Author: Abigail Siebert

How to Set SMART Financial Goals (and Actually Reach Them!)

Setting goals for your money might sound boring, but it’s like creating a game plan to get what you want and feel awesome while doing it. Whether you’re saving for new sneakers, a new phone or your future, using the SMART goals system can help you get there. SMART goals aren’t just “smart” (like genius-level smart)—it’s a simple way to make your goals clear and achievable. Let’s break it down!

What are SMART goals?

SMART stands for:

S – Specific

M – Measurable

A – Achievable

R – Relevant

T – Time-bound

These five steps will turn any big idea into a goal you can actually reach. Let’s see how it works!

1. S is for Specific

First, make your goal as clear as possible. Don’t just say, “I want to save money.” Instead, get specific, like: “I want to save $50 for a pair of headphones.” Being specific helps you know exactly what you’re working toward.

2. M is for Measurable

You need to know when you’ve hit your goal, so give it a number you can measure. In this case, your goal would be to save $50. You can track your progress—$10, $20, $30 … all the way to $50!

3. A is for Achievable

Make sure your goal is realistic. Can you really save $50 in a few weeks? To find out, check how much you earn from allowances, chores or part-time work. If you earn $10 a week, and can put all your earnings into savings, saving $50 is possible in 5 weeks. If that feels too long, think about smaller goals—like saving $20 first.

4. R is for Relevant

Is this goal important to you? Saving for something you care about makes it easier to stick to your plan. Ask yourself: Why do I want these headphones? Will they make me happy? If the answer to the second question is yes, you’ve got a goal worth chasing!

5. T is for Time-bound

Set a deadline for your goal. Deadlines keep you on track and give you something to target. For example: “I’ll save $50 in 5 weeks.” Now you have a finish line — and a game plan!

How to reach your SMART goals

Here are some tips to make it easier:

  • Break it down: If saving $50 feels big, focus on saving $10 at a time.
  • Track progress: Use a savings chart or a jar to see your money grow.
  • Cut back on spending: Skip small things like snacks or apps to save faster.
  • Earn more: Ask for extra chores or find ways to make money (like walking a neighbor’s dog).

Setting SMART financial goals is like creating a map for your money. By being Specific, Measurable, Achievable, Relevant, and Time-bound, you’ll know exactly what you’re saving for, how to do it and when you’ll get there. Start small and stay focused—you’ve got this!

Beware of AI Scams!

From revolutionizing industries, like healthcare and finance, to replacing jobs in publishing and graphics, Artificial intelligence (AI) is changing the world. Unfortunately, scammers are also using AI to con victims out of their money and personal info. Here’s what you need to know about AI scams and how to protect yourself. 

Types of AI scams

AI scams come in many forms. Here are some of the more common.

  • Deepfake scams. In these scams, fraudsters use AI to create realistic videos or audio clips, often mimicking real people. Scammers use deepfakes to impersonate business executives, family members, political figures or celebrities to trick people into transferring money or revealing sensitive information.
  • AI-powered phishing emails. Scammers use AI to craft personalized and convincing emails that mimic legitimate organizations. These emails often contain fake links or attachments designed to steal personal or financial information. 
  • Chatbot impersonation. Here, scammers deploy AI-driven chatbots to impersonate customer service representatives or company officials. These bots engage in real-time conversations, persuading victims to share sensitive information or make payments. 
  • AI voice cloning. This uses AI to replicate someone’s voice, typically a family member or close contact. Scammers use this cloned voice in phone calls to request urgent financial help. 
  • Job offer scams. In these scams, fraudsters use AI to scrape data from job boards and LinkedIn profiles before targeting job seekers with fake offers. They use automated systems to conduct interviews and request upfront fees. 

How to spot AI scams 

Don’t get caught in an AI scam! Here’s how to spot one: 

  • Unusual requests for urgency. If someone is demanding immediate action, such as transferring money, pause to verify authenticity.
  • Inconsistencies in communication. Check for inconsistencies in tone, grammar or details that don’t align with the purported sender’s usual style.
  • Requests for personal information. Legitimate organizations rarely ask for sensitive information, like passwords, Social Security numbers or credit card details, by email, text or phone call.
  • Unverified sources. If you get communication from a new email address, phone number or chatbot, cross-check it with official contact details found on the organization’s website.

How to protect yourself

  • Verify before you act. Always double-check any request for money or personal details.
  • Strengthen cybersecurity. Use strong, unique passwords and enable multi-factor authentication (MFA) for your accounts. Keep your software and devices updated to protect against vulnerabilities.
  • Be cautious with AI tools. Avoid sharing sensitive information with AI tools or chatbots unless you are certain of their legitimacy and security.
  • Educate yourself and others. Stay informed about the latest AI scams and share your knowledge with others.
  • Monitor your accounts. Regularly check your account and credit card statements for unauthorized transactions.
  • Use anti-scam technology. Install reliable antivirus software and consider tools specifically designed to detect and block phishing attempts or deepfake content.
  • Report suspicious activity. If you encounter an AI scam, report it to local authorities, the Federal Trade Commission (FTC) and/or other relevant organizations.

