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Blog
Savings for Parents trying to encourange thier Kids to save
Naas Credit Union has prepared 8 tips for parents to help promote Savings by Young people.
8. Top tips from Naas Credit Union for Parents to encourage their Children to become savers
1. Consider rewarding children for regular saving, perhaps by topping up their savings amount. Helping children to save small amounts on a regular basis helps to imbed the saving habit.
2. Encourage children not to buy on impulse but to take time to consider their decision.
3. Help children to identify savings goals. In many cases, the concept of saving only becomes real when the child can see the rewards at the end.
4. Develop a savings plan or calendar to highlight when the goal will be achieved.
5. Give pocket money in small denominations to encourage children to put a little aside.
6. Linking pocket money to chores. This helps to embed the idea that money must be earned. The more effort required by the child to earn pocket money, the less likely s/he will be to squander it.
7. If pocket money runs out at an early stage, don’t rush to replace it. Providing additional money at the drop of a hat will defeat the purpose of providing a set allowance to the child.
8. Give children a piggy bank or better still, bring them down to the Naas Credit Union to become a member*.
* Naas Credit Union runs school savings scheme in a number of Local Primary Schools for full details clik here
Top 10 Tips for Money Management
- Prepare and follow a realistic monthly budget. You can download a copy of the Naas Credit Union budget planner. Follow it closely and evaluate it regularly comparing actual expenses with planned expenses.
- We suggest that you pay your bills on time to avoid any late fees, this will also help you to maintain a good credit rating. It is important that you contact your creditors if you are finding it difficult to pay your bills on time.
- Check your Bank and Credit Card statements when they arrive. That will show you your spending patterns and help you identify if any unauthorised transactions occoured. You should also check your monthly payments to make sure they are correct.
- Your bank statements will also show you any unnecessary expenses. Make sure you are seeing value from all the Direct Debits every month.
- Determine your weekly shopping bills and other expenses. According to RTE's The Consumer Show 30% of food is "thrown out". Make sure you write a shopping list and stick to it. Remember to avoid shopping on an empty stomach!
- Try top clear your credit card in full each month, but, at least pay more then the minimum repayment.
- Use credit smartly and dont overextend. Try to keep your repayments to within 15% to 20% of your net income. If you have borrowings perhaps you can switch to a cheaper lender, look at the consumer website itsyourmoney.ie. Dont forget about us, Naas Credit Union offers very good value loans for all purposes.
- If you have credit card debt, look around for and switch to credit cards with lower rates. Credit card companies change their offers all the time and many offer balance transfers at 0% APR for a period of time, reducing interest accumulating. Again use the itsyourmoney.ie website.
- Distinguish between what you need and wants. Take care of needs first and be careful with your wants.
- Save for annual or one off expenses, try: 1) Saving 10% to 15% of your net income; 2) Accumulating 3 to 6 months salary in an emergency fund; 3) Putting money in a Retirement Savings Plan or in other tax-deductible plans, such as savings for your child's education.
But most of all, spend less than you earn. Good Luck.
Sean Murray, General Manager
Do I have too much debt?
The following signs could indicate that you have a problem with your debt level:
- Are you making only the minimum payment on your credit card?
- Have you more than one credit card?
- Are you having difficulty paying your monthly bills regularly and on time?
- Are you fully using your overdraft most months?
- Are you using a credit card because you don't have money for everyday expenses?
- Are you unsure about exactly how much money you owe?
- Do arguments about money cause problems in your family?
- Are you charging more than you pay each month on your credit card?
- Are you in excess of your limit on your credit cards, overdraft, or line of credit?
- Are debt recovery companies calling you?
- Has anyone initiated legal action against you?
If you answer yes to several of these questions, you should make an appointment to speak to your credit union. Time spent now in addressing your loans could save you considerable stress in dealing with them.
You should also consider seeking assistance from the Money Advice and Budgeting Service (MABS) which offers free and confidential advice and assistance in dealing with debt.
To find out more information on MABS visit www.mabs.ie
Thanks to Barry and his team in sligo Credit Union for the use of these questions.
Managing household Finances in Challenging Times
As we stand in the face of a gale force economic wind, families and households are facing times not experienced by many for years. Lower incomes and increasing prices are a factor that most ordinary households are facing every day. Now is the perfect time to take stock of the family finances and to make positive changes if needed to balance your own personal accounts/finances. It is never easy to approach this conversation – nobody really likes to talk about money. But yet it is important, money issues are one of the biggest causes of personal stress for people, with so much bad news about the economy and so much concern about jobs, income and spending, the time is right to sit down and review your situation regardless of whether it’s awkward or not.
Here are some simple tips for managing the household finances during these diffcult times.
1. Act now; Do not hang around and wait for the current state of affairs to get out of hand. Try to sit down now and have an open conversation about current finances, assess what is realistically coming in and going out of your household every month. Be clear and be honest. Make sure everyone who needs to be involved has the same frame of mind when it comes to finances.
