Savings Archives - High Point FCU

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

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

1.Use a programmable thermostat

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

2. Seal all leaks

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

3. Utilize zone heating

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

4. Use insulated curtains

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

5. Reverse your ceiling fans

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

6. Beef up your insulation

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

7. Maintain your heating system

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

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

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

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

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

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

What is compound interest?

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

An example of compound interest

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

Why timing matters

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

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

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

Here are the most important principles of compound interest:

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

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

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

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

Why understanding compound interest can be life-changing

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

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

How to make up for lost time

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

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

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

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

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

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

1. Credit cards

Pros:

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

Cons:

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

2. Holiday club accounts

Pros:

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

Cons:

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

3. Unsecured/personal loan

Pros:

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

Cons:

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

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

Pros:

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

Cons:

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

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

How Can I Save on Energy Costs This Summer?

Q: Summer’s here, and my energy bill is burning right through my budget! How can I save on energy costs?

A: It’s hot out, but you can keep your cool with our energy-saving tips! Follow these hacks to save on energy costs this summer.

Have your HVAC system professionally inspected

First, you’ll want to make sure your home is being cooled efficiently. You can do this yourself, but it may be worth hiring a professional to check your HVAC system for leaks and other problems.

Use your AC efficiently

Don’t waste any of that cold air! In addition to regular maintenance, ensure you’re using your AC system as efficiently as possible. Avoid placing lamps or large TV screens near your thermostat, clean your air intake vents regularly and keep doors and windows closed when running the AC.

Get smart

If you haven’t already done so, consider using smart technology to keep your home cool and your costs down. Connecting your thermostat to a mobile device will enable you to control it from a distance and avoid cooling an empty home. You can also use smart technology to set your thermostat on a schedule that suits your family’s needs.

Get grilling

Your oven and stovetop can heat up much more than your food this summer. Make it a habit to take your cooking outside and keep your home cooler.

Time your chores

Using large appliances, like a washing machine and dishwasher, can add extra heat to your home, especially if you live in a small space. Use these machines after dark, when it’s generally cooler.

Use appliances efficiently

Only wash full loads of laundry. If possible, use cold water.
Use glass pans in the oven when possible since they retain heat better and can shorten cooking time.
Use appropriately sized pots and pans on your burners.
Only run your dishwasher when it’s full.
Unplug small and medium-sized appliances when not in use.

Use these tips to learn how to save on energy costs this season so you can keep your cool, and your budget, too.

Emergency Funds – Not Just For Adults

Divvying up your kid’s allowance into different jars, each with a specific label and purpose, has become pretty standard. Your kids probably have one jar for savings, one for spending and maybe another for giving.

What most parents and kids omit, though, is one more jar for emergencies. Yes, emergencies, even for kids. Granted, they won’t be shelling out thousands of dollars for a roof repair or a medical crisis like their parents might, but emergencies come in all shapes and sizes, and to all-sized people.

No one needs convincing that having funds for an unexpected expense is crucial to financial security. In fact, building an emergency fund is the first of Dave Ramsey’s famous seven baby steps for getting out of debt. It’s definitely something you want to build into your kids’ psyche. So why not start now?

Some examples of small and not-so-small emergencies for children are:

The pair of new sneakers left in the locker room after PE, now gone forever
The shattered car window from an overeager, but poorly aimed, baseball
The huge data plan overage charge
The misplaced spending money for an afternoon at the mall

So yes, kids have emergencies. Helping them set up a fund to pay for some of these mini crises instead of bailing them out each time will teach them to be prepared.

Here’s how to do it:

Help your kid add an extra jar to their existing set and mark it for emergencies.
Allocate a portion of your kid’s weekly allowance or chore payment to the emergency fund.
With your child, create a goal for the new jar. For a younger child, $25 should be enough, with the number steadily growing to about $100 for preteens.
Once the jar has hit its target, revert back to the original division of money among the other jars.

The next time your child has a financial emergency, have them pay for all or part of it. It’s okay to share the costs for larger emergencies, or even for smaller ones. Your child will still learn responsibility by coughing up some of the funds on their own.

These should be situations due to negligence, irresponsible behavior or simple forgetfulness on the part of your child.

When the fund is depleted for an emergency, be sure to encourage them to replenish it by going back to step two.

Remember, it’s baby steps like these that will prevent your child from having to crawl their way out of debt later on in life.

8 Creative Ways to Save on Heating Costs this Winter

Q: I’ve sealed all leaky windows and doors in my home, but my heating bill is still astronomical. Is there anything else I can do to keep my heating costs down?

