Last Minute Holiday Hacks

The holidays are nipping at your heels and there’s still a lot to do! It probably seems like your stress levels keep rising while the money in your wallet keeps dwindling. It doesn’t have to be this way. With a bit of planning and by following these holiday hacks, you can enjoy a stress-free and affordable holiday season. Not buying what we’re selling? Well, continue reading to find out how:

Clear the clutter for cash

Before the holidays, browse your closets for clothing in good condition you no longer wear. Sell these on resale sites like eBay and Craigslist. You’ll make room for any incoming gifts and give your holiday budget a little wiggle room at the same time.

Shop small businesses

Avoid crowds and enjoy a wider selection of gift items by shopping small businesses this holiday season. Independently owned stores are more likely to be fully stocked, even late in the season. As a bonus, you’re more likely to land unique gifts, and you’ll be helping local businesses stay afloat during these trying economic times.

Suggest a Secret Santa exchange

If the gift-shopping is getting to be a bit much, consider cutting back by suggesting a Secret Santa gift exchange. You’ll only need to buy one gift instead of one for everyone in an entire group, and the surprise factor makes it super-fun.

Round up your change

It’s never too late to start saving for the holidays! As you shop, use a money app like Acorn to round up your charge to the nearest dollar, and save the change in a specific account. Small change can add up quickly and help offset the amount you’ll need to come up with in your overall budget.

Delegate

If you’ll be hosting events this holiday season, delegate jobs to your guests. Everyone will appreciate the opportunity to pitch in, and it’ll be more helpful for you if you can assign specific jobs to each guest, instead of having three different people show up with apple pies.

Shop during non-peak hours

Peak business hours, which start in the early afternoon and run until evening, will have the biggest crowds and emptiest shelves. If you can get to the store early in the day, you’ll enjoy a full selection that you can peacefully browse before crowds show up. Stress-free shopping also means you’re more likely to make responsible spending decisions. Win-win!

Use the tips outlined here for a stress-free and budget-friendly pre-holiday season.

Don’t Get Caught in a Social Security Scam

Social Security scams are on the rise. Unfortunately, many of the older adults who receive Social Security benefits can be overly trusting and vulnerable to these scams. However, with some knowledge of how these scams play out, you can protect yourself and Social Security beneficiaries you know from these schemes.

How the scams play out

In a Social Security scam, a target gets a phone call from someone pretending to be a Social Security employee, who informs them that their suspended benefits need to be reactivated. The target is told they must share personal information with the caller. Alternatively, they are told they must pay a fee to reactivate their account.

In another variation of the scam, an automated voice message claiming to be from the Social Security Administration (SSA) instructs them to call a number to reactivate their “suspended” benefits. If the target follows through by calling the number, they’ll be asked to share personal information or pay a fee to continue their benefits.

The scam is sometimes pulled off through an email message containing an embedded link. The scam then follows the same script depicted earlier, concluding in the victim being asked to share personal information or pay a fee.

Of course, the end of the story is the same in each scenario: The victim shares their money and/or their information with scammers. In doing so, they pad the scammers’ pockets or grant access to their financial accounts.

Protect yourself

The SSA cautions Social Security beneficiaries to be wary of phone calls claiming to represent their organization. Also, the SSA will never:

Ask you to share a full Social Security number over the phone.
Demand immediate payment by gift card, prepaid card, wire transfer, cryptocurrency or cash sent through the U.S. postal system. The SSA only accepts payments electronically through Pay.gov, Online Bill Pay or physically by check or money order at its offices.
Threaten a beneficiary with arrest or legal action for not paying immediately.
Suspend a Social Security number.

In addition, if there is an issue with someone’s account, the SSA will notify them through the mail. They will only send emails or text messages to someone if they’ve signed up for them.

If you’re targeted

If you believe you’re being targeted by a Social Security scam, hang up on the caller and report the scam to oig.ssa.gov. You can also call 1-800-772-1213 and ask if there is actually a problem with your benefits. If you’re being scammed, the SSA will be better equipped to stop the scammers.

