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6 Steps to Crushing Debt

Getting rid of high debt takes hard work and willpower, but it’s doable. Here’s six steps to help you start crushing debt today.

Step 1: Choose your debt-crushing method

There are two approaches toward getting rid of debt:

  • The snowball method involves paying off your debt with the smallest balance first and then moving to the next-smallest, until all debts have been paid off.
  • The avalanche method involves getting rid of the debt with the highest interest rate first and then moving on to the debt with the second-highest rate until all debts are paid off.

Each method has its advantages, with the snowball method placing a heavier emphasis on achieving results at a faster pace, and the avalanche method focusing more on actual savings to the borrower money in overall interest paid. Choose whichever method appeals to you more.

Step 2: Maximize your payments

Credit card companies are out to make money, and they do this by making it easy to pay just the minimum payment each month. Beat them at their game by maximizing your monthly payments. Free up some cash each month by trimming your spending in one budget category or consider freelancing for hire and channel those funds toward the first debt on your list. Don’t forget to continue making minimum payments toward your other debts each month!

Step 3: Consider a debt consolidation loan

A personal loan from High Point Federal Credit Union can provide you with the funds you need to pay off your credit card bills and leave you with a single, low-interest payment to make each month. Or, you can transfer your credit card balances to a single card having a low-interest or no-interest introductory period.

Step 4: Build an emergency fund

As you work toward pulling yourself out of debt, it’s important to take preventative measures to ensure it won’t happen again. You can do this by building an emergency fund. Start small, squirrelling away whatever you can in a special savings account and adding the occasional windfall to beef up your fund.

Step 5: Reframe your money mindset

What got you into this mess? Are you consistently spending above your means? Is there a way you can boost your salary or significantly cut down on expenses? Lifestyle changes won’t be easy, but living debt-free makes it all worthwhile.

Step 6: Put away the plastic

Credit cards are an important component of financial health, but when you’re working to free yourself from debt, it’s best to keep your cards out of sight and out of mind. Learning to pay your way with cash and debit cards will also force you to be a more mindful spender.

Best of luck on your journey toward financial freedom!

Safe Back-to-School Shopping on a Budget

This year’s back-to-school shopping season requires shoppers to stick to their budgets without exposing themselves, or their kids, to the coronavirus. Here’s how to shop for school safely without breaking your budget.

Set a budget

Look through your kids’ school supply lists, jot down any other necessities you need to purchase for them now, and set a reasonable budget you can stick to. If you dare, assign a dollar amount to each category.

Order online

If you’re trying to avoid crowded stores, your best bet is to shop online. You can find everything your child needs for school on sites like Amazon, Target.com, and Walmart.com. Most big brands offer quick and cost-free delivery when you spend a minimum amount.

Shop the sales

Retailers tend to place different back-to-school items on sale each weekend throughout the summer, and if you’re a careful shopper you can take advantage of them all. Check out the sites of major retailers, or flip through the sale flyers, to find the best bargains leading up to the start of school.

Pair up with a friend

Pair up with another parent and split the supply list between the two of you, with each parent buying items for the kids in both families. This way, one of you can run across town to the store with the crazy deals on crayons while the other picks out binders at the store selling them at the lowest price. As a bonus, you’ll be limiting your exposure to the virus by shopping in fewer stores.

Avoid the crowds

Time all in-person shopping for hours when stores tend to have smaller crowds. Consider an early-morning run or an evening shopping spree instead of an afternoon of hitting the shops.

Don’t forget the masks

The CDC continues to recommend face coverings for all students in K-12 schools. While you may already have a sizable collection of masks at home, consider purchasing some new masks for your child before school begins. After a summer at home, getting used to wearing a mask for hours at a time again will be challenging, and some new, breathable masks will make it easier for your child to adjust.

Follow the tips outlined above for a safe back-to-school shopping season that doesn’t break your budget.

Why You Need to Be Financially Fit

You give your abs a daily workout, but are you neglecting those money muscles? Here’s why being financially fit is super-important and how you can overcome common barriers to financial wellness.

Financial wellness: a ripple effect

Managing money responsibly will affect many aspects of your life:

  • According to a recent study by AARP, financial problems are the second leading cause of U.S. divorces.
  • Mental health. Money stress can severely affect your mental health, causing depression, restlessness, anxiety and more.
  • Physical health. Stressing over finances can directly impact your physical health, leading to recurring symptoms like headaches, fatigue, insomnia, high blood pressure and an increased risk of heart disease and stroke.
  • Work life. Money worries can make it difficult to focus at work, which can also bring down productivity levels and hamper career growth.

What are the leading causes of money stress?

According to a survey by Credit Wise®, 73% of Americans rank money issues as the top stressor in their lives. Here are the top causes for financial stress:

Barriers to financial wellness and how to overcome them

Unfortunately, there can be barriers that make it difficult to get and keep financial wellness. First, because it hasn’t been taught in school until recently, many people lack basic financial knowledge necessary to manage money responsibly. Second, many mistakenly believe that budgeting and saving are time-consuming and tedious. Finally, some consumers have fallen so deeply into debt they’ve lost hope of ever pulling themselves out.

