Author: Abigail Siebert

What I Wish I Learned in School 4 of 12: Taxes Demystified

Taxes can seem daunting, especially when you’re just starting out. Here’s everything about taxes you wish you’d learned in school.

1. Taxes are inevitable

The first thing to know is that taxes are a part of life. Whether you’re earning a paycheck, running a business or investing, you’ll interact with the tax system. The key is to be informed and organized.

2. Your paycheck doesn’t show the whole picture

If you’ve ever wondered why your take-home pay is less than your salary, taxes are the answer. Employers withhold income taxes, Social Security and Medicare from your paycheck. This is called “pay-as-you-go” taxation.

Review your W-4 form when you start a new job or when your financial situation changes. This form determines how much federal income tax your employer withholds. Claiming too many allowances could lead to a big tax bill in April, while too few may mean you’re overpaying.

3. Tax deductions and credits are your friends

One of the most confusing aspects of taxes is the difference between deductions and credits:

  • Deductions lower your taxable income, which reduces the amount of tax you owe.
  • Credits are even better because they directly reduce the amount of tax you owe.

Learn which deductions and credits you qualify for.

4. Filing isn’t as scary as it seems

Gather all your important documents:

  • W-2s from your employer(s)
  • 1099s for freelance work or investment income
  • Receipts for deductible expenses
  • Records of charitable donations

Next, choose a filing method. You can use tax software or hire a professional.

5. Keeping records is crucial

The IRS recommends keeping tax-related documents for three years. This includes:

  • Pay stubs
  • Bank statements
  • Tax returns
  • Receipts for deductions

Keep these documents in a safe place for easy access.

6. Understand the difference between a refund and a bill

Getting a tax refund may feel like a bonus, but it means you paid more in taxes than you owed. On the flip side, owing taxes at the end of the year can be stressful. To avoid surprises, adjust your withholding or make estimated tax payments if you’re self-employed.

7. Retirement accounts offer tax advantages

It’s important to know how powerful retirement accounts are for saving on taxes. Contributions to traditional IRAs and 401(k)s are often tax-deductible, reducing your taxable income. Roth IRAs don’t offer an upfront deduction, but your withdrawals in retirement are tax-free.

Taking advantage of these accounts can help you build wealth while lowering your tax burden.

8. State taxes matter, too

Most states have income taxes, and each state has its own rules and rates. Research your state’s tax laws to avoid surprises and plan accordingly.

9. Deadlines are non-negotiable

The IRS tax filing deadline is typically April 15, but it may vary if on a weekend or holiday. Missing this deadline can result in penalties and interest on any taxes owed.

Use this guide to learn all about taxes.

6 Ways to Spring-Clean Your Savings

Time to get started on some spring cleaning! Remember to include your finances as part of your decluttering and tidying up. Well-organized money management can help you reach your saving goals. Here are six ways to spring clean your savings and make sure your financial goals are on track.

1. Organize your financial goals

Start by revisiting your financial goals. Have they changed since you last reviewed them? Refocusing your goals will help ensure your savings align with current needs and future aspirations.

2. Polish your savings accounts

Take a close look at your savings accounts. Evaluate the following:

  • Interest rates. Consider switching to a high-yield savings account or a credit union account that’s offering better returns.
  • Fees. Check for maintenance fees or minimum balance requirements. These can secretly erode your savings over time.
  • Accessibility. Make sure you’re not keeping all your savings in accounts that are too easy to dip into.

If you’d like to change up your savings accounts, speak to an MSR at High Point FCU to learn which account may be better for your needs and goals.

3. Spruce up your budget

Give your budget a glow-up this spring. Here’s how:

  • Track expenses. Review your spending habits and identify areas where you can cut back.
  • Adjust categories. Tweak your categories to better reflect your current reality.
  • Automate your savings. Set up automatic regular transfers from your checking account to your savings.

4. Clean up your subscriptions

Review your checking account statements or use a subscription-tracking app to identify recurring charges for services you no longer use. Canceling even a few subscriptions can free up some funds to give your savings a boost.

5. Make your emergency fund shine

No emergency fund? Or is your fund getting skimpy? Now’s the time to build it up. Aim for at least three to six months’ worth of living expenses to ensure you don’t need to dip into savings when the unexpected happens.

6. Dust off your debt

List your debts, including balances, interest rates and minimum payments. Then, choose a repayment strategy. You can go with the snowball method, in which you pay off the smallest debts first to build momentum, or with the avalanche method, in which you pay off the highest-interest debts first to save on interest.

As you declutter your home this spring, don’t forget to spruce up your savings, too! Use these tips to get started.

The 5 Golden Rules of Smart Money Habits Every Teen Should Know

Money is a big part of life, but it doesn’t have to be complicated. The earlier you learn how to handle it, the better off you’ll be in the future. Whether you’re saving for a cool gadget, your first car or just trying to make the most of your allowance, these five golden rules of smart money habits will set you up for success!

1. Spend less than you earn

It’s simple: If you spend more than you make, you’ll always be short on cash. Even if your earnings come from babysitting, mowing lawns or weekly allowances, it’s important to spend less than you earn.