If you receive a suspicious email about your Social Security benefits, mark it as spam and do not respond. It’s also a good idea to block numbers that continuously send scammy text messages.

As a rule, never agree to wire money to an unverified contact over the phone or online. In fact, it’s best not to share any personal info over the phone or internet.

Finally, tell your friends and family about the scam so they can be aware and protect themselves.

Stay safe!

Don’t Get Caught in an Election Scam

Democracy is a privilege that’s upheld by the election process. But scammers are out to hijack this process and cause havoc throughout election season. Here are three red flags to watch out for this time of year to avoid an election scam.

1. Eleventh-hour campaign contributions

This scheme targets voters right before elections by asking them to make a donation toward their chosen candidate’s campaign. They’ll claim to represent the candidate and suggest that the candidate just needs one big push to move to the front of the line.

Unfortunately, if the target believes the caller and makes a donation, they’ll be giving money helping to line a scammer’s pockets.

Stay safe: If you’d like to contribute to a candidate’s campaign, reach out to campaign headquarters on your own through their website.

2. Polling for information

During election season, informal poll-takers and petitioners are everywhere while canvassing voters. Once they have your attention, they’ll ask who you’re voting for, request that you fill out a survey or have you sign an election petition on a particular issue. But first, some will say they’ll need your personally identifiable information (PII), like your name, date of birth, home address and even your Social Security number. If you oblige, you’ll be sharing your information with a scammer.

Stay safe: Never share your PII with an unverified contact. If you do decide to fill out a voter survey, be super-selective about the information you share. Don’t share your Social Security number, driver’s license number or any other information that can be hijacked for crime.

3. Voter re-registration

In the weeks leading up to Election Day, you may get a bogus voter registration form, claiming your name has been mistakenly removed from voter rolls. They will say you can get back on by filling out this form and mailing it out. Alternatively, they’ll reach out over the phone, text, or email, and tell you to register by responding. Naturally, this is an election scam!

Stay safe: Remember that you can only register to vote by mail. In addition, there’s no reason to believe your registration is no longer valid. If in doubt, search your state’s Secretary of State website.

Stay safe, and may the best candidates win!

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.

Don’t Fall for Auto Warranty Scams

Auto warranty scams can lead to financial pain, or even disaster, for an unwary consumer. Here’s what to know about these scams and how to stay safe.

How the scams play out

In an auto warranty scam, a scammer reaches out to a target supposedly selling or offering to extend an existing warranty on their car. The scammer claims to represent the automaker or policy company and may know the exact model and make of the car. Unfortunately, though, if the driver buys or extends a warranty on their car through this call, they’ll be giving their money and information to a scammer.

Red flags

Watch for these red flags:

Robocall. When the pitch to buy a new auto warranty, or to extend an existing one, starts with an automatic message, you’re dealing with a scam.
Extend now! Pressured to buy an extended warranty for your vehicle? Probably a scammer.
How about some ad-bombing? If you keep running into the same ad on every site and social media platform, it’s quite possibly a scam.

Plus shipping and handling. If the alleged representative selling the extended auto warranty starts asking you to pay any processing fee, or even a down payment, before providing real details, hang up and block the number.
Restricted callers only. If your Caller ID is showing “private number” or “restricted,” you are likely being called by a scammer.

Protect yourself

First, never share personal information with an unverified contact while on any platform. Next, if you’d like to purchase a new policy or extend the one you have, reach out directly to an auto warranty company. Finally, if you are constantly getting ad-bombed and robocalled for illegitimate offers, mark the email as spam/or and block the number.

If you’ve been targeted

Take quick steps to mitigate the damage. Do not engage with the scammer, and report it to the Federal Trade Commission. Lastly, close any accounts that may have been compromised and consider a credit freeze, if warranted.

Stay safe!

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.

What is the Dark Web?

Q: What is the dark web?

A: The dark web is the deepest layer of the internet that isn’t visible to the average browser. Unfortunately, the it is full of illegal activities and crimes. Let’s take a closer look at the dark web and how you can protect your information from being snared.

What is the dark web?