Stay safe!

What I Wish I Learned in School 2 of 12-Budgeting Basics: A Step-by-Step Guide to Taking Control of Your Finances

Managing your money doesn’t have to be hard! Here’s how to budget in seven simple steps.

Step 1: Know your income

Before you can plan your spending, identify exactly how much money is coming in. List all sources of income in your household, including:

  • Salary after taxes
  • Side hustle earnings
  • Investment returns
  • Any other regular inflows

Be realistic and stick to consistent, reliable income sources when calculating your monthly total.

Step 2: Track your expenses

Now you’re ready to track your spending. Keep a log of every purchase you make over 30 days. Divide your expenses into the following categories:

  • Fixed expenses, like rent or mortgage, insurance and car payments.
  • Variable expenses, like groceries, dining out and utilities.
  • Discretionary spending, like subscriptions, hobbies and shopping sprees.

Step 3: Set financial goals

Having a clear financial goal will motivate you to stick with your spending goals. For example, you may want to pay off high-interest debt, save up for a large purchase or prepare for retirement. Clarify your goals before moving on.

Break your goals into short-term goals (saving $500 in three months) and long-term goals (paying off $20,000 in student loans over five years).

Step 4: Choose a budgeting method

Choose the budgeting method that aligns with your personality and lifestyle:

  • Zero-based budgeting. In this traditional form of budgeting, every dollar is assigned a job. If you earn $3,000 monthly, allocate it to cover all expenses, saving and debt repayment until there’s no money unaccounted for.
  • 50/30/20 rule. In this plan, you’ll allocate 50% of your income for needs, like housing, food and utilities; 30% for wants, like entertainment, dining out and hobbies; and 20% for savings and debt repayment.
  • Envelope system. This plan involves putting cash for each category into labeled envelopes. When the money’s gone, the spending in that category stops.

Step 5: Trim your spending where needed

Budgeting can show you where you’re leaking money. There’s no need to sacrifice all indulgences, but trimming unnecessary expenses can free up money for savings or debt repayment.

Here are some tips for trimming expenses:

  • Cook your favorite foods at home instead of dining out.
  • Cancel subscriptions you don’t really use.
  • Shop smarter with sales, coupons and cash-back apps.
  • Choose free or low-cost entertainment.

Step 6: Build an emergency fund

Without an emergency fund, any unexpected expense can throw off your budget and set you back with your financial goals. Aim to save up at least $1,000, then gradually work up to 3-6 months’ worth of living expenses.

Step 7: Review and adjust

Life is unpredictable, and so is your budget. Review it monthly to ensure it reflects your current income, expenses and goals.

Tips for sticking to your budget

Follow these tips to stick to your budget:

  • Automate your savings.
  • Track progress and celebrate small wins.
  • If one method isn’t working, try another.
  • Use apps to help you.

Use this guide to get started on budgeting today!

Q&A: How Can I Stay Warm this Winter Without Breaking the Budget?

The temperatures are dropping, and that means your heating costs are about to soar! The good news is: You can have a well-heated home and your budget, too. Here’s how:

1.Use a programmable thermostat

Set your thermostat to lower temperatures when you’re asleep or away and to slightly higher when you’re home. According to the Department of Energy, reducing your thermostat by 7-10°F for eight hours a day can save up to 10% on heating costs yearly.

2. Seal all leaks

Check all windows, doors and attic spaces in your home for drafts. You can do this by holding a candle near these areas to see if the flame flickers, which tells you there’s a draft. Use weatherstripping or draft stoppers to seal all leaks you find.

3. Utilize zone heating

There’s no need to pay to heat areas of your home that don’t get much use. Shut the doors and vents in rooms you rarely use so the heat only works where it’s needed. You can also use space heaters in the rooms you’re occupying instead of heating your entire home.

4. Use insulated curtains

Heavy, thermal-backed curtains can block cold drafts from windows. Open them during the day to let sunlight in and close them at night to retain heat. You can also add rugs to hardwood or tile floors and dress in layers for extra warmth.

5. Reverse your ceiling fans

Most ceiling fans have a reverse setting. In the winter, set the fan to rotate clockwise at a low speed to push warm air downward.

6. Beef up your insulation

A well-insulated home is key to keeping heating costs down. Check your attic, walls and floors for sufficient insulation. If insulation is lacking, you may want to add layers or replace the existing insulation, especially if you live in an older home. This upgrade may involve an upfront cost, but it pays off in long-term savings.

7. Maintain your heating system

Maintaining your furnace and heating devices is crucial for saving on heating costs. 

First, clean or change air filters and heating devices because accumulated debris can keep the warm air from circulating. You may also want to call a professional to inspect your furnace and either clean it or upgrade it. It’ll cost, but the expense will likely be well worth the savings in heating. 

