money-home-coin-investment-2724241/

For planned savings, share certificates (aka “savings certificates” or “certificates”) are a great option. They allow you to earn a pretty good return on your money while keeping it accessible enough to use for major expenses. If you’re planning on buying a house or a car, keeping your down payment money in a certificate can help it grow toward your goal a little faster.

 
What if, though, you’re saving for both of those things? It’s difficult to make partial withdrawals from a certificate, and doing so can hurt your earnings. Let’s take a look at three ways to solve this problem, and consider the pros and cons of each.

1.) Lump it all together

One option would be to put all your savings goals into one certificate. You’d take your house down payment, your car funds, your vacation savings and your rainy day money and put them all in a single certificate. This strategy is simple and straightforward.
 
The good
 
First, there’s only one statement to keep track of each month. At tax time, you’ll only have one document that shows the dividends you’ve earned, and you won’t have to track down multiple pieces of paper to figure out how much you’ve got saved. You can make withdrawals when it comes time to achieve your savings goals, and put the remainder into a new certificate at that time. Sometimes, larger sums of money earn better rates, so lumping all your money together can improve your return over the long haul.
 
The bad
 
Because all the money is in one pot, it can be difficult to determine how close you are to each goal. You’re also stuck on the time frame of your shortest-term goal. If you want to buy a car in a year from now, you can only get a one-year term to save for everything, including the house you want to put a down payment on in five years. That short-term rate may not be as good as you could get otherwise.
 
The bottom line
 
If all your savings goals are on a similar time frame, or if simplifying your financial life is your foremost priority, a single certificate for all your savings is a good idea.

2.) Different certificates for different goals

In this slightly more complicated approach, you would open one certificate for your car down payment, one for your house savings and one for your emergency fund. These would all be held in different certificate accounts, and would earn interest separately.
 
The good
 
Since each of your savings goals are in individual accounts, you can get better rates by locking long-term goals into long-term certificates. Instead of keeping all your money tied to the term of your shortest goal, you can stagger your terms to meet the individual needs of all your goals. This will allow you to lock in better rates and make more strategic withdrawals at the time you need the money. Dividend rates change over time, so multiple certificates allow you to avoid the risk of missing better rates, since you have more opportunities to re-lock rates.
 
The bad
 
The variable interest rates can make figuring your earnings difficult, and the multiple accounts can create some confusion when tax filing time arrives. Having multiple accounts also might keep you from getting the best dividend rates, which are reserved for larger balances. So-called “jumbo” certificates can magnify returns if your savings exceeds a certain amount. You may also have an emergency that requires you to dip into savings; in these instances, you may have difficulty accessing a significant portion of your money.
 
The bottom line
 
Multiple certificate accounts offer a combination of flexibility and security that would be helpful for those with a diverse range of goals.

3.) The ladder

A certificate “ladder” is a strategy that uses multiple long-term certificates opened at regular intervals. The objective of a ladder is to secure the best rates possible while ensuring some money is still available at regular intervals. For example, a five-year ladder involves buying a series of certificates so a five-year account is maturing each year.
 
The good
 
A ladder is very flexible and it helps to lock in the best available rates. Long-term certificates have the best rates, regardless of size, and a certificate ladder lets you take advantage of them. It also protects you against the usual problem of long-term certificates. When rates change, you have the flexibility to reinvest and secure those rates.
 
The bad
 
Setting up a certificate ladder can require some very careful planning, and the minimum investment is much higher. Instead of needing the minimum deposit for one certificate, you need the minimum deposit for five of them. Additionally, only one-fifth of your savings are available at any one time. If you’re saving for a large single goal, this can complicate matters considerably.
 
The bottom line
 
Ladders are a complex strategy that can maximize returns for those who are saving for flexible goals like vacations, home renovations and vehicles.
 
Whatever your financial plan, certificates have an important role to play. They make saving for your goals, near and distant, easier. If you want to discuss how certificates can fit into your savings portfolio, call, click or stop by 705 FCU today!

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Sources:

How To Shop For Fall On A Budget

Fall Savings Tips

fall leaves

Photo Credit Union: http://ow.ly/QpzC30j5hAr

That long-anticipated day has finally come and gone. Your kids looked sharp and neat sporting spiffy backpacks and dressed in their spanking new back-to-school clothing. You watched them board that bus and waved them off from your perch at the bus stop until your arm hurt.

