Smart Savings for All Life Stages

There is no doubt that in today’s low interest environment it is challenging to put your money to work for you. In addition to finding the right financial institution that is going to offer the best possible return on your deposits, it is also important to determine the best savings vehicle for your current life stage.

Your savings needs typically vary a great deal as your life and circumstances change. No matter where you are in life -- whether you are a child, teen, young adult or retiree – it is vital that you learn which savings options are best.

Youngsters: Type of account: Basic savings account with a parent

It is never too early to begin teaching your little ones about the value of saving. (OK – maybe you can wait until they can talk.) Many financial institutions such as AltaOne offer savings accounts for children, as well as programs to help them to understand the basics of money management. AltaOne’s CUB Club program rewards little tykes for saving with fun gifts such as “Super Saver Capes.” It is amazing to see how quickly a child learns the value of fiscal responsibility when it is taught to them at an early age.

Teens: Savings accounts, youth certificates, college funds

As your children hit their teen years, they should already be fairly astute savers. The savings products offered by financial institutions become a bit more sophisticated for this age group. Some organizations provide interactive programs and games to help teens enhance their financial IQ. AltaOne’s Successful Savings for Teens program includes savings accounts, and even teen certificates, Visa cards and loans for those who qualify.

Young adults: online banking, mobility, online account opening

Millennials (18-34 year old consumers) have grown up on technology. Many have yet to realize the value of face-to-face interaction with professional credit union representatives. Therefore, most quality financial organizations provide online banking services that include mobile apps, BillPayer and online account opening.

Thirty- and forty-somethings: Money market savings account, certificates

As consumers enter their thirties, they are raising families, purchasing homes and realizing a greater need to save for their future. This is when products such as money market funds and certificates should peak your interest. This is also a good time to begin scheduling regular financial “check-ups” to better understand the best long-term options for your needs.

Fifty-plus and retirees: High-yield savings account

Hopefully, as you enter your fifties and beyond, you have been able to manage your money wisely and are in a position to set yourself up for a relaxing retirement. This is the time when solid wealth management advisors can help. They may recommend a variety of products to fit your needs, such as securities, variable and fixed annuities and retirement plans.

As you can see, there are numerous savings products available. These suggestions are certainly not etched in stone. Conduct some research, chat with the pros at your financial institution and determine for yourself what is best for you and your family throughout your life.

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Holiday Films & Money (Or how to turn heart-warming movie classics into a financial management class)

Yes, it is the holiday season – time for family, friends, warm-tidings and good cheer. Well, since we are a financial institution, we thought it might also be an appropriate time to point out some money management advice viewers may glean from some of the most famous holiday films: It’s a Wonderful Life, A Christmas Carol, The Grinch Who Stole Christmas and Elf.

1. Treat everyone with equal respect

In It’s a Wonderful Life, the movie’s villain Mr. Potter sticks it to poor George Bailey, only to see George overcome his troubles. Whether you are dealing with others in the business world or in your personal life, treat everyone with the respect and dignity you desire for yourself.

2. Cherish what you have

When things go south for George Bailey, he wants to end it all. Thanks to his guardian angel who shows him what life would be like without him, George sees the light. Remember, almost all financial problems are short-term. Things will turn around over time, with smart money management and positive thinking (a guardian angel helps, as well).

3. Be your elf

In the holiday classic “Elf,” Buddy never changes from his kind, helpful self, no matter what obstacles he faces. In the end, Buddy’s Christmas spirit shines and helps to save the day. It is important for everyone to be true to yourself. Do not spend over your head just to impress others. Maintain a solid budget and remember to allocate something for yourself and reward yourself for attaining your savings goals.

4. Surround yourself with those you trust

George Bailey makes a huge mistake by trusting goofy Uncle Billy with the bank’s money. No matter how close they are to you personally, make sure they are smart with money and ultra-trustworthy before delegating important financial matters to anyone.

5. Giving is far better than receiving

That miserable miser Ebeneezer Scrooge found out this lesson the hard way. He had to be scared nearly to death before he realized the joy one finds when they give to others – especially those in need (right, Tiny Tim?).

6. True happiness has nothing to do with money

Just as the Grinch found out when all those Whos in Whoville sang cheerfully – even without any gifts or toys -- the true meaning of the holidays cannot be found in a gift box or a money envelope. The true gift comes from the heart.

Happy holidays from AltaOne Federal Credit Union!

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Trim Your Holiday Budget

Make a list – and check it twice: Santa does it. You should, too. Compose a shopping list for your family and friends. If you are on a tight budget, pre-determine how much you can spend for each person on your list.

Hunt for coupons: There are lots of online coupon sites – Groupon, Couponcabin.com and Retailmenot.com are just a few possibilities. Of course, there are lots of Black Friday and Cyber Monday deals, as well.