Finally, consider contacting your utility company for a free home checkup. Costs for service or upgrades can be offset by federal tax credits, and utility rebates are available for many energy-efficient upgrades.

Use these tips to keep your home comfortably heated without breaking the budget.

Scam Alert: QR Codes from Unexpected Packages 

You’ve just received a package from an unfamiliar sender addressed to you. Inside, there’s a note featuring a QR code instructing you to scan it for more information. Exercise caution, as this could be a scam aimed at stealing your personal data! 

If your curiosity led you to scan the QR code, it’s crucial to act quickly. This code might have directed you to a phishing site designed to capture sensitive information such as credit card details and passwords, or even install malware on your device, granting hackers access to your phone. 

If you have scanned the QR code and provided your information, change your passwords immediately. Opt for a strong password and enable two-factor authentication. A secure password should be at least 12 characters long and can be a memorable phrase made up of random words. Ensure you incorporate a mix of lowercase and uppercase letters, along with symbols. 

If you’re worried that someone may have obtained your information, monitor your accounts and statements for any unfamiliar names or transactions. You can also access a free credit report weekly. To learn more about credit reports, visit https://www.annualcreditreport.com/index.action.  

Additionally, consider taking further measures to safeguard your identity, such as freezing your credit or placing a fraud alert on your credit report. Familiarize yourself with phishing emails and text messages and regularly update your computer and phone software to ensure you have the latest security updates. 

What I Wish I Learned in School 1 of 12: Compound Interest

If there’s one financial concept that has the power to change lives, but is underappreciated, it’s compound interest. For most of us, compound interest wasn’t covered in school, leaving us to stumble upon its magic later in life. And it’s sometimes too late for us to fully benefit from its power. Here’s why understanding compound interest early could make all the difference.

What is compound interest? 

Compound interest is the process of earning interest on both the initial principal of an investment and the accumulated interest over time. In other words, your money makes money, and that money makes more money, too. Compound interest has tremendous potential to grow wealth when applied consistently over time.

An example of compound interest

Imagine you invest $1,000 at a 5% annual interest rate. If the interest is simple (not compounded), you earn $50 annually. After 10 years, you have about $1,500. But, with compound interest, you earn interest on the $1,000 in year one, then on $1,050 in year two, and so on. After 10 years, your $1,000 grows to $1,628.89 — not because the rate is higher, but because of the compounding effect.

Why timing matters

Compound interest thrives on a single crucial element: time. The earlier you start saving or investing, the more exponential the growth.

For example, investing $200 a month at age 25, with an annual return of 7%, will net you nearly $480,000 by age 65. If you start the same plan at age 35, you’ll only have approximately $227,000 by age 65,

Lessons on compound interest you wish you’d learned in school

Here are the most important principles of compound interest:

1. Start early, even with small amounts. Compound interest needs time to work its magic, and even a small amount of investing early in life could lead to significant returns over time.

2. The Rule of 72. Divide 72 by your annual interest rate, and you’ll get the number of years needed for your investment to double. Learning this trick early can inspire better saving habits.

3. Compounding works for debt, too. Credit card debt, for example, compounds at alarming rates, turning small balances into financial nightmares.

4. Harness the power of automation. Setting up automatic transfers to savings or investment accounts ensures consistent contributions and removes the temptation to spend.

Why understanding compound interest can be life-changing

Understanding the concept of compound interest can truly be life-altering. Here’s why:

  • Increased financial freedom with robust investments.
  • Less stress in emergencies, thanks to fast-growing savings.
  • Early start on retirement savings, ensuring years of growth.

How to make up for lost time

It’s not too late to start harnessing its power. Here are a few steps to get going:

  • Open a high-yield savings account or start investing.
  • Take advantage of employer-matched funds in retirement accounts.
  • Automate your savings to ensure consistency.
  • Educate yourself to better understand how compounding works.

Learning to harness the unique power of compound interest can make all the difference to your financial health.

Don’t Get Caught In a Paper Check Scam!

Don’t get caught in a paper check scam! Here’s some info, and how you can stay safe.

What is a paper check scam?

There are several variations of paper check scams. The most common forms include:

  • Forged checks. Fraudsters forge the signature of the account holder to write unauthorized checks.
  • Counterfeit checks. Fake checks are created to mimic real ones; complete with fabricated account and routing numbers. Scammers then use these bogus checks to pay for their purchases.
  • Altered checks. A legitimate check is stolen and altered to change the payee and/or amount.
  • Overpayment scams. Scammers send a fraudulent check for a higher amount than what’s owed, asking the recipient to refund the difference.

How to spot a fraudulent check

Identifying a fake or altered check can be challenging, but there are warning signs:

  1. Unusual payer information. Look for spelling errors, mismatched fonts or incomplete payer details on the check.
  2. Check number discrepancies. Legitimate checks have sequential numbering. A check with a low or no number, or one that doesn’t align with the issuer’s checkbook, can be a red flag.
  3. Poor print quality. If the check feels flimsy, has blurry text or looks off in any way, it could be fake.
  4. Too good to be true. If you get an unexpected check, especially for a large amount, be skeptical.
  5. Suspicious sender. A check from an unknown source, especially with vague instructions or additional requests, should raise alarm.

