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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:

A written contract detailing your legal rights
Your three-day right to cancel the contract without charge
The anticipated time it will take until results are evident
The total cost you will pay for their services
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?

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.

Should I Refinance to a 15-year Mortgage

With mortgage rates falling, many homeowners are rushing to refinance their 30-year mortgages into 15-year loans. Borrowers may be wondering if this is a financially sound move to make for their own mortgage.

We’ve researched it and worked out the numbers for you so you can make a responsible, informed choice.

When refinancing can be a good idea

The primary attraction of a shorter mortgage term is paying off your home loan sooner, typically at a lower interest rate. Refinancing to a shorter-term loan makes the most sense when interest rates are falling.

How much money can I save?

Let’s assume you have a fixed 30-year, $300,000 mortgage with an interest rate of 4.5 percent.

If you kept your existing mortgage unchanged for 30 years, you’d be making 360 payments of $1,520.06 a month, not including taxes, insurance and other fees. Over the life of your loan, you will have paid $247,220.13 in interest.

Now let’s explore what these payments would look like if you refinance to a 15-year fixed-rate loan at a 3.5 percent interest rate.

Over 15 years, you would make 180 payments of $2,144.65. Over the life of the loan, you’d be paying $86,036.57 in interest payments, affording you savings of $161,183.56.

Remember: These numbers may or may not translate to your own situation. These savings are calculated over 30 years, but you may be nearing the halfway point of your mortgage. Refinancing at a lower rate may still be a good idea, but your interest savings will be much less than described above. Second, your rate may not be a full point lower after a refinance, as it is in our example. This, too, will bring less savings.

What will a refinance cost?

Expect to pay a minimum of 2.5 percent of your new loan in closing costs and other fees. Before you get started on the refinance process, it’s best to tally up these expenses and see what it would cost you to refinance.

Also, your existing mortgage may have prepayment penalties. Find out about these fees before you set the refinance process in motion.

When refinancing is not a good idea

If you’re convinced that a 15-year refinance is right for you, first consider this crucial factor: Your monthly mortgage payments will increase significantly after a 15-year refinance.

If you’re financially responsible, you won’t consider this move unless you are confident you can afford this increased mortgage payment each month. However, you may not realize that tying up your spare cash in your home’s equity can be risky. It can make more financial sense to build an emergency fund, increase your retirement contributions and pay off high-interest debt before refinancing.

If you’re ready to make the move to a shorter-term loan, speak to a representative at High Point Federal Credit Union to learn about our fantastic home loan options.

Are you looking to refinance? Check out current mortgage rates at High Point Federal Credit Union!

Simple Steps to Start Saving

If you’re ready to start saving but you don’t know where to begin, High Point Federal Credit Union can help.

Let’s get started!

Step 1: Set a goal

What’s your secret (or not-so-secret) financial dream? Do you want to open your own business? Explore the Australian Outback? Buy a boat?

What are your long-term financial goals? Do you want to make your friends jealous and retire before you hit 50? Do you dream of sending your child to college?

Choose your goals and assign a target dollar value to each one.

When you really start saving, first prioritize building an emergency fund that has three to six months of living expenses. Thinking of your bigger personal goals now will help keep you focused.

Step 2: Start tracking your expenses and income

You’re about to turn into one of those budgeting geeks.

For three months, keep a record of your expenses and all income. At the end of the three months, tally up your totals to figure out the average of each.

Step 3: Trim your expenses

If you find that your income exceeds your expenses by a fair amount, give yourself a high-five and skip to the next step.

If you spend more than you earn, or your numbers are too close for comfort, look for ways to trim your expenses, and save that extra cash.

Step 4: Create a budget

Don’t freak out — this isn’t as hard as it sounds. Just take your averages from step 2 and use them to designate a specific dollar amount for each monthly expense. Don’t forget to include savings in your budget!

Step 5: Choose your savings tools

It’s time to choose a place for your savings to call home. For long-term savings, look for an option that offers an attractive earnings rate, like a share certificate at High Point Federal Credit Union.

Keep that emergency fund and other short-term savings in an account that allows you to make withdrawals without asking too many questions, like a checking account at High Point Federal Credit Union.

Step 6: Make it automatic

Is this the first time you decided to start saving? Yeah, we didn’t think so. Make it the time you actually carry out your plans by setting up an automatic monthly transfer from your checking account to your savings account.

Contact High Point FCU to open a Savings Account today!

