18 Jan

5 Financial Milestones to Hit in 2017

Financial milestones are goals we aim to achieve. Some should be stressed at certain milestones in our own life. In this vein, we picked five financial goals you may have depending on your current age.

Are you just entering workforce?

Start saving for retirement

If you can stand to, save 10% of your salary. The earlier you start doing this, the more you can take advantage of compound interest. If you’re a woman, chances are you will live longer (sorry boys), so try and factor that into your retirement savings. Although you may be receiving a pension if you joined the force, it might not be enough for you to live on entirely.

You’re in Your Mid-Twenties

Set up an emergency fund

Save to be able to cover all your expenses for 6 months if you’re single, three months if you’re married. Start by adding $100 a month to a separate account. You can set up an automatic withdrawal from your checking account to help build your emergency fund. Read More

22 Dec

Teaching Teens about Money

Lesson 1: Stress Savings!

There are many reasons that saving is first on this list. Teaching teens about money needs to begin with how they can save what they earn. Having savings can protect them against a lifetime of debt and financial security.

  • Saving money can help teenagers reach a financial goal and have more respect for the purchase. For example, putting a down payment on a car. When they’re more invested in the vehicle, you can bet they’ll be safer driving it.
  • Saving money is one way to avoid life’s hiccups, aka unforeseen incidents. If they lose their job or head off to college but still have expenses like car insurance, their savings will help.
  • If they have money saved, they’ll earn financial peace of mind. Life as a teenager is stressful enough – why make it more so by worrying about late payments.
  • More Money = More Independence from you. The more money they save, the less they have to rely on you and the more financial decisions they can make on their own. Teens need some financial independence and it is made possible due to savings.

Here is another article we wrote that talks about savings. If you are interested in setting up a savings account for young person, talk to a RMLEFCU representative about our piggy bank savings account. We’ll automatically kick off their savings with a $25 CD!

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10 Aug

Save on Back to School Expenses

Although it’s not news to parents, back to school costs are nothing to sneeze at. According to the National Retail Federation’s annual Back-to-School Spending Survey of 6,500 consumers, the average family with children in grades K-12 planned to spend $630.36 on clothes, electronics and school supplies this year. Regardless of whether you have overspent, underspent, or kept to a budget, we have a few back to school shopping tips for kindergarten through college graduation that you may be able to incorporate into your spending (or saving) repertoire.

Students in any grade or year – Shop out of season. Shopping post-season sales and clearance racks is a great way to build up you or your child’s wardrobe on a budget. Take inventory to determine exactly what pieces you or your kids will need for the upcoming year, and then organize your budget around what you still need to buy. Keep a look out for winter coats, boots, and jackets in late February, and summer clothing in late August. If you have one, shop where your Student ID gives you a discount.

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08 Jun

5 Reasons Your Teen Should Have a Credit Card

 

Should Your Teen Have a Credit Card?

1. Teens need to walk before they run both physically and financially. Consider this unique card their “financial training wheels.” It will help instill good financial habits in your child while they are more receptive than say an 18 or 19 year-old. Rather than letting credit card companies tempt them with a free t-shirt on campus in exchange for a card with a $10,000 limit, RMLEFCU’s Kid’s Credit Card has a much lower limit in line with the reality of their earning capacity.

2. A credit card allows teens (and watchful parents) to track spending. Online tools make an easier job of tracking credit card use. If your child only uses cash and checks, it becomes next to impossible to see a spending pattern or recognize how much they are spending and on what.

3. A RMLEFCU’s Kid’s Credit Card will help your children build their credit history. By the time they reach adulthood, they will have already established a valuable credit record. No credit is almost as bad as poor credit since a lender has nothing to review when evaluating credit worthiness. Establishing credit earlier helps when your kids apply for a car loan or complete a rental application.

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