A: Sealing air leaks is a great first step toward lowering your heating bill. Luckily, there are many other methods for hacking your way to a lower heating bill.

Here are some creative ways to save on heating costs.

Dust your vents

This can be an easy, effective way for lowering your heating bills. Dust acts as a natural insulator and can block some of the hot air from heating your home.

Lower your thermostat

The Department of Energy recommends setting your thermostat to 68 degrees in the winter for maximum energy savings. For every degree you crank it down over an 8-hour period throughout the month, you can shave 1 percent off your heating bill. If you can lower your thermostat by 10 degrees at night or while you’re at work, you’ll save 10 percent off your heating bill! A programmable thermostat can do the job for you so you don’t have to remember to turn it down.

Turn on your ceiling fans

Most ceiling fans are equipped with a “summer” and “winter” setting. In the wintertime, set the blades to move in a clockwise direction so hot air, which naturally rises toward the ceiling, can be blown downward to warm up the room.

Use aluminum foil

Tape a piece of aluminum foil behind the radiator to reflect heat into the room instead of into the wall.

Use zone heating

If you live in a large home, keep the lesser-used areas just warm enough to prevent pipes from freezing. Close some of the vents in these rooms and shut the door to keep that heat in. On the flip side, open the doors of the rooms that see heavy use so hot air can flow evenly throughout the house.

Rearrange your furniture

Check if you have any furniture situated near your heating vents. You don’t want to be paying all that money just for hot air to be flowing into the underside of your living room sofa.

Let the sunshine in

The low-in-the-sky winter sun can give you hours of free solar heat each day — if you let it in. Be sure to open the curtains in the early morning hours and to close them at night to keep that warm air inside. You may also want to swap your curtains for thicker, insulated ones in the winter for further protection against the cold night air.

Humidify your air

Use humidity to your advantage by investing in a humidifier for the winter. Moisture helps to hold onto heat and will keep the air warmer longer.

Financial Preparation for The New Year

The new year is almost here. Are you ready?

Usher in the new year with plans for financial improvement and resolutions to do more.

Here are some tips to get you started:

Tune your budget

It’s great to start off the new year with a plan. A budget is just that — a plan — that starts with the income you expect and your fixed expenses such as your mortgage, insurance, and utilities. The plan incorporates your savings goals, and the remaining money is designated for your other expenses. A realistic budget will help you set your financial goals and will remind you to stick to them. Now is the perfect time to assess last year’s budget or create a new one if you don’t yet have one in place.

Reviewing how you spent last year’s money will help you make better financial decisions for the year ahead. While thinking about it, include a method for tracking your spending. You can do this on a spreadsheet or tag items in your checking account.

Even with a solid plan, there can be surprises along the way, so be sure to build an emergency fund into your budget.

Plan ahead to meet your goals

Consider how you will accomplish your goals. You might have shorter-term goals, such as purchasing a new home, as well as longer-term goals, like retirement. Each set of goals requires different kinds of planning and saving.

Financial planners recommend setting up a separate savings account for each goal. This way, your progress toward that goal is clear.

It’s best to work backward for determining how much you need to save for each goal. Determine the cost of your goal and then establish a reasonable timeframe as well as how much you’ll need to save each month to reach it.

Spend mindfully

Make your financial future more secure this year by identifying your wants and needs. Your needs are necessary for survival and include food and shelter. Your wants are simply things you desire-like a luxury car. Tend to your needs first. Then, if there is money remaining, consider your wants.

This might sound obvious, but for many of us, the lines between wants and needs are blurred.

Maximize tax contributions

Tax deductions can be a valuable source of savings. If you have employer-matching funds available, take advantage of them. Also, verify with your HR contact and your accountant that you are contributing the optimal amount to your 401(k) and IRA.

Check your flexible savings account (FSA)

If you have unspent money in your FSA, now is the time to use it. Your pre-tax dollars in such accounts typically need to be spent before the end of the year or they are lost.

Put the brakes on holiday spending

Avoid going overboard on holiday spending or you might spend the beginning of the year trying to pay it all back.

These are just a few of the many ways you can prepare financially for the coming year. With a little attention to some often-overlooked details, a little perseverance, and a little mindfulness throughout, you’ll be moving forward with a strong foundation and positive outlook.

What’s the Best Way to Pay for Holiday Shopping?

Q: Holiday shopping season is here, but I can’t pay for it all! What’s the best way to fund my holiday shopping?