Five Steps to Take After a Financial Setback

As we sail into 2021, many Americans are struggling with the aftershocks of financial setback. Whether it’s due to a layoff, a smaller workload, medical expenses or a change in family circumstances, the financial fallout of COVID-19 has been distressing.

Recovering from a financial setback, due to a pandemic or any other reason, is never easy; however, with hard work and the ability to look forward, it can be done. Here’s how.

Step 1: Assess the damage

Evaluate exactly how much financial recovery you need. Are you thousands of dollars in debt? Do you need to find a new job? What are the long-term financial implications?

Crunching the numbers and putting it all on paper will make it easier to take concrete steps toward recovery.

Step 2: Accept your new reality

Shock and denial are valid stages of grief for any major loss or setback, but for recovery to be possible, it’s important to reach a place of acceptance. You can vent to a close friend, express your feelings in a journal, de-stress with your favorite low-cost hobby and then let go. Constantly harping on what could have been will only drain you of the energy you need to move on.

Step 3: Outline your goals

Clearly defining your goals will make it easier to go forward. Are you looking to rebuild a depleted emergency fund? Find gainful employment? Pay down your medical bills?

As you work through this step, choose goals that are SMART:

Specific

Measurable

Attainable

Realistic

Timely

Step 4: Create a recovery plan

Your plan should consist of consecutive steps that lead to a life of complete financial wellness. Here are some steps you may want to include:

Trim your spending until you can spend less than you earn.
Build a small emergency fund to help get you through an unexpected expense.
Seek new employment or new income streams.
Start paying down debts.
Save more aggressively, with one eye toward your retirement and another toward a large emergency fund with up to six months’ of living expenses.

Step 5: Make it Happen

Put your plan into action! If you were careful to set goals that are SMART, you should be able to take the first steps in your plan immediately.

Debt Consolidation: Not A Silver Bullet, But Still A Good Idea

Using a personal loan to refinance your existing debt can make your debt more manageable. You’ll have one monthly payment at one interest rate instead of many smaller bills due on different days of the month.

Will personal loans work for you?

1. Have I fixed the debt problem?

Think about why you’re in debt. If a medical bill, job loss or some other temporary hardship describes your situation, the fact that you have a job or have paid the medical bill means you’ve solved the problem that caused the debt in the first place.

If, on the other hand, you accumulated debt by overspending on credit cards, a debt consolidation loan may not be the answer just yet. First make a budget you can stick to, learn how to save and gain responsibility in your use of credit. Getting a debt consolidation loan without doing those things first is a temporary solution that can make matters worse.

2. Can I commit to a repayment plan?

If you’re struggling to make minimum monthly payments on bills, a debt consolidation loan can only do so much. It’s possible that the lower interest rate will make repayment easier, but bundling all of that debt together could result in a higher monthly payment over a shorter period of time. Before you speak to a lender, figure out how much you can afford to put toward getting out of debt. Your lender can work backward from there to figure out terms, interest rate and total amount borrowed.

If you’re relying on a fluctuating stream of income to repay debt, it may be difficult to commit to a strict repayment plan that’s as aggressive as you like. You can still make extra principal payments on a personal loan, so your strategy of making intermittent payments will still help. You just can’t figure them into your monthly payment calculation.

3. Is my interest rate the problem?

For some people, the biggest chunk of their debt is a student loan. These loans receive fairly generous terms, since a college degree should generally result in a higher-paying job. Debt consolidation for student loans, especially subsidized PLUS loans, may not make a great deal of sense. You’re better off negotiating the repayment structure with your lender if the monthly payments are unrealistic.

On the other hand, if you’re dealing with credit card debt, interest rate is definitely part of the problem. Credit card debt interest regularly runs in the 20% range, more than twice the average rate of personal loans. Refinancing this debt with a personal loan can save you plenty over making minimum credit card payments.

4. Will a personal loan cover all my debts?

If you have more than $50,000 in credit card debt, it’s going to be difficult to put together a personal loan that can finance the entire amount. It’s worth prioritizing the highest interest cards and consolidating those instead of trying to divide your refinancing evenly between accounts. Get the biggest problems out of the way, so you can focus your efforts on picking up the pieces.

Debt consolidation doesn’t work for everyone, but it can do wonders for many people. The ability to eliminate high-interest debt and simplify monthly expenses into one payment for debt servicing can change a family’s whole financial picture. Gather your account statements and your paycheck stubs, and contact High Point Federal Credit Union today!

Products for Managing and Tracking Business Expenses

Running a flourishing business means overseeing a constant flow of money. Luckily, though, there are products that can help you with managing and tracking business expenses effectively and smoothly. Let’s take a look at some of them.

