How to Build a Financial Base for Your Child Starting with $100!

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With the current unsound state of the domestic and the global economy, it is easy to presume, now more than ever, that beyond contributing to your IRA, 401 K, and other special savings accounts you cannot afford to set aside additional money for your child’s future financial welfare. Thankfully, from personal experience, I can say that an easy and simple way to achieve this feat without breaking the bank is very possible. 

Like many parents, once my daughter was born it was second nature for my wife and I to begin thinking about the security of her prospective financial wellbeing. I opened a Constellation FCU Add-On Share Certificate for her in 1989 and have been making sizable bi-monthly contributions ever since its inception. My decision to purchase an Add-On Share Certificate, continuously contribute to it, and renew it every time it matured has proved to be a very favorable choice, which has allowed her to have a secure source of financial income whenever she needs it.

You will be amazed by the amount of money you can accrue with a Constellation FCU Add-On Share Certificate!

Below are examples of what YOU could save in 5/10 years:

Example I

Initial Deposit = $ 100.00

Bi-Weekly Contributions through payroll deduction = $ 100.00

Money Amassed After 60 Months with a 2.25% Dividend Rate ≈ $ 13,409.00

Money Amassed After 120 Months with a 2.25% Dividend Rate ≈ $ 29, 872.00

Example II

Initial Deposit = $ 800

Bi-Weekly Contributions through payroll deduction = $ 369.23

Money Amassed After 60 Months with a 2.25% Dividend Rate ≈ $ 49,991.00

Money Amassed After 120 Months with a 2.25% Dividend Rate ≈ $ 109, 788.00

At this point, you may be wondering what the benefits of a CFCU Add-On Share Certificate vs. a CFCU Share Certificate vs. a CFCU Savings Account are?

The Benefits are as Follows:

1)     The main advantage of opening a CFCU Add-On Share Certificate vs. a CFCU Share Certificate is that a CFCU Share Certificate requires an initial deposit/starting balance of $1,000.00. Therefore, if you don’t have the means to afford a substantial lump sum up front, an Add-On Share Certificate is a great affordable alternative.

2)     In addition, the Add-On Share Certificate is advantageous over regular Share Certificates because it allows you the option to continuously contribute as much money as you would like during the life of the certificate, something you would not be able to do with a regular Share Certificate. And with a 2.25% dividend rate (paid out every month), higher than that of both our regular Share Certificates/Saving Accounts, you will enjoy seeing your money grow!

3)     In addition to a higher dividend rate, another added benefit of an Add-On Share Certificate vs. a Savings Account is that although you can continuously add to both, the Add-On Share Certificate cannot be withdrawn until the day it matures (60 or 84 months/renewal) so you won’t have to worry about your child making an impulse purchase or spending it prematurely (especially if you have a daughter). In other words, it is a nice little safety lock that can help you sleep at night!

In short, the Add-On Share Certificate is a great affordable and flexible way to save money for your child’s future! Whether you contribute $20 or $2,000 every two weeks, the Add-On Share Certificate is an easy and convenient way to constantly be contributing and growing your money for those future life-changing purchases, like the day your son purchases his first car, or the day your daughter makes that memorable walk down the isle.

Be sure to ask an MSR for details!

Honor Your Mother

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Here in the United States, we have just celebrated Mothers’ Day.  If you are lucky enough to still have your Mom (and/or get along with her!), you probably bought her a card, maybe some flowers or other gift, and might have taken her out to dinner or brunch.  I’m going to ask you to do one more thing to honor your mother – join a Credit Union.

What on earth, you may ask, does one have to do with the other??  I am a mother, and a long-time credit union professional and advocate (35+years) – allow me to indulge myself here as I explain the connection.

Sunday’s celebration of Mother’s Day around the country reminds me of the lessons of my youth and the values I learned from my parents, which focus on such nuggets as living within your means, savings for yourself first, and the golden rule, among many others.  I have made great efforts to instill those same lessons and values in my son, who was born smack in the middle of what we now call Gen Y, or the Millennial Generation.  He’s 27, good-looking, very self-sufficient, smart, (I’m bragging here, of course), and when he graduated college opened a bank account…  What?!! A bank account?!! What was he thinking??  As his mother, who has spent all of her adult life (over 30+ years) working in the credit union space, this was inconceivable to me, especially since I had opened an account for him at my credit union when he was born and expected that he would carry on the cooperative tradition.

