Tag: tips

 

Avoiding overspending while holiday shopping: 6 Hacks to keep in mind

 
 

posted on

December 9, 2025

You want to stay in control of your spending when you shop for Christmas or at any other time. While it can help to tell yourself to stick to a budget, mere resolve often isn’t effective. When your resolve drifts, it can help to know what influences work on your mind to make it happen. This way, you have a better chance of retaining control.

Look out for excitement

Shopping is an exciting thing to do. Yet, feeling keyed up when you shop can make it harder for you to exercise self-control. You don’t even need to feel particularly enthusiastic to lose control; merely drinking coffee before you shop has been shown in studies to push consumers to spend carelessly. Shopping when you’re calm and composed is a better idea for responsible spending.

Don’t let the environment influence your buying decisions

Being in an environment carefully designed to facilitate buying can make not buying feel like the wrong thing to do. Rather than letting the store environment influence your buying decisions, train your mind to ignore the surroundings and focus on the importance of each purchase. To help make sure that the wonderful scents and aromas in the air don’t push you into regrettable buying decisions, you could even make a point of snacking on unglamorous foods like herbal cookies while shopping.

Don’t get too friendly with the sales staff

Being friendly with the staff may seem like the right thing to do at any store, but when you let that happen, it can make it hard for you to walk out without buying anything. Doing so may feel like you’re personally rejecting those people. While you want to be polite, you don’t want to get chatty.

Make two trips

If you go out to a store, look for things to buy, and then buy them right then, you’re likely to find it hard to tell the difference between genuine purchases and ill-considered ones. Instead, make a reconnaissance shopping trip to note down what products you want to buy and for how much, and then go home. After considering it for a day or two, you could revisit and purchase the items that still seem like a good idea. Having a rule about making no purchase decisions on your feet can be a great way to exercise clear-headed decision-making.

Only shop before payday

If you’re not good with money, it can be hard to think ahead and understand how overspending today could get you in trouble later on. For this reason, it can be a mistake to allow yourself to shop when you’re flush with cash after getting paid. Instead, allow yourself to shop only after you’ve paid every bill and put money into your savings funds. If you can’t think ahead with money, you don’t want to pretend that you can. You simply time your buying decisions so that you don’t have to think ahead.

Consider an alternative way to use the money

You may struggle with saying no to a specific purchase, but you might feel more confident about spending money in other ways. For instance, if you want to buy a dress worth $80, you might ask yourself what would happen if you were to put the $80 in a savings fund. Chances are that it would seem such an unglamorous thing to do that you wouldn’t feel good about it. This perspective could give you the little jolt you need to avoid making a purchase.

Buying too much can make life more complicated in many ways. When you’re able to put these mind hacks to work for you, however, you’re likely to come away with purchases that you feel good about, both in the moment and well into the future.

 

 

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. Membership required. SRP is federally insured by NCUA.  

Article Credit: BALANCE  

 
A small model of a house is next to the credit union's logo.

Buying vs. renting a home: Which is right for your wallet and lifestyle?

 
 

posted on

November 15, 2025

For generations, home ownership was considered an essential component of the American dream. However, in recent years, financially savvy people are questioning whether it’s economically rational to rent, buy a starter home or to wait and buy their dream house. 

 

The housing market tends to shift a little each year, which changes the factors regarding housing choices. There are arguments both for buying and for renting, depending on your individual circumstances. To help you evaluate your own situation, consider these five important questions as you make the buy-or-rent decision. 

  1. How long do you plan to stay where you are?

Your intended length of stay has a huge impact on whether it makes more sense to rent or buy. There are many costs associated with the process of buying a home outside of the cost to purchase it–brokers’ and appraisal fees, title insurance, mortgage origination fees, and closing costs. The longer you remain in a house, the more time you have to spread out the costs. Selling the home within a few years may not offset the fees due to there not being enough appreciation. 

  1. Are you throwing money away on rent?

The primary argument in favor of purchasing a home is that you build equity in a valuable asset that can boost your long-term net worth. In contrast to this, paying rent each month seems like spending rather than saving. Rent may actually be less costly after factoring in all of the expenses associated with ownership. 

  • Property taxes 
  • Insurance 
  • Maintenance (it’s recommended to budget at least 1% of the value of your home each year to cover routine maintenance) 
  • Unforeseen expenses such as replacing a heating and cooling system or roof 

Focusing solely on the monthly mortgage payment versus monthly rent may be overlooking additional costs of ownership. 

