Do you know how much money you have?

Check your balance

Now this might sound obvious, but how often have you avoided checking your bank balance before a night out. I’ve been known to (gasp) put my hand over the screen when my balance flashes up. Sometimes you really just don’t want to know. Especially not if you know you had a big night out at the weekend. And that’s fine, as long as it doesn’t become a habit. You should know to the nearest hundred how much money you have. You know what’s worse than your face falling when you realise you’ve spent too much? The sinking feeling when you try and take money out and you’ve spent it all a week before pay day.

Set up text message alerts

Most banks these days will text you at a certain limit on your account. Most banks will text you every day if you ask them. This is key to you knowing where your money is going. I forget a lot of things I buy, and I don’t think I’m alone. You go to the shop to buy biscuits, you buy three magazines and a packet of cigarettes and pop it all on your card. But you only remember the biscuits and have no idea where your money is going. Even a weekly text alert is better than guessing. Your brain will only ever guess in your favour. Your brain is almost always wrong.

Write down your online spending

Get a massive pen and piece of paper. Stick it above your desk. Every time you spend online, write this down and tot up at the end of the week. When we’re not actually handing over any cash, or physically paying for something, I think we forget that we’re spending money at all. By writing it down and having it staring you in the face, you’ll remember. And possibly think twice about that extra pair of shoes. You’ll also remember those little extras like delivery charges that we don’t factor into our spending.

Set up standing orders

Standing orders mean that you know where your money is going, as well as when it comes in. It’s not easy for me to deal with standing orders – as I’ve mentioned, I don’t always know when I’m getting paid. But if I can keep track of where my money is going, I won’t get a massive shock when I think I’m rich on minute and the landlady is calling me the next day to find out where the rent is. This has happened. It’s not fun. This way you control what day your cash is leaving your account.

Use cash

Want to really keep track of your money? Take cash out instead of using your cards. Once you know how much cash you’re taking out this week, you’ll be more aware of where it’s going. Banks and technology are doing their very best to make spending simple. But it’s a really issue if you’re trying to stick to a budget and I’m going back to cold hard cash for a while.

What are your tips for keeping up with your finances? Do you know how much money is in your account?

Ten Ways to Save on Filling Your Tank

With the average price of gas more than $1 higher than this time last year, American consumers are feeling the pain at the pump as more of their income goes to keeping their cars on the road.
Here are 10 money-saving tips from the U.S. Department of Energy for everyone fed up with filling up at the pump:
Tune ups add up: Keeping your car engine tuned can improve mileage by four to 40 percent while saving 12 cents per gallon.
Pressure tactics: Save nine cents per gallon by keeping your car tires inflated to their proper pressure.
Don’t fool with fuel: Use the octane fuel recommended in the owner’s manual and save three-to-six cents per gallon.
Remove the junk in your trunk: Save between four and eight cents per gallon by reducing the weight in your vehicle by 100 pounds.
Slow down to save: You can assume that each five miles per hour you drive over 60 will cost you an extra 24 to 87 cents per gallon.
You better shop around: Comparing prices at different stations can save you hundreds of dollars a year. Consider paying for gas with a credit card that offers gas rebates or buy gas gift cards to use at the pump with a credit card that offers rewards.
Lose the lead foot: When driving, avoid fast starts and stops, and maintain an appropriate speed. Over time, you will save hundreds of dollars on lower gas and maintenance costs.
Time for a change: Use motor oil with friction-reducing additives labeled “Energy Conserving” on the API performance symbol.
Don’t get tripped up: Instead of making several different trips in a week to run errands, map out a plan to tackle several errands in one outing and minimize the number of miles driven.
Log on before starting out: Use smart phone apps and resources such as gasbuddy.com, which will show you where you might be able to find the cheapest gas near you.

Tips to Help Expectant Parents with Finances

Call Sterling Van Dyke Credit Union at 586.264.1212 for an appointment to discuss ways we can help you plan your financial future.Among all of life’s momentous occasions, having a baby is about as big as it gets. Given the sheer magnitude of the occasion and all the new responsibilities it entails, it’s no wonder many expectant and new parents wear anxious looks on their faces. “Plain and simple, it costs a lot to have a baby,” says certified financial planner Elizabeth McFadden Aldinger of Legacy Wealth Management in Memphis, Tenn.

Expectant couples can put their nervous energy to good use by taking steps to control their growing family’s financial future. Here are some of the simple things that financial planners recommend they do as their baby’s due date approaches:

Set up an emergency fund with enough cash to cover three to six months of gross living expenses. Interest-bearing savings accounts and money market accounts are good options for housing the money.

Establish a savings account (separate from the emergency fund) for depositing baby-related monetary gifts and perhaps to house funds to cover the cost of baby gear. “You’re probably looking at spending at least $1,000 for gear, particularly if it’s your first child,” says Aldinger, “and you shouldn’t put all that on a credit card.”

Brace for birth-related healthcare expenses. Learn from your healthcare insurer exactly what’s covered by your plan and how much you can expect to pay out-of-pocket, then set aside funds accordingly. Assess your income situation going forward. Is it financially feasible for one spouse to cut back to part-time or take extended time off to care for the baby?