Here are simple steps you can take to get financially fit:

  • Get educated. Check out financial literacy blogs, personal finance books, podcasts or online classes to learn about money.
  • Have the money talk with your partner. It’s important to be on the same financial page as your partner. Talk openly and honestly, being careful not to be judgmental, and discuss your individual and shared money goals. Then, come up with a plan to reach them together.
  • Pay all bills on time. If you can’t take aggressive steps toward getting out of debt just yet, be sure you’re making at least the minimum payment on each credit card bill.
  • Create a budget. Giving every dollar a destination makes it easier to spend mindfully and cut down on extraneous expenses.
  • Start saving. Every dollar counts, and once you get the ball rolling, you’ll be motivated to pack on the savings until they really grow.

Let’s get those money muscles into shape! Follow the tips outlined above to stay financially fit at all times.

What to Buy and What to Skip in August

Q: I’d love to get some great bargains as summer winds down. Which products go on sale in August and what should be pushed off for now?

A: The tail end of summer brings with it some fantastic finds, but some marked-up products, too. Here’s what to buy and what to skip in August.

Buy: Patio furniture

Pick up a sweet deal on patio furniture at the end of the season. While giving your patio a facelift, you’ll also find grills, outdoor decor and similar items on sale in August.

Skip: Major household appliances and mattresses

If you’re in the market for a major household purchase, you’re best off waiting until September. Retailers tend to slash prices on these items by 30% or more during Labor Day weekend sales.

Buy: Swimwear

Stores and online retailers need to clear their summer stock to make room for the autumn and winter line, which gives you the perfect chance to snag a super swimsuit deal! Stash your treasures for next year’s beach season or keep them for a winter getaway to warmer climates.

Skip: iPhones

If you’re looking to update your iPhone, you’re best off waiting a month or two. The new iPhone 13 is expected to be released in mid-September, and older models typically see a price cut when new models hit the market.

Buy: School supplies and kids’ clothing

August is already deep into the back-to-school shopping season, when school supplies and kids’ clothing tend to see generous markdowns. Stock up on supplies to last all year and get your kids outfitted for the coming season at rock-bottom prices.

Skip: TVs

Don’t run out and buy a new TV just yet. If you need a new flat screen, you’re best off waiting for Black Friday to get the best deal.

Buy: Office supplies and furniture

Back-to-school sales means you can also cash in on office supplies and furniture. Restock your home office with basic supplies, upgrade your office chair or spring for a new desk at bargain prices.

Skip: Fall clothing

Fall apparel will be just hitting the stores in August, so you likely won’t be seeing steep discounts on fall wear until October.

Beware Back to School Scams

Whether you’re a college student prepping for the fall semester, a high school student getting ready for a new school year or the parent of a student of any age, beware of these trending back-to-school scams!

The student tax scam

In this scam, a crook posing as the IRS calls a college-bound student claiming they didn’t pay the student tax. If it is not paid up and pronto, the “agent” says, the student will not be allowed to attend school. They may even threaten imprisonment.

Don’t get scammed! First, know that the “student tax” doesn’t exist. Second, the IRS will never initiate contact with a taxpayer through a phone call. Finally, the IRS will never demand payment through a prepaid debit card or wire transfer, which is a common scammer ploy.

Scholarship scams

The scholarship scam cons students and parents into paying money for government student loans or financial aid, or by promising a scholarship in exchange for a fee. Follow these rules to stay safe:

  • Never pay to apply for a government student loan or financial aid.
  • There’s no way to guarantee a scholarship or grant. If a company promises to get you approved for either one, it’s a scam.
  • There is generally no fee necessary to receive a scholarship.

School supply giveaways and freebies

Back-to-school shopping can cost a bundle. Messages promising a free back-to-school shopping spree can be welcomed if they’re legit. Unfortunately, they rarely are.

Back-to-school giveaway scams ask the victim to visit a website to provide their email address for claiming their prize. The victim is then rewarded with an endless stream of emails, texts, robocalls and more from the company that now has their information, with no giveaway in sight. In some cases, the scammer may demand a “processing fee” before the victim can claim their prize.

Protecting yourself from a giveaway scam is easy by remembering that, if it sounds too good to be true, it probably is. Also, legitimate contests will rarely select a winner out of thin air; you’ll have to enter it first by providing your email address. They are also not likely to make you give up lots of info before claiming your prize. Finally, there is generally no payment necessary for claiming an authentic prize.

Follow the tips outlined above for this back to school season and stay safe!

7 Tips for a Budget-Friendly Road Trip

Ready to hit the open road? Before you do, check out our budget-friendly road trip tips so you can set out in style and without breaking your budget!

1. Save on food costs

Here’s how to save on food costs during your road trip:

  • Shop your local stores for staples before setting out.
  • Get your “kitchen” into gear. A good knife, cutting board and small cooking appliances like a portable grill and plug-in burner are great starting points.
  • Plan a mix of meal types, alternating between home-cooked meals, dining out on fine cuisine and tasting local street foods.
  • Save the dining out for delicacies unique to your current location.