  1. What tax savings can I expect with home ownership?

Traditionally, the costs of homeownership have been offset by tax savings generated by the mortgage interest deduction. Recent changes to the tax laws have lowered the cap on the amount of mortgage interest that can be deducted. Interest paid on home equity loans or lines of credit is still deductible provided that the money is used for improvement to the home. Before you make the decision to purchase, we recommend doing your homework on how current tax laws will affect you by reaching out to a certified tax professional. 

  1. Do house prices always go up?

The real estate collapse in 2007 showed us that home prices can suffer major declines. Before buying a home, consider how your finances would be affected if your home’s value increased slowly or not at all. Understand that buying a house with the intent of it serving as an investment can be risky. Do your research. Though houses do generally go up in value, they don’t always. It can help to think of your home as a place to live not just an investment. 

  1. Which option will have a greater impact on my overall wealth?

Make an accurate comparison between the financial impact of renting and buying by factoring in the complete costs of homeownership–not just mortgage versus rent payments–as well as how owning would affect your taxes. A rent vs. buy comparison can be done using the price-to-rent ratio, which is calculated by dividing the home value by the annual rent amount. If this number is less than 20, buying may be a better option for you. Conversely, if it is greater than 20, renting might be best. You can find online rent vs. buy calculators that let you plug in your own numbers to see the difference that buying or renting has on your long-term finances.

 

There are benefits and drawbacks to each option. Both are major financial and lifestyle decisions and there isn’t a right answer for everyone. Before signing a mortgage or lease, weigh the benefits and drawbacks of each choice. 

Benefits of owning a home 

Security and freedom are two reasons to purchase a home of your own. When you are the mortgage holder, you have the right to make changes to the property. There are financial benefits to home ownership as well. Most homes can increase in value over time, which means that your investment appreciates. 

 

In the first few years of making your mortgage payment, you’ll pay interest charges, which may be tax deductible. The longer you live in the home, the more principal you will be to pay off. As the balance of your loan declines, the equity in the home climbs. Owning a home also benefits your credit. Lenders perceive you as a good credit risk because your house can serve as security against future loans. 

Drawbacks of owning a home 

Buying a house is one of the largest investments many people will make in their lifetime. Along with the cost of the home, you are also responsible for the monthly payment of principal, interest, taxes, and insurance (what is referred to as “PITI”). It takes quite a bit of pre-purchase cash before you even step foot in the door. Because of the upfront expenses and monthly outlay, homeownership is not for everyone. 

Benefits of renting 

A sense of freedom is also associated with renting, but in a different sense. With a renting scenario, the only commitment you have is the security deposit, first and last month’s rent, and monthly rent. The landlord is responsible for most of the property’s upkeep, which greatly reduces expenses. 

Drawbacks of renting 

An absence of equity is the primary problem with renting a property versus owning it. The money you pay each month builds the owner’s (aka “landlord”) net worth instead of yours. Most rental properties have rules you have to follow and the agreement you sign binds you to any restrictions, such as no pets or a specific number of people who are allowed to live in the home. 

 

Attitudes have shifted in terms of homeownership and the best advice we can give you is to assess your financial circumstances and lifestyle needs to decide if renting or buying is for you. 

 

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. All loans subject to approval. Actual rate and terms may vary depending on individual’s credit history and other factors. Membership required. SRP is federally insured by NCUA. Equal Housing Lender. NMLS ID #612441.

Article Credit: BALANCE  

 
A peace lily next to the credit union's logo

What Happens to Debt After Death?

 
 

posted on

November 3, 2025

You come home one day and find a letter asking you to pay your recently deceased spouse’s $400 credit card bill. Soon after, you start receiving collection calls. What should you do? Are you responsible for paying the bill? 

 

It is not uncommon for creditors to turn to relatives for collection after a person dies. In some cases, they may be legally on the hook for the debt. However, knowing the law can help you handle bill collectors without being bullied into unnecessary payment. 

Know the Law

When dealing with the debt of a deceased person, the first thing you want to consider is if anyone else’s name is on the account. Each account holder can be held legally responsible for the outstanding balance, regardless of who used the account or whatever agreement the account holders had on who would pay the bill.