Avoid impulse shopping: You have your list. Stick to it. You probably do not need the complete set of lighted reindeer and elves for your front lawn.

Pre-paid cards can help you stick to your budget. Simply add whatever you can afford to the card, and use the pre-paid card for your holiday shopping.

Do not wait for the holiday season to do your holiday shopping. Keep your eyes peeled throughout the year for great deals. You may even be able to finish your shopping long before the shopping insanity even begins.

Like to go crazy with lights? If so, the electric bill may soar. Consider LED lights, which use 99 percent less energy than traditional lights.

Speaking of decorations … Purchase your knickknacks after the holiday. Most stores have clearance sales and you can find some great deals.

Choose plastic wisely: If you plan to use a credit card for holiday gifts and other expenses, do a little research into the best card for your needs. Financial institutions often offer credit card promotions to help with holiday shopping.

Delegate your dinner menu: Are guests visiting for the holidays? Planning to whip up a big holiday meal? Delegate various menu items to your guests to save on your food bill.

Do you have a creative flare? If so, you may consider some clever, hand-made items for those on your gift list. Oftentimes, a thoughtful hand-made gift is cherished more than expensive presents.

Draw names: It has become popular to draw names among family members in order to limit the number of gifts you may need to purchase.

Hit the garage sales: You may be able to find some terrific gift items at garage sales.

Save on postage: Anyone in your family have a flare for technology? You may consider creating a holiday web page with family photos and a holiday greeting. Then send a link via social media or email. This could potentially replace your holiday cards and save a bundle on postage and cards.

Spend a few moments researching cost savings items online. You will find a bunch of ideas that may save you a ton of money.

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Savvy Credit Card Hunting

There are scores and scores of credit cards, and most consumers – especially those with good credit – receive scores of credit card offers.

How does one weed through the mountain of offers to find the best card for their needs?

There are credit cards that offer balance transfer deals … low interest cards … cash-back cards … hotel/travel points cards … retail rewards cards … gasoline points cards … air miles cards … pre-paid debit cards … business cards … student cards …

We’ll stop before your head starts to spin.

Savvy credit card shoppers determine the best card for their spending habits.
Certainly, one must examine interest rates, fees and balance transfer options. The credit card rewards program often distinguishes it from other cards.

Consider your everyday purchases and spending patterns. Ask yourself:

• Do I travel frequently?
• Do I stock up on groceries?
• Do I pile up the miles on my car?
• Do I enjoy sports, concerts and other events?

If you currently own a credit card, scan your statement. What are some of your more frequent or costly purchases? Understand your spending habits. This helps to determine the type of credit card rewards program that fits you best.

Reward Your Spending Habits

Those who take advantage of the credit card rewards offers can reap some major benefits. Redeem points in exchange for a long list of products and services that include electronics, housewares, clothing, books, jewelry and much more. Use points for hotel stays, rental cars— or you may even be able to receive cold hard cash.

Some cards, such as AltaOne’s Visa Platinum Rewards card, also allow retailers to provide additional deals for card holders.When searching for the perfect card for your needs, some other benefits — in addition to rewards points -- may include:

• No annual fee
•  Low fixed rate
• A 25-day grace payment period
• Worldwide ATM access
• Travel and emergency assistance
• Auto rental insurance
• No cash advance fee
• No balance transfer fees
• Full limit available for cash advance at the same interest rate
• A 14-day grace period (some cards will increase your rate if payment is made after due date)

Visit altaone.org for more information on our Visa Platinum Rewards card to see if it the perfect card for your needs.

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Is an AltaOne Credit Card Right for Me?

For members disciplined about paying bills promptly, a credit card is a great way to improve how you rate as a prospective borrower. Without a good or excellent credit score, your interest costs may wind up higher on future loans.

As with so many products these days, there are hundreds of different credit cards. Since this piece of plastic plays such a pivotal role in your personal finances, it is worth taking the time to figure out which card is best.

One option may be to sign up for a credit card through a credit union such as AltaOne. Here’s a look at why that may be a good path to take.

Lower fees
Credit unions are not-for-profit organizations, meaning any money they earn ends up getting funneled back into the institution to benefit members, either through lower interest rates on loans or higher dividends on account balances. Because their primary goal is to serve its members, many credit cards issued by credit unions charge lower fees and fewer penalties.

A few years ago, Pew Charitable Trusts released a study showing that the median annual fee for a credit card issued by a credit union was $25, compared with $59 for those supplied by other types of financial institutions. Some cards issued by credit unions don’t carry any annual fees.

Better rates
Uncle Sam prohibits federal credit unions from charging most borrowers more than 18% in interest on debts. Most other types of financial institutions aren’t limited on the annual percentage rates they can set, with some APRs hitting 24% or higher. A recent survey of rates shows holders of credit union-issued credit cards on average saved about 10% on interest costs compared with customers who used cards issued by other financial institutions.

