by Hannah Johnson | Nov 25, 2022 | Financial Literacy
THINGS TO KNOW BEFORE LIVING ON YOUR OWN
Friday, November 25, 2022
Eager to live on your own? Have plans to move out of your parents’ place? At YNCU we know how exciting it is to get your own place and start your own journey. We also know that school does not always prepare you for the financial responsibility that comes with moving out. We are here to help! Here are some financial tips on how to live on your own:
Budget
Budgeting is very important as it ensures you are able to buy your essentials and still have a little money on the side. Figure out how much money you are making monthly and what your monthly expenses are. From there you can allocate portions of your money to different areas and determine how much wiggle room you have each month. YNCU has helpful tools that will make this easy – like our household budget tracker and student budget tracker. Using these tools can ensure you are not running out of money before your next pay day.
Pay your bills on time
As important as it is to budget for your bills, it is equally as important to ensure you are paying these bills on time. By paying your bills on time with your credit card, you will build up good credit and have an easier time securing a loan in the future. Avoiding paying your bills can have negative consequences on your finances and can even lead to debt or late fees. Set yourself up for success by setting a reminder for yourself to pay your bills promptly every month.
Save each month
As you plan out your budget, make sure you are planning to save some money each month. This will help keep you financially stable. You never know when you may need to have a little extra money so plan to set some aside each month. These savings can go toward your retirement, paying off any debt or anything else that may happen. It is also a smart idea to plan for emergencies. Emergencies can happen at any time (take the pandemic for example) and you never know when unexpected costs will arise. YNCU can help you with planning your emergency savings account. Learn more about the Emergency Savings Plan here!
Monitor your financial transactions
Make sure you are keeping an eye on your financial transactions. Certain accounts may have fees for each transaction and you could be acquiring extra fees without realizing it. Be sure to check the details of your card (credit card limit, transaction fees, etc.) and plan accordingly. Monitoring your transactions can also help prevent fraud as you can report any transactions that were not made by you. Keeping a close eye will help keep your finances safe.
Make a plan before grocery shopping
Planning your meals before you go grocery shopping can help you avoid purchasing unnecessary groceries. Food costs are drastically rising so shopping with a purpose will ensure you are only getting the essentials. Try to avoid food waste by using whatever you have in the fridge before you go shopping. Cooking in bulk and freezing the leftovers is also a good way to save money on groceries and save you time on food prep.
Get advice
Try to learn as much about finances as possible. There are many external resources that can help you. Also make sure you ask for advice when you need it. Just because you are moving out on your own does not mean you can not ask for help. Chances are you are not a financial expert, so connect to people who are. At YNCU we have many experts who are happy to help!
For all your general financial inquiries and how you can plan out your financial goals, come talk with someone at your YNCU branch!
Don’t forget to follow us on Facebook, Instagram, Twitter or LinkedIn for more honest money talk tips!
by Hannah Johnson | Nov 14, 2022 | Financial Literacy
THINGS TO KNOW BEFORE ENTERING THE HOUSING MARKET
Monday, November 14, 2022
At YNCU, we know entering the housing market is a daunting task. School does not prepare you for the financial risk you take when purchasing a home for the first time. We want to share with you some tips to help you enter the housing market, responsibly.
Do your homework
Before you do anything that involves a large portion of your finances it is important that you do the proper research. With high prices, rising mortgage rates, and low inventory, following trends in the housing market is extremely important. Learning the language related to real estate can be extremely helpful, including terms like “earnest money” which is the deposit you put down on the property you’d like to buy. The funds of this deposit go toward your down payment. Another need-to-know term is “appraisal contingency” which is a provision in your contract that allows you to back out if the appraisal price comes in lower than the sale price.
Learn about down payments A down payment is the amount of money you put toward purchasing your home. If your down payment is less than 20% of the price of your home, you must purchase mortgage loan insurance. The minimum down payment for a home is typically 5%. If you have poor credit you may be required to pay a larger down payment. It is essential to be aware of what the down payment is for the home you are about to purchase and if you are able to pay for it.
Check your debt and credit
Mortgage lenders will look at your debt and how much income you are making. If you have high debt and relatively low income, it is unlikely that you will receive a loan. This is important information to know before you begin searching for a mortgage loan. Any extra cash you have should be used toward paying off your debt before you can start looking for a house.