 

Taking the example above, let’s say the credit card was a joint account, owned by your spouse and you. Your spouse was the only one who used the card and made the payments. You simply co-signed on the application because he/she had a low credit score. Unfortunately, since your name is on the account, you are still on the hook for the outstanding balance. This rule only applies to co-signers, not authorized users, who are not legally obligated to repay the debt. (However, you can be held responsible for charges you make after the death of the primary account holder, so don’t buy a $3,000 television with the card thinking you can get it for free.) 

 

In most states, relatives whose names are not on the account cannot be held personally responsible for a deceased person’s debt. In community property states (Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), spouses may be responsible for paying the debt, even if their name is not in the account. If you live in one of these states, it is a good idea to talk to a lawyer about your obligations. 

Estate Assets

Even if you are not obligated to pay a creditor out of your own pocket, that does not necessarily mean you can tell them, “Tough luck. You are not getting a penny.” Obviously, the creditor cannot collect directly from a borrower who is not alive, but they are entitled to collect from his or her estate, meaning they can take from assets before they are passed on to heirs (although certain assets, such as retirement funds and life insurance, may be exempt).

 

For example, if your father left you the $10,000 in his savings account and had a $3,000 loan outstanding at the time of his death, the lender would get $3,000, and you would get $7,000. However, if there are not enough assets to cover the bills, then some creditors are simply out of luck; they cannot collect money the estate does not have. 

Executor of the Estate

It is the role of the executor of the estate to pay the deceased person’s outstanding bills. If you are the executor, you may want to consult with a lawyer about your state’s probate process and laws. There may be specific regulations on the order that the debts should be paid. 

 

If you are not the executor of the estate but are receiving phone calls and/or letters asking you to pay, you should refer the creditor to the executor. If they are persistent, send a certified letter stating that the person is deceased and you are not responsible for paying the debt. Don’t let yourself be intimidated into paying a debt you are not responsible for. If the bill collector is making claims you don’t believe are true, such as saying you are a co-signer on the account, ask for proof. Let them know you are aware of your rights and will report them if they do not stop calling you.

 

Harassing bill collectors can be reported to the Federal Trade Commission (877-382-4357) and state attorney general’s office. (They investigate patterns of complaints but typically do not intervene in individual cases.) If the collection activity still does not stop, you may want to hire an attorney to send them a letter and, if needed, take additional legal action. 

 

While you may inherit Great Aunt Suzy’s doll collection or Grandma Jane’s floral sofa, luckily, in most cases, you won’t inherit your relatives’ debt. 

 

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. Membership required. SRP is federally insured by NCUA.   

Article Credit: BALANCE  

 
A smiling piggy bank stands next to a figurine of a house with keys, representing saving for homeownership.

Saving for Homeownership

 
 

posted on

October 15, 2025

For most people, buying a home is both an exciting and challenging venture—it is the quintessential American dream. However, because of the high costs involved, saving for home purchase takes commitment, research, and sometimes sacrifice. This fact sheet will provide general information on the costs involved and the types of expenditures you will need to save for in order to buy your first home. 

 

The down payment 

The down payment will be the most significant outlay of your pre-purchase costs. The rule used to be that you needed to put down 20% of the purchase price, and you would obtain an 80% mortgage. Today, homebuyers can buy a home with as little as three to five percent down. If you do put less than 20% down, you will probably have to purchase private mortgage insurance, which will cost you between .5% to 1% of the loan amount until your equity reaches the full 20%. Keep in mind that the more you put down, the less your mortgage payment will be. 

 

Earnest money 

Earnest money is a cash deposit you make when you submit your offer, which proves to the seller that you are serious about wanting to buy the home. Your real estate broker will deposit the money into an escrow account, and if your offer is accepted, it will be applied towards the down payment. If the offer is rejected, it will be returned to you. Typically, the earnest money deposit will be about two percent of the price of the home. 

 

Closing costs 

Closing costs include all fees required to execute the sale transaction, such as attorney fees, title insurance, appraisals, points, and tax escrows. Typically, these fees are paid up front. The average cost is three to five percent of the purchase price. 

 

Post-purchase reserve funds 

You may also need to prove to the lender that you have some reserve funds to protect against potential cash flow problems. This not only is assurance for the mortgage holder, but is also for your peace of mind. Post-purchase reserve funds should be at least two to three months’ worth of housing payments. This money is recommended to be in a savings account and accessible without penalties for early withdrawal (though money in a retirement account can also be counted toward the reserve requirement). 