2. Camp out instead of sleeping in hotels

Sleeping under the stars when possible adds a whole new layer of awesomeness to your trip. And it can be super cheap! Check out recreation.gov, where you can book spots among 3,600 facilities and 103,000 individual sites across the country.

3. Find free attractions

Most tourist hotspots have a wide selection of free activities and sights to see at no cost. Check out local websites or ask around on the street to find the best-kept secrets at every stop.

4. Map out your route for greater savings

Instead of blowing money on gas, create a detailed schedule of all your stops before setting out, choosing the most efficient and inexpensive route. Look up local attractions in the areas you plan to stop at and book reservations in advance when possible.

5. Download GasBuddy

Download the GasBuddy app to find stations with the lowest nearby gas prices throughout your trip. You can save hundreds of dollars on gas costs using this game-changing app.

6. Check in on Sunday

For those nights when you must have a hot shower and comfortable bed, you’ll probably be checking into a hotel. If you can, check in on a Sunday. According to a study from the travel app Kayak, hotel reservation rates are lowest on Sundays.

7. Explore more and drive less

Hit the brakes and get out of the car! Spend some time covering miles on foot by hiking through local trails or backpacking through city streets. You’ll enjoy an enriching experience and save on gas costs at the same time.

How to Make a Vacation Budget You Can Keep

Summer is here, and it’s time for your getaway!

While it’s great to get away for some fun in the sun, sticking to a budget is a must, even when on vacation. This year, attack your vacation with a financial plan you can actually keep by following these tips:

Rethink vacation

Before you start working on a vacation budget, consider an alternative to a conventional getaway that can provide an escape from real life without the prohibitive price tag.

  • Staycation. Spruce up a spare bedroom with scented hand towels and mini soaps and shampoos to give it a hotel feel. Sleep there during your “vacation” and spend your time trying out local attractions, festivals and restaurants you’ve always wanted to experience.
  • Swap houses. Have friends or family who live out of your area? Ask about switching houses for a week. Then, you can all get an inexpensive vacation.
  • Camping. If you have camping gear or can borrow it from a friend, camping can cost next to nothing. It can also be a fantastic way to enjoy a rejuvenating break from the grind of life.

Create a budget

If you just gotta splurge on a typical getaway, here’s how to create a realistic budget:

  1. Review your savings. If you’ve been steadily saving up for this vacay, you’ll know how much you have to spend. If you haven’t saved anything, consider an unsecured loan through your credit union and/or saving up until your vacation by trimming your discretionary expenses.
  2. Prioritize. Before assigning dollar amounts to categories, pick what’s most important to you while on vacation. List your priorities from most to least important for future reference.
  3. Assign dollar amounts to big-ticket items. Choose and price a destination. Set aside money from your budget to cover what it takes to get there, as well as accommodations.
  4. Divide and conquer. Now, assign a realistic dollar amount to your remaining categories. Include food, tickets to entertainment venues and attractions, gifts and souvenirs, transportation costs, and pack in some “miscellaneous” money for unplanned expenses.

Stick to your budget

Now comes the hard part: sticking to your budget while on vacation.

First, consider using cash. You’ll be forced to stick to your budget with no way to overspend. Just make sure you plan for how to keep it secure at all times.

Next, make advance reservations when you can. This way, you have fewer spending choices for when you’re actually on vacation.

Finally, keep a copy of your vacation budget handy while you’re away so you can pull it out whenever you come up against a spending challenge.

Don’t let your budget go on vacation!

Post-Pandemic Money Moves

Mask mandates are going away and restaurants are opening again. Finally, life is going back to normal! Here are some forward-thinking money moves to make as you adjust to post-pandemic life.

Review and adjust your budget

Pandemic budget rules were unique, as people cut down on costs, like dining out and updating work wardrobes, but spent more on things like at-home entertainment. Others may have had to adjust their spending to help them coast during a stint of unemployment. The pandemic may have also shifted something in people’s mental list of needs and wants, as they found they can live with a lot less than they’d thought.

As you adjust to post-pandemic life, take some time to review and tweak your monthly budget. Be sure to incorporate any changes in income, as well as a readjustment to pre-pandemic spending or changed priorities.

Rebuild your savings

If you are one of the many Americans who were forced to dip into savings, or even to fully drain them, during the pandemic, create a plan to get your savings back on track. Tighten your spending in one area until you’ve built up an emergency fund that can keep you going for 3-6 months without an income, or use a windfall, such as a work bonus or tax refund, to get the bulk of your emergency fund in place.

Once your emergency fund is up and running again, continue to practice basic saving habits, such as setting aside 20% of your monthly income for savings, or whichever approach you prefer.

Rethink your long-term and short-term financial goals

The pandemic has prompted lots of people to reevaluate their goals. Take some time to rethink your long-term and short-term financial goals, then adjust your savings and budget accordingly.