I felt disappointed, even a little betrayed.  A credit union defection committed by my own son!  As he explained it to me, he needed access to his very meager funds while he worked a hundred miles away from home, and our credit union, at the time, did not have a branch or any ATMs convenient to him. And, he didn’t make enough to carry a big balance in his savings account, and did not need a loan, and probably couldn’t get approved for one anyway, so what did he need with a credit union?

Well, times have changed, son!

Today, only 5 years later, most credit unions offer a multitude of convenience services such as easy ATM access through nation-wide networks; online banking, some with account aggregation and/or management features; remote deposit capture both at home and on the fly with your smart phone; checking accounts with reward debit cards, some offering iTunes downloads; highly competitive savings and loan rates; and all offered under the umbrella of a not-for-profit cooperative business model.  (Check this out – Constellation FCU offers many of these services and more, with new ideas on the horizon to serve you better and faster.  Click on this link to see what we have to offer: www.constellationfcu.org

Why is this last item important? Because it means that service comes first, not profits.  Which means that whether you are a new grad with no assets and a little paycheck, or someone firmly planted in a successful career, banking at a credit union will save you thousands of dollars in fees and extra charges over your lifetime.  And, for those of you who are committed to social responsibility, know this – the cooperative nature of a credit union ensures that the wealth is shared as the business grows.

Choosing a financial service provider is an important decision, and if you choose wrong, undoing the decision is much harder than it should be. Our mothers love us and want us to be happy – and they want us to make smart decisions with our money.  Choose right – open an account at a credit union today, and make your mother happy, too!

Question of the Day: What’s With The New Login?

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Question of the Day: What’s With The New Login?

We have updated our online login security. In the age of id-theft and online security threats, CFCU must do everything possible to protect your financial information. In addition, the new “Forgot Password” feature will allow you to reset your own password when the branch office is closed.

Five tips to remember!
1). The new online login adds another security layer to your user id and password.
2). Anytime you login from a public computer, you will be challenged.
3). If you remember your “challenge questions,” you do not need to email the one-time password (OTP).
4). Mobile Banking will ONLY work if you have set up your challenge questions. The challenge questions can be set up (or changed) in User Options.
5). If you click on the “link” (to the right) that reads, “click here if you’re having problems,” the system will bring up one of your challenge questions.

Let us know if you are having any questions at 800-826-3818.

-bam

A New Year- A New YOU!

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New Year’s Resolutions seem to be a thing of the past (for me). So this year, I’ve decided to make a list of monthly goals for the upcoming year (some are more challenging than others). Both financial, and personal, I wanted a well-rounded list that was REALISTIC! I feel like if I make myself more well-rounded, you’ll be a happier ME.

January- Make my dream a reality! I’ve always wanted to go back to school, and with a little motivation, encouragement, I’m making this dream come true! Little by little I plugged away at the logistics of it, and will start off my 2011 with a bang.

February- Max my 401K contributions. According to finance.yahoo.com, I should be saving 15% or more of my annual salary. I’m going to set my 401 K contributions to the highest that I can handle.

March- Reevaluate my budget. All of those shopping trips and trips to restaurants are never necessary. I need to see where my money is going, and cut back on extraneous spending. A great money budgeting tool is FinanceWorks- I can pull all of my financial information (from other institutions) into one useful tool. It will tell me how much I’m spending on housing, entertainment, utilities, and I can even set a budget too!

April-Spring Clean! Spring Cleaning is never fun, but almost every year, it’s necessary. Get rid of useless things around the house- my motto is, if you haven’t used it within the past 6 months, you probably won’t use it in the upcoming 6 months. Donations to goodwill or the Salvation Army are tax deductible too! If you can’t use it- someone else might be able to!

May- Live without plastic for 1 month. Sometimes plastic is necessary, but in May, I’m going to try and use a set amount of cash each week for day to day purchases. I feel like with the advancement of technology, money can just seem like an electronic number. Maybe if I physically see my money come in and go out of my pocket- I’ll be less likely to spend it.

June- Better my community. In June, I’m going to challenge myself to volunteer for one weekend. With the stresses of everything else in my life- it will feel good to do something to better my community. This is something I’ve been wanting to do on a regular basis too, so why wait? (Just think, if each person would volunteer one evening every once in a while, how much better our communities would be?)

July- Potluck picnic. Spending time with family and friends is always so fun, but sometimes it can get rather expensive, especially when dining out. This month, I’d like to have a potluck picnic with friends. Each person brings one dish- and everyone shares. It sure does beat the expenses of a restaurant, and the food will taste so much better!

