Youngsters are known to be strong believers of living in the moment! However, when it comes to finances, it is advisable to encourage them to plan ahead and keep a portion of their earnings as savings. This helps in securing their future and opens up opportunities for making investments early in life.
Here are some pro-saving tips for youngsters:
- Make A Budget: The first step towards saving is to create a budget and stick to it. The purpose of creating a budget is to be watchful of income and expenses. It helps create a limit on the amount spent and to create savings for bill payments, entertainment, etc.
- Practice Delayed Gratification: Youngsters need to work on self-control as far as expenses are concerned in order to save. Encourage them to save for a commodity or service instead of buying it on credit.
- Keep A Tab On Expenses: Educate youngsters on financial management through personal finance books, online mediums and financial experts. This will help them understand how daily expenses can add up into huge amounts and their impact on savings goals. It will also help to minimize recurring monthly expenses.
- Prepare An Emergency Fund: Teach them the importance of starting an emergency fund. Irrespective of how much they earn (from pocket money, summer jobs, part time jobs, etc.), encourage them to put away a certain amount as an emergency fund. They can make use of a money market account, certificates of deposit or a high-interest savings account for doing so.
- Adopt Frugal Habits: Set an example for them by spending wisely by limiting expenses on housing, food, transportation, shopping and entertainment. Look for cheaper options wherever possible and tell them the amount you end up saving.
- Avoid Lifestyle Inflation: Help them avoid falling into the trap of getting the latest gadgets and devices, cars, expensive designer wear and so on. Teach them to hang onto what they have for as long as they can, provided there is no depreciation in quality and utility.
- Open A Savings Account: Encourage them to deposit a portion of what they earn into their savings account. It instills a sense of discipline every month and lays the foundation for healthy saving habits.
It is easier to develop a habit at a younger age, so encourage youngsters to start saving.
Greater Central Texas Federal Credit Union offers an array of savings accounts to assist savings. To know more about savings accounts in Killeen, visit 3305 E. Elms Rd., Killeen, TX - 76542 or call at (254) 690 – 2274.
A secured loan is a loan that is backed by collateral in the form of financial assets as a means of ensuring that the borrower makes timely repayment. Secured loans are the best option for anyone looking for convenient and affordable loans with simple eligibility requirements and flexibility.
Here are some things to know about secured loans:
- They Require Collateral: Collateral is usually in the form of any financial asset. Secured loans are secured against collateral which can be used by a lender to regain the loan amount in case it is not repaid.
- Low Interest Rates: Secured loans are available at lower interest rates as they are pledged against collateral. This makes them a good choice for those on a restricted budget; one can borrow huge amounts as these loans are perceived to be safer in terms of repayment.
- Flexibility: Secured loans are highly flexible as far as repayment options, loan approval and customization options are concerned. Repayment options can be fixed or variable depending on the requirement of a borrower. The loans can be customized to suit the personal and financial needs of a borrower.
- Eligibility: Even though every financial institution has a unique set of requirements for a secured loan, some of them are common. For example, in order to avail a secured loan from a credit union, one must be credit union member, possess assets that match the value of the loan or exceed it, produce proof of identity, proof of residence and more.
- Factors To Consider: When getting a secured loan from a financial institution, consider the type of collateral you are willing to provide, whether the interest rate is fixed or variable, the APR (Annual Percentage Rate) and interest rate, fees charged by the lender, minimum and maximum amount of loan, income requirements and more.
- Preparing For The Loan: Before getting a secured loan, check your credit, get your assets evaluated to know how much you can borrow and suitable monthly repayments. Some financial institutions like credit unions offer online facilities that enable members to apply for a secured loan online.
- Defaulting: In case one misses the payments for a secured loan, the financial institution that granted it has the right to repossess the asset that was used as collateral. Every state has different laws regarding this procedure i.e. some require a notice of repossession while other waiver it. If the repossessed asset is not sufficient to compensate for the amount of loan, the borrower will have to cover the difference.
