by Divora Mehari | Oct 31, 2021 | Financial Literacy
EMPOWER YOUR FINANCIAL FUTURE WITH A CREDIT UNION
Monday, October 31, 2022
October 20th was Credit Union Day! To honour this day, we wanted to share with you some background on credit unions and how YNCU makes an impact on the lives of our members.
Did you know the first credit union in Canada was nicknamed “the people’s bank”? This is because credit unions have always been centered around a cooperative model, where members are able to make decisions about their money. Credit unions were created with the specific intention to meet societal needs. They are focused on their members’ financial well-being. These financial institutions are very different from traditional banks. They can do things a bank can’t and care about the things they don’t, like keeping your money local.
Here are a few of the reasons credit unions can benefit you over a traditional bank:
- Credit Unions are focused on their members’ financial well-being because they were designed to meet a societal need.
- Credit Unions have some of the best rates and deposit protection in the industry.
- They put your health, the health of your community, and your local economy ahead of some investment banker’s bottom line.
- The focus is on putting your interests first because you are a member.
Every person who does their banking at a credit union is also a member of that credit union. Once a year all the members are invited and entitled to vote on a one-member-one-vote basis to elect the board of directors, who is ultimately responsible for overseeing the credit union. The board does not have an incentive to seek excessive profits to serve a shareholder as any profits are derived from the customers who are also members. Credit unions do need a profit to ensure the organization meets legal requirements related to having a buffer against bad years. However, the credit union’s pursuit of profit is in service to the organization and its membership, not a goal in itself.
Profits have never been a part of credit union values. They have always been focused on their members and the community in which their members live and work. Credit unions look at the whole picture and work to build long-term relationships with members to provide customized growth strategies that actually work to meet your goals.
At YNCU, we work hard to keep the values of what a credit union is meant to be. We are constantly engaging with our members and community. International Credit Union Day celebrates the spirit of the global credit union movement. The day is recognized to reflect upon the credit union movements and history, promote its achievements, recognize hard work and share member experiences.
For all your general financial inquiries and how you can plan out your financial goals, come talk with someone at your YNCU branch!
by Hannah Johnson | Oct 19, 2021 | Financial Literacy
THE TOP FINANCIAL TOOLS OUR ADVISORS ARE THANKFUL FOR THIS YEAR
Monday, October 19, 2021
Managing your money, whether it be saving for a dream vacation, your first home or investing for the future, can seem daunting at first. Luckily, personal finance tools such as apps, spreadsheets and software can take some of the guesswork out of managing your money on a daily basis.
We asked our advisors to share the financial tools they are most thankful for and tend to recommend to their Members.
Whether you are brand new to personal finance or have been managing your money with ease for a while, using the following financial tools can make a world of a difference in your saving, budgeting and planning for the future.
1. Budgeting Apps
When it comes to tracking a budget, some people prefer good old-fashioned pen and paper or spreadsheets to manage their income and spending. For others, being able to set-it-and-forget-it when it comes to allocating funds to different expenses and savings funds is critical for success.
For those who want automation and to leave the calculations to someone else, our advisors recommend downloading a budgeting app. With so many on the market, it’s easy to find the best app to suit your needs and lifestyle. Here’s a few of the most popular budgeting apps:
EveryDollar – This zero-based budgeting app encourages you to enter your income and all transactions, allowing you to track your spending and plan for upcoming purchases with ease.
You Need a Budget (YNAB) – YNAB is based on a zero-based budgeting system, meaning you must allocate every dollar you earn to a specific goal, whether it be saving, investing or creating budgets for certain spending categories.
Goodbudget – Using the “envelope” budgeting method, this app will help you allocate funds to specific categories of spending each month and allows you to track spending with others in your household.
Apps can make it easier to track your income and spending, and oftentimes will send you notifications when you get close to reaching your spending limit.
Budgeting, like any habit, gets easier with time. Budgeting apps can be a helpful tool in getting your spending and saving under control with little effort on your part.
2. Anti-fraud notifications
October is Cybersecurity Awareness Month. While we always recommend you frequently review your bank statements and regularly change your passwords to prevent financial fraud, you can never be too careful.
Our advisors recommend setting up anti-fraud notifications through YNCU, so you can remain confident we have your privacy and safety in mind.
If any large or suspicious spending is detected, you will receive a notification through a text, email or phone call letting you know that there may be a potential fraudulent transaction made on your behalf.
If you tend to make small transactions, you can set your notifications to alert you if a purchase was made over a certain amount. Notifications can even be set if a purchase was made in another country, allowing you to catch financial fraud as soon as it happens.
Anti-fraud software and notifications can be an essential tool to keeping you aware of all activities related to your finances and keep your money safe.
3. Mortgage Calculators
Buying a new home can be a very exciting experience, but also comes with stress and unknowns, especially if you’re a first time home buyer.
When it’s time for you to start looking for a new home, our advisors recommend you first calculate your estimated mortgage to ensure you can afford the monthly payment. This is a critical first step that will guide you in setting a budget for what purchase price you can afford and will dictate how and where you shop for your home.
Interested to see what you can afford? Try out our free mortgage calculator.
4. Amortization Schedule
For those who have already qualified for their mortgage and are an existing home owner, an amortization schedule can be a helpful tool. An amortization schedule is a table that includes the amount of principal and the amount of interest owed in each monthly mortgage payment until the loan is completely paid off.
This is an essential tool, as it allows you to understand what you owe each month and the due date of each payment. For those who are budgeting, this can be a great method of tracking housing expenses and managing how much money to allocate to your mortgage each month.
To create your own amortization schedule, follow this free, helpful resource.
5. Investment Calculators
A common misconception of investing is needing to invest lots of money each month to make a substantial return. Luckily, this couldn’t be farther from the truth.
When it comes to investing, there is no better time to start than now and any little contribution can make a big difference in the future.
For those who are unsure how much they can expect to make in five, ten or even twenty years by investing, our advisors recommend using an investment calculator. This will help prospective investors estimate what their return could be based on their monthly contribution amount, the amount of time they expect to leave their money in the investment market and the average annual return rate.
Your YNCU advisor will also work closely with you to understand your short and long-term goals, risk tolerance levels and budget, to ensure you are making the best investment decision possible.
To see what you can have saved in the future by investing today, try out this free investment calculator.
Becoming savvy with your savings and spending can seem overwhelming. At YNCU, our local advisors work closely with you to learn your current finances and future goals to ensure you’re set up for success.
Looking to speak to someone about your personal finance goals? Find your local branch.
Learn how to become a YNCU member and experience the difference that Your Neighbourhood Credit Union can make.