A: When it comes to covering the cost of your holiday shopping, you have several choices. Let’s take a look at some options and explore the pros and cons of each so you can make an informed decision.

Credit cards

For many shoppers, the most obvious way to pay for a purchase you can’t cover now is with a credit card.

Pros:

Significant purchase protection.
Convenient payment method.

Cons:

Interest charges for unpaid bills can be very high.
You may be paying off these bills for months or years.
Extended debt can hurt your credit score.
You may be more tempted to (or unknowingly) overspend.

Savings

Dipping into savings to pay for your holiday purchases can free you from sky-high interest charges but comes with drawbacks.

Pros:

You’ll enjoy a debt-free holiday season.
No incurred interest charges.

Cons:

Depleting the savings that’s meant for emergencies can leave you up a creek later.
You’re losing the money your savings may have earned had it been invested or saved longer.

Unsecured/holiday loan

An unsecured loan, also known as a personal loan or holiday loan, is a loan that’s taken out with no collateral.

Pros:

You’ll secure quick funding.
Low interest rates compared to credit cards.
You can stretch the repayment over a longer term for smaller monthly payments.

Cons:

You’ll need to pay the full monthly payment when it’s due.
You may be hit with a fee if you pay off the loan early.
Missed and late payments can hurt your credit score.

Check out our Holiday Loan Special!

Holiday club account

When you open a holiday club account , you’ll make regular contributions toward your set goal throughout the year, and then have funds you’ll need for covering your holiday purchases when the season arrives.

Pros:

Holiday costs get more manageable when spread across the year.
Favorable dividend rates.
Prevents overspending and accumulating new debt.

Cons:

Funds in the account cannot be accessed until the goal (or preset date) is reached. Tying up savings can be irresponsible for those who do not have an emergency fund.

Use this guide to make an informed choice about paying for your holiday shopping.

Super-Scary Halloween Hacks to Save You Money

Don’t let Halloween costs spook you! Here’s eight great hacks for saving on costumes and decor.

Ghastly ghosts

Create an army of floating ghosts using nothing but white trash bags. Gather a bunch of bags and stuff them with crumpled newspaper. Tie the “head” with a rubber band and use a permanent marker to draw spooky faces on your ghosts. Hang your frightful friends around your house and yard to scare your party guests and trick-or-treaters.

Spooky bird houses

Create a mini haunted house to hang on your door or decorate your table using a basic bird house, black paint and cotton. Paint the bird house black and stretch cotton over it for a cobwebby effect. Finish it off with a few paper ghosts peeking out the windows and doors, and you’ve got yourself a tiny haunted house!

Shark attack!

For a fun and freaky costume that costs next to nothing, go as a surfer being eaten by a shark. Dress in swimwear, with a towel slung over yourself if the weather makes it necessary, and apply fake blood to a visible spot on your neck or arm. Use face paint to create a shark bite and apply the blood so it surrounds the bite and drips out. For a fun touch, attach an inflated or stuffed toy shark to your costume.

Mason jar lanterns

For easy DIY decor, paint Mason jars with spooky designs and insert battery-powered tea lights for a bewitching glow. Line your walkway or porch with these lanterns to welcome trick-or-treaters.

Creepy crawlers everywhere

Use an inexpensive package of plastic spiders to scare your guests silly! Freeze some in ice cubes for a spooky surprise in everyone’s drinks, scatter some across the table to make someone shriek and even add some to your soap dispenser to really freak everyone out. Let your trick-or-treaters in on the fun by sprinkling some into your bowl of candy.

An eerie flicker

For a super-easy and super-cheap centerpiece, paint old wine bottles black. Use matte paint for the best effect. When your candlestick holders have dried, insert long orange taper candles into each one to add a festive look to your table.

Care for a lollipop?

Turn your pumpkin into a fun lollipop dispenser with the help of an electric drill. Drill small holes in your pumpkin and then stick a lollipop into each hole. Set it up on your steps for an adorable, help-yourself trick-or-treat.

Retro costume

For a costume that will make everyone laugh and won’t cost a penny, go as your college-aged self. Dig out your old clothing and accessories, and if you had a crazy hairstyle back then, incorporate it into your costume, too.

The Importance of Saving for a Rainy Day

Life is full of surprises, and some of them can be expensive. Whether it’s a medical emergency, job loss, car repairs or any other unforeseen event, having a financial safety net can provide a sense of security and stability. Let’s take a look at why it’s so important to save for rainy days.