 
Then you breathed a great sigh of relief, grateful that the busy back-to-school shopping season is behind you.
 
Unfortunately, though, the fun is just beginning!
 
While your child may be outfitted for the new school year, you might need some warmer autumn clothing for yourself. And of course, if the leaves are starting to change colors, it can only mean that winter isn’t far behind. That brings with it a whole slew of wardrobe necessities and accessories you’ll need to purchase, both for yourself and the rest of your family.
 
If the dollar signs dancing before your eyes are starting to look frighteningly large, you can relax! As always, 705 Federal Credit Union is here to help you navigate this potentially expensive task and show you creative ways to save, even as you bundle up your family for the fall and winter seasons.
 
Read on for six timely money-saving tips this shopping season.

1.) Layer up

Don’t pack away your summer clothing just yet! The temperatures may be dropping, but you can still find many uses for those tank tops and summer dresses; save them for layering up in colder weather. You can stick a long-sleeved T-shirt under a dress and add leggings and boots to make it warmer. If you’re a genuine fashion guru and will wear any trend, you can even wear shorts in the winter and stick a pair of leggings or warm tights underneath.

2.) Take inventory

You check your pantry before heading to the supermarket; shouldn’t you also take stock of your closets before hitting the mall? This is especially important when shopping for a new season. It’s easy to forget pieces you’ve got hidden in the back of your closet or buried deep in a drawer from last winter. Take a careful inventory of what each family member has and what they still need and write it down. This way, you won’t come home to find that you already have what you’ve purchased.

3.) Shop the sales

Fall has a few observed holidays that bring awesome sales – so take advantage! There’s Columbus Day, Veterans Day and then the markdown day of the year, Black Friday. There’s also Cyber Monday and Small Business Saturday. It’s worth waiting for the next holiday to buy what you need. You’ll save a lot just by being patient!

4.) Shop online – without paying shipping

Online shopping can be significantly cheaper than retail stores – until you need to chalk up $6.99 for shipping, that is.
Beat the system by looking for free shipping on sites like Freeshipping.com, or by taking advantage of the free in-store pickup available at many retailers. Many stores also offer coupons to first-time online shoppers. If you’ve already shopped a store online, you can sign in using another email address and still snag the deal.
 
Even if you prefer live shopping and like to try on your clothing before you buy, it pays to check out a store’s online inventory before going to the brick and mortar shop. This way, you’ll know what they have and what you like instead of wasting time browsing racks and finding the perfect top with the perfect price several hours later.

5.) Time it right

There’s a season for every purchase. If you wait until a specific item goes on sale, you’ll save big. For example, jeans always get marked down in October and last winter’s boots will show up on the sales racks at the end of September. It’s worth it to wait until these times to buy these items.
 
Also, winter coats hit the sales racks as soon as Christmas is over. Depending on the climate in your area, you may be able to hold off on buying a coat until after the holidays to await a super deal. Alternatively, if your old coat is in fairly good condition but you’d like a more updated look, consider making do with last year’s coat for now, and buying a new one when they go on sale.

6.) Shop the overstock

Stores that specialize in deeply discounted merchandise, like DSW, T.J. Maxx, and Marshalls, can be a terrific source for name brand clothing at generic prices. You may have to sift through rows of racks until you land a real bargain, but it’ll be well worth your time. These stores are especially beneficial for stocking up on basics.
 
On a similar note, be sure to check out secondhand stores and sites like Overstock.com for incredible deals on stuff you need.
Don’t break the budget this shopping season. With a bit of planning and strategic shopping, you can outfit your family for warmer weather.

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SOURCES:
 

Can Living Frugally Make You Happier Than When Living Lavishly?

Do you believe money is the key to happiness?

girl blowing bubbles

Photo Credit: http://ow.ly/fZf030eATAm

Somewhere deep inside, we all know that money cannot buy happiness. Many people overspend and rack up thousands of dollars in credit card debt to live a lifestyle they believe will make them happy, only to discover they are living beyond their means. This, in turn, adds stress and worry … causing unhappiness. Believe it or not, living frugally can actually make you happier than living lavishly.

 
Living a frugal lifestyle isn’t necessarily about pinching pennies and denying yourself things you want. It’s about making your life easier and worrying less about money.
 
If you’ve decided it’s time to start living more frugally, ask yourself why you want to do it and establish a goal. Without a reason to change your spending habits and a goal to work toward, it’s easy to fall back into old habits. Maybe you’d like to retire early, or travel the world or buy your dream home. Maybe you’d like to work less and spend more time with your family. Whatever your reason, write it down. Place reminders of your goal where you’ll see them often.
 