 

Cost breakdown 

So how much money will you need to come up with to buy a home? The actual figure depends on many factors. You may have to save more or less for the same home depending on current interest rates, whether you get a fixed or an adjustable rate mortgage, repayment terms, and your credit rating. Other expenditures you may want to save for are landscaping, immediate repairs, redecorating, furnishings (particularly if you are moving into a much larger space), and moving expenses. 

 

Example for a $300,000 Property: 

20% Down payment $60,000 
3.5% Closing costs $10,500 
3 Month reserve fund* $5,625 
Total estimated pre-purchase costs $76,125 

 

* $1,875 per month for Principal, Interest, Taxes and Insurance. Example based on a 30-year fixed mortgage, 6% interest, $2,436 annual property tax and $2,796 annual homeowners insurance. 

 

Educate yourself 

Obtaining high quality, objective home ownership education is essential for first time homebuyers.

 

The Department of Housing and Urban Development (HUD) can put you in touch with the nearest housing counseling professional in your area by calling (800) 569-4287. You will learn how to develop a reasonable savings goal and time frame, how large a mortgage you qualify for, and the approximate price range in which you should be looking. You will also be given feedback about your credit score, and what you need to do in order to make improvements. Suggestions may include increasing income, paying down debt, closing unused accounts, paying collection accounts, correcting errors, and making timely payments for a specific time period. 

 

Review your spending plan 

Analyze your current financial position by reviewing all assets and liabilities. Do not overlook any source of funds. Include all checking and savings accounts, CDs, stocks, mutual funds and savings bonds. Retirement funds such as a 401k or an IRA can be counted toward the reserve requirement. You may even be able to borrow against your 401k plan and use the proceeds toward the down payment (check with your human resources department for details and restrictions). 

 

Prepare a cash flow spending plan to determine how much you can realistically save each month. You may choose to sacrifice some expenses or delay the purchase of non-essential items in order to meet your monthly goal. 

 

Save effectively 

Some good techniques for effective saving include: 

  • Set up direct deposit with your employer, where a portion of your income is siphoned directly to a savings account. What you don’t see, you don’t miss. 
  • Track your spending. Awareness leads to diligence and thrift. 
  • Get the family involved. It is easier to save when everyone is excited and working towards the same goal. 
  • Tape a photo of the home or type of home you are saving for on the refrigerator or computer. It will be a constant reminder of your objective. 

Ultimately, saving for a home is a choice. If you find your savings plan to be unfeasible, consider extending the time frame. 

 

Conversely, if you really want to stick with the original time frame, you may want to buy a home that has a smaller purchase price—and buy “up” later. The idea is not to abandon the dream, but to reassess, reorganize, and reengage! 

 

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. The payment example displayed above is intended for educational purposes only and does not depict SRP’s current offerings. Membership required. SRP is federally insured by NCUA. 

 

Article Credit: BALANCE  

A jar full of coins next to a notepad for listing monthly expenses.

Five easy ways to cut monthly expenses

posted on

October 1, 2025

Ever notice how your monthly expenses always seem to equal whatever salary you’re making, even after you get raises? The phenomenon is called “lifestyle creep,” and it can keep you from reaching all kinds of financial goals, from paying down debt to saving for retirement.

 

One way to get lifestyle creep under control is to have any future raises you earn directed into savings. Consider diverting the raise to savings via direct deposit or increase the percentage that you contribute to your retirement account.

 

While you are waiting on that raise, here are a few things you can do right now to cut your monthly expenses. 

Make a budget 

The first step toward cutting expenses is to make a budget, so you know exactly where your money is going. Start with major categories, like rent or mortgage, utilities, transportation, meals, clothing, and entertainment. Then break it down even further to ferret out items that are ripe for reducing. Many people, for example, are surprised to learn just how much they pay for pricey lattes and snacks from restaurants and vendors that would cost a fraction of that amount if they were made at home or purchased at a grocery store. 

Lower your mortgage payment 

The biggest monthly expense for many people is their home mortgage. If you haven’t examined that loan since you bought your home years ago, it’s quite possible that you could save a lot of money – both now and over the life the loan – if you refinance at a lower interest rate. To know whether refinancing makes sense, you’ll need to add what you’ll spend on closing costs into the calculation of your new monthly payment. 