Stay out of debt

When life throws an expensive surprise your way and you don’t have money to pay for it, you may fall into debt just to get by. On the flip side, if you had a well-padded emergency fund, you’d have the cash you need to fall back on in case of an emergency.

Be prepared for sudden unemployment

When you live paycheck to paycheck, your job is your financial lifeline. But no job is guaranteed to last forever. Your workplace may decide to downsize, close its doors or even to replace you with a bot. Or, you may find yourself unable to work due to personal circumstances. Having an emergency fund when you’re gainfully employed can help you stay afloat should you suddenly find your lifeline is reduced or cut out.

Flexibility and freedom

Saving for a rainy day brings an element of flexibility and freedom to your life. It enables you to pursue new opportunities, take risks and make major life changes without the constant fear of financial instability. Whether it’s starting a business, furthering your education or taking a sabbatical, savings provides the support you need to confidently explore these possibilities.

Peace of mind

Financial stress can take a toll on your physical and mental wellbeing. Constantly worrying about money can lead to anxiety, depression, strained relationships and more. Knowing you have an emergency fund prepared and on the ready for a rainy day can offer a sense of security and peace of mind.

Achieve long-term financial goals

Saving for a rainy day is not just about preparing for emergencies; it’s also a stepping stone toward achieving long-term financial goals. Whether it’s buying a house, starting a family or planning for retirement, having savings will help you stay on track.

Avoid economic downturns related to market fluctuations

The economy is subject to fluctuations, and financial markets can be volatile. During economic downturns or recessions, people will often face reduced job opportunities, pay cuts or decreased business revenue. However, an emergency fund can make a challenging economic climate easier to navigate. People who’ve saved up money for emergencies will be less reliant on credit cards and loans during such times, thus lowering their vulnerability to economic uncertainties.

If you don’t have a well-padded emergency fund, start building one today! Most experts recommend having three to six months’ worth of living expenses in your emergency fund. Review your monthly expenses to reach this number, and then make a plan for building up your fund until it’s complete. You may want to prioritize your emergency fund over other investments until it’s set up.

When the sun is shining, it’s hard to believe the rain will come, but no one’s life is all sunshine, all the time. Saving for a rainy day is a crucial part of financial wellness. Start saving today for a more secure and financially fit life.

6 Tips for Building an Energy-Efficient Home

Building a new home involves many decisions and expenses. As you work through the process, try making your new home as energy-efficient as possible. Let’s explore six ways you can build an energy-efficient home that promotes a sustainable future.

1. Optimize site selection

The first step in building an energy-efficient home is to choose the right location. Consider factors such as solar orientation, prevailing winds and surrounding vegetation. Maximizing natural resources, like sunlight and wind, can really reduce the need for artificial heating, cooling and lighting.

2. Efficient building envelope

A well-insulated building envelope is crucial for maintaining a comfortable indoor environment while minimizing energy loss. Use high-quality insulation materials in walls, roofs and floors of your new home. Opt for double- or triple-pane windows with low-emissivity coatings to reduce heat transfer. Finally, properly seal any gaps or cracks to prevent air leakage, ensuring your home remains airtight.

3. Use sustainable materials

Choosing sustainable and locally sourced materials can have a positive impact on both the environment and your health. Look for materials with low embodied energy, such as recycled content or renewable resources, like bamboo and cork. Opting for sustainable materials reduces the carbon footprint of your home and creates a healthier living environment.

4. Install energy-efficient appliances and lighting

Energy-efficient appliances and lighting fixtures can significantly reduce your home’s energy consumption. Look for appliances with an ENERGY STAR® label, as they meet strict efficiency standards. LED lighting is another excellent choice, as it consumes less electricity compared to traditional incandescent bulbs.

5. Consider renewable energy systems

Integrating renewable energy systems into your home is a proactive step toward energy independence. These include solar panels, wind turbines or geothermal systems that generate clean energy while reducing your reliance on the grid. Generating electricity sustainably will pay off for many years to come.

6. Water conservation strategies

Conserving water is an essential part of building an energy-efficient home. Install low-flow fixtures to reduce water consumption without sacrificing performance. Implementing water conservation strategies will save water while also reducing the energy required for water treatment and distribution.

Use the tips outlined here to build a home that has a lower carbon output and saves you money for years to come.

How Can I Beat Inflation and Save on Back-to-School Shopping?

Q: How can I beat inflation and save on back-to-school shopping?

A: Lucky for you, there are ways to save on back-to-school shopping. Follow these tips.