Business checking accounts

A designated business checking account can help with managing and tracking business expenses, taxes and revenue. Separate accounts also protect business owners from losing personal assets if action is taken against the company. A business checking account is used to deposit checks made out to their company and to cover business expenses, such as payroll or paying suppliers.

If you’re looking to open a business checking account, a High Point Federal Credit Union Business Checking Account can be a great choice. Learn about our business checking account and its convenient features by clicking here.

Business savings account

A business savings account is an account designated for funds to be used in case of emergency or for future business expenses. The money in this account will grow at a greater dividend rate, but access to funds is more limited.

Opening a High Point Federal Credit Union Business Savings Account will provide you with a competitive dividend rate and a variety of terms. If you’re ready to open a business savings account, call, click, or stop by High Point Federal Credit Union today.

Business credit card

A business credit card provides small business owners with easy access to a revolving line of credit. Business owners can use the credit to cover large expenses, make purchases, or meet monthly bill payments.

A business credit card is easier to qualify for in comparison to a business loan, but will nearly always have a higher interest rate. If the business owner is careful only to use the credit card when it is absolutely necessary and pays the bill before it’s due, interest will not accrue.

If you’re looking to open a business credit card, look no further than High Point Federal Credit Union. We offer business credit cards for small businesses as well as options for larger businesses with multiple users. Learn more about our business accounts and services by calling (716) 372-6607 today!

Staying Safe Online

A compromised computer can put you at risk for money loss, phishing scams or even complete identity theft. Read on for some steps you can take to keep yourself safe online.

Avoid fake sites

If you’re browsing a site you don’t usually use, ask yourself these questions to make sure it’s safe:

Does your browser warn you against visiting the site? Your browser’s warnings are based on actual data and user reports.
Is the web text riddled with grammar mistakes and typos? If a site looks like it was written by a second-grader, leave.
Is the site secure? Only visit sites with an “https” and not just an “http” in the address bar.
Does the digital footprint check out? Google the company’s name to see what’s being said about them.
Is there a legitimate “Contact us” section? There should be an authentic physical address and phone number for the business.
Is there an excessive number of ads? If a website is practically covered in ads, it’s likely a fake.
Check the shipping and return policies. If you can’t find this information, the site is probably bogus.
Is the URL authentic? When redirected to another site, check the new URL to see if it matches the original company.
Does something seem too good to be true? If so, it probably is, and caution is warranted!
Is the site prompting you to download something? Make sure you verify the site before performing any download.
Is there an alternative site that you’ve used before and trust? If so, use that site instead.

Practice password safety

It’s the key to your online life — keep it safe! Here’s how:

Change your password every 30-40 days.
Never double passwords. Use a unique code for each site and service you use.
Use strong passwords. Choose passwords that include a mixture of capitalization use, numbers, letters and symbols.
Use a random passphrase instead of a password. Passphrases are longer and harder to guess. Switch out certain letters with symbols and numbers to make it even more secure. The longer the password the better.

Update your browser

Perhaps the most important step of internet safety is keeping your browser updated. With just one click, you’ll increase your browser’s security and improve your computer by making it faster and compatible with more websites.

Above all else, an updated browser will provide better security. Internet companies are constantly looking for ways to protect you and keep you safer; take full advantage of their efforts by always using the latest version.

An updated browser offers stronger protection against the most recent scams, phishing attacks, viruses, Trojans, and more. Newer browsers have also patched up security vulnerabilities that may be present in your older browser. Updating your browser is super-easy and super-quick. Late model computers will update automatically as soon as new iterations are released to the public. If your computer is a little older, you can choose the “auto-update” feature available on some browsers for the same results. Otherwise, you can update your browser manually by following the instructions on your browser. These are typically easy to follow and take just a few clicks.

Beware Emergency Scams!

“Grandma, you gotta help me! They’re going to arrest me if I don’t pay the fine – and I lost my wallet! Can you wire me some money?”

Sounds like a heart-tugging phone call, doesn’t it? It’s actually just a plot by devious scammers. There’s no imminent arrest and no lost wallet. In fact, it isn’t even your grandchild on the line.

Family emergency scams are especially nefarious since they take advantage of the natural affection a grandparent has for a grandchild. They’re usually pulled off in the guise of a frantic phone call that appears to be from the victim’s grandchild.

Here’s how to identify an emergency scam and what to do if you’ve been victimized.