Protect yourself from paper check fraud

Here’s how to stay safe from check scams:

  • Verify your check’s authenticity. If you receive a check from an unknown sender, call the issuing financial institution to confirm it’s legitimate.
  • Secure your mailbox. Use a locking mailbox or take checks directly to the post office to prevent theft.
  • Use check safeguards. Write checks using pens that have permanent ink to make it harder for fraudsters to alter.
  • Switch to digital payments when possible. While checks are sometimes necessary, online payments with trusted services are often safer and faster.

If you’ve been targeted

If you believe you’ve been victimized by a check scam, report it to your credit union or bank as soon as possible. If the fraud involves a forged or altered check from your account, inform the original payee or issuer as well. Next, file a police report, especially if significant financial harm has occurred. You’ll also want to file a complaint with the FTC. Finally, if your personal information was stolen, monitor your credit for unusual activity.

Stay safe!

The Hidden Costs of Buying a Home

Buying a home is a big milestone, but there are many hidden costs that can quickly add up, catching many first-time homebuyers by surprise. Here are some of the hidden costs of buying a home.

1. Home inspection

    Cost: $300-$500

A home inspection isn’t always a required part of the homebuying process, but having your future home inspected by a professional can save you thousands of dollars in future repair costs by identifying problems before you close.

2. Appraisal fees 

    Cost: $300-$600

Most lenders require an appraisal to confirm that the home is worth the purchase price. If the appraisal comes in lower than the agreed purchase price, you may need to renegotiate the price or cover the difference out of pocket.

3. Closing costs

    Cost: 2-5% of the home’s purchase price

Closing costs might be the most substantial hidden expense in the homebuying process. They include various fees, such as:

  • Loan origination fees. Lenders charge this fee to cover the administrative work that’s involved in processing your loan.
  • Title insurance and title search. Title insurance protects both you and the lender from potential ownership disputes. The title search is conducted to ensure there are no existing claims on the property.
  • Recording fees. Local governments charge these fees to make your ownership official in public records.
  • Escrow fees. An escrow company manages the transfer of funds and important documents between buyer and seller.

4. Property taxes

   Cost: varies

Property taxes are an ongoing expense that can vary significantly depending on where you live. While most people understand they’ll pay property taxes, it’s easy to dismiss how much they can cost each year.

5. Private mortgage insurance (PMI)

    Cost: 0.3-1.5% of the loan (annually)

If your down payment is less than 20% of the home’s purchase price, most lenders will require you to pay for private mortgage insurance (PMI). PMI protects the lender if you default on the loan, and it typically costs between 0.3% and 1.5% of the loan amount annually.

6. Homeowners insurance

    Cost: $800-$1500 (annually)

Homeowners insurance is a necessary expense that protects you in the event of natural disasters, theft, or accidents. Many lenders require buyers to pay for the first year’s premium upfront at the time of closing.

7. Professional cleaning

    Cost: $120-$325

Most sellers will deep-clean their home before putting it on the market, but they may not be as detailed when they actually move out. Real estate contracts generally require the home to be “broom-clean” before the seller moves, but this only means a very basic cleanup, with floors swept and trash removed. You may choose to have your home professionally cleaned and sanitized before you move in for a real, fresh start. Be sure to budget for this cost.

8. Immediate repairs

    Cost: Varies

Unless you’re buying a new construction home, your new house will likely need some repairs. From a fresh coat of paint, to new window treatments and light fixtures, to replacing carpets and appliances, this can cost just a few hundred dollars to several thousand or more.

9. Moving

    Cost: $500-$3000

The cost of moving itself is often overlooked, but can add up quickly, especially for long-distance moves or if you need professional movers. Moving expenses include packing supplies, rental trucks or a moving company. The cost of this can run anywhere from a few hundred to several thousands of dollars.

Don’t let the hidden costs of moving take you by surprise! Use our guide to be prepared for the true cost of moving.

8 Ways To Beat Holiday Stress

‘Tis the season to be merry-except sometimes, it’s not.

If you tend to feel stressed when the holidays roll around, here are eight tips to help turn that frown upside down.

1. Watch the buck

Nothing kills holiday cheer like a mountain of debt. Stick to a budget when doing your holiday shopping, and only spend what you can afford. Be extra careful not to overspend as the holidays draw near, and you’re feeling the pressure to finish your shopping in time.

2. Give back

According to the American Psychological Association, one of the best ways to reduce stress is to give back to the community.

Beat the stress by sharing holiday cheer with those who are less fortunate. You can bring some toys to the local hospital to brighten up a sick child’s holiday, volunteer at a soup kitchen or visit a nursing home and put a smile on the residents’ faces.