Once you’ve started your new frugal lifestyle, you may be pleasantly surprised at your newfound happiness. Below are some benefits of living the frugal lifestyle that can lead to more happiness and better money management.
 
  • You’ll learn to appreciate what you have. You’ll become thankful for your resources and learn to make the most of them. Rather than throwing away old items, you learn to repurpose them and let little go to waste.
  • You’ll tend to choose experiences over objects. Rather than going to the mall and purchasing a new outfit or the newest video games, you’re more apt to go for hike, to the beach or play board games with friends or family. These experiences provide memories and happiness that can last a lifetime. Conversely, that new outfit or video game will provide only temporary happiness.
  • You’ll start to notice your debt diminishing. The burden of debt often ties people to jobs and locations that they hate because they feel they have no other choice. Once your debt disappears, you’ll have the freedom to choose a profession and location that makes you happy.
  • You will have more leisure time. Once you’re able to pay down debt, you won’t need to work as many hours to make ends meet. This will give you more free time to spend on hobbies and other leisurely pursuits.
  • Living frugally may put you on the path to early retirement. Rather than spending your golden years working, you could be gardening, traveling, enjoying your grandchildren or any number of more pleasurable things. Being able to put more funds away for retirement will help you reach a financially comfortable level long before many of your colleagues.
  • You might find joy in helping others. By reducing your own expenses and saving money, you are able to give more to others and support social causes that are important to you.
 
Now, you may be thinking – the frugal lifestyle doesn’t sound all that bad, but how do I get started? The key is to start small. Make a list of what you’d like to accomplish, how much money you’ll need to achieve it, and formulate a plan. Figure out expenses you can live without. Instead of buying high-priced gourmet coffee at a drive-thru in the morning, brew your coffee at home. Brown bag your lunch rather than eating out. Make a weekly meal plan and cook your meals at home. These items alone can potentially save you hundreds of dollars a month.
 
If you’re paying down multiple credit cards, look into consolidating them into one loan or to a single, lower-interest credit card. This can give you significant savings on interest charges. [Check out Section 705’s low interest credit card option and apply here.] Once you’ve consolidated your credit card debt, keep your your oldest credit card, but use it infrequently and close all others. Keeping your oldest card open may positively impact your credit score. Leaving the others open, though, may lead to a temptation to use them again, thus defeating the purpose of paying them off.
 
Learn to stretch your money as far as you can. When purchasing groceries, clip coupons and look for sales. When purchasing clothes or other non-grocery items, check thrift stores, yard sales and clearance racks for the best possible deals.
 
Look for ways to lower your monthly bills. Are you paying a huge bill for cable TV? Could you live without it? Many people pay a large cable bill and only watch a handful of channels. Check to see if there is a cheaper package available. Is your electric bill higher than it should be? Try hanging your clothes outside to dry rather than using your clothes dryer whenever possible. Also, washing your clothes in cold water instead of hot will save your hot water heater from working as hard – and your clothes will still get cleaned. Another good habit to get into is unplugging electronic devices when you’re not using them.

Give living frugally a try! You have nothing to lose but debt and can gain some unexpected happiness along the way.

SOURCES:

http://www.wisebread.com/how-living-on-a-tight-budget-makes-you-happier
https://www.thebalance.com/frugal-living-4074014
https://toughnickel.com/frugal-living/101-Frugal-Living-Tips-You-Need-to-Know
https://www.thepennyhoarder.com/life/frugal-living-rich-life/
https://www.thebalance.com/lower-your-electric-bill-1388743

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Creative Ways To Save On Energy Costs

Cut Energy Costspiggy bank and light bulb

Are your summertime electricity bills astronomical? Check out our list of 10 creative ways to trim your bill in the summer and all year ’round!

1.) Plant trees

If your home has lots of west-facing windows, you’re likely getting loads of sunlight each afternoon, and that’s making your AC unit work harder. Lower your energy consumption by planting trees or large shrubs in front of some of those windows.

2.) Go solar

If you can’t afford to buy solar panels, consider leasing them instead. You’ll be given a set monthly fee which makes budgeting easier year-round. Also, the monthly payment is often 15% less than the local utility rate.