Quick access to help
Credit unions members are the owners of the organization. In the eyes of credit union managers, therefore, it is crucial to foster good ties with members. As such, you will likely find excellent access to educational resources and highly responsive representatives since they typically focus on providing quality customer service. First-time credit card holders may find these added benefits especially useful if they’re brimming with questions about how to use their new card.
Wherever you decide to sign up for a credit card, be sure to do your homework beforehand. While credit cards can help you improve your credit score and develop smart spending habits, they can also hurt you if not used properly.

Please contact AltaOne at your convenience to discuss our valuable credit cards.


Tony Armstrong, NerdWallet

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Share Certificates Deliver Predictably Strong Returns

A share certificate is usually more rewarding in returns than a traditional savings account, and less risky than other investment options. Share certificates may be a good fit for investors seeking strong returns without the potential for loss that comes with stocks and bonds. For those new to share certificates, here is a primer on what they are and who might consider one.

Share certificates 101

Unlike a regular savings account, which allows penalty-free withdrawals, a share certificate requires that the money goes untouched until the certificate matures or reaches the end of its term – often from six months to five years. A key advantage of certificates compared with regular savings accounts is that certificates accumulate a predictable, locked-in return in exchange for leaving the funds alone, whereas the interest paid on regular savings can vary.

Like savings accounts, the National Credit Union Administration (NCUA) insures share certificates for up to $250,000. As long as you have more than $500 to invest and are comfortable not having access to the funds for a period of time (or paying penalty fees if you withdraw funds early), a share certificate can be a good way to put money to work.

Who should use share certificates

Share certificates are among the highest-yielding government-backed investment options available. Longer-term investments with larger sums typically provide the most advantageous ways to use share certificates. If an investor needs to withdraw money before the maturity date, penalty fees may apply. If you do not have an emergency fund, investing too much in a share certificate can be risky. For those with only a little cash tucked away, a regular savings account may be a better choice. While these pay lower interest rates, there are generally no withdrawal penalties.

The limited risk makes share certificates an appealing option for financially comfortable and retired investors. For those with the ability to allocate assets across a variety of investments, share certificates provide a high-yield savings product. As investors age, experts advise reducing risk to protect accumulated wealth.

Making the most of your money

Retired and wealthy investors who have more flexibility with funds may consider spreading assets across several share certificates with different maturities, employing a strategy called laddering. As each share certificate comes to term, reinvest the funds in another certificate to maintain a steady stream of interest income.

If commitment to a long-term share certificate is a concern, especially with prospects of interest rates rising in the not-too-distant future, consider a bump-up account, which allows the investor a penalty-free opportunity to raise the interest rate once during an 18-month term, or twice in a 30-month term certificate.

If market conditions make you nervous, relatively risk-free share certificates may make it easier to relax as your savings earn interest.

Visit altaone.org for more information on our term share certificates.

Cait Klein, NerdWallet

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Get Rich Quick

Want to become stinking rich? Of course, you can save your money in an AltaOne account and invest wisely with our various products. Or -- you can try to emulate the habits of the rich. We explored the World Wide Web to find data on what differentiates the wealthy from the not-so-wealthy. Here are some of the more interesting findings:

• The wealthy eat healthy — 70% eat less than 300 junk food calories per day.
• The wealthy set goals — 80% focus on accomplishing some single goal.
• The wealthy stay in shape — 76% exercise aerobically four days a week and 57% pay close attention to their calorie intake.
• The wealthy like to learn — 63% listen to audio books during their commute.
• The wealthy are thoughtful — 80% call their family and friends to wish them a happy birthday.
• The wealthy are goal-oriented — 67% have written goals.
• The wealthy avoid the television — 67% watch one hour or less of TV per day ...

... and they really avoid mindless television — just 6% watch reality TV.

• The wealthy pass on their habit to their offspring — 74% teach their success habits to their children.
• The wealthy are always learning — 86% believe in lifelong educational.
• The wealthy are readers — 86% enjoy a good book on a regular basis.
• The wealthy write down their plans — 81% keep a daily to-do list
• The wealthy like their jobs — only 6% are unhappy because of work.
• The wealthy are realistic — just 6% play the lottery on a regular basis.
• The wealthy floss regularly — 62% do so every day.
• The wealthy are optimistic — 98% believe the American dream is still possible.
• The wealthy are into people — 68% love meeting new people.

Here are a few more ...

• Most wealthy folks do not carry high credit card balances.
• The wealthy save for their seniority, and they usually start saving for retirement when they are young.
• Wealthy people set up automatic savings programs so they do not have to think about plopping money into a savings account.
• Many wealthy folks are early risers, with a high percentage accomplishing more before 8:00 a.m. than many people do all day.

We hope this blog helps to put all our members on a path to their own pot of gold. A good investment advisor may help, as well.

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