The internet has been compared to an iceberg, with very little being visible above the surface, but it’s an enormous, dark and deep chasm underneath.

There are three basic parts of the internet:

The surface web – all websites and landing pages that can easily be accessed through popular search engines and direct address entry using a web browser.

The deep web – this includes private, but not invisible accounts, like social media pages, membership websites, medical records and more. All content on the deep web is safeguarded by a paywall or sign-in credentials.
The dark web – can only be accessed by using special browsing software called Tor. Tor masks IP addresses and makes all visitors anonymous.

Not all activity happening on the dark web is illegal. The deepest part of the internet also provides a platform for communication and commerce for people living in countries that have heavy censorship of online activity.

Unfortunately, though, the dark web remains a hotbed of criminal activity. Loads of illegal trade takes place through the dark web, including drugs, firearms, counterfeit money, subscription credentials and personal information of thousands of targets. The inherent anonymity allows hackers and scammers to roam free without fear of being caught.

How can I protect myself?

Enable two-step authentication on all online accounts.
Regularly monitor your credit for fraudulent activity.
Use strong, unique passwords for your accounts.
Never share personal info with an unverified source.

The dark web is impossible to trace, but there are ways to protect your information. Use the tips outlined here to stay safe.

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.

Back-to-School Shopping Hacks

It’s back-to-school season, but that doesn’t mean you need to break your budget. Here’s six back-to-school shopping hacks to get you started.

1. Take inventory

Don’t set foot in a single store without first checking to see what you have at home. Keep a running list of everything you find so you know exactly what you have before you spend anything on new supplies and clothing.

2. Shop with a list

And we’re not talking about the list of required supplies your child’s school or teacher has sent home. When shopping for anything, it’s best to start out with a clear goal of what you plan to buy. This way, you’ll be less likely to overspend and come home with stuff you don’t really need.

3. Divide and conquer

The circulars are packed with specials on school supplies all summer long. The problem is that, while one store is offering a crazy-low deal on crayons this week, another is running a super sale on pencils – and the stores are across town from each other. Keep your savings and your sanity, by teaming up with another school parent. Divide the school supply list between, pooling costs and savings.

4. Let your kids choose some items on their own

Teach your kids a lesson in budgeting by allowing them to shop for one or more of the costlier items they need on their own. Set a reasonable budget together, but let your child do the actual choosing and paying. To encourage thriftiness, you can offer to allow your child to keep the change.

5. Save some stuff for later

There’s no need to purchase a complete autumn wardrobe before Labor Day. Waiting a bit for the mid-season sales will save you a ton of money.

If your kids are in need of some bigger ticket items this year, consider applying for a low-interest loan from High Point Federal Credit Union!

Use these hacks to cash in on savings this back-to-school season.

Should I keep Cash at Home?

Q: I’m seeing posts on social media about keeping cash at home during rapid inflation. Is this a good practice?

A: Keeping large amounts of cash in envelopes, kitchen drawers or stuffed under the mattress is not recommended during times of high inflation – or any time.

Why is it a bad idea to keep cash at home?

While it’s perfectly OK to keep some cash at home, storing a large amount brings two big disadvantages:

The money can be lost or stolen. Hiding cash under the mattress or anywhere in your house always carries the risk of being misplaced, damaged or stolen. Unfortunately, there is no way to trace or reclaim lost or stolen cash.
The money isn’t growing. When cash doesn’t grow, it loses some of its value. This is especially true during times of high inflation. The current inflation rate is 8.5%. This means, if you’d keep $1,000 at home for the next year and inflation stays at 8.5% during that time, your cash would be worth only $985. Of course, if inflation rates increase, the loss would increase as well.

Where is the best place to keep cash?

Here are some places you may want to keep your cash at this time:

Savings account. A savings account is a secure place to keep extra funds. When you open a savings account at High Point Federal Credit Union, there’s no risk of your money being lost or stolen.
Precious metals. Precious metals, like gold, silver and platinum, have proven to hold their value even in times of inflation and a volatile stock market.
Share certificates. A share certificate is a savings account that’s federally insured, has a fixed dividend rate and a fixed date of maturity. The fixed dividend rate will remain unaffected by the fluctuating national interest rate.

