Alex here! So, I’m not very good at math and I try to avoid doing it whenever humanly possible, but when it comes to saving for my car, I have no choice. Before I got my U22 account, I had to start writing down how much I was making and how much I would be spending each week so that I could avoid wasting money. I had to save receipts just to record all of the money I was spending. And at the end of each month, I’d tally up all of the money I’d spent. From that list, I came up with things I could cut back on, so I had an estimate on how much I could spend once I got my pay checks. But now that I have my U22 account, I have replaced all of those tedious chores with the GTE FCU Money Tracker!! It’s free for U22 members and extremely easy to use. The Money Tracker informs you of exactly where you’re spending your money and what you’re spending it on. You can even create a budget plan, so all of that hard work I was doing is over!! It also gives you a monthly report on what your spending habits are. I never realized how much money I was spending each month, and since I found out, I was able to make huge cutbacks. One of the biggest areas of overspending for me was food. I usually resort to eating whatever my stomach craves, instead of cooking and buying groceries, which not only leads to me overspending, but also eating unhealthy foods. So now that I’m changing that I guess you can say that saving with the Money Tracker has been good for my health.

Check out the U22 checking account at GTE Federal Credit Union, www.U224U.com. Because learning about money is important no matter what your age!

5.) Buying groceries instead of eating out.
This is a tough one for us college students, but it really can save you loads of money. By just buying groceries for yourself instead of eating nasty fast food or pricey restaurants every day, you’ll be saving money and learning how to cook!…. I know it doesn’t excite me either, but it works.

4.) Scheduling and Planning
As much as I hate to admit it, my mom was right. Making schedules to plan out your days and weeks really does save you time and money. When I was with my old bank, I don’t know how many late fees I had to pay because I forgot to make my payments – it’s scary to think about. My hard earned cash walking right out the door! I also like to make a list when I go shopping. This way, you’re only buying what you came to get and not everything else.

3.) Look for Sales
Looking for sales in the newspaper or online is a great way to save a buck. The best thing is that there is always some store that is offering some really good deals. All you have to do is look around. Oh yea and don’t be embarrassed to cut out and use coupons. They are awesome and your mom will love you for finally realizing how cool they are. Plus, it’s fun to cut stuff out… it’s therapeutic for me… what? Don’t judge me!!

2.) Comparing Prices
This one is really important for us to learn. Although it can sometimes be tedious, comparing prices with other stores or other brand’s prices is an extremely good thing to learn. Research is key here. If you really want something or need it, then it would be wise to know all that you can about the product and the differences between brands. You’ll learn that just because it’s more expensive it does not necessarily mean it is better. This will come in handy in the future when you want to buy a house, a pet, a car, or anything for that matter. Trust me, this will save you money.

1.) Wants vs. Needs
Almost everyone will have problems with this one some time in their life. The question you should always ask yourself before you buy something is, “Do I need this? Or do I just want this?” Being honest with yourself is key for this one. Whenever I try to convince myself that I really need something, I begin to realize that if I really needed it, then I wouldn’t need to convince myself of that fact. This is soooo important to learn. And I’m very guilty of buying things that I would never need. Buying things you don’t need is the biggest waste of your money and can cause lots of financial problems for anyone. It’s not a bad thing to buy something you want. Just make sure you do it sparingly and make sure you’re going to actually use it more than once.

Wow! Well I think I’ve lectured you all enough. I hope you will take my advice and learn from my mistakes. Now go out there and start saving!!!! FOR FINANCIAL FREEDOM!!!!!!!

www.U224U.com

It’s me again, Kathy – a mom blogging about money and teenagers. Conjures up thoughts of trips to the mall, first new cars and other expenses large and small. You can relate right?

I was saying to my kids the other day that conversations about money shouldn’t always be about “spending it”. I prefer to talk about saving money and building good credit. (I find I have to have these conversations with them often to find what clicks and connects with them. Perhaps if I were to text them I could get their attention.)

Back to my point, I was reading the other day on WalletPop.com about the Top Ten Money Myths Held By Teens & How To Change Them. First, the article stated:
“Thanks to the fact that most teens rely on their uninformed peers to answer their pressing financial questions, there is plenty of misinformation passed around which makes it even harder for teens to get the straight facts about money and other personal finance topics like credit scores and banking.”

The Consumer Federation of America gathered some data that provides some valuable and surprising insights that will grab your attention.