3. Stick to a schedule

Lack of quality sleep can make stress levels soar. You don’t need to follow your regular routine over the holidays, but it’s a good idea to keep some sort of schedule. Make sure you’re getting enough shut eye, and if a physical workout is part of your daily routine, don’t neglect it over the holidays.

4. Party smart

If you like to party, you can end up getting sick over the holidays. Do yourself a favor this year and watch what you imbibe. Enjoy a glass or two of your favorite alcoholic beverage but try to keep the drinking to a minimum. Similarly, it’s OK to break your diet over Christmas, but it’s best not to go overboard.

5. Delegate

If you’re hosting a large crowd this Christmas, all the extra work can bring your stress levels through the roof. Here’s the good news: You don’t have to do it all! There’s nothing wrong and there’s everything right with asking for help.

6. Take some “me” time

“Me” time is important, and in the chaos of the holidays, this need is often neglected. Consider getting a manicure, taking a solitary half-hour walk, or just locking yourself in your room for some peace and quiet. You’re not being an antisocial snob if you need your “me” time; you’re just being human.

7. Give up the guilt

If you tend to overanalyze every interaction you have with family and friends, you can really beat yourself up over the holidays, questioning everything you’ve said. Try to let go this season and give yourself a break.

8. Lower your expectations

A common cause for holiday stress is unrealistic expectations. It’s best not to build huge castles in the air and to keep your expectations to a minimum. If you don’t expect perfection, you won’t be struggling with mountains of disappointment this holiday.

Here’s wishing you a Merry Christmas from all of us here at High Point FCU.

HIGH POINT FCU DONATES $7,000 TO LOCAL FOOD PANTRIES

High Point FCU has donated $7,000 to support seven local food pantries in their field of membership during the holiday season. This donation reflects the credit union’s dedication to making a meaningful difference in the lives of their members and exemplifies their community-focused approach to business.

The Olean Food Pantry, Creekside Chapel, Portville Community Food Pantry, Harvest Field Outreach Center, CAC Food Pantry, Salvation Army of Bradford Food Pantry, and Hinsdale Ischua Food Pantry each received $1,000 donations.

“Our commitment to community remains steadfast,” said Rich Yeager, President & CEO. “Through our continued collaboration with local food pantries, we aim to create a lasting impact on those facing food insecurity, reinforcing the strength that comes from people helping people.”

High Point FCU is the 2nd largest credit union in Western New York, with assets of over $400 million. The credit union currently serves over 20,000 members with four branch locations, 1201 Wayne Street and 206 North Clark Street in Olean, 180 West Main Street in Allegany, and 160 South Main Street in Portville.

Q&A: How Should I Fund my Holiday Expenses?

Q: I’ve listed all my anticipated expenses for the holiday season and I’m ready to hide under my covers until January. There’s so much to buy and so little money! How can I pay for my holiday expenses?

A: Yep, ‘tis the season to shop until you drop and your budget goes pop! But with proper planning, you can celebrate the holidays with your budget intact. Here are four ways you can pay for your holiday expenses along with the pros and cons of each.

1. Credit cards

Pros:

  • Convenient. Credit cards negate the need to carry cash around and are accepted at most retailers.
  • Rewards and cashback. Many credit cards offer rewards points, miles or cashback for your purchases.
  • Purchase protection. Most credit cards offer protection on big purchases so you can reverse a charge if a product turns out to be different than promised. Some cards also offer extended warranties, price matching and coverage for lost or damaged purchases.

Cons:

  • High interest rates. If you don’t pay off your balance each month, interest charges can pile up, making your holiday spending far more expensive.
  • Overspending. The ease of swiping a card makes it easy to overspend, especially during the holidays.
  • Debt accumulation. If you carry a balance into the new year, you might be stuck with lingering debt that could take months, or years, to pay off.

2. Holiday club accounts

Pros:

  • Encourages saving. Holiday clubs help you save for the holidays throughout the year.
  • No debt. Using money you’ve saved helps you avoid going into debt from holiday expenses.
  • Set it and forget it. You can set up your holiday club to take automatic monthly contributions from another account or payroll deposit throughout the year.

 Cons:

  • Limited access. The funds are usually only accessible at the end of the year, which can be problematic if you don’t have other liquid savings to cover you in case of an emergency.

 3. Unsecured/personal loan

Pros:

  • Fixed payments. Unsecured loans offer predictable monthly payments, which can make budgeting easier.
  • Low interest rates. Unsecured loans tend to have lower interest rates than credit cards.
  • No collateral needed. Most personal loans are unsecured, which means you don’t need to risk your home or car.

Cons:

  • Increased debt. Taking out an unsecured loan adds to your overall debt load.
  • Interest costs. While rates are lower than credit cards, you’ll still be paying interest on the money you borrow.
  • Eligibility requirements. You’ll likely need good credit to qualify for the best rates; some people may not qualify.
  • Temptation to overspend. Borrowing a large lump sum can tempt you to overspend.