Another thing to look at is your credit score. Your credit will be a factor in determining what type of loan you will get. It will have an effect on the interest rates and possibly how much you will need for a down payment. Make sure you are working toward building good credit before you start looking for loans.
Know the extra costs
A lot of people enter the housing market without realizing all the extra costs aside from your mortgage and down payment. There are expenses such as closing costs, lawyers’ fees and changing the locks. There are also extra costs like hiring a home inspector, setting up utilities and buying insurance.
Talk to an expert!
Buying a home can be an overwhelming process, especially if it is your first time. Make sure you talk to your financial advisor to know what your options are and how to best prepare for entering the housing market. It is also important to ensure you have the financial ability to sustain owning a home. YNCU can help you to figure out the best options for your financial situation.
For all your general financial inquiries and how you can plan out your financial goals, come talk with someone at your YNCU branch!
Don’t forget to follow us on Facebook, Instagram, Twitter or LinkedIn for more honest money talk tips!
by Divora Mehari | Aug 26, 2022 | Financial Literacy
INFLATION AND BACK TO SCHOOL
Friday, August 26, 2022
At YNCU, we know back-to-school can cause a lot of stress during this time of inflation. Rising costs have caused people to have to limit their spending and focus on the essentials. With the upcoming school year fast approaching, parents are concerned about how they are going to pay for these expenses.
A recent Deloitte study says that parents are planning to spend roughly $661 to prepare their families for back-to-school. More than 35% of respondents said they won’t be able to afford back-to-school spending this year. The study also stated that 33% of parents have said their financial situation has worsened over the last year, increasing 11% from 2021.
Schools have been unable to support parents through this difficult time because they themselves are pressed for funding. Some people have needed to work overtime in order to cover the cost of going back to school. Many parents and caregivers are unsure of how they will pay for all the supplies that are needed.
At YNCU we want to help take some of this stress off you by providing tips for the back-to-school shopping season:
Make a plan: Only buy things you need
Oftentimes it is easy to make a new list of school supplies every year and buy everything on that list. Make sure you are taking a look and what you already have from the previous school year. There is no need to buy a brand-new set of pens or rulers if you already have them. Ensuring you are not buying multiples of something that can be reused can help lower the cost of back to school. Teachers will also often provide a school supply list for their classroom, if something isn’t on the list, you don’t need to purchase it.
Set a Budget and Stick with It
Plan a reasonable budget for back to school. Keep your regular expenses in mind when you are creating a budget. Having a budget will ensure you are still meeting your financial goals. Just because your child’s backpack needs to be replaced does not mean you need to spend your entire back-to-school budget on a brand name one. Look for deals or discounts, and switching from your usual brand can be a good way to reduce cost.
It is also important to remember you are not forced to purchase materials for the whole year. It is okay to cut back and buy enough for the first half of the year and allow yourself time to save for the second half. Giving yourself this time will also allow you to stick to your budget and understand what your child is using the most or what they are not using at all. This way you can target your spending during the second half of the school year and reduce cost.
Shop Without Your Kids
We know your kids want to be a part of back-to-school shopping but oftentimes that makes the trip even more expensive. Your kids will beg for things that are not on the list or ask for brand name items. If you shop alone, you are able to ensure that you are only getting the essentials. If your kid really wants brand name items, pick up a couple of items they can wear often like a backpack or shoes. This way your child is able to get what they want but do not have to do a part of the process.
Refurbished Tech Gets the Job Done
Starting early can also help you find the best prices and deals for tech items. Tech is a much-needed item nowadays and people are always on the hunt for the best price. Purchasing refurbished computers or laptops is an option in order to stay within your budget. Laptops and computers can cost upward of $1000 brand new. Refurbished or second-hand technology can make a big difference in the cost of back to school and is also more environmentally friendly. Not everything has to be brand new for the new school year.
Buy in Bulk and Split with Friends
As the cost of almost everything is rising, school supplies are no different. Buying in bulk and splitting the cost with friends can make a huge difference in how much you spend. This can also make shopping more fun as you are able to go with your friends and decide what you both have on your list. Things like pens, pencils, rulers, and notebooks are things that almost all students need. So, if your child has friends from school, get their parents together to save cost on supplies.