As you move through this step, be sure to consider any long-term goals you may have put on hold during the pandemic. Have you stalled your contributions to your retirement accounts? Have you been making only the minimum payments on your credit cards? If any of these apply to you, be sure to revert your savings and debt payments back to pre-pandemic levels as soon as you can.

Spend with caution

It’s perfectly fine to enjoy a shopping spree in celebration of a return to pre-pandemic norms, but spend with caution.

First, prepare to encounter inflated prices wherever you go. Gas prices have jumped, and the cost of many consumer goods has spiked. If you planned on purchasing a big-ticket item like a new car, consider waiting until prices cool off.

Also, you may be eager to make up for lost time, but no number of nights out on the town will bring back the months you spent at home. To avoid irrational overspending, set up a budget before you hit the shops and only spend what you’ve planned.

College Degree Scams

For many young adults, a college degree is the key to a secure financial future. Unfortunately, though, scammers are offering fake diplomas and bogus degree programs to the unsuspecting college-bound crowd. Here’s what you need to know about college degree scams.

How the scams play out

College degree scams can take on several forms:

  • Diploma mills advertise to attract potential students, claiming they don’t need to do any studying, take exams or even interact with professors to earn their “degree.”
  • Accreditation mills will allegedly provide higher education accreditation to diploma mills. Unfortunately, though, they cannot grant authentic accreditation because they are not recognized by the U.S. Department of Education (USDE) or the Council on Higher Education Accreditation (CHEA.)
  • Life experience degrees offer a fully accredited “degree” for work experience alone.

In each of these variations, the victim will only discover that the degree is bogus when they try to use it. It won’t be recognized by reputable employers, can negatively impact a career path even if the victim is already employed and can get the victim into trouble with the law.

 10 signs a college or degree program is bogus

  • The school’s mailing address is a P.O. box.
  • Tuition is billed as a flat rate per degree.
  • The “school” claims you can get your degree in an impossibly short time.
  • You have little to no interaction with the “professors” of the school.
  • The name of the “college” is similar to a well-known legitimate university.
  • The web address doesn’t end in .edu.
  • The school is accredited by an organization that isn’t approved by the USDE or the CHEA.
  • The school does not ask for any form of I.D. upon enrollment.
  • A degree can be earned with minimal effort.
  • The school claims you can earn your degree solely through experience in the workfield.

How can I be sure my degree program is legit?

The Federal Trade Commission (FTC) suggests taking these steps before enrolling in any college program:

  • Is the school officially accredited? You can verify this by checking for the school or program on College Navigator, and/or looking it up on the USDE and the CHEA If your school or program isn’t listed on these sites, you’re looking at a scam.
  • Ask the registrar of any local community college or state university if they’d accept transfer credits from this institution. If the answer is no, it’s an obvious scam.
  • Contact the state attorney general’s office in the state where the school or program is located to ask if it’s operating legally.

If you’ve been targeted

  • Report scam attempts to the FTC at FTC.gov and to your state attorney general. Let your friends know about the scam, too.
  • Be alert and do your due diligence before signing up for a college or degree program, and stay safe!

Don’t Share Your Grad Photo Online

Congrats  — you did it! You’ve spent years studying for exams, keeping up with your coursework and writing papers. Finally, the finish line is within reach. You’re graduating!

It’s a super-exciting time, and all you want to talk about is your graduation. So when a bunch of your friends are sharing their senior photos and joining graduation contests on Facebook, Instagram or other social media platforms, you think it’s harmless to do it, too. Unfortunately, though, posting a senior portrait with your graduation year and the name of your school on a public platform can mean playing right into a scam.

Here’s what you need to know about grad photo scams and how to play it safe.

How the scams play out

The Better Business Bureau (BBB) is warning graduates not to post their senior pictures on any social media platforms. Scammers, they explain, are using these sites to gather new targets. When they see a grad photo with a graduation year and the name of a school, they can take this information. Since these items are commonly used for security questions, scammers can look up more details about the target or even hack into private accounts. Once they’ve completed this step, they can pull off identity theft and more.

Also, lots of trending post-your-list-of-favorites contests for graduates can be exploited by scammers. In these contests, graduates are asked to share their senior portrait along with a list of favorites, such as their favorite songs or cars they’ve owned. This information can also be unknowingly seen by scammers.

How to stay safe

The BBB shares the following tips to help graduates and others keep safe on social media:

  • Only share your graduate photos privately with friends.
  • Don’t join grad photo contests that compromise your privacy.
  • Review and adjust the security settings on your devices and social media accounts.
  • If you believe you’ve been targeted, consider changing your passwords and security questions.

If you find evidence of fraud, let your credit union know so it can place a fraud alert on your accounts. You’ll also want to report the fraud to the FTC at FTC.gov.

Graduation is a super-exciting milestone and you don’t want scammers ruining this special time. Stay safe!

Technology a Necessity in Today’s World

Whether you’re trying to keep up with younger family members or you’re trying to make an appointment for a COVID vaccination, like it or not, you need to be up on the latest technology.

Some devices may still be somewhat intimidating, but digital devices have become more user-friendly over the years.