Get an insurance checkup 

If you have a car, you absolutely must have car insurance. But it pays to shop around periodically to make sure you’re getting the best deal. If you have a decent emergency fund on hand in case of an accident, one way to lower your premiums is to increase your deductible. Also be sure to examine your policy for “extras” you may not need. For example, you could be paying for roadside assistance both through your insurance policy and through AAA. 

Examine your auto-payments 

Putting your regular bills on auto-payment can be a really smart way to protect your credit rating by ensuring you’re never late with a payment. However, if auto-pay causes you to keep paying for items or services you don’t really need or use, it’s no bargain. A few common culprits include unused gym memberships, subscriptions to magazines that aren’t read, and cable or satellite TV plans that include loads of premium channels that are rarely watched. 

Cut the cord 

If you’ve already ditched your land line, good for you! If not, doing so is one of the quickest and most pain-free ways to trim your expenses. Most all of us have our cell phones with us all the time anyway, and if you really like the feel of a traditional phone in your hand, a VOIP (Voice Over Internet Protocol) plan that provides phone service over the Internet is a lot cheaper (free in some cases) than traditional land line service. 

 

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. Membership required. SRP is federally insured by NCUA.  

Article Credit: BALANCE  

A piggy bank stands next to a four stacks of coins with increasing heights. On top of each stack, blocks spell out "401k," illustrating saving for retirement with a 401(k).

The 411 on 401(k)s

posted on

September 15, 2025

As pension-style retirement plans have fallen by the wayside, the 401(k) plan has become the go-to option for many companies looking to help employees save for retirement. The 401(k) enables workers to set money aside, and not pay taxes on it or its earnings until they retire and begin withdrawing funds from the account. Here are some key things you need to know about these tax-advantaged accounts. 

Contribution amounts 

One of the best things about tax-deferred retirement accounts like the 401(k) is that you make contributions pre-tax, so in addition to saving for the future, you’re reducing your income taxes right now. But there are limits, set by the IRS, to how much you can put away each year. These limits do change from time to time, so perform a quick search engine query to learn the latest numbers. 

 

If your company automatically enrolls employees in their 401(k), the default contribution amount probably won’t be anything close to the maximum, but you can probably elect to contribute more. If contributing the maximum is not doable right now, one smart strategy is to funnel any future salary increases into your 401(k) until you reach the maximum contribution. 

Matching funds 

As part of their employee benefit package, many companies will match employee contributions to a 401(k) up to a certain percentage. For example, say you make $50,000 a year and your company matches up to 3% of your salary. When you contribute 3% (that’s $1,500) to the 401(k), the employer match of that amount boosts your annual investment to $3,000. If your employer offers matching funds, be sure to contribute at least as much as you need to get the full match. Otherwise, you’re leaving money on the table. 

Vesting 

Any money that you contribute to your 401(k) is completely owned by you, from the start. Though your investments may go up or down, you still own it when you leave your employer. Some companies, though, impose “vesting” requirements on the matching funds they contribute to your account. They may, for example, require you to stay employed for a set amount of time before you’re entitled to (or “vested” in) the funds they contribute to your account. If you leave your job before fulfilling your employer’s vesting requirements, you may receive only a portion (or none) of the matching funds. 

Investment options 

Most 401(k) plans have several options for investing your retirement savings and some may even offer the services of a financial advisor to help you choose the right mix for your age and investment goals. As a general rule, though, the younger you are, the more risks you can take because you have more time for make up for potential losses. As you get closer to retirement, you’ll probably want to shift toward more conservative investments. Whatever your age, though, it’s important to be diversified – which is just a fancy way of saying “don’t keep all your eggs in one basket.” 

 

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. Membership required. SRP is federally insured by NCUA. 

 

Article Credit: BALANCE 

A collection of seashells, such as conch, starfish, and clamshells, on smooth white sand.

Money-smart travel: save now, live it up later

posted on

September 1, 2025

When you think about it, planning is one of the best parts of taking an exciting vacation. Putting your dazzling itinerary together and daydreaming about all the amazing things you’ll see can really get the juices flowing. However, if you haven’t planned for the financial impact of your trip, money concerns in the months after your excursion can tarnish your happy memories. 
 