Inflation is high, but that doesn’t mean it’s a good idea to hoard your cash at home. Follow the tips outlined above to find the perfect place to park your cash.

12 Steps to Financial Wellness Step 7: How to Pay Yourself First

“Pay yourself first” is a catchphrase that refers to prioritizing your personal savings above other expenses. To achieve it, savings should be a fixed line on your budget that happens every month without fail.

Here’s how to pay yourself first.

1. Review your spending

Take a clear look at your spending. If you already have a budget, this will be as simple as reviewing the column which lists all of your expenses, including your discretionary spending. If you don’t have a budget, track your spending over several months to identify your primary expenses and to find the average amount of money you spend each month.

2. Set short- and long-term saving goals

Short-term savings, or funds you want to be able to access in the near future if necessary, can be allocated to an emergency fund. Experts advise having three- to six-months’ worth of living expenses set aside in an emergency fund in case of a sudden, large expense and/or loss of employment.

Long-term savings should include funds you can afford not to touch for several years or more. Your long-term saving goals can include your retirement, as well as a down payment on a home, a new car, a sabbatical from work or any other super-big expense.

Narrow down your short- and long-term goals, then attach a number to each savings category.

3. Set a timeline for each savings goal

Now that you have a number for the amount you want to save, you’ll need to work out a realistic timeline for meeting those goals. It’s best to give first priority to your emergency fund, but at the same time, it’s a good idea to start saving for retirement today so compound interest has an opportunity to work its magic. To that end, you may want to allocate the bulk of your monthly savings to your emergency fund until you meet your goal. Once your emergency fund is full, you can divide your savings more evenly between your short-term savings and long-term savings.

4. Calculate how much you’ll need to save each month

Take your total for each goal, and divide it by the number of months in your timeline. For example, if you’ve decided you want to have an emergency fund of $24,000 established in four years’ time, you’ll divide $24,000 by 48 months to get $500 a month. This is the amount you’ll need to set aside each month to reach your goal in time. Do this for each of your goals.

5. Automate your savings

Once you’ve got your savings plan ready to go, it’s best to make it automatic. You can set up a monthly transfer from your High Point Federal Credit Union checking account to your credit union savings account or share certificate. This way, your savings will grow even when you forget to feed them.

Congrats–you’ve mastered the art of paying yourself first!

Beware of Job Scams

It’s an amazing employment opportunity–or is it? Scammers often hijack the job market to ensnare job seekers. Here’s what to know about these scams.

How the scams play out

There are several variations of job scams. Here are the most common:

Bogus job listing. There’s a Help Wanted ad for a dream job. The eager job-seeker applies, sharing their information, and even paying a small fee for an interview or resume submission. Unfortunately, the job doesn’t exist, and they’ll never hear from the “employer” again.

Imposter hiring. An alleged rep from a well-known agency or hiring firm reaches out to a target, asking them to send funds to cover a job screening. While the job may exist, the “representative” is a scammer, and the money the victim shares will go directly into the scammer’s pocket.
Phishing emails. In this scam, a victim is targeted by email. It offers the victim a fantastic job, but asks that they first share confidential info. If the victim complies, they’ll be giving their personal information to a scammer.

How to spot a job scam

Learning to identify the signs of a job scam can help you avoid them. Here are some red flags to watch for when job-hunting:

The emails the “company” sends are highly unprofessional.
There’s no street address for the company.
You’re asked to pay an upfront fee before you’re even hired.
You’re asked to share personal information before an official contract is signed.
When “hired,” you’re underworked and overpaid.

Before applying to or accepting a job offer, do thorough research. Ask for references of past or current employees and check out the company website to see if it’s secure and has real information about the firm, including a street address. Check out the company’s social media accounts, too. Finally, don’t be afraid to ask the employer any questions you may have about the company or job.

Job-hunting can be stressful, but getting caught in a job scam can bring that stress to a whole new level. Stay alert and stay safe by following the tips outlined here.