If you can yell, “Alexa!” you have the ability to get the news and weather, find out where your delivery is and, more importantly, call for help just by using your voice.

Older adults and technology usage

According to AARP , people over age 50 are using smartphones, tablets, smart speakers and wearable devices as much as adults ages 18-49. Many say they use their devices daily, mostly for social media.

Those who are not adopting technology say there is a lack of knowledge and a presence of health problems, such as hearing and vision issues. Cost is also sometimes noted as a reason for shying away from buying that smartphone or Apple watch.

Most devices that are specifically designed for older people, such as wearable fall-detection devices, are viewed as a negative stereotype for aging.

Useful products for older adults

Charlotte Yeh, the chief medical officer at AARP, says technological devices geared toward older adults should not only focus on protecting their safety, but also give them a feeling of purpose and connection, as well as a positive view on aging.

Some examples of these products include the Amazon Alexa Care Hub, created for independent living with the security of knowing you’re connected to loved ones; and the BUDDY app for Fitbit smart watches to monitor and manage fall prediction, prevention and detection, medication schedules and reminders, GPS locations and emergency notifications, all with modern style.

Some libraries and township recreation departments provide free instruction on how to use tablets and e-readers, like Amazon Kindle. Check their schedules or grab your teenage grandkids to hook you up. Technology is a necessary part of today’s world, and once you embrace it, you’ll feel less isolated and more in control of your daily life.

Financial technology

Having the ability to manage your financial accounts without going into a branch is especially important for older adults. If you haven’t already, enroll in High Point FCU’s digital banking service, and enjoy 24/7 online account access!  Learn about the benefits of digital banking here.

Teach Kids to Set Savings Goals

Your child wants a new longboard ($200) or the latest basketball shoes ($120), but it’s just not in the budget this month — or for the next three months. Rather than a flat-out “no,” work with your child to set savings goals and then help them reach them. Here’s how:

Identify the goal

If your child has an item they’d like to purchase, the goal amount would be the purchase price. If the item is exceptionally pricey, offer to match their savings once they get halfway there. Setting a reasonable goal amount will help them see when the end is in sight and provide more motivation to reach the goal.

Make a plan

What will they do to reach the goal? Sit down with your child and discuss ways to earn the money. Do they have a part-time job? Babysit? Are there additional chores they can do around the house to earn more money? Get creative! Together, figure out how much money they can save each week or month and how long it will take to reach their goal.

Set money aside

Make sure your child has a savings account or another method for savings. Spending can often be quite tempting if the cash is easily accessible. If your child is serious about saving, make sure they have a place to put the money away.

High Point Federal Credit Union offers a Youth Savings Account that will help your child get the most out of their savings! Learn more by clicking here.

Follow through

Once your child has reached their savings goal, follow through and allow them to purchase what they saved for. And if you agreed to match their savings, make sure you’re ready to do so, too.

Giving your children the knowledge and help to reach a savings goal is a life lesson that they will carry with them throughout their adult lives. You might even be surprised. Once your child has reached their savings goal, they may decide that the item they originally wanted to purchase isn’t worth the work they put into it and use those savings even more wisely.

Saving Smarts

For the responsible adult who thinks about being prepared for the future, savings are a fixed expense that is built into the monthly budget just like car payments and insurance. For most people, though, this habit does not come naturally. It needs to be acquired and practiced. Teach your kids those saving smarts now when they’re young to help make it a lifetime habit they’ve already mastered by the time they hit their 20s.

The Goal

Give your kids a clear understanding of why saving is crucial to financial wellness and how to make it happen.

Pointers to cover:
  • Why putting money aside each month is crucial
  • How interest and compound interest work
  • Long-term vs. short-term saving
  • Reasons to save

Conversation starters

For kids under age 9:
  • Let’s say you’ve only got $15 and you want to buy a drone that costs $65. You get $5 a week as your allowance. How can you buy that drone?
  • When did you wait for something and find that it was more enjoyable because you waited for it?
  • Can you think of some things that Mom or Dad saves up for?
  • If you earn 10 cents for every dollar you save, how much money will you earn by putting away $5?
For kids over age 9:
  • Are you saving up for anything important?
  • Can you think of some things that Mom or Dad saves up for?
  • Have you ever had to pay for something unexpected? How did you come up with the money?
  • Some things we save for are short-term goals, and others are long-term goals. Can you name some of each kind of goal? How will we save differently for each kind?
  • Do you think it’s smart for Mom and Dad to keep money they’re saving under the mattress? Why or why not?

If you haven’t already, consider setting up a Youth Saving Account for your child, and help them put these saving smarts into action!

For more youth-geared financial activities, visit our Activities & Resources page.

All You Need to Know About Savings Accounts

Looking for a safe place to grow your money? Look no further than the savings accounts at High Point Federal Credit Union!

Here’s everything you need to know about our savings accounts.

Opening a savings account

Stop by one of our branches or visit the High Point FCU website to open a Share Savings Account. You’ll need basic identifying documents and information along with a minimum initial deposit of just $5. If you’re looking to maximize your earnings on a higher balance, you can open a Money Market Account and earn dividends once you reach a $2,500 balance.