Shop With a Cash Back Credit Card
When you are back to school shopping, use a cash back credit card. This way you are able to make money when you make purchases. YNCU has a Collabria no fee MasterCard that can help you with your back-to-school shopping!
For all your general financial inquiries and how you can plan out your financial goals, come talk with someone at your YNCU branch!
by Divora Mehari | Jul 15, 2022 | Financial Literacy
DEBUNKING CONTROVERSIAL MONEY MYTHS
Monday, July 25, 2022
At YNCU, we know that you take your finances seriously. You want to protect your financial assets as best as you can. There are a lot of widely held ideas about money that are simply not true. We want to help you achieve your financial goals by debunking some of the most controversial money myths. Here are five of the top money myths out there:
1. All Debt is Bad Debt
One of the most common money myths is that all debt is bad debt. This is simply not true. There is both good and bad debt. Good debt is money that has the potential to increase your net worth. Taking out a mortgage could be considered good debt because you are able to make more money off that asset as time goes on. Bad debt involves using money on something that slowly loses its value. Some purchases that depreciate in value, like buying a car to commute to work, can be critical. Bad debt is debt for frivolous items that depreciate in value and don’t help you earn money. Furthermore, these debts can often hold very large interest rates.
It is a common belief that all debt is bad debt, but good debt can actually help you gain more money by borrowing. In order to make more money, you need to use outside resources and rely on other people to help. Good debt has the ability to enhance your life in a positive way.
2. Buying a Home is Better Than Renting
It is a long-held belief that your home is your biggest asset. Renting is considered to be throwing your money away. The truth is renting provides you with flexibility, since it is a lot easier to move when you are renting. The prices of houses have been skyrocketing for the last few years and many people do not even have the funds to consider buying a home. There are a lot of benefits from renting that are often overlooked. With the housing market and taxes, buying a home versus renting might not be the best way to achieve your financial goals in the future.
3. Only Save Big Amounts, Don’t Waste Time with Small Sums
Some people believe it is a waste of time to set aside small amounts into your savings every month. They think you should only set aside money when you are able to put aside large sums of money. This is far from the truth. Saving little by little will make a huge impact in the long run. Savings accounts hold interest and the longer you hold money in the account, the more interest you will accumulate. This means that putting aside small sums can add up to more than what you put away over time.
4. Don’t Need to Look into Retirement When You are Young
When you are first starting your career, you may not be considering retirement savings. You may think that because you are so young, you do not need to look into retirement right away. In reality, starting to save as soon as possible will allow you to not have to worry about retirement. You will achieve your goals earlier when you start earlier. Life is unexpected and you will never know when you want to pull out your retirement savings. Starting a plan now could mean you are able to retire sooner.
5. Avoid Credit Cards
People often avoid using a credit card because they believe it will lead to large amounts of bad debt. This is not necessarily true as, if you pay your credit card regularly, there will be no issues and you will be able to build good credit. Having a good credit score will help you get approval for mortgages or other loans. This score proves you are able to pay back bills. By avoiding a credit card, you are also avoiding building good credit.
There are a lot of money myths and bad financial advice out there. If you are looking for a financial institution that tells you the truth about your money, become a member online!
by Hannah Johnson | Jul 8, 2022 | Financial Literacy
RATE HIKES/COST OF LIVING – SURVIVAL TIPS FOR MANAGING RAPID PRICE INCREASE AND DEFLATION
Friday, July 8, 2022
It is no secret that the cost of living has drastically gone up in the last few years. Prices have gone up in every aspect from groceries to the skyrocketing price of gas to interest rate hikes. This has caused a lot of alarm and concern for Canadians who are struggling to keep themselves financially stable. At YNCU, we know that you may be looking for advice on how to manage your money during times of rising costs. First, let’s look at the definitions of inflation and deflation:
Inflation: Inflation is essentially when the cost of living rises. Typically it is due to supply; if there is little supply and a high demand, prices go up. Inflation means your money will be able to provide you with fewer goods and services than before. Inflation rates in Canada have risen about 5.1% since 1991.