12 Steps to Financial Wellness – Step 4: Have the Money Talk with Your Partner

Communicating openly about how you manage your money is a big part of having an honest and trusting relationship. Here, we’ve compiled six tips to help guide you in this super-important conversation.

1. Plan in advance

Broach the topic with your partner a few days before you want to have the “Big Money Talk” and ask if you can have an open discussion about money sometime soon. This way, you’ll both be ready to focus on the conversation and won’t be caught off-guard.

2. Start with a vision

Instead of starting the conversation by bringing up a time your partner overspent, talk about a vision you can both share. For example, you can rhapsodize about how wonderful it would be to take a luxury vacation to the Cayman Islands, or how you’d love to start saving for a home. This way, you’re putting a positive spin on your money talk, which will set the tone for the rest of the conversation.

3. Listen carefully

Your partner will have their own ideas about money management, and you may be surprised at the insights they have to share into your own spending habits or expensive vices.

4. Talk openly about sharing expenses and savings

At a certain point in your relationship, you may decide to share expenses and to pool your savings. If you plan to bring up the topic now, be sure to talk openly about the way you feel to better avoid future resentment. For example, if you earn more than your partner, should you be splitting expenses evenly? Can one partner take additional financial responsibilities in lieu of contributing an equal amount of income to the pot? All of these questions, and more, are important to discuss up front.

At this time, consider linking one of your accounts or opening a shared account at High Point Federal Credit Union.

5. Consider having a slush fund

Sometimes, you just want to splurge without having to explain the purchase. You may also want to spend money on a surprise gift for your partner without them knowing you’ve just dropped a large sum of money on something. Having a slush fund, or money set aside for your “just for fun” spending, can help you maintain a sense of independence and keep some of your purchases private. You can keep this fund in a separate checking account under your name at High Point Federal Credit Union.

6. Set up a weekly or bi-weekly time to talk money

It’s a good idea to touch base about finances once a week, or once every two weeks. You can talk about recent purchases, big expenses that are coming up soon, surprise bills and more.

Be sure to stick to your commitments and to bring up any money issues that may arise during your regular money talks for continued harmonious collaboration about all financial matters.

4 Scams to Watch for After the Holidays

The weeks after the holiday season generally bring an increase in scams that can be difficult to spot. Watch out for these common post-holiday scams.

1. Charity scams

When giving charity this time of year, be extra cautious. Verify it’s legit by looking up the organization on CharityNavigator.org, doing a quick Google search with the “charity name+scam” and look for a physical address and phone number on its website. Also, if you have a specific cause you like giving to, contact them personally instead of clicking on an ad that allegedly represents them.

2. Bargain-priced gifts for sale

The weeks following the holidays bring a rush of scams on resale sites like Craigslist and eBay.

Avoid a gift scam by exercising caution when buying an item on a resale site, especially after the holidays. Ask for the seller’s phone number, street address and for several references to see if they check out. If everything seems to be in order, make arrangements to meet in a well-lit and populated area, preferably one with security cameras. Make the exchange after you’ve checked out the legitimacy of the item, using cash only.

2. Belated holiday e-cards

Scammers send thousands of virtual greetings after the holidays, most of which are loaded with malware. An authentic e-card will include a confirmation code for you to copy and paste to the associated website. If you receive a late e-card without such a code, don’t open it. Mark it as spam and delete the email.

4. Post-holiday sales

Unfortunately, lots of the advertised sales you may see in the weeks after the holidays are actually scams. The scammers may be working off a bogus site that looks just like one representing a legitimate business, or they may be targeting their victims with emails that advertise “sales,” but are embedded with malware.

Before making an online purchase, check the site for signs of authenticity. Look for the “s” after the “http,” and check for the lock icon in the URL. If the site allegedly represents a well-known retailer, check the URL for misspellings. Look for the store’s logo on the site, and continue to check the URL of each landing page as you complete your purchase.

If you spot one of these scams, report it to the FTC at ReportFraud.ftc.gov.

Stay safe!

