Showing posts with label financial literacy. Show all posts
Showing posts with label financial literacy. Show all posts

Friday, March 4, 2016

Start Young: Teaching Children Financial Literacy



photo courtesy of expertbeacon.com

“Tell me, and I forget. Teach me, and I remember. Involve me and I learn.”

-Benjamin Franklin


Do you remember how you learned about money? Think back! My grandfather used to pull out change from his pocket, have us name the coin and its value, and then have us make a given monetary amount with what we had available. Later on, my mother and I created an arrangement where I would clean the house for a certain sum of money. Soon after that started, she took me down to the hometown bank and opened up a checking account for me. She walked me through how to write a check and how to balance a checkbook.

Though these are great ways to teach a child the value of money, they aren’t the only things you can do. Here are some other ideas:

Play the Grocery Game: Give your child a fixed amount of money and a list of things needed at a local food back. Challenge your child to buy as much as they can with that fixed amount of money. For an older child, you can give them your grocery list and have them work out the cost and compare places and prices.

Need/Want Game: As you and your child are looking through a magazine together, ask your child if a particular item is a need or want and why. You can also have your child identify needs and wants while they walk through the store with you. It is important for children to know that a need is something essential, while a want is nonessential, and the significance of spending on a want instead of a need.

Let Them Adopt a Budget Line: Give your child a single budget category for a month and let them manage it. It’s advised that you choose a category where you can control how much or how little is spent, like groceries, education, and vacation. The child can do research online and find the best way to spend the money. This not only helps illustrate the concept of a budget, it allows the child to see their choices in action.

Show Them How to Use Budget Tools: There is an endless number of budgeting tools out there. Teach your child how to use a budgeting tool to help them understand the value of a budget and why it’s necessary to track all expenses.

Let Them Make Mistakes: We all make mistakes, and we tend to make a bit more of them when we’re learning! Let your child make mistakes, and, most importantly, let them see the consequences. Talk with your child about the consequences, and what could have been done to avoid them.

No Bailout: Resist the urge to help your child pay for the last few dollars of a purchase. Consistently bailing out your child sets up a future of bailouts, and it also diminishes the child’s effort and any feelings of accomplishment they have from paying for it by themselves.

Open A Youth Savings Account at HCCU: We have youth savings account at HCCU that have a special reward attached to them--a toy! Each time a child makes a deposit in their account, they get to choose a toy out of our treasure chest. As the child gets older, they have the option to open a Student Checking, or perhaps have an ATM or Debit Card. See a Member Service Representative for details!

We cannot stress enough how important it is for children to learn how to spend, save, and invest their money wisely. If they develop the good habits when they are young, they are far more likely to manage their finances successfully as adults. Because we believe success is on your and your child’s horizon, we are more than willing to help educate you and/or your child about the “tools and rules” that come with an HCCU membership. You can always call 920-433-0122 or visit your nearest branch if you have any questions.


Written By: Breanna B.

Sources:

Investopedia--5 Ways to Teach Your Kids The Value Of A Dollar

Investopedia-- Teaching Financial Literacy to Kids

Tuesday, January 5, 2016

5 Things about money that you should teach your kids

http://ow.ly/W21cp 

1. The difference between Needs & Wants

2. Why the family is going to Disney World and not Paris

3. Very few things in life are not free

4. Money does not grow on trees

5. How credit cards work

Shopping smart, stretching every dollar, cutting coupons- these are keys to making e very dollar count. You are able to achieve and reach many more goals when you are shopping on a budget.

Having the latest and greatest cellphone has its perks, and so does that huge new smart TV, but having money set aside for groceries each week and the rent/mortgage payment is far more important. Weighing the costs of benefits of needs and wants is very important.

Unless you have a trust fund or inherited wealth, you almost certainly must work to earn your money. Even if your family is financially well-off, you are doing your kids a disservice if you spoil them. Instant gratification almost never happens in the real world.

Credit cards are certainly easy access to money, but this does not mean it’s free money. Money spent on credit cards must still be paid back. And if not paid back in a timely fashion, you end up paying more back than you originally spent. Having a credit card and treating it properly is a very important step in establishing good credit.

