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.

Credit Unions Tally 100 Million Memberships in U.S.

Credit unions have reached and surpassed 100 million memberships nationwide—equivalent to one of every three Americans.

The 100 million count is based on credit union data collected and compiled by the Credit Union National Association, Washington, D.C., and Madison, Wisconsin, in its June “Monthly Credit Union Estimates.” CUNA estimates that credit union memberships expanded by 2.9% from June 2013 to June 2014, and the 100 million mark was achieved in June.

Credit unions added 2.85 million additional memberships over the past year—the largest reported increase in more than a quarter century. The increase was the fastest, in percentage terms, since 2000, according to the CUNA analysis.

“Clearly, there is growing recognition for credit unions among consumers,” says CUNA President and CEO Bill Hampel. “They increasingly understand that a credit union places their interests above all else, particularly in returning financial benefits to consumer members in the forms of lower rates on loans, higher returns on savings, and lower and fewer fees.” He adds that, in 2013, those financial benefits totaled more than $6 billion.

Hampel points out that, as cooperatives, credit unions are owned by their members and exist to provide financial services to those members. Banks, he notes, which are owned by shareholders, exist to return profits to those shareholders.

“It’s the structure of credit unions—as not-for-profit, democratically led, and cooperatively owned financial institutions—that allows credit unions to maintain this focus on returning financial benefits to members,” CUNA leader Hampel says. “In fact, by doing so, credit unions have earned the satisfaction and trust of their existing members—and are attracting even more.”

CUNA Chief Economist Mike Schenk says other factors within the financial services marketplace have played key roles in credit union growth. He notes that a growing number of consumers continue to express dissatisfaction with big Wall Street banks due to the economic downturn and consumer movements such as Bank Transfer Day in 2011, when consumers were urged through a grassroots movement, primarily on social media, to leave big banks and move their money to a credit union or small bank because they tend to offer better rates and incur fewer fees.

“In 2010, credit union membership barely grew, expanding by just about 0.65%, or about 600,000 memberships,” Schenk says. “But, with the spotlight turned in 2011 to the increasing fees banks were charging—particularly for debit cards and other products—and the additional publicity for the lower and fewer fees at credit unions, membership growth that year more than doubled over the previous year, by 1.4 million—and the rate of growth has increased in each subsequent year.”

Schenk notes that not everyone can join the same credit union, but there is a credit union for everyone. Consumers looking for a credit union they are eligible to join should visit aSmarterChoice.org, a website that includes a comprehensive credit union finder, and helps consumers learn more about credit unions.  Click here to see if you are eligible to join New Century Credit Union. We’d love to have you!

Additionally, hundreds of credit union members have shared their credit union story with photos on americascreditunions.org and social media to show they are part of an organization that focuses on their best financial interests. Learn more about the 100 million credit union membership’s nationwide milestone by visiting americascreditunions.org.

How You Drive = What You Spend on Gas

Gas prices just spiked again! Unless you can afford to buy a less-thirsty car, you only need to look into the mirror to see your best option for improving gas mileage: you, and your driving habits.

A recent series of road tests by fueleconomy.gov shows how dramatically changing your habits can improve gas mileage—especially in highway travel. Gas mileage gains from slowing down and driving less aggressively ranged from 5% to 33%, depending on how much driving style was changed.

Here are some tips to save on gas:

Slow down. By cutting speed from the mid 70s to 65 mph and avoiding lane changes and bursts of acceleration, the tests showed a 7% to 14% mileage improvement.

Use cruise control. Setting cruise control for the flow of traffic allows you to stay at a constant speed and avoid aggressive driving habits like changing lanes.

Don’t tailgate. Not only is it dangerous to drive close to the car ahead of you, the frequent braking and accelerating also decreases gas mileage.

Don’t put luggage on top of the car. Those roof-top luggage carriers are tempting for family vacations, but the increased air resistance cut gas mileage 1% to 2% for every 100 pounds.

Avoid idling. When you sit with the motor running, you’re getting zero miles per gallon; shut off the engine if you’re stopped for more than a minute.

Check tire pressure. Having tires inflated 25% less than the pressure recommended by the manufacturer (usually displayed on a sticker on the driver’s door) can cut gas mileage.

Be cautious. Don’t fall for Internet or other promotions for devices or additives that promise big fuel savings. If those devices really worked, their promoters would have sold them to car companies instead of pitching them online.

And of course, when it comes time to buy a new vehicle, look for something that offers mileage improvement while still meeting your needs. When you’re ready to shop, call or stop by New Century Credit Union for help with all your financing needs!