3.) Rethink your roof

Is your roof dressed in black for 90-degree weather? By installing a sunlight-reflecting “cool roof,” you can reduce your roof’s temperature by up to 60 degrees. This will trim your AC use by as much as 20%.

4.) Keep your cool

Large, heat-generating appliances can warm up a room quickly. Consider running your washing machine and dishwasher at night or in the early morning when it’s cooler outside.

5.) Lighten up

Replace your light bulbs! By swapping out just five incandescent light bulbs in a high-traffic area of your home to CFL or LED bulbs, you can save $65 on annual energy costs.

6.) Seal all leaks

If your home isn’t a new build, you likely have leaking windows and doors. Caulking regularly shrinks. Structural walls of houses tend to shift with time. To check for leaks, run the match test. Shut down your AC unit and close all doors and windows. Hold a lit match near the windows and exterior doors of your home. If the flame moves, that will indicate an airflow, which means a leaky seal.

If you’ve got leaks, reseal your windows by weatherstripping the problem areas. A leaky door may need a door sweep replacement. Just peel off the old one and bring it to a home improvement shop so they can help you find a new one that fits your door.

7.) Get smart!

By installing a smart thermostat, your home will be programmed to cool off at exactly the times you need.

8.) Pull out the plug

Up to 75% of energy consumption by home electronics happens when they’re turned off. Save big by pulling out the plugs when you’re done with your electronics.

9.) Fire up the grill

An oven cranked up to the standard 350° makes your AC unit work harder. Use your grill for dinner prep. You’ll keep the heat out and enjoy the sunshine at the same time!

10.) Laundry smarts

About 90% of the energy used when doing laundry comes from heating the water. When possible, choose the cold setting on your washing machine. Hanging your clothes to dry will also trim your bill. If you must use the dryer, stick some tennis balls in there to make it more efficient and finish faster.

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Back-To-School Savings

12 Ways to Save During Back-to-School Season!

Q: Is there any way to get through the back-to-school season without spending a small fortune?
 
Letters spelling "Back to School."
A: Back-to-school time is the second largest shopping season of the year. If all that spending makes your head pound, take heart. 705 FCU has your back! We’ll help you navigate it with your budget and sanity intact. Read on for 12 back-to-school saving tips.

1.) Do a house-wide sweep

Before you spend a penny, scour your closets and drawers to see what you have lying around the house. Round up all the supplies and list everything you’ve found. Keep the list handy so that you don’t forget what you have and end up buying things you don’t need.

Also, while digging through your kids’ closets, sort and purge. This way, their closets won’t be cluttered with junk and you’ll know exactly what each child needs.

2.) Get the teacher-approved list

Pay close attention to specifics on the supply list sent home by your child’s teacher or found at major retailers. This will prevent you from being forced to later repurchase supplies that fit the teacher’s criteria.

3.) Spread your purchases

Spreading your back-to-school shopping throughout the summer will allow you to take advantage of weekly sales. Also, by scattering your purchases, you won’t feel the financial squeeze as much as you would if you bought everything at once.

4.) Take advantage of sales-tax holidays

Many states have a sales-tax holiday sometime during the summer. Look up the timing of your state’s tax holiday and do your shopping at that time.

5.) Organize a clothing swap

Organize a clothing swap party with other parents in your area. Choose a date and venue, and instruct all attendants to show up with three or more items of gently used children’s clothing. At the party, parents can exchange their kids’ outgrown clothing and go home with incredible finds – all free of charge!

6. Find the best prices

Hunt for specials in the weekly circulars and look up coupons and deals online, on sites like RetailMeNot and CouponCabin. You can also check out PriceGrabber.com or use the ShopSavvy app to find the lowest possible price on an item.

7.) Use Twitter and Facebook to save

Many companies send coupon links to followers and let them know about upcoming sales. Monitor your favorite stores’ Twitter feeds and Facebook updates to find super deals.

8.) Save through Ebates

When you buy through Ebates, you earn cash back on every purchase. You’ll also find exclusive deals and offers on the site. You can shop major stores like Macy’s, Walmart and Kohl’s on Ebates. It’s like getting paid to shop!

9.) Time it right

Purchase what your child needs for now, and save the rest for later. You’ll find deep discounts on fall clothing just a few weeks into the school year.

10.) Set limits

Every year there’s a must-have school supply or clothing trend that costs a bundle. Set limits. Allow your child to choose one or two pricier items – but that’s it!

11.) Cash or debit card only!