Your Complete Year-End Financial Checklist

As 2021 draws to a close, take a moment to go through this year-end financial checklist to ensure your finances are in order before the start of the New Year.

1. Review your budget

Is your current monthly budget working for you? Are you stretching some spending categories or finishing each month in the red? Take some time to review your budget and make any necessary changes.

2. Top off your retirement plan

Check to see that you are taking full advantage of your employer’s matching contributions for your 401(k). If you haven’t contributed as much as you can, you have until the end of the year to catch up, to a limit of $19,500. If you have an IRA, you have until April 15 to scrape together the maximum contribution of $6,000, with an additional $1,000 if you are 50 years or older.

3. Check your progress on paying down debt

Review your outstanding debts from one year ago and hold up the amounts against what you now owe. Have you shed any debt from one year ago, or is your debt growing? If you’ve made no progress, or your debt has deepened, consider taking bigger steps toward paying it down in 2022.

4. Get a free copy of your annual credit report

The end of the year is a great time for an annual credit checkup. You can only request a free copy of your credit report from all three credit reporting agencies once a year. Get your annual credit report here, and look for fraudulent charges and other signs of possible identity theft.

5. Review your investments and asset allocation

You may need to make some adjustments to your mix of stocks, bonds, cash and other investments to better reflect your personal financial goals and/or the current state of the economy and market.

6. Review your beneficiaries

Has your family situation changed during the past year? If it has, be sure to switch the beneficiaries on your accounts and life insurance policies to accommodate these changes.

7. Review your tax withholdings

Review your W-4 to see if the amount of tax withheld from each paycheck needs to be adjusted. If you’re not a numbers person, ask your accountant for help.

Use this checklist to make sure your money matters are in order before the start of 2022.

Why You Need to Be Financially Fit

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

Financial wellness: a ripple effect

Managing money responsibly will affect many aspects of your life:

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

What are the leading causes of money stress?

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

High-interest debt
Insufficient savings
Medical bills
Living paycheck to paycheck
Lack of retirement planning

Barriers to financial wellness and how to overcome them

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

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

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

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

Preparing Financially for a New Baby

Congratulations! You’ve expecting a new baby and you’re breathless with excitement — and nerves. A baby means big changes, and a part of those changes is lots of new expenses. How will you pay for it all?

We’ve got the tips you need to prepare financially for a new baby.

Pay down debt

Don’t let your debt grow along with the baby bump. It’s best to get your finances in order to make it easier to manage all new expenses and prepare for your child’s future. Make a plan today to kick that debt for good!

Adjust your monthly budget

Babies don’t come cheap. When your little one arrives, you’ll need to spring for gear and furniture, a new wardrobe, diapers and possibly child care as well. Most of these expenses will be ongoing, so it’s best to make room in your budget for these new items before your child is born.

Set up a baby account

All those expenses can be overwhelming, but if you break them down into bite-sized pieces, they’ll be easier to manage. Why not set up a separate savings account for all baby expenses? You can automate these savings by setting up a monthly transfer from your paycheck or checking account to your “baby account.”

Estimate prenatal care and delivery costs

It costs how much to have a baby?

Some folks can pay close to $10,000 in prenatal costs and delivery. Of course, these amounts do vary by location and insurance provider, but it’s a good idea to work out exactly how much it will cost you to have a baby so you aren’t in for an unpleasant surprise after the baby is born. Start saving now!

Start saving for college

Believe it or not, your little one will, one day, be all grown up and ready for college! This can mean paying a small fortune in tuition. The sooner you start saving for your child’s college education, the easier it will be to save. You’ll spread the costs, and also give those savings the best chance at growth.

Consider opening a 529 plan before your child is born where your college savings can grow tax-free.

Post-Pandemic Money Moves

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

Review and adjust your budget

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

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

Rebuild your savings

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

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

Rethink your long-term and short-term financial goals

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

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

Spend with caution

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

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

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

Teach Kids to Set Savings Goals

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

Identify the goal

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

Make a plan

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

Set money aside

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

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

Follow through

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

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