Post by: Emily P.

Tuesday, December 9, 2014

The Credit Union Difference

There are tons of reasons to love your credit union!  Credit unions are a really unique business, and by belonging to a CU, you’re a part of something pretty cool.  Credit unions are member-owned financial cooperatives.  This means that as a member of the credit union, you’re also an owner.  You get a say in how we do things here!  Your credit union is run by a volunteer board of directors that is elected by the membership (that’s you!) in a democratic process – each member has one vote.  Our board members are also members of the credit union, so they have a unique interest in seeing the credit union succeed and grow.  They are also members of our local community, so they understand what it is like to live, work, and transact business in northeast Wisconsin. 

Credit unions are also not-for-profit.  Money that we make is returned to the membership in the form of higher deposit rates, lower loan rates, and lower fees.  So all that means is rather than pad the pockets of a handful of stakeholders, we pay our dividends to you, and pad YOUR pockets.  During the recession of 2008, credit unions as a group fared much better than the bigger banks, because credit unions had been doing business responsibly all along. 

You may have also heard it said that credit unions are "for people, not profits”.  “People helping people” is the credit union philosophy.  It is the principle on which all credit unions were founded, and it is how credit unions still do business today.  This is brought to life when we lend a member $500 to fill their propane tank for the winter, or when we help a member devise a plan to pay off medical debt from an illness.  On a broader level, we live this philosophy by offering financial education to our members and communities, participating in charity events, and sponsoring community events, in addition to serving the needs of our members.
       

To learn more about the credit union difference, visit www.asmarterchoice.org or the Wisconsin Credit Union Scorecard.

Monday, October 6, 2014

Emergency Savings


What Is An Emergency Fund?

An emergency fund is money that you’ve saved up for the purpose of helping you maintain your normal life through the emergencies that life hands you.

When is it okay to use it?
  • When you lose your job
  • When an appliance breaks down
  • Medical emergency 
  • When a car needs repairs

When is it NOT okay to use it?
  • Going on a shopping spree
  • Buying a new TV
  • Going on vacation
  • Buying a new car







How to start up an Emergency Fund…
A common mistake made by many who plan to start an emergency fund is that they set their goal too high and often get discouraged when they realize that it will take longer than they expected to reach it.
Set your initial goal low!
Set a goal that you would be able to reach in just a few months rather than a few years. Take into consideration your financial situation and determine how much you can afford to put into your emergency fund each week. Anything is better than nothing at all; the important thing is to get started today!  
Where to save your emergency fund?
After you decide what amount you want to start off with, think about where you want to keep your money. Since it is an emergency fund it would be smart to keep it somewhere where you can get access to it easily. We can help! You can open up a savings account, money market account or short-term certificates here at Horizon Community Credit Union. Any of these accounts will give you easy access to your money, while earning you some interest!
How often should you deposit money into your emergency fund?
When deciding how much to start putting into your savings fund, try to make sure you are able to deposit that amount weekly. For example, $40 a week would get you to $500 in three months! It doesn’t have to be $40 a week though; it can be what you can afford and make sure it challenges you a bit, just not something impossible.
Don’t have the time to stop in every week?
Sometimes life gets a little busy and you may not find the time to be stopping by every week to deposit your weekly addition to your emergency fund. It happens to all of us! Something that Horizon Community Credit Union offers that you could find useful would be reoccurring transfers. When you open up an account you can set a reoccurring transfer to transfer your specific amount every week without you having to worry about stopping in! And when you reach your goal you can choose to stop the reoccurring transfer.  Or if you are feeling ambitious you could set a higher goal and continue putting money into your emergency fund!
How to keep track of your emergency fund?
You can use our online banking and keep track of how much your emergency fund is growing! It’s fast and easy and you can use it on your computer at home or on the go with your phone!

Saving money shouldn’t be as hard as it seems. With the help of the accounts and services Horizon Community Credit Union offers it is convenient, reliable and safe! 

Post by: Karla C.