Paying with cash or using your debit card so it draws from your checking account helps you stay within your budget. Resist the urge to charge if you can. This will help ensure you aren’t paying interest long after the pencils have already broken.

12.) Plan ahead

When school supplies and backpacks are ridiculously discounted a few weeks into the school year, stock up for next year.

 

6 Ways To Save On Your Summer Vacation

beach

Photo Credit: Pixabay.com (http://ow.ly/ZTc030dvgXF)

Vacation Time!

The ocean is calling – and so is the open road. Your dream vacation awaits! But first, you need to work out the financial details. How are you going to pay for your getaway? How much can you realistically spend? Where is the money for your vacation going to come from?

Ideally, a plump vacation fund that’s fed throughout the year is the way to go. Unfortunately, though, we often don’t think about how to pay for vacation until it’s a few weeks away. To make things even worse, according to LearnVest, an alarming 74% of Americans go into debt to pay for a vacation.

Don’t become part of that statistic! Be proactive in planning your vacation by saving up for it in advance. Forgo some luxuries in the months or weeks leading up to your vacation and save the extra cash for your getaway. Consider running a yard sale featuring all of your forgotten treasures and use the profits to fund your trip. Skip your weekly dinner out for a while and put the money in your vacation budget.

Now it’s time to plan your vacation! When you’ve got the money saved up, create a realistic vacation budget. These six vacation saving tips will help you plan the perfect getaway while staying well within your budget.

1.) Timing is everything
 
Be a savvy shopper. There is an ideal window for buying everything, and booking airline flights is no exception. Flight prices generally fluctuate until departure day, but experts say the sweet spot is 54 days before your travel date. If you don’t want to be busy checking prices all day, sign up for emails from a savings alert site. Let them know which dates and locations you’re interested in, and they’ll let you know when a flight goes on sale so you can book your discounted tickets before they’re sold out.
 
2.) Clear your cache
 
Hotel and airline sites use cookies to determine what you’re shopping for. They’ll see which days you’re searching and raise their prices accordingly. Beat the system by clearing your cache before every new search so they can’t read into your browser history. You might see as much as a 50% drop in prices when searching with an empty cache!
 
3.) Sweet-talk your way to savings
 
Just because your hotel room is pre-booked, it doesn’t mean you can’t save. Don’t be shy about asking for an upgrade at check-in. About 78% of hotel guests who request an upgrade at the front desk actually receive one. Some face-to-face schmoozing can go a long way!
 
Also, by 6 p.m., most hotels know which rooms will be filled for the night. If you check in later in the day, you’ll have a better chance at getting the keys to the room with the incredible view – even with your economy-class price tag.
 
4.) Never pay full price
 
You can score a deluxe vacation without the deluxe price tag – all it takes is a little research. Check sites like coupondivas.com, entertainment.com and Groupon.com for amazing deals and deep discounts for local eateries and entertainment centers. You can also find cheaper tickets to nearby amusement parks by looking for sellers on Craigslist. Also, if you’re traveling with kids, don’t forget to look up restaurants with “Kids Eat Free” promotions.
 
5.) Freebie fun

Challenge yourself to enjoy one day of your vacation without spending any money at all. Search local sites and blogs for write-ups about fantastic free things to do nearby. You might find a charming family farm, a gorgeous waterway, a fun splash pad for the kids or a scenic hiking trail. Or, just spend the day at the closest beach!

Don’t eat out on this day either. Many hotels include a continental breakfast – take full advantage. For lunch, you can picnic on sandwiches. Dinner can be something effortless and delicious that you brought from home or pick up at a local supermarket. Consider packing a travel grill or panini maker for easy meals. You can heat up some hot dogs or burger patties, or bring some baguettes and an assortment of sliced cheeses for fresh paninis. Round off the meal with some pre-sliced veggies.

You’ll be surprised at how much fun you can have without spending a penny!

6.) Save your mega event for the last day

The taste of dessert is what lingers after the meal is through. End your vacation on a sweet note by saving your most exciting event for your last day away.

If you’re unsure of how you’re going to fund your getaway, call, click or stop by 705 FCU to ask about taking out a personal loan or opening a vacation club savings account. We want to help you make your dream vacation come true!

Financial Tips For Single Parents

Single parenting brings unique budgeting challenges.

The U.S. Department of Agriculture reports that it costs an estimated $241,080 for a middle-income couple to raise a child to age 18 – and many single parents 

shoulder that responsibility alone. Even with adequate child support, it’s smart to be proactive about financial matters as a single mom or dad.