Deflation: Deflation is when the cost of living goes down. What happens is, as prices start to come down from inflation, customers hold off on buying items in the hopes of the prices decreasing even more. This increases consumer purchasing power as companies want business from the customer to avoid losing profits. Deflation can lead to unemployment as companies are not making enough profit from customers. Many economists are concerned about a deflation that is certain to follow the current inflation.
As inflation continues in Canada, we know it can be stressful waiting for prices to drop. Here are four survival tips for managing rapid price increase and deflation:
Build new spending habits
As the prices of everyday items go up and your monthly income stays the same, it is important to keep track of where your money is going. You need to examine your personal financial goals and your current financial situation. You must ensure your budget is realistic and takes into consideration the skyrocketing price of everyday goods. Keeping a budget helps keep you accountable for reaching your financial goals. Read more on the Budgeting Basics!
Look for deals
A great way to keep within your budget and to stay on track with your financial goals is to look for deals and sales. Taking the extra time to do research and learn where the lowest prices are can save you a lot of money in the long run. For example, if you are making a big purchase for a television, consider waiting until after the holidays when the prices will be marked down. These small changes to the way you spend your money can make a huge impact.
Start saving
We know saving money may be difficult with the massive increase in cost of living but working savings into your financial plan will keep you financially secure. Setting aside even a little money every month will ensure you have savings in case of an emergency. You never know when something will happen and it is always best to be prepared. Including savings into your monthly budget can protect you and keep you financially stable through unforeseen circumstances.
Find the best rates by becoming a member
As interest rates rise, along with cost of living, it is critical that you use a financial institution that provides you with the best rates possible. At YNCU, we put our members first. We believe in honest financial services that the big financial institutions simply can’t deliver on. We understand how concerning the rising cost of living can be and we want to help our members be secure in their financial situation. If you are looking for a financial institution that puts you first and offers the best rates, become a member online!
Interested in learning more? Give us a follow on Facebook, Instagram, Twitter or LinkedIn.
by Divora Mehari | Jun 17, 2022 | Financial Literacy
ALTERNATIVE WAYS TO FUND YOUR EDUCATION OTHER THAN STUDENT LOANS
Friday, June 17, 2022
At YNCU we know planning how to fund your education is stressful. Everyone’s situation is different, so if you’re looking for alternative ways to pay for school, other than family or government loans, here are some tips that may help:
Applying for Scholarships and Grants
One of the best ways to fund your education and reduce your future debt is applying for a scholarship or grant. Scholarships are given out based on financial need and merit. There are many different scholarships you can apply for, all with different criteria. Although scholarships are very helpful in funding your education, they are also very competitive as many other students are applying as well, so it’s important to put in the work to make sure your application stands out. Check out our recent blog on How to Make Your Scholarship Application Stand Out!
Work During School
Many students decide to hold off on getting a job in order to solely focus on their studies. We know working while in school can be difficult, but ultimately it will help you take on less debt by helping to fund your everyday spending. Working while you are in school also provides you with an advantage after you graduate, because you are gaining experiences while also balancing school. This will look good on your resume and impress future employers.
Schools often have jobs available specifically for their students. Looking for part-time student jobs at your school is a great way to ensure you can balance your school schedule with your work hours.
Work Study Programs
As schools have part-time jobs for students available, there is also the option of a work-study program. These programs are great ways to gain first-hand knowledge in your chosen field and allow you to see how your studies will translate into real world experiences.
A work-study program may have certain restrictions on hours you are allowed to work and the pay can be a set amount, so make sure you thoroughly understand the details of the program before you enroll.
Employer Sponsorship
Certain employers are willing to contribute to your education or help you get an advanced degree. These employers typically offer to pay or reimburse you for your tuition if you work for their company for enough time. If you’re interested in advancing your career, it never hurts to ask a current or potential employer if this is an option for you.
Save Your Money!!!
An important tip to funding anything is saving your money and being conscious of your finances. Saving in advance of your post-secondary education can take away the stress of having to figure it out later. Making a budget can be a useful way to ensure you are saving as much money as possible to fund your education. Use YNCU’s household budget tracker to organize your finances. Make sure you are realistic about your budget so it’s easier for you to stay on track.
If you are interested in getting advice on how you can fund your education, visit your closest YNCU branch and talk with one of our advisors.
