Easy Ways to Save for the Holidays

Yes, the holiday season seems to come earlier every year, but unfortunately for too many Americans, saving for Christmas often arrives too late—if at all.

The average American spends $800 on holiday-related expenses every year, according to the National Foundation for Credit Counseling (NFCC), Washington, D.C. Despite the significant outlay, many consumers forget to plan for these annual costs and instead charge them to credit cards.

If you charge $1,000 and pay only the minimum 2% balance, at an 18% annual percentage rate it will take you 12 years to pay it off. And by the time you do you will have spent $2,353. Now imagine if you have to do this every year.

The NFCC offers a better alternative—plan for the holidays.

If you spent too much this holiday season, here are five easy ways to save for next year’s holiday season.

1. Tighten your everyday spending with the goal of saving about $1 a day between now and December 25th, 2015.

2. Adjust your W-4 to accurately reflect what you owe in taxes. The average tax return is $3,000, but that money doesn’t arrive until April. By taking less out of each paycheck, you can save that money for the holidays.

3. Cut back on monthly expenses that aren’t fixed. Aim to spend $10 less every month on categories like gas, food, and entertainment.

4. Sell unused items. Sell clothes at consignment shops, books, utilities, and CDs online at sites such as Amazon, resale shops, or have a garage sale.

5. Open a Century Club account with New Century Credit Union. Don’t use existing accounts because you could too easily spend that money on other items.

You can also always rethink the kind of gifts you give.

“It makes no financial sense to pile new debt on top of old. Kindness and experiences are meaningful substitutes for purchased gifts, and are remembered long after the wrapping paper and bows have been discarded,” says Gail Cunningham, spokesperson for the NFCC.

Don’t Fall For These Common Money Myths

Even the most battle-tested budget warrior might be making money decisions based on bad information, according to results of a recent survey.

Charles Schwab interviewed 998 people to discover their biggest financial misconceptions. A large number of them believed common money myths. In fact, those who described themselves as “savvy” actually were more likely to believe the myths.

Because it’s dangerous to not know what you don’t know, here are nine common money myths.

Myth No. 1: A will guarantees your property and money will be distributed the way you wish.
Unfortunately, 91% believed this. However, if you’ve named beneficiaries on financial accounts, such as your IRA (individual retirement account) or insurance policy, those designations override any will. You’ll need to update them to ensure you don’t leave assets to someone you didn’t intend, such as an ex-spouse.

Myth No. 2: You shouldn’t have any debt when you retire.
Differentiate between “bad” and “good” debt. No credit card debt is a good goal, but you shouldn’t pay off a low-interest mortgage or student debt at the expense of saving more for retirement.

Myth No. 3: You can always shore up your income in retirement by getting another job.
This is easier said than done for a number of reasons, including declining health and the erosion of marketable skills. Only 4% of retirees end up getting another job, despite 39% of those surveyed indicating they plan to work after they retire.

Myth No. 4: Everyone should have life insurance.
Life insurance is necessary only if you have disabled or young children or a spouse depending on your income, or if you own a small business.

Myth No. 5: You should take Social Security when you turn 62.
Not unless you really need it. If you wait and take Social Security at age 70, your benefits will be 76% higher.

Myth No. 6: You should buy long-term care insurance in your 40s when premiums are lower.
The premiums will be lower, sure, but you’ll be paying them for a longer time. If you’re healthy, Schwab says the ideal age for purchasing long-term insurance is between 50 and 65.

Myth No. 7: Retirees should keep their money out of the stock market.
If you anticipate a long retirement, keeping a portion of your savings in the stock market can help you keep pace with inflation.

Myth No. 8: You should borrow from your 401(k) if you need a loan.
Borrowing from a 401(K) should be a last resort; otherwise you’re putting your retirement savings at risk. New Century Credit Union offers other low-cost loan options that won’t derail retirement savings.

Myth No. 9: Your 50s are too late to make a difference in your financial future.
If you don’t retire until your late 60s, you could have almost two decades left to save. In 2014, anyone older than 50 can add an additional $5,500 in catch-up IRA and 401(k) contributions.

If you have questions about money management, the professionals at New Century Credit Union can help. Contact us today!

NCCU Quarterly Newsletter – Fall, 2014

Attention New Century Credit Union Members!

New Century Credit Union will hold a Special Membership Meeting, Thursday, October 23rd at 12:15 pm in the Topeka credit union lobby.

The purpose of this meeting is to act on a merger agreement between New Century Credit Union, whose main office is located at 707 SE Quincy Street in Topeka, Kansas, and Mid American Credit Union, whose main office is located at 8404 West Kellogg Drive in Wichita, Kansas.

The merger plan, as approved by the NCCU Board of Directors, provides that MACU, the continuing credit union, will assume the assets and liabilities of NCCU and begin serving the members of NCCU upon approval of the merger.  As a NCCU member, you have a right to vote on this proposal in person at our meeting. Click here for more information.

 

International Credit Union Day (NCCU Day)

This year’s International Credit Union Day theme, “Local Service. Global Good.,” emphasizes credit unions’ positive impact in their communities and around the world.

You are invited to join us for NCCU Day on Wednesday, October 23rd, for hot dogs and lots of cool giveaways. Help us celebrate as we honor our most valuable asset: OUR MEMBERS!

 

TWO Easy Ways to Win a $100 VISA Gift Card 

• Swipe & Win – Choose CREDIT not DEBIT, when using your NCCU VISA Check Card! Every time you choose credit on a purchase of at least $5, you are automatically entered in a drawing to win $100.  Drawings are held quarterly.
• Switch to e*Statements – Join the hundreds of NCCU members who manage their accounts online, anytime! Click here to sign up for e*Teller. While you’re at it, sign up for e*Statements, too. All e*Statement subscribers are automatically entered in our monthly drawings to win $100!

 

Quincy Street Conference & Event Center

Looking for a venue to book your next meeting or event? Quincy Street = a happy and fun place with a cool vibe! A perfect venue for a birthday or Christmas party, family reunion, board meeting or whatever event you may be planning!  Quincy Street Conference & Event Center is located on the third floor of the New Century Credit Union Building at 7th & Quincy (directly across the street from the Shawnee County Courthouse and the Topeka Performing Arts Center).

Quincy Street is not a stuffy or fancy corporate venue! It’s a comfy, charming place in beautiful downtown Topeka. It features private conference rooms and several seating areas in the main space for smaller groups to gather for a more intimate or casual setting. Use of the kitchen is included, which is stocked with a refrigerator, water cooler, microwave, and coffee maker.

There are a couple of ways to book your party or meeting at Quincy Street! Call our Director of Events, Tina Pfeifer at (785) 235-9551, and she will get you on the calendar and guide you through the process. You may also contact her at quincystreet707@gmail.com to book your event.

If you would like to display your artwork, or sign up to be one of our First Friday Artwalk “featured” artists at Quincy Street, simply call our Curator of Exhibits, The GYPSY, at (785) 580-8748.

Come see us! We are open every First Friday from 5:30 pm to 8:30 pm.

Click here for a detailed price list.

 

Office Closings

Monday, October 13th, 2014 – Columbus Day
Tuesday, November 11th, 2014 – Veteran’s Day

Thursday, November 27th, 2014 – Thanksgiving Day

Thursday, December 25th, 2014 – Christmas Day

Thursday, January 1st, 2015 – New Year’s Day

 

We respect the privacy of you, our member.  New Century Credit Union will protect the nonpublic personal and financial information you have entrusted to us.

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