Mother going over bills with young daughter

Estate planning should be your first priority. It’s essential to make arrangements for your children should you become incapacitated. Draw up a will, designating a guardian for your children, and a “power of attorney,” giving someone the legal right to make decisions on your behalf.
 
Consider setting up a trust – a legal structure that is overseen by a trustee, in which your assets can be held for your children. Also, ask your employer about disability benefits. Generally, you will receive a smaller income when you claim disability, however, ensuring even partial income is crucial for single parents who don’t have another source of income to cover a gap.
 
Taking out a life insurance policy is equally important. The policy you purchase will depend on your finances; a term policy is most economical because it offers a straightforward death benefit.
 
Health insurance is essential. Premiums may be sky-high, but if you’re uninsured, a serious medical procedure can be financially crippling. Comparison-shop for policies at your state’s marketplace or at HealthCare.gov.
 
Don’t forget about tax breaks! If you’re a single parent, file as head of household. You’ll pay less and claim a higher standard deduction – you can claim exemptions for yourself and each qualifying child. You also might qualify for the earned income tax credit, the child and dependent care credit, and the child tax credit.
 
Here are a few more tips for daily financial decisions:

1.) Credit cards

While credit cards may seem like the obvious solution for filling the gap created by a second income, they’re also the number one way to spiral into a life of debt.

2.) Shopping

Single parenting is tough. While retail therapy may be a tempting salve to pull yourself out of a funk, the added debt you’ll incur will make you feel worse. Plan all shopping carefully and avoid impulse purchases.

3.) Holidays

Guilt causes many single parents to spoil their children, even when they can’t afford to. This is especially true during the holidays and for birthdays. Set designated amounts for gifts, and keep within the budget.

4.) Ask for Help

Check with Section 705’s certified financial counselors  for financial advice. There are also many non-profit organizations with programs specifically designed for single parents.
 
Emergencies happen. Whatever your income, it’s important to give yourself a safety net. Put aside a bit of money from each paycheck to set up an emergency fund for car repairs, broken refrigerators and other unexpected expenses. It’s best to have six months’ worth of non-discretionary expenses saved up for emergencies.
 
SOURCES:
 

Getting the Most Out of Your 705 Youth Accounts

Learn more about all the 705 mini member benefits!705 Youth Accounts 

Managing money is a foundational life skill. There are so many factors involved and so many open-ended questions at play. How much should you be saving? When is it worth spending more? How do you keep spare change from burning a hole in your pocket? It takes years of discipline and training to perfect this skill, and ongoing self-control to maintain it.

That’s why it’s best to give your kids a head start on money management and saving. As a parent or guardian, remember that the lessons you plant today will take root and blossom, enriching your child’s life for years to come.

Section 705 is proud to offer specialized youth savings accounts that are designed just for kids. We know that different ages and stages have different needs. That’s why we offer Youth Accounts for children aged 0-17, as well as Teen Club Accounts for teens aged 13-17.

Our youth savings accounts offer (no annual fees and quarterly dividends) to help you teach your child that saving money always pays. Another perk that comes with having a 705 savings for your child is our Learn 2 Earn program. Bring your child’s report card to the credit union when they make honor roll or have perfect attendance. They get to choose a gift card to places like Barnes N Noble, The Grand, iTunes, Target, and Toys R Us! Plus, their name gets entered into a drawing to win $150 at the end of the school year.  

Ready to open an account for your child? Does your child already have one? Read on for three steps to take for ensuring your child gets the most out of a new or existing account:

1.) Set a goal

Now that your child’s money will be sitting in an account instead of a piggy bank, let her use this opportunity to save up for something big. Sit down with her and discuss what she’d like to save for. You can create a long-term goal, like saving up for college or for a first car. Also establish a short-term goal, like a new gaming console.

Set a date for your goals, and then set up a savings calendar for illustrating how much money needs to be saved each month to reach the intended target by the designated date. Discuss ways to add to the savings, being sure to include money from birthday gifts, summer jobs, allowances and chores.

2.) Bank together

Whether your child is a first-grader or a lanky teenager, if this is their first time owning an account, they’ll need you to show them the ropes.

Always bring your young child along with you when you stop by the credit union to deposit his savings. Show him how it works and let him see the account balance growing. If your child asks you to withdraw money from his account, make sure he sees how this translates into a dip for his savings.