Accessing your funds

If you need to make a withdrawal from your Share Savings, visit a branch location to do it in person, visit our drive-thru or you can access your funds via our 24-hour ATM. You can utilize our digital banking to transfer funds between accounts.

Many financial institutions restrict the number of monthly withdrawals members can make from their savings accounts. At High Point Federal Credit Union, you have unlimited withdrawals from your Share Savings Account! We just hold $5 as your membership interest in the credit union.

If you use a Money Market Account, you are limited to six withdrawals or automatic and telephone transfers each month. This total also includes auto transfers if the account is linked as an overdraft privilege account to cover your checking account. However, you can have unlimited in-person and mobile transfers/withdrawals.

NOTE: Due to hardships associated with COVID-19, there is currently NO LIMIT to the number of transfers members can make whether they are automatic or not (It is unknown when this restriction will go back into place).

Fees and penalties

Banking partners may charge a nominal monthly maintenance fee for savings accounts, but these can generally be avoided by meeting specified account requirements. Savings accounts at High Point FCU have no monthly fee.

Bank and credit union members may be penalized for going over the withdrawal limit on savings accounts. If you go over the six-withdrawal limit in your Money Market Account, your account will be subject to closure by the credit union.

If you overdraft an account, you will be charged the standard NSF fee of $25 for all returned items. At High Point Federal Credit Union, you can sign up for Overdraft Privilege, linking your Savings to your Checking to prevent overdrafts. There is a $2 fee for automatic transfer from Savings to Checking to cover an overdraft.

Higher earnings rate

One of the most advantageous features of a savings account is its interest/dividend rate, which is nearly always higher than the rate of a checking account in that same institution. According to the NCUA , in December 2020, the average checking accounts rate for credit unions was 0.08% APY. The average rate for savings accounts was 0.11% APY.

Explore our Share Savings rates and our Money Market rates by clicking here.

Safety and security

Your money is always safe at High Point FCU. Our credit union is federally insured up to $250,000 by the National Credit Union Administration. The funds in your savings account will also be protected from the fluctuations of the stock market.

A savings account can be an excellent place for keeping and growing funds you may need to access in an emergency. Call 800.854.6052, click, or stop by High Point Federal Credit Union to open your account today!

Building A Financial Future Using the Building Blocks Approach

How do you choose what financial information to impart to kids? What’s really important? Perhaps surprisingly, according to the Consumer Financial Protection Bureau (CFPB), the most important money lessons actually have nothing to do with money. That’s the central theme of its new report, Building Blocks to Help Youth Achieve Financial Capability. This report, available online from the CFPB, breaks down financial literacy into three skills: executive function, financial habits and norms, and financial knowledge and decision-making. This conclusion comes from a fusion of educational research and social psychology, and it’s an important guide for parents.

The Building Blocks Approach

Financial knowledge and decision-making are the most often included elements in financial literacy. It’s the stuff you know. Financial habits and norms are the behaviors and conditions children come to expect. Some of this can be taught, but it’s mostly a matter of observation and socialization. Kids pick up these habits and norms from watching their parents and other adults.

Most importantly, the skill of executive function can be developed even at ages when most financial knowledge cannot. Executive function is the ability to control impulses, make and stick to plans, direct attention and other related tasks. New psychological research suggests that these are all skills where a form of training is needed; the more we practice paying attention to something, the better we’ll get at it. Best of all, this ability can be developed at any age.

Executive function, in addition to being the most teachable skill in the report, is also the most important. Kids with developed executive function skills will find it easier to learn new information and practice new skills while also positioning themselves for future success. Of all the factors summarized in the report, kids with strong executive function skills tended to have the highest levels of financial satisfaction.

Interested in improving executive function? Here are a few of the report’s recommendations.

1. Practice delayed gratification

Offer young children the choice between a small treat now and a larger one after a short period of time. Slowly increase the time increment between choice and reward. This helps to develop the skills involved in deferring instant gratification in favor of larger rewards later.

2. Planning at playtime

Before a play session, ask your child what toys he or she wants to play with in the next block of time. After your child is done playing, ask him or her to reflect on how well the plan worked. This helps develop long-term planning skills and creates intrinsic rewards for sticking to a plan.

3. Involve your children in plan-making and deciding

Wherever possible, encourage your children to participate in making plans for the household. They might get to pick one night’s dinner, or pick from a few family activities for a Saturday morning. The experience of making decisions, whether in a financial context or not, will help develop those executive function skills.

How to Spot A Credit Repair Scam

Credit repair scammers tell you they can make credit repair quick and easy. Unfortunately, when they’re done, your score may still be low, you’ll have lost a nice chunk of change and may even be facing criminal charges.

Here are the warning signs of a credit repair scam:

1.       Upfront payment

Under the Credit Repair Organizations Act (CROA), credit repair companies are forbidden to request or receive payment until they’ve completed the services they’ve promised.