4. Home Equity Loan (HEL) or Line of Credit (HELOC)

Pros:

  • Lower interest rates. Since these loans are secured by your home, they typically come with lower interest rates than credit cards or unsecured loans.
  • Large borrowing capacity. You can potentially borrow a significant amount of money.
  • Flexible terms. A HELOC allows you to borrow what you need, when you need it.

Cons: 

  • Risk of losing your home. You risk losing the home if you default on the loan.
  • Fees and closing costs. HELOCs and HELs may have application fees, appraisal costs and more.
  • Long-term debt. Using home equity to fund short-term holiday expenses could result in carrying debt for years.

There are several ways to pay for your holiday expenses, and each option has its own benefits and drawbacks. Use our guide to choose the one that best suits your purposes.

Q&A: Should I Choose to Buy Now, Pay Later?

Q: When shopping online, I often see an option to Buy Now, Pay Later. Is BNPL a good option?

A: The option of paying for your purchase over time can seem attractive, but it’s important to understand how BNPL works and the potential disadvantages

What is buy now, pay later?

BNPL is a financing option that allows you to purchase items right away while breaking up the full cost into smaller, interest-free payments over time. Typically, BNPL plans charge no interest as long as payments are made on time.

What are the advantages of buy now, pay later?

The BNPL option has several advantages:

1. Interest-free payments

Unlike paying with a credit card, which typically means paying interest on the purchase, BNPL is an interest-free payment structure, as long as you stick to the payment plan.

2. Budget-friendly flexibility

BNPL provides flexibility, making expensive items more accessible to consumers who might not have the cash to pay in full upfront.

3. No credit check

Many BNPL services do not require a credit check for approval, which can be a relief for those with less-than-perfect credit or for those who want to avoid a hard inquiry that could lower their credit score.

4. Convenience

BNPL services, like Afterpay, Klarna and Affirm, are integrated into many popular retail websites. There’s no need for a lengthy application process, and your approval decision is usually instant.

What are the disadvantages of buy now, pay later? 

The BNPL payment model is not without disadvantages. Some of these include:

1. Encourages impulse spending

Choosing the BNPL option can be an easy way to fall into the trap of overspending. Knowing that you don’t have to pay for the full amount immediately can tempt you into making purchases you might otherwise avoid.

2. Late fees and penalties

While BNPL is typically interest-free, many of these services charge fees for late or missed payments, which can make the total cost of your purchase significantly higher than expected.

3. No credit building

Unlike credit cards, which report to credit bureaus and can help you build credit when managed responsibly, BNPL services generally do not contribute to credit building.

4. Limited purchase protection

Credit cards often come with purchase protections, such as extended warranties, fraud protection and dispute resolution if something goes wrong with your purchase. With BNPL, these protections are either very limited or nonexistent.

5. Potential debt accumulation

BNPL can still lead to debt accumulation if not managed carefully. The ease of splitting payments might encourage shoppers to take on multiple BNPL plans at the same time, which can lead to future budgeting challenges.

When should I choose buy now, pay later?

BNPL can be a helpful tool if you’re making a planned, necessary purchase and you’ve already budgeted for the payments. Additionally, BNPL can be useful if you need something immediately but can’t pay for it right now. Finally, if an item you plan to buy soon is temporarily discounted, it can be worthwhile to buy it now and pay it off, thus saving on the purchase price. Before you choose BNPL for any reason, though, be sure you can pay off the balance within the agreed timeframe.

When should I avoid buy now, pay later?

It’s best to avoid BNPL if you’re prone to impulse purchases or if you’re already carrying debt. If you struggle with managing payments or keeping track of bills, the risk of late fees and penalties likely outweighs the benefits of spreading out payments.

Use our guide to learn about BNPL so you can make an informed decision before choosing this payment option.

Black Friday Hacks

Black Friday is the bargain-hunter’s dream, but it’s a game that’s gotta be played right. Follow these hacks to score big during the biggest shopping day of the year. 

  1. Do your research

Many stores release Black Friday ads ahead of time. It allows you to preview upcoming deals and compare prices across different retailers to make a plan for your buying spree.

  1. Make a budget and stick to it 

With all the tempting offers during Black Friday, it’s easy to overspend. That’s why it’s so important to set a budget before you start shopping. Decide how much you’re willing to spend overall and allocate amounts for specific items. 

  1. Get following

If you aren’t already doing it, follow your favorite retailers on social media. Sign up for email and text alerts, too. You’ll be the first to know about their upcoming sales and deals. You may also want to join their loyalty programs for exclusive early access to Black Friday sales.

  1. Look for discount codes

Don’t settle for the marked-down Black Friday prices. Look for discounts that can bring the price down even further on sites like Vouchercodes and MyVoucherCodes. You’ll find discounts for designer retailers, restaurants and experience days.

  1. Use apps and websites for price comparisons

During Black Friday, it’s important to compare prices from different retailers to make sure you’re really getting the best deal. Lucky for you, there’s an app for that!  Tools like Google Shopping, PriceGrabber and ShopSavvy let you scan barcodes or search for products to see how prices stack up at various stores.