For teens, you’ll need to walk them through that first deposit and withdrawal. When they’ve probably got the hang of it, it’s time to take a step back and let them be on their own. They’ll feel like a million dollars managing their account independently.

However, share with your teen that every swipe of their debit card also means a dent in their account balance. Also be sure to warn kids of all ages about security. They should know to never share their account information with anyone, and to keep their debit card in a safe place.

3.) Monitor your child’s activity

Don’t aim to be a helicopter parent, but do keep an eye on your child’s account. If he’s depositing a lot less than planned, ask him where his money is going. If your teen is maximizing his daily ATM allowance, speak to him about money management and impulse purchases.

Your teen’s daily withdrawal limit may need occasional adjustment, so keep a careful watch on spending to see if any modifications are needed.

Remember: Every financial lesson you teach your child today equips them with money management skills for a lifetime.

See what other benefits come with being a mini-member!

SOURCES:

https://www.redwoodcu.org/personal/savings/youth-accounts
https://www.cefcu.com/personal/save-and-spend/youth-accounts.html
https://www.americafirst.com/accounts/savings-accounts/youth-accounts.cfm
http://www.bankrate.com/banking/checking/teen-checking-account-5-smart-moves/nts.cfm

HOW MUCH 20-SOMETHINGS SHOULD SAVE

How much 20-somethings should save!

Your 20s may seem like an odd time to think of saving for retirement, but it’s actually the perfect moment to start planning for your later years. That’s because the earlier you start saving, the more time your money has to grow.

Savers who begin setting aside 10% of their earnings at 25, for example, could amass significantly more by retirement age than those who wait just five more years to start saving. You can use a retirement calculator to see how much you should start saving now to reach your retirement goal.

Building a nest egg on a starter salary and a shoestring budget can seem daunting, though. Focusing on the incremental savings, rather than the goal, can help your savings objectives feel more manageable.

HOW MUCH TO SAVE FOR RETIREMENT

For those earning around $25,000 a year, the median income for 20 to 24 year olds in 2015, saving the recommended sum of 10% amounts to a little more than $200 a month.

It may seem like a reach, but consider this: If you start saving $100 a month at age 25 and invest it to return 7.7% a year — the average total return of the Standard & Poor’s 500 Index of U.S. stocks over the past decade — you’ll have more than $378,000 available at retirement age. And it could be tax-free.

If you wait until you’re 30  to start and save the same monthly amount at the same rate of return, you’ll wind up with less than $253,000.

Several vehicles can help you build a retirement fund. A 401(k) plan, typically offered by your employer, is often the most convenient and easily accessible of these. Contributions you make usually aren’t taxed, which helps reduce your income tax liability.

Pre-tax 401(k) accounts make up around 80% of retirement plans offered by employers, according to the American Benefits Council. Roth 401(k) accounts are another option, though these are less widely available, and money contributed to a Roth 401(k) account goes in after it’s taxed. Money withdrawn from this type of account — including earnings — is usually tax-free.

Companies that offer a 401(k) plan often match employee contributions, up to a certain percentage. This is essentially free money toward your retirement.

If your employer will match your contributions, try to take full advantage and commit a large enough percentage to get the full benefit.

Beyond a 401(k), individual retirement accounts, commonly referred to as IRAs, offer another solid option. There are two types: traditional and Roth.

Money put into a traditional account is tax-deferred, similar to funds put in a traditional 401(k) plan. That means those funds aren’t taxed until they’re taken out. But typically any earnings you make with the money are also subject to income taxes on withdrawal.

Money put into a Roth IRA has already been taxed when you earn it, so there’s no immediate tax benefit. When it’s time to withdraw the cash, however, you usually don’t pay taxes on it. And anything the money earns also can be taken out tax-free.

Contributions to both types of IRAs are currently capped at $5,500 a year for those under age 50, and $6,500 for older workers.

HOW MUCH TO SAVE FOR EMERGENCIES

In addition to retirement, it’s also wise to save for a rainy day. Ideally, your emergency fund should be enough to cover three to six months of living expenses.

Some experts suggest setting aside even more for savings and investments: 20%. That’s roughly $415 a month on an annual income of $25,000.

That’s not always feasible, especially if a big chunk of your monthly income goes to student loan and credit card payments. Consider saving what you can, even if it’s just $10 a month.

Making a habit of saving now could serve you well down the road. And, as your income increases, the percentage you save can as well.

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