Shop with a budget

Determine how much you can afford to spend and set specific amounts for different categories such as clothing and supplies. Having a budget will help you stay focused and avoid impulse purchases.

Take inventory

Before hitting the stores, inventory what you already have at home. Check your kids’ closets, drawers and study areas for supplies and clothing that can be reused or repurposed for the coming school year. This will give you a clear idea of what you really need to buy.

Plan ahead

Start shopping early and take advantage of sales throughout the summer. Watch for clearance sales, promotions and discounts. By planning ahead, you can secure better deals and avoid the rush and price hikes closer to the start of the school year.

Buy generic

Don’t hesitate to reach for generic brands when purchasing school supplies for your kids. Store brands, like Walmart, or Target’s Up & Up, are usually cheaper than name brands without compromising on quality.

Shop without your kids

Shopping with kids is an easy budget-killer. Kids have their own ideas of what’s best to spend money on, and their opinions may not align with your budget. Leave your kids home for at least some of your shopping trips this season.

Think secondhand

Consider purchasing used textbooks, clothing and electronics. You can find gently used items at much lower prices on secondhand websites like ThredUp, and at thrift stores like Goodwill.

Use discounts and coupons

Before you shop, look for coupons, promotional codes and student discounts to bring down the prices of the items you need to buy. You can sign up for loyalty programs and use a discount-finder app or extension to pull up any coupons for the items you need.

Buy in bulk

Whenever appropriate, buy supplies in bulk. This is useful for items that are commonly used throughout the school year. Buying in bulk often comes with a lower per-unit cost, providing long-term savings.

Follow the tips outlined here to beat inflation and save on back-to-school shopping.

How to use Appliances Efficiently

Did you know that appliances account for approximately 13% of your home’s energy use? The good news is, you don’t have to completely pull the plug to save on your energy costs. Here’s how to use your appliances more efficiently to reduce your energy use and do one for the environment.

Choose energy-efficient appliances

When purchasing new appliances, choose models with high energy efficiency ratings. Look for the ENERGY STAR label, which indicates that the appliance meets strict energy efficiency standards.

Follow the user manuals

User manuals provide valuable information about the optimal usage and maintenance of appliances. Take the time to read the manuals thoroughly, as they offer specific instructions on how to maximize efficiency and extend the lifespan of each appliance.

Use appliances smartly

Take full advantage of any automatic settings on your appliances to use them more efficiently. For example, you can set your HVAC system to adjust its temperature when no one’s home or everyone is asleep.

Saving on energy around the house

Follow these tips to use appliances more efficiently around the house:

Computer

Choose “sleep” over “screen save” to use less energy when away from your computer.
Consider switching from a desktop PC to a laptop, as these use 10% of the electricity.
Turn off your monitor when it’s not in use.
Think three times before you print.

Oven/range

Match up your pots to your burner size
Cook with aluminum pans for even heat conduction.
Keep range-top burners clean for better reflection of heat and saved energy.

Refrigerator/freezer

Keep your thermostats at the recommended settings.
Position your refrigerator away from a heat source.
Clean the condenser coils of refrigerators and freezers regularly.

Dishwasher

Only run full loads.
Avoid pre-rinsing dirty dishes unless absolutely necessary.
During warmer times of the year, run the dishwasher in the early morning or evenings, when it’s cooler out.

Washer/dryer

Wash with cold water as much as possible.
Keep the lint filter clean for quicker dry times.
Make sure your dryer is vented properly.

Air conditioner

Cook less when it’s hot out.
Set your thermostat to adjust automatically.
Clean or replace your filters regularly to maintain proper airflow.

Use these tips to use your appliances more efficiently and save on energy usage and total costs.

Travel Hacks 1 of 12: 5 Ways to Save on Airfare

Planning a trip overseas? Airfare will probably be your largest vacation expense. Fortunately, there are many ways to save on airfare to leave you with more to spend while at your destination. Here’s a list of five ways to save on airfare.

1. Be flexible with dates and destinations

If you’re willing to be flexible about the dates and destination, you can potentially save hundreds on your airline ticket. Instead of choosing a date and destination for your vacation and then searching for the best prices, select a date and destination based on the best available deals.

2. Shop smart online

Harness the power of technology to score the best airfare price. Searching sites and apps, like Expedia, Orbitz and Priceline, is like using multiple travel agencies to find the best flights for your vacation. Kayak, another popular travel app, plugs your preferred dates into its search engine and searches airline sites and agency sites to provide you with all the prices and options available.