  1. Check an item’s pricing history

Don’t just assume every price you encounter on Black Friday is actually being sold at a great discount. Check the price history of any product on price-checking websites like Keepa, Honey and CamelCamelCamel to see the item’s original price and whether it’s really being sold at a significant discount. 

  1. Stack coupons

Some retailers let you combine multiple coupons or promotions on top of their Black Friday discounts, which can lead to steep savings. 

  1. Focus on big-ticket items

Black Friday is often the best time to buy big-ticket items like electronics, appliances and furniture. Retailers tend to offer their biggest discounts on high-value products during this time, which means it’s your chance to save hundreds of dollars on a new TV, laptop or large kitchen appliance. 

Use our hacks to be the Black Friday beast this year with the best bargains on the block!

How to Celebrate Thanksgiving on a Budget

Thanksgiving isn’t cheap! With the costs of food, decor and travel, there are so many expenses to cover. With a bit of planning, though, you can enjoy a festive holiday without breaking the bank. Here’s how to save on Thanksgiving costs this year.

Start your shopping early

Retailers start displaying Thanksgiving staples early, so if you start ahead of time, you can build up your supplies over weeks while spotting the best deal on everything. Plan your menu around these deals to save even more. 

Stick to your list and budget

Before starting your prep, take the time to create a Thanksgiving shopping list and a budget for all your expenses. Without a budget, it’s easy to go overboard with your shopping. Be sure to include all Thanksgiving expenses in your budget.

Plan your travel wisely

If your Thanksgiving plans include traveling, follow these tips to keep costs low.

First, choose to fly on slower travel days. Flying the Monday before Thanksgiving will generally net you cheaper tickets than traveling on Tuesday or Wednesday. You’ll also want to book tickets at least six weeks ahead so you don’t end up paying a premium for last-minute plans. Finally, consider traveling lightly to avoid baggage fees. 

Go potluck

Save on your Thanksgiving dinner costs by sharing the load and going potluck. Ask each of your guests to bring along one dish for a dinner that’s easier to prepare and lighter on the wallet. As a bonus, your dinner will have a lot more variety and will likely be more enjoyable as well. 

Keep it simple

Thanksgiving is about spending time with the people who matter to you most and expressing gratitude for blessings in your life. Keep this in mind as you prepare for the holiday and resist the pressure to go overboard with food or décor. A simple meal served by a calm and present host can be more meaningful than an extravagant spread prepared by a cook who is frazzled and worn out. 

Decorate on a budget

Instead of spending boatloads of money on store-bought décor, make your own with items you already have. Beautiful fall leaves, pinecones and branches can be used to create striking centerpieces and table settings. You can also repurpose things you already own, like Mason jars, candles and baskets.

Use these tips for a memorable Thanksgiving on a budget. 

Don’t Get Caught in an Election Scam

Democracy is a privilege that’s upheld by the election process. But scammers are out to hijack this process and cause havoc throughout election season. Here are three scams to watch out for this time of year.

Eleventh-hour campaign contributions

This scheme targets voters right before elections by asking them to make a donation toward their chosen candidate’s campaign. They’ll claim to represent the candidate and suggest that the candidate just needs one big push to move to the front of the line. 

Unfortunately, if the target believes the caller and makes a donation, they’ll be giving money helping to line a scammer’s pockets. 

Stay safe: If you’d like to contribute to a candidate’s campaign, reach out to campaign headquarters on your own through their website.

Polling for information

During election season, informal poll-takers and petitioners are everywhere while canvassing voters. Once they have your attention, they’ll ask who you’re voting for, request that you fill out a survey or have you sign an election petition on a particular issue. But first, some will say they’ll need your personally identifiable information (PII), like your name, date of birth, home address and even your Social Security number. If you oblige, you’ll be sharing your information with a scammer.

Stay safe: Never share your PII with an unverified contact. If you do decide to fill out a voter survey, be super-selective about the information you share. Don’t share your Social Security number, driver’s license number or any other information that can be hijacked for crime. 

Voter re-registration

In the weeks leading up to Election Day, you may get a bogus voter registration form, claiming your name has been mistakenly removed from voter rolls. They will say you can get back on by filling out this form and mailing it out. Alternatively, they’ll reach out over the phone, text or email, and tell you to register by responding. Naturally, this is a ruse.

Stay safe: Remember that you can only register to vote by mail. In addition, there’s no reason to believe your registration is no longer valid. If in doubt, search your state’s Secretary of State website. 

Stay safe! 

Anatomy of a Car Payment

When you get a loan to buy a car, you’ll get a new set of keys — and a new monthly payment. It may have you wondering how this payment is determined and how it’s calculated. 

So many questions, and we’ve got answers! Let’s break down the parts of a car payment, explain how monthly payments are calculated and offer tips for managing your payments well. 

What are the components of a car payment?

