Month: January 2017

The Credit Union National Association reports that over 105 million Americans are members of a credit union. This makes up nearly a third of the population. But, a majority of Americans still use traditional banks to manage their money, and younger generations are reportedly less likely to use credit unions simply because they don’t understand and often ask – how does a credit unions work.

How Does a Credit Union Work?

There are many benefits of switching from a bank to a credit union, but it can also be a hassle to make the move, which also requires you to reroute all your bill payments, direct deposits, and other forms of incoming and outgoing payments. If you’ve considered leaving your banking institution for a credit union, but you’re not sure if the benefits outweigh the hassle, keep reading to decide whether or not credit unions live up to the hype.

Government-Backed Funds

There are a lot of misperceptions about credit unions that prevent people from exploring this option for their financial management, including the idea that credit union funds are not backed by the government. This is completely unfounded, as the National Credit Union Administration insurance exists as the federal government’s protective shield for credit union consumers, similarly to how FDIC insurance works.

Better Interest Rates on Savings Accounts and Loans

MyCreditUnion.gov asserts that, compared to banks, credit unions tend to offer higher interest rates on savings accounts and lower interest rates on loans for their consumers. For example, a 36-month auto loan from a credit union comes with an average interest rate of 2.71%, which is significantly lower than the 5.26% average interest rate a bank would charge for the same loan.

If you want to find the best mortgage rate, personal loan rate, or interest rate on a savings account, switching to a credit union could save you thousands of dollars in interest than if you stay with your traditional banking institution and take out a loan through them.

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The following is a guest post by Donna Stoneham, PhD, the author of “The Thriver’s Edge: Seven Keys to Transform the Way You Live, Love“. If you’d like to find out more about guest posting on Money Q&A, please read our Guest Posting Guidelines. 

Regardless of where you fall on the political spectrum, 2017 is likely to be a year unlike any we’ve ever experienced. America has never been more divided, and many people are feeling alienated and anxious. We can’t deny that hatred, cynicism, and misunderstanding are present, but we each have the power to transform them. The author and anthropologist Margaret Meade said, “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.”

Five Practices to Help You Thrive in Perilous Times

Let’s make 2017 the year we commit to strengthen ourselves in five key areas, so that collectively, we can create a world where we can all thrive, not just survive, during the coming year.

1. Cultivate a Strong Body

We all need strong bodies because physical strength helps to ground us. It helps keep our immunity high in times of stress so we don’t get sick. Exercising regularly, getting good nutrition each day and making sure we get sound, restful sleep gives us the energy we need to thrive and successfully manage stress and fear.

The Practice: Move your body for a half hour or more at least four times each week and for a minimum of fifteen minutes every day. Walk the dog. Use a treadmill or an elliptical while you’re reading or watching TV. Run. Swim. Play basketball. Do Yoga. Just MOVE. Get good nutrition every day. Say goodbye to fast food. Make sure you’re consistently getting at least seven hours of sleep each night and be mindful of how much alcohol you ingest.

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Having a baby is one of the biggest emotional and financial decisions you’ll ever make in your life. Throughout the trials and tribulations that come with raising your own child, most parents agree that the benefits outweigh the costs. But, are there a few simple money tips for new parents that could make things easier?

If you’re planning on having a baby this year, however, you can expect to pay over $300,000 over the next 18 years for your child’s food, shelter, clothes, education, activities, and medical expenses (just to name a few).

4 Frugal Ideas for New Parents

Don’t fret over this seemingly high cost, because there are several ways to save money on baby-related expenses without sacrificing the quality of care and clothes you provide your little one. Here are some of the many tips for new parents and ways you can save money as a new parent.

Practical Requests for Baby Shower Registry

Baby showers are great opportunities for not only sharing your joy about your new member of the family but also stocking up on much-needed items for the baby. Although it’s fun seeing all the cute outfits and booties you can’t wait to dress up your baby boy or girl in, it’d be wise to request necessities like diapers and baby food on your registry as well.

After all, the average baby goes through 2,700 disposable diapers in its first year, which costs about $60 per month! You can lighten this financial burden by asking family members and friends to bring diapers to your baby shower (they might also throw in an adorable outfit or toy, just to make it both a practical and fun gift).

The average baby will go through over 2,700 disposable diapers. Check out these frugal tips to save!Click To Tweet

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