3. Act quickly to snag mistake fares

When an airline accidentally discounts a ticket, you can snag a flight for as much as 90% off its conventional price. Mistake fares get snatched up fast, so check your favorite airlines and flight apps often so you don’t miss a deal.

4. Consider booking with a foreign currency

If you’ll be flying a foreign carrier, it may be cheaper to pay for your ticket with the local currency of your destination. Before paying for your flight, check to see if it’ll cost less if you don’t pay in dollars. It can sometimes actually cost more this way, but you can often save a lot by simply changing your location from the U.S. to your destination.

5. Book early

You’ll typically find the best deals on international flights 3-6 months before the departure date. If you’ll be traveling during peak times, like summer or during holiday seasons, start your ticket search even earlier. Flights are updated constantly, so check often to get the best deal.

Use the tips outlined here to get the best deal on your tickets and keep your vacation budget intact. Happy travels!

Step 12 of 12 Steps to Financial Wellness – Review and Tweak

Congratulations! You’ve reached the 12th and final step of the 12 steps to financial wellness. Here, we’ll review the previous steps and adjust this part of your financial health plan as necessary.

Step 1: Track your spending

Are you regularly tracking your spending? Knowing where your money is going will help you make more responsible spending decisions in the future.

Step 2: Create and stick to a budget

Budgets need to be reviewed and tweaked every few months or so to ensure they still work for present life circumstances. If your budget no longer works for you, tweak until it does.

Step 3: Pay down debt

Have you made as much progress in your debt-paying journey as you’d hoped to by this point? Can you beef up any payments to make debt disappear sooner?

Step 4: Talk money with your partner

Have you had the big money talk with your partner? Need to revisit any of the topics you’ve discussed, such as sharing accounts, dividing expenses and saving up for a shared dream?

Step 5: Spend mindfully

Review some of your recent purchases. Are you blowing money on stuff you don’t need instead of relieving stress in a healthier manner? If so, look for better ways to de-stress. Spending mindfully is one of the most important steps to financial wellness.

Step 6: Pay it forward

Are you remembering to pay it forward? The money, time and smiles we share are the only moments that are truly ours.

Step 7: Pay yourself first

Are you remembering to feed your savings? At this time, you may want to consider increasing the amount you’re regularly putting into savings by trimming some discretionary expenses.

Step 8: Know when and how to indulge

Are you remembering to work your just-for-fun expenses into your budget so you can indulge without guilt? Now is a good time to look back at your indulgences to figure out if they were really good uses for your money.

Step 9: Check your credit score

If you’ve been following the rules for boosting and maintaining a high credit score, like paying your bills on time, having several active cards, and keeping your credit utilization low, your score should have improved during these last few months.

Step 10: Think about retirement

Review your retirement accounts and assess whether your funds have reached the place you’d hoped they would by now.

Step 11: Start investing

Make sure your investments are performing well and that your assets are optimally diversified.

Step 12: Review your overall financial health

In this final step, you’ll review your steps to financial wellness on a regular basis, just as you’ve done here.

Reviewing your financial health on a regular basis is an important part of staying financially fit.

Step 10 of 12 Steps to Financial Wellness – Plan for Retirement

It’s never too early – or too late – to plan for retirement. However, the more time you allow for your savings to grow, the bigger the nest egg you’ll have when it’s time to cash in.

Here’s how to get started on planning your retirement.

Set a target number

First, determine how much you’ll need to have saved for living comfortably and independently throughout your retirement. Experts advise taking your current living expenses and multiplying the number by 400 to identify the amount you’ll need to sustain yourself based on a 4% return.

Choose your retirement account strategy

Next, you’ll need to select a place to keep your retirement savings. There are many options to consider, some of which you may already have if you are, or have been, employed. Here’s a quick review of the two most common retirement accounts:

1. 401(k)

If you’re employed, you likely have a 401(k) that’s working toward collecting money for your retirement. Take advantage of this retirement tool by maximizing your contributions. Also, many employers match a portion of (or all) contributions you make, which is basically free money, to help your retirement savings grow, tax-deferred.

2. IRA

There are two popular kinds of Individual Retirement Plans (IRA): Traditional IRAs and Roth IRAs. A Traditional IRA will let your money grow, tax-deferred, but withdrawals are taxable. A Roth IRA does not feature tax-deferred growth, but qualified withdrawals are not taxed. Like a 401(k), some employers match a portion of (or all) contributions. But, there are federal limits on how much money you are allowed to add to your IRA each year.

The table below shows a brief summary of the pros and cons of each retirement vehicle for easy comparison.