3 ways to spot emergency scams

1. The caller insists upon secrecy

Once your “grandchild” has had his or her say, the scammer will then take the phone, impersonating an authority figure who is out to make the arrest and demanding that payment be made immediately. They’ll stress the importance of keeping it hush-hush so nobody gets hurt, but the real reason behind their gag order is to keep you from digging and identifying the scam.

2. The “authority figure” will only accept certain payment methods

If you receive a phone call insisting that you wire money, or send a prepaid debit card or certified check to save your grandchild from a distressing situation, you’re looking at a scam.

3. Your “grandchild” doesn’t know basic identifying information

It can be difficult to recognize your grandchild’s voice over a phone that has iffy reception. If you receive a call like the one described above, ask the caller about some information that a stranger would not be able to find on your grandchild’s social media accounts. This will let you know who you’re dealing with.

If you’ve been scammed

If you’ve gotten a frantic phone call like this from your grandchild and you believe it to be true, don’t react. First, call your grandchild on your own to verify his or her whereabouts. You may be surprised to learn your grandchild is safe at home!

If you’ve only recognized the ruse after you’ve sent your money, report the scam to the Federal Trade Commission at ftc.gov.

5 Ways to Trim Your Fixed Expenses

When trying to trim a monthly budget, most people don’t even consider their fixed expenses; however, with just a bit of effort and research, most of these costs can be reduced.

1. Consider a refinance

Trim your mortgage payments by refinancing at a lower interest rate. It will cost a bit, but in some situations you can roll closing costs and other fees into your refinance loan. Plus, the money you save each month should more than offset these costs. A refinance is especially smart in a falling-rates environment or if your credit score has improved a lot.

2. Lower your property taxes

Taxes are inevitable, but you may be able to lower your property taxes by challenging your town’s assessment. Each town will have its own guidelines to follow for this process, but ultimately, you will agree to have your home reappraised for proving that its value is less than the town’s assessment. This move can drastically lower your property tax bill; however, if you have made improvements to your home, it may be appraised at a higher value, which could raise your taxes.

3. Change your auto insurance policy

If you’ve had the same insurance policy for several years, speak to a company representative about lowering your premiums. By highlighting your loyalty and excellent driving record, you may be able to get a lower quote. If your insurance company is not willing to work with you, it might be time to shop around.

4. Consolidate debt

If you have multiple credit cards with outstanding balances, consider a balance transfer. This entails opening a new, no-interest credit card and transferring all debt to it. The no-interest period generally lasts up to 18 months. You will now have just one debt payment to make each month. Plus, the no-interest feature means you can make a serious dent in paying down that debt without half of your payment going toward interest.

Another way to consolidate debt is to take out a personal loan at High Point Federal Credit Union. Our personal loans will allow you to pay off all of your credit card debt at once. You’ll only need to make a single, affordable monthly payment until your loan is paid off. Explore our current rates here.

5. Cut out subscriptions you don’t need

Take some time to review your monthly subscriptions to weed out those you don’t really need.

If you’re paying for a gym membership, consider just paying for classes you attend instead of the full membership, or springing for your favorite workout machine to use at home. Drop your cable service or downgrade to a cheaper plan by cutting out expensive channels you don’t watch often. Also, you might be paying for premium versions of apps you don’t need. Dropping these costs can give you more wiggle room in your monthly budget.

The Importance of being Financially Fit

Being financially fit is crucial for a well-balanced, stress-free life. Here’s why (and how):

Expand your financial knowledge

A financially fit person is constantly broadening their money knowledge. They read personal finance books and blogs, attend seminars and are aware of the evolving state of the economy. This enables them to make money decisions from a position of knowledge and power.

Stick to a budget

A financially healthy person knows that tracking monthly expenses is key to financial health. They are careful to set aside money from their monthly income for all fixed and discretionary expenses, and to stay within budget for each spending category.

Minimize debt

A financially fit person is committed to paying down debts and seeks to live debt-free. Constant budgeting, ongoing financial education and planning ahead enables them to make it through the month, and through unexpected expenses, without spiraling into debt.

Maximize savings

A financially healthy person prioritizes savings. This allows them to think ahead and build a comfortable nest egg or emergency fund. In turn, having a robust safety net means sleeping better at night knowing there’s money available to cover unexpected expenses.

Maintain complete awareness of the state of your finances

A financially fit person knows exactly how much money they owe, the accumulated value of their assets and the complete sum of their fixed and fluctuating expenses. This awareness takes the stress out of money management, allowing them to make better financial choices.