Start by tracking what you earn and what you spend. If you’re spending too much on snacks or gaming subscriptions, look for ways to cut back. By keeping your expenses lower than your income, you’ll always have money for what matters most.

2. Save before you spend

Here’s a golden rule: pay yourself first! This means setting aside some of your money for savings before spending it on anything else. Even small amounts, like saving $5 out of $20, can add up over time.

Think of your savings as planting seeds. The more you plant, the more your money will grow, until you have enough to buy something you’ve always wanted.

3. Understand the power of compound interest

Compound interest is your BFF when it comes to growing money. Compound interest happens when your savings earn interest, and then that interest earns even more interest.

For example, if you put $100 in a savings account with a 5% annual interest rate, you’ll have $105 after a year. In the second year, you’ll earn interest on $105 instead of just $100. After a while, this adds up in a big way.

4. Know the difference between wants and needs

This rule can be tough, especially when there’s a new pair of sneakers or the latest video game calling your name. But learning to separate wants (things you’d like to have) from needs (things you must have, like food or school supplies) is essential.

When you get money, and you’re considering a purchase, ask yourself: “Do I really need this, or do I just want it?” It’s okay to spend on fun things sometimes, but make sure your needs are covered first—and try not to blow all your money in one go.

5. Set financial goals

What do you want to achieve with your money? Whether it’s saving for a concert ticket, a new phone or a long-term goal like college, setting clear goals will help you stay motivated.

Write down your goals and break them into steps. For example, if you need $200 for a gaming console, figure out how much you need to save each week to reach your goal by your deadline. Watching your savings grow is super satisfying!

So, next time you get your allowance or earn some cash, remember these tips. You’ve got the power to make your money work for you — starting today!

What I Wish I Learned in School 3 of 12: Credit Card Smarts

When it comes to life skills, managing credit cards is one of the most important lessons. But mastering the ins and outs of responsible credit card management can be the key to a lifetime of financial wellness. On the flipside, irresponsible credit card usage might trigger a downward spiral toward long-term debt and not being able to get larger loans later on. Here are the basic credit card smarts to know.

Understand how credit cards work

A credit card is a short-term loan. So, there is an expectation that you’ll pay it back — ideally on time and in full. Many first-time credit card owners don’t realize that paying only the minimum balance can lead to a lot of interest charges, and thus, make every purchase more expensive over time. Know the annual percentage rate (APR) on each of your credit cards and understand how interest accrues for times when you must carry a balance on your card.

Build credit early

Your credit score plays a pivotal role in your financial life. It can impact everything from your ability to rent an apartment to securing a car loan or even landing a job. It’s also super-important to start building your score as early as possible because the length of your credit history makes up a large percentage of your credit score. Paying your bill on time and keeping your credit utilization low are key factors in keeping a healthy credit score.

Use your credit card like a debit card

Credit cards make it easy to spend money you don’t have. As a teenager or college student, the temptation to swipe for meals, new clothes or gadgets is hard to overcome. It’s important to remember, though, that every swipe adds up. Losing track of your spending might bring a balance that’s difficult to pay off. Budgeting and tracking expenses are crucial habits to develop early on to avoid credit card debt.

Never miss a payment

Never miss a credit card payment, even if you can only afford to pay the minimum payment. Missing just one payment can have a bad impact on your credit score, in addition to late fees and penalty interest rates.

Understand rewards and perks

Credit cards often come with rewards programs, cash-back options and perks, like travel insurance or purchase protection. While these benefits can be valuable, they shouldn’t drive your spending. Make sure you weigh the potential costs of using your credit card for purchases before deciding to whip out the plastic.

Avoid credit card traps

Credit card companies don’t always make their terms crystal clear, and that’s no accident. Before signing up for a new credit card, read the fine print. For example, an enticing 0% APR offer might revert to a much higher rate after the promotional period.

Learn about credit utilization and its impact

Credit utilization refers to the ratio of your credit card balance to your credit limit. This percentage significantly impacts your credit score. It’s best to keep your credit utilization (across all your cards) below 30%.

Use these tips to learn how to manage your credit cards responsibly.

High Point Federal Credit Union’s Bradford Branch slated to open March 17th

High Point Federal Credit Union’s newest branch office, located at 1035 East Main Street in Foster Brook, is set to open Monday, March 17, 2025. The new full-service branch will provide loan, teller, and membership services, along with two drive-thru Interactive Teller Machines (ITMs).

To celebrate the grand opening, High Point FCU will host a range of promotions during March, April, and May. These promotions will feature specials for new members, as well as offers on auto, personal, and home loans, along with a certificate special.

The open design of the new building reflects the credit union’s dedication to fostering relationships and enhancing the member banking experience. This branch will include open teller stations, private offices, and a consultation area. The thoughtful design and strategic location aim to deepen engagement with members across McKean County and demonstrate a commitment to investing in the local community

High Point Federal Credit Union is the 2nd largest credit union in Western New York, with assets over $400 million. The credit union currently serves over 22,000 members with four locations in Cattaraugus County, NY, 1201 Wayne Street and 206 North Clark Street in Olean, and 180 West Main Street in Allegany and 160 South Main Street in Portville.

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.

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