It might seem like a strange time to be thinking about vacationing, but preparing well in advance can help relieve the stress and strain of paying for your travel. That, in turn, frees you up to focus on all the fun parts of getting ready for your excursion. 

Here are a few pointers for assembling funds to ease your mind before, during, and after your incredible vacation adventure. 
 

A price tag for paradise 

Creating a trip free from financial stress starts with knowing how much the journey will cost. Clear several hours on your schedule to get a complete grasp on the entirety of your outlay. Though it may seem daunting to stare down such a big number, ultimately, it can give you peace of mind knowing you won’t have to worry about months of supersized credit card bills after you return home. 

Calculate before you vacate 

Once you know the grand total for your getaway, it’s time to start your plan to make it happen! Divide the cost by the number of months until your departure; this is your monthly magic number. 

Ponder your pillars 

As with so many financial goals, making your adventure a reality comes down to the four pillars of personal finance: expenses, income, assets, and debts. If the monthly magic number is more than what you can currently put toward your vacation fund, don’t fret. It just means you’ll need to make a few adjustments in one or more of the areas below. 

Pillar I: Expenses 

Planning for your vacation is a terrific time to review your monthly spending plan. Typical areas of emphasis for clearing up space include dining out, entertainment, and subscriptions. But no one knows your situation better than you, so go over your expenditures to see which areas of spending money are a lower priority. 

 

A recent study found that the average American spends $1,200 per vacation. By challenging yourself to trim just $100 per month in expenses, you could potentially pay for a whole extra trip each and every year without having to worry about generating additional income. 

Pillar II: Income 

This one can be a bit trickier. If you can work a few extra hours at your job, consider using the overtime to rev up your travel fund. But you don’t want to spend 50 weeks of the year miserable just to have two weeks of bliss. Income is an excellent area for creative thinking. What things would you enjoy doing to get more cash rolling in? 

Pillar III: Assets 

Many people find happiness in accumulating memories instead of material possessions. If you think you might fall into this category, consider bulking up your trip savings by liquidating unwanted items via online auction sites, social media marketplaces, or an old-fashioned garage sale.  

Some big-picture thinking might be in order too. If your home or vehicles are more than you need, downsizing your life a bit could mean more magical travel moments in your future and less stress about affording them. 

Pillar IV: Debts 

When measuring the monthly costs affecting your ability to save, consider the impact of carrying expensive credit card debt from month to month. The interest you pay each month on unsecured debts could help you get to that special place faster or maybe even enjoy a more deluxe experience once you’re there. 

Set it and forget it 

Trying to remember to put money away for your vacation every month isn’t likely to be your best strategy. Instead, setting up a savings account specifically for your trip and having money automatically deposited from each paycheck into that account gives you a simple and guaranteed way to amass the funds you need. 

Frame your mind 

Spend all too much time daydreaming about relaxing on that beach or climbing those ancient ruins? You can put that spirit to work for you. First, make the background image on your phone a picture of your dream trip. Then any time you’re tempted to make an impulse purchase, pull out your phone and let the dreamy picture help keep your eyes on the prize. 

Flex your flexibility 

If circumstances change and you’re just unable to save the monthly amount you initially anticipated, consider pushing back your travel dates. It may be a bummer to think about delaying your getaway, but waiting until you have the money before you travel can mean not having to pay tons of interest on the cost of the trip. Not only does that save you money, but it can also help you take the next trip after this one sooner. 

Many happy returns 

If you find it challenging to save, there’s no need to feel shame about it. If you use your tax refund each year as your travel fund—and that strategy works for you—keep it up. It’s better to rely on a tax refund than a performance bonus because the latter may or may not happen in any given year. 
 

When you’ve got the financial aspect of your vacation figured out, the fruity drinks taste sweeter, the exotic dishes are more delicious, and the relaxation is more delightful. You deserve that. 

 

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA. 

 

Article Credit: BALANCE 

A high school student in a classroom with a notebook and a pencil

Personal finance concepts all high school students should know

posted on

August 15, 2025

For good reason, many high school students are focused on an academically rigorous course load. Unfortunately, personal finance – a topic they need to understand to survive in life – is rarely taught in school in a comprehensive way. 
 

As a parent, the duty often falls on you. Not sure where to start? Here are some topics that will help start your discussions about financial fitness. 