  • Principal 

      The principal is the amount of money you borrow to purchase the car. For example, if you buy a car priced at $35,000, and you put $5,000 as a down payment, the principal of your loan is $30,000. 

      A portion of each monthly mortgage payment will go toward paying down the principal balance of your loan. 

      • Interest

                Interest is the cost of borrowing money from a lender. It’s calculated as a percentage of the principal amount and is added to your monthly car payment. The interest rate on your loan will depend on a handful of factors like your credit score, the length of the loan term and the current market conditions. 

                • Loan term

                While this is not really a part of the loan, you’ll likely see this referenced on your monthly statement or loan bill. The loan term is the length of time you have for repaying the total loan, typically expressed in months. Common auto loan terms range from 36 to 72 months, with some loans extending even longer. The longer the term is, the lower the monthly payments will be, but the more interest you’ll pay over the life of the loan. 

                If you’ve rolled additional costs into the loan, they may also be part of your monthly payment. This can include:

                • Taxes and fees

                If you choose to finance taxes, registration fees or other upfront costs of the loan, these will be included in your loan amount and will increase your monthly payment. These costs are not itemized separately; instead, they’ll be incorporated into the principal.

                • Add-ons 

                Optional add-ons like extended warranties, gap insurance and other products you choose to finance will also be included in your loan principal, thus increasing your monthly payment.

                Additional costs of car ownership

                While not included in your monthly loan payment, these expenses are an inherent part of owning a car:

                • Insurance. Lenders typically require you to carry comprehensive and collision coverage as part of your financing agreement, ensuring the car is protected if in an accident. 
                • Maintenance. Your car will need regular maintenance and upkeep, which you’ll need to budget for. 
                • Fuel or electricity. Of course, you won’t be able to drive a car without gas or springing for electricity to power it.

                How are car payments calculated?

                To calculate your monthly payment, the lender will take the principal of the loan along with any add-on costs, and the interest amount due, and divide this number by the months in your loan term. This is the amount you’ll need to pay each month. 

                Managing your car payment

                Managing your car payment well requires careful planning and budgeting. Here are a few tips to help you stay on top of your payments and minimize the overall cost of your car loan:

                • Compare offers from multiple lenders to find the best interest rates and loan terms. 
                • If possible, make a larger down payment to reduce the amount you need to finance. 
                • Choose a shorter loan term.

                High Point FCU auto loans offer great terms, easy eligibility requirements for qualifying members and a quick application process. Call, click or stop by today to learn more. 

                Beware of Auto Repair Scams

                Unless you’re an auto mechanic or self-professed expert on cars, you likely don’t know all there is about the inner workings of your car. This can make you vulnerable to falling for an auto repair scam, which can be challenging to spot.

                Here’s what you need to know about auto repair scams, and how to keep yourself from falling victim. 

                How auto repair scams play out

                Auto repair scams can come in many forms, but they generally follow a similar pattern. Here are a few common scenarios:

                • The mystery problem scam. You take your car in for a simple issue, like an oil change or tire rotation and the mechanic “discovers” a more serious, often vague problem requiring immediate attention. 
                • The bait and switch scam. Here, a repair shop advertises a low price for a common service. Once your car is in the shop, they’ll find additional “necessary” repairs that inflate the final bill. The shop may even perform the extra work without your consent, leaving you with no choice but to pay.
                • The used parts scam. In this scam, a mechanic charges you for new parts but installs used or refurbished ones. The parts may be of inferior quality, leading to more frequent breakdowns and the need for additional repairs..
                • The endless repairs scam. After completing a repair, the mechanic tells you that another unrelated issue needs fixing. This cycle continues, with one repair leading to another, making it seem like your car is constantly in need of service. 

                Red flags to watch out for

                Look out for these warning signs that you may have been targeted by an auto repair scam:

                1. 1. Unsolicited repair suggestions. 
                2. Vague or confusing explanations for repairs that are allegedly necessary. 
                3. High-pressure tactics. 
                4. Refusal to provide written estimates. 
                5. Unexplained charges on the invoice.

                Protect yourself

                Here’s how to protect yourself from falling victim to an auto repair scam.

                First, before hiring a mechanic or heading to an auto repair shop, do your research. Look up reviews online, ask for recommendations from friends or family and check the shop’s credentials. It’s also recommended that you familiarize yourself with your car’s basic maintenance needs and how it functions. The more you know, the less likely you are to be taken advantage of.

                Next, get a second, or even third opinion on any major repairs before agreeing to have work done.  Comparing estimates can help you determine if a shop is overcharging or recommending unnecessary work.

                Keep detailed records of all repairs and services performed on your vehicle so you can track its history and identify any inconsistencies if a mechanic claims something needs repeated attention.

                Finally, if you find a mechanic you trust, stick with them. Building a long-term relationship can help ensure that your car receives honest, high-quality service over time.

                Auto repair scams can be a nightmare for car owners, but by staying informed and vigilant, you can protect yourself from falling victim. Stay safe!

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