Get insured. Life, disability and health insurance are all critical to a growing family. Discuss your options with a financial planner.

Plan for all possibilities by putting in place (with an attorney’s help) a will, durable power of attorney and advanced medical directives, plus specifications for the guardianship of your children and the handling of your assets should you both pass away.

Establish—and start funding—a tax-friendly 529 college savings plan or Coverdell Educational Savings Account, but “make sure you’re also doing what you need to do for your own retirement,” says Aldinger. Ask an accountant about the tax ramifications—positive and negative—of having a child.

The arrival of a baby can drastically alter a couple’s financial picture. Enlist a financial planner to help make sense of that changing picture.

This article was submitted by the Financial Planning Association, the membership organization for the financial planning community. FPA members are dedicated to supporting the financial planning process in order to help people achieve their goals and dreams. Submission of this article does not imply an endorsement or recommendation of the Financial Resource Center site.

Money Smart Kids Saving Smart

SVDCU wants to share tips for teaching children good habits about money management. The information was originally published in Smart Parenting - Money Smart Kids.

Saving Smart

Saving money takes discipline. To make it a habit for life, teach your kids about saving as soon as they have a regular income—i.e. an allowance. Help them understand that all the money they receive is not for spending immediately on candy, toys or games. Kids should learn that they have responsibilities—to them­selves, their loved ones, their future and their com­munity. Teach them that they should save money for several reasons, including emergencies, common expenses (such as birthday gifts or lunch money), future purchases, investing and charity.

The 3 Little Piggy Banks

Some experts recommend kids keep their money in at least three piggy banks—one for spending, one for saving and one for charitable giving. Your kids can use envelopes, plastic baggies or any other containers—as long as there are three separate ones clearly marked and explained. Decide what percentage of your kids' allowance and gift money should go into each bank. A common formula is at least 10 percent for savings, 10 percent for charity and the rest for spending. Whatever formula you use, stick to it. Your kids need consistency to learn the routine.

Save Yourself

Model the behavior you want your kids to exhibit. The older they get, the more they'll notice your methods of saving and spending. Let your kids see that you put off immediate gratification to save for bigger goals, pay credit cards on time or set aside money regularly for retirement or investing.

The Magic of Saving

The payoff of saving is watching your money grow. Remind your kids to keep an eye on their savings. When they get enough coins, let your kids trade them in for bills. When they get five $1 bills, give them a $5 bill, and so on. By making regular deposits, they will see that savings add up.

Make It Official

When your kids have enough money saved, take them to open a savings account at your credit union. Tell them their savings will grow faster and be safer in an interest-bearing account. You could explain that the federal government insures people's money in most banks, credit unions and savings and loans associations for up to $250,000 per account.

Saving Options

Visit your credit union with your kids to find out about the kinds of accounts they can open. Ask about:

Passbook or Statement Account

This basic savings account pays your kids interest. They'll receive their own register or book to record their deposits and track their balance. They can withdraw some or all of their money at any time. A minimum deposit may be required.

Money Market Account

Your kids will earn more interest with this account but have more restrictions. They may need a larger opening deposit and have to keep a higher balance. They can withdraw their money any time, however, and may receive a checkbook with the account.

Certificates of Deposit (CDs)

CDs or timed accounts are beneficial if your kids have a lot of money (e.g. $500 or $1,000) they won't need for a while. They'll earn a relatively high interest rate and won’t be able to withdraw the money without paying a penalty.

SVSCU wants to share tips for teaching children good habits about money management. The information was originally published in Smart Parenting - Money Smart Kids.

You can teach your children how to save money by partnering with SVDCU. Open an account today with a minimum deposit of $10.00. They then become a member of the "Very Important Kid" Club.

Money Smart Kids Ages 15-18

SVDCU wants to share tips for teaching children good habits about money management. The information was originally published in Smart Parenting - Money Smart Kids.

Ages 15-18

Your teenagers will likely earn money from a part-time job. This is the time to open a checking account. Be sure they know how to keep records and balance their checkbook. Give your teens more responsi­bility for handling money and making decisions. Older teens can shop for school supplies and clothes—with an expanded allowance from you. Control over spending with a dollar limit.  This will force them to make better decisions. For instance they'll soon realize that buying designer brands means fewer items for their money.

Reality Check

All young adults need to learn the cost of everyday life. Work up a realistic list of the expenses your teens would have if they lived alone. Include the cost of groceries, clothing, rent, utilities; car payments, insurance and gas (or public transportation), taxes, healthcare, entertainment, and miscellaneous (car repairs, household supplies, credit card bills, etc.). Then compare this list to your kids' projected income. They'll see how they'll have to budget and possibly cut back on expenses in order to afford everything.

The Cost of Credit

You may consider letting your teens use your credit card, but there are drawbacks.  You have no control over spending and are responsible for paying the bill. You can teach the cost of credit in another way by charging interest on a small loan you give your teens for a relatively costly item, such as a digital camera. Be firm with your kids paying you back with regular payments on time.  This will help them develop good habits. 

You can teach your children how to save money by partnering with SVDCU. Open an account today with a minimum deposit of $10.00. They then become a member of the "Very Important Kid" Club.