Buying that first car 

If your high school student is ready for their first car, point them to makes and models known to be reliable, safe, and cost-effective. If a car loan can’t be avoided, then turn it into a discussion on borrowing and debt. Even if you’re covering the costs, explain the concept of monthly payments, default, etc. 

Responsible credit management 

As students turn 18 and head to college or the working world, they’ll likely start getting credit card offers. Few young people, however, have the discipline to pay off credit card bills on time, every time. Before they arrive on campus or at their first post-high school job, make sure you introduce them to credit card best practices, like keeping balances low and having a plan in place to pay the balance in full each month. 

Saving for college expenses 

Many of today’s high school students have part-time jobs. If money is tight for college in your family and you have a child expecting to further their schooling, explain that they may have to put some of their income away for higher education. Even if tuition is covered, there are still additional costs such as textbooks, meal plans, parking, and more. 

Basic investing 

It’s never too early to learn about the stock market and other investments. Explain the nuts and bolts of investing and have them start tracking companies of personal interest to them. Raise the stakes by making hypothetical or even real (if you’re comfortable with it) investments. They might not become financial advisors when they get older, but understanding money on a more advanced level can strengthen their fundamental skills now. 
 

By sharing financial basics with your kids and framing them in terms that are relevant to them, you can set them up for a positive financial future. 

 

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA. 

 

Article Credit: BALANCE 

A woman holds a smart phone in an urban setting, illustrating the use of digital payment apps.

Digital payment apps: A safety guide

posted on

August 1, 2025

It’s a tough reality of living in a computer-driven world: scams will always find their way into popular technologies. Digital payment apps are no exception. With their use becoming increasingly a part of our everyday life, knowing the steps for safeguarding your information and maintaining control of your money is essential. 

Use known, trusted apps

With new payment apps popping up all the time, it can be challenging to keep track of which ones are legitimate. If a friend or business is asking you to use an app you’re not familiar with, take the time to research the service online and check reviews. If an app is trustworthy, there will be lots of information available about it on the internet. 

Know your recipient 

Commit now only to send money to people, businesses, or organizations you know and trust. It’s too common these days for scam artists to contact people via text, phone, or mail to request an app payment. There’s never any reason to respond to these types of appeals. You can always contact companies or other entities you have dealings with at a phone number you know to be correct to ask if you owe them money. Odds are you don’t. 

In some cases, fraudsters are even posing as government agencies and asking for past-due funds. Remember that government agencies—including the IRS—will never ask for an app-based payment. 

 

If you get an unexpected request for money that looks like it came from someone you know, confirm with them that they did send you the request. Don’t use any contact information included in the request to speak with them. 

Check for errors 

Some apps don’t allow you to cancel a payment once it’s sent. If you make a typo or select the wrong recipient from a list of search results, you may only get that money back if the incorrect payee does the right thing and returns your funds. It’s worth the few extra seconds to ensure you’ve got the right person. 

 

You can also ask that the person receiving the money send you a request for the funds to avoid this kind of mishap. 

Step up your device security 

If you’ve got payment apps on your phone and your security game isn’t up to par, a criminal who steals or finds your lost phone can access the app and use it to send themself money from your account. 

 

It’s recommended by data security experts that you use two-factor authentication on your phone and strong, unique passwords on your accounts to prevent these types of intrusions. If you’re comfortable with it, biometric authentication—like a thumbprint or facial scanning—is ideal for safety purposes. 

Consider credit instead 

Credit cards provide fraud protection that payment apps typically don’t. If a situation presents itself in which sending money via an app feels dicey, think about using a credit card instead. A credit card payment will likely be much easier to reverse if things go sideways. 

Review your linked accounts 

As a general security measure, reviewing all your checking and credit card accounts regularly is a sound practice—ideally, at least once a month. If security breakdowns are happening because of a payment app, the evidence is going to show up in the account you have linked to the payment app. By staying vigilant, you can react quickly to any mischief. 

 

Along the same lines, setting up transaction notifications for your payment app(s) is a good idea. With so many apps trying to send you updates and alerts, it can get more than a little tedious, but these are notifications you don’t want to forego. 

Utilize the protection of credit cards 

Speaking of your linked accounts, it makes sense to charge your digital payments to your credit card. As mentioned above, credit cards provide more recourse for fraudulent charges than debit cards. If you don’t have a credit card or don’t feel comfortable using one for these types of transactions, that’s fine. But it’s important to understand that foregoing credit could heighten your risk level. 