Top 10 Money Myths Held by Teens:
1. I don’t have to worry about credit at my age.
2. Bad credit can’t keep me from getting a job.
3. All loan companies have the same rates.
4. All credit cards are alike.
5. The job of financial advertising is to tell the truth.
6. It’s OK to bounce a few checks.
7. It’s OK to make minimum payments on a credit card.
8. Paying late occasionally can’t hurt my credit.
9. Fine print isn’t important.
10. Young people don’t have credit scores.

Additionally, CFA stated only 73% of parents feel “very capable” of teaching their teens about money.

Well allow me to address number 6, which surprisingly came out of Gloria’s mouth the other day when I was paying some bills after dinner. So, here’s my advice… First, explain what a bounced check is – you write a check that you don’t have enough money in your account to cover. Next, let your teen know that bouncing checks not only can result in the closure of your account but they will appear on your credit report. Once reported it will remain for up to 5 years warning lenders and even potential employers that you could be a credit risk. Today, more employers are conducting comprehensive background checks including credit reports to protect both the company and their customers.

I will answer more of these myths in my next blog, but I simply cannot overlook mentioning the importance of the fine print! This is where all the claims credit card companies make in their advertising are clarified as often “to good to be true”.

Well I’m certain by presenting you with these Top Ten Myths I have provided a few surprises… I invite everyone to visit a few helpful websites and have some real one-on-one time with your kids about money!

Helpful websites:

“Visit www.U224U.com to learn more about GTE Federal Credit Union’s U22 checking account for 12 to 22 year olds. Because learning about money is important, no matter what your age!”

Also visit:
www.walletpop.com
www.msnmoney.com
www.fightdebt.com

Well, today I was having yet another discussion with my daughter Gloria, now 15, about a driver’s permit. Since we opened her U22 account, she has committed to helping save for a new car, so the minute she turns 16 . . . ugh . . . she’ll be able to drive. Now, when we opened her GTE Federal Credit Union U22 account, Gloria was given a U22 debit card, which the parent inside of me was super excited about – it’s plastic in her eyes, and yet has limits and control at the same time, which is golden in my eyes.

In my research, the debit card is mentioned as a great prerequisite for a credit card in a lot of the articles I read. Gloria is managing her own money and feeling good about having her own account, but she doesn’t run the risk of getting into debt. To me, debt is a very scary word, but to Gloria, it just doesn’t have much impact yet. So to better convey why a U22 debit card is perfect for her right now, I switched gears and put the whole credit card, debt thing into terms she would understand – how credit could affect her CAR aspirations. More poignant still – how BAD credit could affect HER future car loan. Here’s how it went . . .

Parents, feel free to use this – here is how I explained credit – in car terms.
- Getting a credit card is the first step in establishing good credit, or the first step in putting dents in it.
- When you get a credit card, it’s like a permanent record; everything you do, or don’t do, will be noted and possibly judged, so if you get in to debt, and can’t make your payments, it can follow you around for a very long time.
- Car loans refer as far back as 7 years, so when you turn 22, Gloria, and want a new car, the credit card payments missed when you were younger could hurt you.
- Credit ranges from 850 to 300. Let’s say by the time you’re 22 and your credit rating is around a 650 – about average. You may qualify for around a 7% annual percentage rate or APR (The amount of interest you would pay per year on your auto loan for the money that is lent to you).

AVERAGE CREDIT SCENARIO:
So, you want to buy a $17,000 car and you have no money saved for a down payment?

The total amount you will pay for your $17,000 car would be $18,530.

BAD CREDIT SCENARIO:
That same car with bad credit, can mean that you’re denied a loan or must have your parent co-sign on the loan. For the few that are able to get a loan, you could pay as high as a 25% APR. The math now?

That’s over $14,000 MORE than if you qualified for 7% with decent credit!

By, the way, the first thing Gloria said to me when I used a $17,000 car for an example was “But, the Mercedes I want is over $35,000.” I was thinking in my mind – 22 with a Mercedes? Good luck with that, but at least she has big dreams right?

Anyway, I went on to explain that a debit card is a great way to ease into “plastic.” And, although her GTE U22 debit card only lets her buy what she can afford, because she has to have the funds actually in her savings account to pay right then and there, she’s already on her way to establishing good credit just by creating an account history.

Here are some other great articles I found that helped inspire this blog:

Ehow.com: How bad credit can affect a car loan

http://www.ehow.com/how-does_4565415_bad-credit-affect-car-loan.html

MSN.com: How Teens Get Sucked Into Credit Card Debt http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/HowTeensGetSuckedIntoCreditCardDebt.aspx?page=2

Edmonds.com: Auto Loan Calculator

http://www.edmunds.com/apps/calc/CalculatorController