Promoting early savings habits for our youngest members
Did you know that most people who have savvy financial skills develop these habits early in life? Learning to manage your finances is a crucial life skill, and one Lafayette Federal is committed to helping our youngest members develop. By helping your child become passionate about it now, you’ll help them achieve financial success when they’re older.
If you’re not sure how to begin goal-setting conversations with your children or want to try something new, consider the Youth Month theme: "Be a Credit Union Saver and Your Savings Will Never Go Extinct”. For children and teenagers, here are a few simple first steps:
- You might already have a goal in mind. If you don’t, start with a goal your child can meet in a few weeks or months to keep them focused on the effort.
- An image representing something they desire can be a tangible first step to achieve a goal—once you’ve defined a goal, snap a photo of something that represents this objective for your child.
- Post the photo where it can serve as a reminder to your family about what you’re working toward.
- Sharing with your family or friends can help your child realize the value of a support network to encourage the discipline it takes to reach a goal.
Your child’s goal may have a cost or financial impact. Talk to your child about how reaching a goal can take time; in part, because you may need to save the funds to pay for it. Making regular contributions over time can help establish regular habits so you can reach your goal. A piggy bank, mason jar or wallet kept in a special place at home—or a savings account—can help your children learn to save for future goals.
Building credit for our young adult members
is important for future financial success. Credit
is borrowed money that you can use to purchase goods and services when you need them. Good credit
is necessary if you plan to use credit to make a major purchase, such as a car or a home, or want to be able to take advantage of the convenience a credit card can provide. Lenders review credit applications and credit reports to determine financial risk: If they lend you money, extend you credit or give you goods and services, will you pay them back? Often, the primary resource guiding their decision is your credit history.
Lafayette Federal Share Secured Mastercard® Credit Card- By pledging the funds in your share
account as collateral, you’re able to use the card for purchases AND build your credit as you go!1 Also, the funds in your share account continue to earn the stated dividend rate.
- No Annual Fee
- No Foreign Transaction Fee
- Apple Pay™, Google Pay™, Samsung Pay™ and EMV technology
- Flexible payment options‚ including automatic payment
- A 25-day grace period on purchases
- Online account access
- Design your own card option
- Share Secured option- Using funds in your share account as collateral, your credit limit is equal to this amount. Great option for those looking to build or re-build credit!
Credit Builder Loan-
With a Credit Builder Loan, you build your credit and
pay yourself in the process. Up to $5‚000 is deposited into your share account and pledged against the loan.2
That means every payment you make is really being made to yourself. When you’re done repaying the loan‚ you’ll have up to $5‚000 to spend any way you like. With an APR3
equal to the Dividend Rate + 3.00%
and terms up to 7 years
, this is a great way to boost your credit score!
1Borrower must have an amount equal to the approved credit limit on deposit in a Lafayette Federal share account; this amount is placed on hold in the account. Full amount remains on hold as long as the line of credit is open. Co-borrower required for any borrower under 21 years old. 2Upon loan funding, the loan proceeds are deposited into a Lafayette Federal share account and placed on hold. As borrower makes loan payments, the portion of payment that is credited towards the principal balance releases the hold on that same amount in the share account, making those funds available for withdrawal. Co-borrower required for any borrower under 18 years old. 3APR=Annual Percentage Rate. Standard underwriting guidelines will apply.