Features	401(k)	IRA	Roth IRA
Matching Funds	Yes	No	No
Tax-Deductible	Yes	Depends on income, tax-filing status and other factors	No
Tax-Deferred Growth	Yes	Yes	No
Taxable Withdrawals	Yes	Yes	No
Maximum Yearly Contribution (2022)	$20,500	$6,000	$6,000
Maximum Yearly Contribution Age 50+ (2022)	$27,000	$7,000	$7,000

After you’ve selected your retirement fund, you’ll also need to choose somewhere to invest. With a bit of work, and a lot of planning, you’ll have your future secured in the best way possible.

Explore the IRA accounts and Share Certificates offered at High Point Federal Credit Union today!

How Can I Help My Elderly Parents Manage their Finances?

Q: My parents are aging, and I believe they can use help in managing their everyday expenses, and may eventually need a proxy. How can I best help my parents with their finances?

A: Your parents are fortunate to have a child who’s proactively willing to help with this challenging task. Here are some ways you can help your elderly parents manage their finances.

Determine whether they need help

If you notice any of the following, it may be a sign that your parents need assistance with money management:

Unusual and unnecessary purchases.
Piles of unopened mail.
Physical setbacks.
Cognitive impairment and/or memory failure.

Communicate openly

Before you take steps toward managing, or assisting with, your parents’ finances, have an open conversation with them about your current and future intentions. You can share that you are only there to help and that you will not take any actions without their permission, whether before or at the time of need.

Gather information

Next, sit down with your parents and ask these questions about their finances:

Have you named a durable power of attorney (POA) for finances?
Where do you keep your financial records and assets?
What is the name of your mortgage lender?
What are your monthly expenses?
How do you pay your bills?
How much is your annual income?
What kind of health insurance do you have?
Have you written a will or a trust?

Establish a plan

Now you’re ready to establish a plan for managing, or assisting with, your parents’ finances. Be sure to honor their dignity as much as possible. Ask them if they’d like you to take responsibility for one or more of their monthly financial-related tasks. For example, you can pay their mortgage and car payments each month, or make decisions relating to their investments.

At this time, consider simplifying their finances in any way you can. For example, if your parents have multiple credit card balances, you may want to consolidate this debt into an unsecured loan, and then only have to pay back the one loan payment each month. You can also automate as many bills as possible.

Alternatively, you can talk about the future only, and have your parents agree to let you manage their money if one or both of them become incapacitated in any manner.

If your parents find it difficult to relinquish this bit of independence, start assuming responsibilities for their finances gradually; just one bill at a time.

Taking over the finances of elderly parents can be a delicate and daunting task, but it is often necessary. Use the tips outlined here to navigate this situation smoothly.

6 Ways to Pay Less at the Pump

With gas prices still rising nationwide, the pain at the pump is real. There isn’t much you can do about the price of gasoline, but there are ways you can pay less at the pump. Here are six ways to save on gas.

1. Use cash

Many gas stations offer a discount for paying cash, sometimes up to 20 cents per gallon. This can quickly add up when pumping a full tank. Just be careful to have the cash handy when you need it, as you don’t want to lose all those savings to ATM fees if using machines not connected to your credit union.

2. Use a rewards program or credit card

If you don’t like the idea of carrying around tons of cash, but you still want to save at the pump, consider getting a rewards program or credit card. Tread carefully though; not all of them actually benefit the consumer. Find out about a possible annual fee, a rewards cap, membership requirements and the exact redemption value of each reward point before signing up. As an Olean Area Federal Credit Union member, you can opt for the Extra Rewards program when you have the Visa Platinum Credit Card.

3. Check your tire pressure

According to the US Department of Energy, a well-inflated tire can save you 15 cents a gallon by boosting your gas mileage by 3%. Check your tires regularly to ensure they’re always inflated. To make this easier, consider springing for a tire pressure gauge that will automatically monitor the health of your tires.

4. Use a gas-tracking app

In 2022, there’s no need to search for the gas station with the best-priced gas. There’s an app for that! Popular gas-tracking apps include GasBuddy, Upside and Waze. Using the gas station that’s right near your home or workplace might be easy, but taking the extra time to find one that sells gas for less can save you a bundle.

5. Purchase a club membership

If you don’t already have one, this may be the time to buy a club membership. Costco, Sam’s Club and Walmart Plus all offer discounted gas exclusively to members. Of the three, Costco tends to feature gas for the lowest price, up to 34 cents less per gallon than a typical gas station. In today’s gas-crazy climate, that’s a huge difference. Of course, you’ll want to find out how much a club membership will run you before joining.