Hold on to your phone 

Some thieves are so brazen that they’ll ask to borrow your phone due to an “emergency” and then send themselves money using a payment app on your phone. Bottom line: don’t hand your phone over to anyone you don’t know. If they need to make an emergency call, you can dial the number and hold the phone to their ear while they talk. This may seem awkward, but it’s better than losing thousands of dollars. 

Get the goods first 

Scammers want you to do everything quickly so that you don’t stop and think about what you’re doing. If someone insists you pay them with an app before receiving your merchandise—whether online or in person—tell them you’re uncomfortable with that. 

Share sparingly 

There’s no reason to believe digital payment apps play fast and loose with your personal details more than other apps or websites. However, it’s just wise to never provide more sensitive information—like birthdate, Social Security number, etc.—to an app than you need to. There’s no point in increasing your potential exposure. 

 

We live in a world obsessed with doing things quickly and in conjunction with multiple other tasks. If you can slow down and use caution with payment technologies, there’s no reason why these tools can’t be both efficient and safe. 

 

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA. 

 

Article Credit: BALANCE 

Three stacks of coins of increasing height, topped with a bit of soil and small plant sprouts growing from them, to represent building wealth.

Daily Habits That Make Building Wealth Easier

posted on

June 16, 2025

It is easy to think of wealth as something that happens overnight. The media often emphasizes rags to riches stories, forgetting how rare those scenarios are. News sites share stories of happy lottery winners, reports that overlook the enormous odds ticket buyers face.

 

Given these misperceptions, it is easy to see why so many people haven’t taken the steps that could help them achieve their financial goals. Goals that may seem unattainable. With discipline and hard work, building wealth is possible. Here are a few strategies and everyday habits that can make wealth building easier.

Pay yourself first

Pay yourself first, or “PYF,” is perhaps the most effective wealth-building habit and one of the easiest to implement. With this simple strategy, you direct part of every paycheck to a savings account, mutual fund, or other investment vehicle, forcing yourself to live on less than you make.

Know how much is in your accounts

There is a reason why financial institutions make so much money on overdraft fees. A shocking number of account holders have no idea how much money is in their account. As a result, they are blindsided when writing a check or withdrawing cash from an ATM sends their balances negative. Knowing how much is in the account is an essential first step toward controlling unexpected costs and taking control of your finances.

Prioritize fee reduction and demand real value for your money

Those who manage to build wealth know that prioritizing fee reduction is a vital first step and that every dollar not spent on management costs is one more dollar that can be invested. The wealthy, and those on their way, always demand value for the money they spend on their investments.

Deposit (or invest) raises, bonuses, and other found money

If you want to build wealth, start by putting bonuses and other found money in a savings account or investing the cash in a mutual fund or other low-cost investment. When wealth builders get extra money, they avoid lifestyle inflation, opting instead to beef up their savings and investment accounts.

Take advantage of tax savings

From 401(k) contributions to IRA accounts to health savings accounts, some types of investments have a double and even triple advantage. One of the most effective ways to build wealth is to prioritize investments that offer tax savings and the promise of tax-free withdrawals. Consult a tax advisor to determine the best strategies for your situation.

Develop multiple streams of income

One of the fastest ways to build wealth is to bring in extra money, which starts with developing multiple income streams. That could be a side hustle, a home-based business, or even rental real estate. The idea is to generate extra cash, money that can be saved and invested.

Save on everyday purchases

People who are successful at building wealth look for ways to save money on everyday purchases. These people choose generic and store-brand products when they go grocery shopping. You might even see them scanning the racks of the local thrift store for gently worn designer duds and used but still pristine furniture and home décor.

Take the long view

Building wealth will be a slow and steady process unless you are the one in several million who buys that winning lottery ticket. If you want to succeed, it pays to adopt the long view, saving consistently, taking calculated risks, and tracking your progress over time.

Conduct an annual financial review

Successful wealth builders know where they stand and where they are going. So they conduct annual reviews of their finances, including emergency savings, investments, insurance, and all other expenses.

 

Building wealth is not an easy process; in many cases, it is not fast either. If you want to build wealth for the long term, start today, and adopt these smart habits that can help you succeed. The strategies listed above can help you get started, one dollar, and one day, at a time.

 

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. Membership required. SRP is federally insured by NCUA.

Article Credit: BALANCE

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