August- Take some ME time. I believe that each year, you should (no, scratch that) DESERVE to do something nice for yourself. Whether it’s a massage, a day trip to a museum, or a weekend trip to visit a friend at the beach- we all deserve a little R&R. I’ll make sure that my budget will allow for it, too!

September- Take a look back. Remember that reevaluation of my budget I planned to do back in March? I want to take a look at my statements, my spending, and see where I’m at, and if I can cut back anymore. (May could have been a good idea to spend in cash-maybe I could do it again?) Saving is a habit- and to break poor spending habits- I need to keep track of the good ones!

October- Negotiate a Christmas deal. The holidays always seem stressful. Holiday shopping can really add up. This year, I plan on talking with the family and setting a budget we all can compromise on. Those trinkets that are fun to get, aren’t necessary, and they will more than likely feel the same way.

November- Do something new. (Weather permitting) I love to try new things and to experience what this world has to offer, and in November, I want to do at least one new thing. Whether it’s to watch an old movie I’ve never seen, or try and cook a turducken. What better way to spend time with friends and family than to try something new!

December- Tax Deductions? December is a great month to look at your finances and see if you can make any additional tax deductions.

What are your resolutions for 2011? Are they financial or personal?

(Image from http://sroblog.com/2010/12/19/how-to-get-financially-fit-in-the-new-year-wsj-com/)

Deck The Halls…Not The Malls!!

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Want to save money this holiday season? Don’t forget to put Constellation on your list! Avoid getting bogged down in high rate/fee card debt. Credit cards actually increase the cost of your gifts when you pay interest rates up to 20% or more. Add extra for all the fees and penalties!

Your credit union has many products and services that help you save, when shopping for family and friends. We not only help keep the costs low, but also help you pay things down, hopefully, before the next season rolls around.

  • Our Signature Loans are an all-time holiday favorite, starting at 6.99% APR , based on credit, with a fixed rate and payment.

  • The VISA GIFT CARD is a great way to spend safely, lowering the risk for id theft or loss.

  • Lighten the load and take charge with your VISA CREDIT CARD at only 9.99% APR or pay if off early with our 25-day grace period!

  • Get a 1% rebate on all your holiday purchases by using your VISA CHECKCARD! The rebate does not appy to atm transactions.

  • Treat yourself (or someone special) to …A NEW CAR…with rates starting at 3.99% APR & terms up to 84 months!

  • Set up a new 2011 Holiday Account for family and friends!

  • Put your gift in the form of ‘savings’ for a child/grandchild with our ADON CDs with as little as $100!

  • The Bill Pay Holiday Sweepstakes are back! Visit us, online, for details.
Happy Holidays from the CFCU Team!

Member Services,

1-800-826-3818

Your Credit & Automatic Payments!

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According to myfico.com, 35% of your credit score is attributed to paying on time. In order to take the worry and risk out of your credit record, you can utilize convenient automated payment methods. Payment options are available through our representatives or user-based, through online banking.

CFCU Auto-Pay Methods:
Payroll Biweekly Transfer
Monthly Annuity Transfer
Savings Transfer (5th & 10th)
Internet Banking/Scheduled (Savings) Transfer
Internet Banking/Bill Pay/Recurring Transfer

These tools enforce your individual budget goals. The Internet Banking tools come with email confirmation features. For those who have experienced extenuating circumstances, these tools work, in tandem, with your overall financial plan. They can assist you on your road to recovery. The overall goal is to rebuild your credit reputation. Your past is not your future. Your credit score is just a point in time.

What you don’t know will cost you. For more information about what factors affect your credit, go to myfico.com. As a consumer, it is your right (and fiscal responsibility) to check information in your credit report annually. Visit annualcreditreport.com to obtain copies of reports from the three major bureaus. The best part is this – you are able to initiate online disputes and investigations through the bureaus.

To your financial success!

The Loan Department

Trade In- Get Paid! Happy Earth Day

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First and foremost, Happy Earth Day! Ever since 1970 (when Earth day was first started) we’ve been learning how valuable our planet is. It seems like each and every year, this idea is more prominent everywhere you turn! From using recyclable grocery bags to hybrid cars- they are everywhere!

I was browsing retailers’ websites yesterday, trying to find something-anything unique. I wanted to share this with readers because not only is it GREAT- it’s rewarding too!

Nextworth is a company who has teamed up with Target to get people to trade in, and recycle their old electronics, cell phones, cds, dvds, etc. They even PAY for your shipping!

Check it out. Go to Nextworth’s Partnership site, and find your item.

There’s nothing like helping the environment, while getting a little cash too!