2. Be Realistic; there is no point in setting unrealistic expectations for your budget. Keep track of what you are spending on a weekly basis and use that to set your budget. This will help if you need to cut back as well as enabling you to see where most of your money is going. Be realistic about what you are currently spending and ask the question if it is necessary. You could categorise your spending into 3 categories, 1. Essential; 2. Important and 3. Nice to Haves. But be serious, Handbags and Sky sports are not essential!
3. Set a Budget and stick to it; when you know what you are spending, write down your budget. Budget sheets are available on our website here . Don’t forget to factor an amount each month for your annual bills. A short term loan can provide a means to overcome a particularly tight cash flow month. Talk to your local Credit Union who will always be happy to help.
4. Shop around. When you have decided what is essential to your household, shop around for the best deals. Review all expenditures from your mobile phone usage to checking the best rates for home/car insurances. There are lots of great deals out there to be had. It takes time to weigh up the pros and cons but you can definitely save money.
5. No sneaky spending but be good to yourself. It is not all about money and there are many ways which you can enjoy yourself without spending money. Simple things like a walk on the canal or bringing the children to the playground are all great ways to relax and unwind. When times are stressful and money is tight, that is when you need to be creative about ways to reward yourself.
6. If you are finding it difficult to meet all your loan repayments, talk to your lenders. All lenders understand the current situation and you cannot pay what you do not have. Early discussion with your lender is vital and don’t let arrears build up. Instead, write or talk to your lender; they will try to help.
Most of all B-SMART (about your finances)
B - Budget
S - Shop around
M - Meet your loan/other commitments
A - Act now
R - Realistic
T - Treat yourself
Sean Murray
General Manager, Naas Credit Union. www.naascu.ie
Car Loans and Hire Purchase
Benefits of a Credit Union Car Loan compared to a hire purchase agreement
It is that time of year again where some members may be thinking about buying a new car. Naas Credit Union offers one the very best Car loan rates available, coupled with the other benefits of a Credit Union loan. When a dealer offers you a finance deal on the forecourt it is important to compare like with like.
Here are the main differences between a Credit Union car loan and a hire purchase agreement
- You own your car with a Credit Union car loan as soon as you hand over the money to the garage. With hire purchase you do not own the car until the last cent is paid on the agreement.
- If you have difficulties making your repayments you can talk to the Credit Union, we will not reposess the car or make you sell the car. On a hire purchase agreement if you fail to keep the repayments up to date your car can be repossessed at any time.
- With a Credit Union loan you have more options if you encounter difficulties by being able to sell the car or trade down. With a hire purchase agreement you do not have this flexibility.
- Credit Unions do not charge documentation, completion or any other fess on your loan. Under a hire purchase agreement documentation, completion and other fees are usually charged.
- Credit Union loans benefit from free insurance and are cleared in full in the event of your death or permanent disability. By contrast, similar insurances must be purchased under hire purchase agreements, thereby adding to the cost.
- With a hire purchase deal the interest is front loaded which means when settling a loan, the borrower will not save on interest, while a bank loan usually has a penalty interest for early repayment. Naas Credit Union on the other hand charges interest on a daily basis so you will save on interest costs by clearing the loan early, in part or in full.
- Sometimes with a hire purchase deal a balloon repayment is included at the end to bring down the regular repayment. This has a big impact on the cost of the loan for the borrower, as well as a very large last repayment.
- Watch the term, often a hire purchase agreement is over the term plus one month (sometimes this even stretches to plus three months). This term is not always clear and has the effect of seeming to reduce repayments while increasing the cost of the loan.
Almost a third of all car buyers secure a loan from their Credit Union, making it one of the most significant sources of motor lending finance.
Naas Credit Union has one of the best car loan rates available as well as having money €€€ ready and available to lend. View our rate here ...
Tips to Protect Yourself against Identity Theft
The prevelance of Identity theft is on the increase and is costing people more and more money every year. Here are some tips to protect yourself online. Thanks to Kristin at US based Federal Credit Union services group for allowing us to share her blog post.
Insurance for Identity Theft is increasingly available and local brokers, JF Dunne offer ID Theft insurance for people, more information click here
Here are some tips to protect your identiity:
Let Santa be the only one in Red this Christmas
Let Santa be the only person in Red this Christmas
With Christmas 2011 set to be the year that delivers Irish families and individuals some of their toughest financial challenges yet and another sobering Budget on the horizon, here are some tips and advice on minimising debt this festive season.
Great rates - Winter Fuel Loans
Naas Credit Union doing its bit for our member’s this winter!!
The cost of fuel has risen dramatically over the last few years and can be a significant burden on household incomes. Naas Credit Union recognizes that home heating, particularly in the harsh winters that we currently experience, is a non discretionary expenditure for members.
To help ease your worry about rising energy costs, Naas Credit Union has introduced a Fuel Loan. With a low rate of 6.21% APR, the Fuel Loan from Naas Credit Union is your best choice to get the fuel you need this winter.
Members can borrow €1,000 at a time or a maximum of €3,500 in any 12 month period. A loan of €1,000 will have 52 weekly repayments of €19.84. The total cost of the credit will only be €31.68.
For more details, contact John O’Brien on 045 888132 or call into the office and our friendly staff will be delighted to help you.
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