2.       Big promises

Scammers may claim they can remove negative information from your credit report, even information that is accurate and current. Don’t believe them; no one can do this. They might also promise to boost your score in just a few weeks. This, too, isn’t true. It takes at least 30 days for changes to be evident on your credit report.

3.       Offers a “new credit identity”

In these scams, companies promise to create a new credit identity for a fee. After you pay, the company will provide you with a nine-digit number. They may refer to this number as a CPN – a credit profile number or a credit privacy number. Alternatively, they may direct you to apply for an EIN – an Employer Identification Number.

The company instructs you to use this form of ID to apply for credit, telling you it is legal. However, it’s not — and you’ve just been scammed. These companies are selling you a stolen SSN. They walk away with your money and leave you in hot water because you’ve just committed multiple federal crimes.

Falling for a credit identity scam could mean facing fines or prison time.

4.       Tells you to dispute accurate information on your credit report

Disputing accurate information on your credit report is illegal.

5.       Evasive when questioned
The Credit Repair Organizations Act made it illegal for credit repair companies to lie about your rights and their services. These companies must explain:
  1. A written contract detailing your legal rights
  2. Your three-day right to cancel the contract without charge
  3. The anticipated time it will take until results are evident
  4. The total cost you will pay for their services
  5. Their guarantee

If you’ve hired a credit repair company that hasn’t lived up to its promise, you can choose to sue the company for your losses in federal court. Along with other victims, you can file a class action lawsuit against the company.

Finally, it’s best to report the scam to your local consumer affairs office or to your state attorney general. You can also file a complaint with the Federal Trade Commission (FTC). File your complaint online at ftc.gov/complaint.

All You Need to Know About the New Stimulus Bill

It’s another stimulus bill, and that means more checks are a-comin’! But don’t hit the shops just yet. Although the new bill promises bigger stimulus checks, there are stricter eligibility requirements. And that’s just the tip of the iceberg that is this bill.

Below, we’ve outlined some of the most significant measures included in the American Rescue Plan.

Stimulus payments

The third round of stimulus checks are set at $1,400. Here’s who is getting checks:

  • Single taxpayers with an adjusted gross income (AGI) of $75,000 or below.
  • Taxpayers filing as heads of household with AGIs of $112,500 or below.
  • Married couples filing jointly with AGIs of $150,000 or below.

Parents will also be getting checks for every child they claim as a dependent on their tax return, including college students and adult children with disabilities.

Older relatives who are living with taxpayers will also be counted as dependents.

Higher earners will receive partial payments, but these will phase out quickly. For single filers, the checks stop at an AGI of $80,000. For heads of household, the checks stop at AGIs of $120,000, and for joint filers, the cutoff is $160,000.

To be eligible for a payment, an individual must have a Social Security number.

Changes to unemployment insurance

The relief bill will extend unemployment benefits for another 25 weeks, until Sept. 6. The weekly supplemental benefit of $300 will continue running through that date, too.

The first $10,200 of benefits will be tax-free for people whose income is less than $150,000. This only applies to unemployment paid in 2020.

In addition, unemployment benefits received through the Pandemic Unemployment Assistance program will run through Sept. 6. Benefits received through the Pandemic Emergency Unemployment Compensation program would also run through that date.

Changes to the child tax credit

The relief bill will expand the child tax credit to $3,000 for children ages 6 through 17, and to $3,600 for children ages 5 and under. The credit will now also be fully refundable.

In addition, half the child tax credit may be advanced to parents before the end of 2021. Plans for the distribution are still being finalized, but lawmakers are hopeful that parents will start getting monthly payments toward their child tax credits for 2021 as early as July.

Married couples with a modified AGI of up to $150,000 (or up to $112,500 for heads of household and up to $75,000 for single filers) would receive the full value of the new benefit.

Changes to student loans

There will be no income tax on forgiven debt for those that qualify for loan forgiveness or cancellation. This would apply to all debt forgiven between Jan. 1, 2021, and Dec. 31, 2025.

Your Complete Guide to Using Your Credit Cards

Using your credit cards responsibly is a great way to boost your credit score and your financial wellness. Here’s all you need to know about responsible credit card usage.

Refresh your credit card knowledge

A credit card is a revolving line of credit allowing the cardholder to make charges at any time, up to a specific limit. Each time the cardholder swipes their card, the credit card issuer is lending money for the purchase. Unlike a loan, though, the credit card account has no fixed term. Instead, the cardholder must make payments toward the balance each month until the balance is paid off in full.

Credit cards tend to have high interest rates relative to other kinds of loans. The most recent data  shows the average industry rate on new credit cards is 13.15% APR (annual percentage rate) and the average credit union rate on new credit cards is 11.54% APR.

Pay bills in full, on time

Paying bills in full and on time has multiple benefits:

  • Build an excellent credit score
  • Skip the interest charges
  • Stay out of debt
  • Avoid late fees
  • Enjoy rewards from the credit card issuer

Brush up on billing

There are several important terms to be familiar with for staying on top of credit card billing.