Maintain a healthy credit score

A financially fit person knows that an excellent credit history and score are crucial factors to long-term financial health. They are careful to pay bills on time, hold onto credit cards for a while and to keep credit utilization low. This helps them qualify for long-term loans with favorable interest rates, which saves them money for years to come.

Create concrete financial goals

A financially healthy person has long-term and short-term financial goals. This enables them to keep their focus on the big picture when making everyday money choices and empowers them to realize their financial dreams.

Achieve financial independence

A financially fit person is independent. By sticking to a budget, prioritizing savings and maintaining an awareness of their finances, they are strong, secure and completely independent.

Millennials Hit Hardest by Coronavirus Recession

The coronavirus recession hasn’t been easy on anyone, but millennials may have been hit the hardest.

Here’s why the coronavirus pandemic has been especially hard 25- to 39-year-olds:

Another recession

For millennials, economic recessions are nothing new. This generation has already lived through the Great Recession of 2008, the impact from which is still being felt today.

The Great Recession hit millennials when they were still in college or just starting out on their career paths. For some, it meant the choices for their first post-college job were slim. For others, it meant dropping out of college when there was no longer a guarantee of a degree netting a high-paying job. Regardless of how they were impacted, many are still playing catch-up.

Job losses across the board

More than 40 million workers in the U.S. have filed for unemployment since the beginning of the pandemic, and millennials have been hit harder than most.

According to a report by Data for Progress, 52% of respondents under age 45 have lost jobs, been furloughed or had their work hours cut due to COVID-19. In contrast, just 26% of respondents over age 45 have suffered a job loss during this time.

The economy shed 20.5 million jobs in April. Of these, 7.7 million were in the leisure and hospitality sector — a sector dominated by millennials. An additional 1.4 million lost jobs were in health care, primarily in ambulatory services — another field that employs a large amount of millennials.

No nest egg

Many millennials are carrying piles of debt and have minimal or no savings. According to surveys conducted in 2018 by the Federal Reserve, 1 in 4 millennial families have a negative net worth, or debts outweighing assets. One in six millennials would not be able to find the funds to cover a $400 emergency. For these young employees, a relatively mild setback from the coronavirus can be devastating to their finances.

Can Millennials recover?

Millennials have been hit hard again, but there is hope. The forward-thinking millennial can use the challenges presented by COVID-19 as an opportunity to move onward toward a brighter future.

What’s a Recession Anyway?

You’ve likely caught the term “recession” thrown around on the news in the last several months. But, do you know the exact definition of a recession? How is it different from a depression? How long do recessions last?

So many questions — and we’ve got answers! Here’s all you need to know about recessions.

What is a recession?

A recession is a widespread economic decline in a designated region lasting several months or more. In a recession, the gross domestic product (GDP), or the total value of all goods and services produced in the region, decreases for two consecutive quarters. In most recessions, the GDP growth will slow for several quarters before it turns negative.

What’s the difference between a recession and a depression?

A depression has similar criteria as a recession, but is more severe. For example, in both a recession and a depression, the unemployment rate rises; however, during the Great Recession of 2008, unemployment peaked at 10%, while during the Great Depression, unemployment levels soared to 25%.

Depressions also last longer than recessions. The Great Depression officially lasted four years, but continued to impact the economy for more than a decade. In contrast, recessions last only about 11 months, according to data from the National Bureau of Economic Research (NBER) .

Why the COVID-19 recession is unlike any other

The COVID-19 recession, also known as the coronavirus recession, is unique because it was not sparked by any inherent problem within the economy.

Another anomaly of the coronavirus recession is the super-healthy state of the economy before it hit. In February, unemployment levels were at a 50-year low, stock markets were at a record high and the U.S. economy had enjoyed its longest period of growth in history.

The unusual triggers and the explosive start of the current recession may be good news for its end. An April Reuters poll found that nearly half of 45 economists believed the U.S. recovery would be U-shaped; meaning relatively quick.

How will this recession affect me?

The coronavirus recession can impact the average consumer in multiple ways.

First, many are struggling with sudden unemployment or will be facing joblessness in the coming months. The most recent data from the Bureau of Labor Statistics show the unemployment rate at 10.2%.

Secondly, the economic uncertainty has triggered record-low interest rates, which in turn sparked a rush to refinance. If you are currently paying high interest rates on a long-term loan, you may want to consider refinancing for a lower monthly payment. Explore our current rates by clicking here.

Finally, investments in stocks, bonds and real estate may lose value during a recession.

If you are experiencing financial difficulties of any kind, feel free to reach out to us to see how we can help.