A loan that is protected by collateral such as a car, savings account, etc., is referred to as a secured loan. These loans offer competitive interest rates. Secured loans can be availed from a credit union for added benefits such as great customer support, affordable financial services, a variety of financial products, etc.
Following are the steps involved in buying secured loan from a credit union:
- Membership: In order to avail a secured loan from a credit union, the first step is to become a member. For this, you will have to fill a membership application form and meet the requirements set up by a credit union. Every credit union has its unique set of requirements for qualifying as a member pertaining to place of employment, local community, school district, church and more. For example, Greater Central Texas Federal Credit Union offers membership to anyone who lives, works or worships within Bell County, TX, west of I-35.
- Assess Your Financial Position: Start with assessing your financial position to know how much money you need. For this you should list your assets and their worth and do the same for your liabilities; get the difference to know your net worth. This will help you to know how much you can borrow and repay every month.
- Pursue The Application Process: Once you are a member of the credit union and have assessed your financial position, etc., the next step is to fill the application form for the secured loan. You can fill an online application form on the credit union’s website. You will be required to provide information about your residence, type of loan required, personal information and more.
- Review The Terms & Conditions: Before signing the loan application, go through the terms and conditions stated therein thoroughly. If there is anything you do not understand, always ask an expert at the credit union by calling or sending an email. It is important to understand the actual cost of the secured loan, annual fees, up-front costs, loan term, etc.
Contact
Greater Central Texas Federal Credit Union to buy affordable secured loan in Killeen, TX. For more details on how to apply for secured loans, visit 3305 E. Elms Rd., Killeen, TX - 76542. You can also call at (254) 690 – 2274.
Credit unions are popular financial institutions for a number of reasons: they are affordable, convenient, have flexible terms, offer great customer service and more. They provide a number of financial services and products under one roof and offer various member-benefits. These non-profit organizations are founded on the sole philosophy of helping their members who are its owners too.
Let us take a look at some reasons due to which they so popular:
- Cheaper Loans: Credit unions are famous for affordable lending rates. Their focus is on providing members with affordable products and services in the fastest and most convenient way possible.
- High Rates On Savings Accounts: Those with saving accounts in credit unions enjoy higher rates on their savings and deposit accounts. The savings accounts offered in credit unions include share accounts, money market accounts, Christmas and Vacation Club accounts, Certificates of Deposit and Individual Retirement Accounts (IRAs).
- A Strong Community Presence: Credit unions offer members an opportunity to contribute towards the welfare of their local community. This can be in the form of offering scholarships and grants, sponsoring local fundraisers and organizing valuable events for the local community.
- Personalized Assistance: Credit unions are known for helping members figure out which financial services and products are the best for them as per their current financial situation. They provide personalized assistance to every member and walk them through all the available options to assess whether they are in tandem with their short and long-term financial goals, credit score and more.
- Financial Education: Most credit unions work towards providing financial education to their members in order to help them make sound financial decisions; this is something many people appreciate. They do so in the form of financial workshops, free advice, telephonic consultation, etc.
- Voting Rights: Credit union members are its owners too and enjoy the right to vote on important matters regarding its working e.g. selection of board members. Members feel relevant and acknowledged in the working of the credit union which adds to their overall level of satisfaction and trust in the organization.
- Other Services: Credit unions offer a plethora of services to their members some of which are payroll deduction, on-line access, ACH Origination, ATM services, Bill Pay, MasterCard Cash Advance, Outgoing and Incoming ACHs, Outgoing and Incoming Wires, Gift cards and more.
Greater Central Texas Federal Credit Union offers a variety of services such as secured loans, savings account, account services, etc. to its members. For more details on why are credit unions popular financial institutions, visit 3305 E. Elms Rd., Killeen, TX - 76542. You can also call at (254) 690 – 2274.