A credit card billing cycle is the time between credit card billings. It can vary from 20 to 45 days, depending on the credit card issuer. Within that timeframe, purchases, credits and any fees or finance charges will be added to and/or subtracted from the cardholder’s account.

When the billing cycle ends, the cardholder will be billed for the remaining balance, which will be reflected in their credit card statement.

Credit card bills will also show a payment due date, which tends to be approximately 20 days after the end of a billing cycle. The timeframe from when the billing cycle ends and its payment due date is known as the grace period. When the grace period is over, and the payment due date passes, the payment is overdue and will be subject to penalties and interest charges.

Make sure you read the disclosures for your credit cards to find important information that relates to each particular card.

Spend Wisely

Do:
  • When making a purchase, treat your credit card like cash.
  • Remember that credit card transactions are mini loans.
  • Pay for purchases within your regular budget.
  • Decrease reliance on credit cards by building an emergency fund.
Don’t:
  • Use your credit card as if it provides you with access to extra income.
  • Use credit to justify extravagant purchases.
  • Neglect to put money into savings because you have access to a credit card.

What do I Need to Know About Debt Consolidation?

Q: Help! I’m drowning in debt! I’ve heard about debt consolidation, but what do I need to know before moving ahead?

A: Debt consolidation is the process of moving multiple high-interest debts into a new loan or line of credit.

Here’s what you need to know about debt consolidation.

What are the benefits of debt consolidation? 

Saving on interest payments. Moving your debts to a new loan or credit line with a low interest rate can translate into big savings.

One monthly payment. Say goodbye to scrambling to keep track of and make all your monthly payments!

Fixed payment timeline. How does knowing when you’ll be debt-free sound?

Boost your credit score. Amp up your score with a balance transfer or loan.

What are the disadvantages of debt consolidation? 

May stretch out the payment timeline. More time in debt? No thanks.

Won’t eliminate irresponsible spending habits. You won’t turn into a budgeting beast just because you’ve relocated your debt.

Lower interest rate may not last. Many low- or no-interest credit cards only offer these features as a temporary promotion. Once time is up, the high interest rates hit. Ouch!

How can I consolidate my debt?

  1. Unsecured loan — This will allow you to pay off all your outstanding loans immediately and move your debts to one low-interest loan.

Unsecured loans usually have origination fees and other charges. Also, the interest rates on these loans can be sky-high.

As a member of High Point Federal Credit Union, though, you have access to unsecured loans with lower interest rates than you’ll find at most banks. 

  • HELOC — Use your home as collateral for an open credit line.

The drawback here is that you risk losing your home if you don’t pay up. Also, repayment terms can be upward of 10 years.

On the flip side, interest payments on HELOCs will be affordable and possibly tax-deductible.

  • Balance transfer — Move your debt to a new credit card with a low interest rate or a zero-interest offer.

The disadvantage with putting more plastic into your purse is that you may rack up a new credit card bill. Also, the low interest or no interest may not last.

As a member of High Point Federal Credit Union, you can take advantage of our low APR credit cards to help you get out of debt quicker.

* APR = Annual Percentage Rate. You can explore current deposit and loan rates by clicking here.

Want to learn more about debt consolidation? Call us at 800.854.6052, or click here to send us a message.

How to Celebrate Valentine’s Day on a Budget

Here’s how to enjoy a romantic evening with your partner without going into debt:

Work with a budget

We know your partner means the world to you, but that doesn’t mean you need to spend the world proving it. Designate a budget for all your Valentine’s Day expenses — and stick to it!

Use a sales app

You know that face-palming moment when you realize you paid full price for something you could have gotten for way cheaper?

Keep more of your money in your wallet by shopping for Valentine’s Day gifts with a sales app like ShopSavvy or PriceGrabber. The apps will help you compare prices at various retailers and score deals and coupons on gifts.

Save on flowers

We know you found an amazing deal online for fresh roses, but don’t buy them. Flowers are not likely to last through the shipping and delivery process. Instead, look for great deals on long-lasting flowers by buying them at Trader Joe’s or Aldi.

Bring down your dinner costs

Don’t break your budget on a romantic dinner for two.

First, rethink dining in. It doesn’t have to be boring or feel forced. You can lay down a blanket in front of the fireplace for a picnic-inspired experience or glam up another room for your delectable dinner for two.

If you and your partner have been counting down to a night out, save on restaurant costs by learning how to beat the psychological tricks at play in menu design:

  • Look left. Restaurant owners put the most profitable items on the menu in the right-hand corner — the spot most people look to automatically.
  • Say the price out loud. Notice the lack of dollar signs on the menu? It’s a trick to get you to spend more. Make the price real by saying it out loud.
  • Ignore the decoys. See that overpriced item on the menu? You need to unsee it. Restaurants place popular dishes near overpriced items to make diners believe they’re getting a great deal, but if you pay it no attention, you’ll beat them at their game.

Celebrate late

If you dare, postpone your Valentine’s Day celebrations by a day or two for steep savings. You’ll find Valentine’s Day candy on clearance and you won’t have to pay inflated restaurant prices for the same meal.

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