6. Buy gas at the right time of day

If you pump gas during the midday hours, after the sun has been beating down on the gas reservoir all day, the gas has likely expanded. This means you’ll be paying the same price for less-dense gas, which won’t last as long. Pump when it’s cooler outside, typically during the morning or late evening hours, for the densest gas.

Use these tips to help save on gas despite the rising cost of fuel.

Financial Lessons You Can Learn from Fantasy Football

With summer winding down and autumn creeping in, are you ready for some fantasy football? Drafting the best team and guiding them toward the championship takes knowledge, dedication, skill and talent. But fantasy football is much more than just a super-absorbing hobby. You can actually learn a lot about money management and growing your wealth from the game. Here are five financial lessons you can learn from fantasy football.

1. Do your research

Knowing which NFL players to “draft” to your team on your league’s draft day is crucial. If you sail into this uber-important day unprepared, you’re essentially setting yourself up for a miserable season. During the weeks leading up to draft day, the true fantasy football pro is listening to podcasts from training camps, researching potential trades and learning about past performances of many players.

In personal finance, the rules are similar. When choosing a place or company to sink your money into, you’ll want to do as much research as possible and ask lots of questions to ensure success and alignment with your values.

2. Diversify

In fantasy football, it’s important to diversify your team and to draft players who excel at various positions in real life. This helps to ensure as many wins as possible. In finance, diversification is even more important. You’ll want to spread your investments over a mix of whole-market funds, securities and savings accounts. The more exposure your portfolio has among various asset classes and markets, the more protection it has against market volatility and inflation.

3. Keep your investments private

To a true fantasy football addict, there’s no conversation topic as exciting as the team they’ve drafted and the wins they’re racking up. But to the uninitiated, there’s no conversation topic that will put them to sleep faster than your fantasy football league. Find like-minded fans to talk shop with, but otherwise, you’re best off keeping your observations and insight on the game to yourself.

Investments are similar. You don’t want to be the drag of the party, the office or the block. Talk about your stock performance with your partner, your financial advisor and maybe your mother. Otherwise, keep it to yourself.

4. Assess your financial health throughout the year

A real fantasy football pro will monitor the performance of their players in real life. There will always be players getting injured, teams that change their strategies and players who have down seasons. You’ll need to keep an eye on what’s happening so you can make the best decisions about adding potential players on the waiver wire going forward.

To achieve and maintain true financial wellness, you’ll also need to monitor your budget, savings, spending habits and more throughout the year. Review and assess your money management every few weeks for the best results.

Fantasy football is so much more than an addictive hobby! Fantasy football can teach you financial lessons for life.

Step 8 of 12 Steps to Financial Wellness – Know When and How to Indulge

Living a life of financial wellness means being happy with a lifestyle that’s within your means, but doesn’t leave you feeling like you’re lacking. At the same time, financial wellness means money choices are governed by discipline and not by emotion. So how do you strike a balance between the two?

Here’s how to indulge responsibly.

Live with a budget

To do this, track your spending for three months. Next, make a list of all your expenses and list your income in a parallel column. Tally up your totals and assign a realistic dollar amount to each expense. Going forward, be sure to only spend within the allocated amount for each expense category.

Leave room in your budget for “just for fun” purchases

As you work on building a budget, leave room for the occasional treat. The exact amount will vary by income level, lifestyle and personal choice. However, wisely choose an amount you can easily afford without feeling deprived.

Review your savings

Before giving yourself permission to indulge, make sure you’re setting aside some of your monthly income to savings. Ideally, short-term savings should be enough to keep you afloat for 3-6 months if you have no source of income. Long-term savings should be sufficient to support your retirement and any long-term savings goal you may have.

Choose your “treats”

Everyone’s got a personal vice or three. Take a look at where your non-discretionary money went over the last month and highlight the more expensive impulse buys. Hold these purchases up to these questions:

Did this purchase bring me happiness or positive energy the day I bought it? How long did that feeling last?
Did this impulse buy blow my budget?
Does thinking about this purchase now fill me with joy, guilt or something else?

Use the insight about your indulgences to help you make better money choices in the future.

Lose the guilt

Once you’ve decided how much you want to spend each month on indulgences, it’s time to let go of guilt. If you’re spending responsibly, there’s no need to eat yourself up over an impulse buy you could have done without. As long as you’re keeping these just-for-fun purchases within your budget, you can maintain your financial wellness.