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She Spent Her $90,000 College Fund and Still Hasn’t Finished College

My wife and I recently came across something on the internet that had us both

laughing and troubled at the same time. A 22 year old college student called a radio show that talks about current affairs and offers advice (apparently in a humorous way) to complain that the trust fund her grandparents had set up for her to go to college in the amount of $90,000 was used up. However, she still had her senior year to complete, and what should she do? Of course the hosts proceeded to ask some pertinent questions like “why was the money used up?” and “what was she planning on doing now?” Her comment was that it was just not enough. She said she used the money on tuition, books, room and board, but also some other things she believed were providing an educational benefit, like a trip to Europe.

Now she was upset because the money ran out, and she had no place to go for her senior year tuition, room, board, and books. She was in distress about how she was supposed to keep going to school. She didn’t want to work somewhere because she thought “that’s so embarrassing”, and after talking to her parents she said they decided they would not cosign a loan for her. In fact, her dad laughed at her! She seemed genuinely surprised and offended by her father’s reaction.

Learning About Money The hosts talked to her a few times over several weeks, and she told them her parents said go to their credit union to try to obtain a loan. She was flabbergasted at that idea. She said that meant she would actually have to go into the credit union (she couldn’t believe she couldn’t just do it through the internet), and she never has done that before. How did that work?

She also accused her parents of not teaching her the basics about budgeting and money. She was blaming everyone else for her problems except herself. This is where it ceased being just funny to me, and I became more troubled. There are numerous stories about the millennial generation, but this is not about an entire generation. Many young adults still in college or just out of college called in with their stories of working to pay tuition. Some told of working fulltime and going to school full-time or some working 2 or 3 jobs while working on their degree. No, this is about this one young lady’s lack of financial education and my initial thought, which was to wonder if I am doing enough to prepare my own children for the real world and teach them realistic financial expectations.

It is important that we teach our kids from a very young age what money is and how it is obtained (usually through hard work). We want and need to teach them the true value of money and how to respect those resources with wise spending and prudent investments.

Continue…

Many of us have enough knowledge to talk to our kids appropriately, but if you believe you don’t there are many great resources out there to help. Articles about budgeting, saving, how to use a checking account, and basic financial knowledge are in abundance on the internet.

Children learn their spending and saving habits from their parents, caregivers, and the adults in their lives. They watch us from a very young age into adulthood, and learn from our behaviors. Take them into the credit union lobby once in a while so they can have a live experience. Let them swipe your card at the checkout, and they will ask questions about how it works. Having them participate in these small things, often leads to bigger understanding. Talking to them from a young age and doing that through high school and even college is what may help them become financially self-sufficient and not go through what this particular 22 year old went through (and also her parents went through).

So Is She Going To Finish Her Senior Year?

This story is a 5 part recording. The last part I listened to she did manage to get a personal loan from her parent’s long-time credit union. Her parents have to co-sign, which they agreed to co-sign only after she got a job to pay for the required monthly payments that start immediately.

It is a little unnerving that she was surprised that she actually had to make those payments every month. She really wanted to focus on school and make payments after graduation. The show hosts encouraged her saying getting a job is going to help her with her life education they called it “Grown Up 101.”

Hopefully, she makes it through this, and it is also a good lesson we can all learn about our own situations: we are responsible for teaching our children about money. Once we do that then we can only hope they make the right choices going forward.

As always we are here when you need us. Give us a call.

The original story heard at "The Bert Show"

This Fall, FCFCU along with financial institutions across the country will be rolling out EMV chip cards. “EMV is an acronym that stands for Europay, MasterCard and Visa, the three companies that created the standard that is now managed by EMVCo, a consortium with control split equally among Visa, MasterCard, JCB, American Express, China UnionPay and Discover,” explained Richard Reed, Zions Bank executive vice president and director of bankcard and customer channel management.

Too often, we have seen major retailers having to apologize for security breaches, your personal information hacked and a high potential for fraud. The new card will improve fraud protection.

How does it work?

EMV cards are smart cards that store their data on integrated circuits rather than magnetic stripes, though many of them also have stripes for backward compatibility. They can be contact cards that must be physically inserted — or "dipped" — into a reader, or can be read over a short distance using radio-frequency identification technology, Reed said.

This technology isn’t new however. Europe already uses this type of computer chip embedded in their credit or debit cards.

The magnetic stripes on traditional credit and debit cards store contain unchanging data. Whoever accesses that data gains the sensitive card and cardholder information necessary to make purchases. That makes traditional cards prime targets for counterfeiters, or identity theft.

What if the store doesn’t have the new card reader?

New cards are already being issued but you may think to yourself, “I have not seen any new scanners”. Retailers have had a slower pace jumping on board as retailers have to prep their software to accept those transactions. But have no fear! The first round of EMV cards -- many of which are already in consumers' hands -- will be equipped with both chip and magnetic-stripe functions so consumer spending is not disrupted and merchants can adjust.

The unique one-time code that is generated will make your credit card virtually impossible to replicate in a counterfeit card. There may be some growing pains while members get use to using the new card and retailers put new readers in place but the piece of mind that comes with having secure transactions will be worth it!

EMV is an acronym that stands for Europay, MasterCard and Visa, the three companies that created the standard that is now managed by EMVCo.

Curious what the NEW FCFCU cards will look like? Here they are!

Apply Online: https://www.netit.financial-net.com/firstcastlefcu-loan/

Going the Extra!

By Danny Trahan – VP of Lending Members (existing and potential) may not know that they can not only expect great service during normal business but, we are also available after hours. Our lending department is a perfect example. While working with the local car dealers, we have to be available after hours to help our community get the service they need. Many of the staff take calls all hours of the day. I’m usually available until about 7pm when the dealers close. We also make ourselves available on Saturdays as well because that is when most people have the time to do some car shopping. No matter what we are doing (cutting grass, visiting with family, etc.), we are available for members who needed help with a car loan or an issue they had with their account. No matter the time or place, we make sure we are there. Bottom line is being there for members is not just a 9am to 5pm endeavor. Most people think we have “bankers hours” well we are a credit union so we have “members hours” but life does not stop there. We make sure we are there to help when help is needed!

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Do you know about FCFCU Blog?

You can go here: www.firstcastlefcu.org/community/blog/ Learn about: “She Spent Her $90,000 College Fund and Still Hasn’t Finished College” by our very own CEO, Kirk Arnold. And “Summer Jobs: Help Your Teen Save”, “Financial Questions to Ask before You Say “I Do!”’ and “Stop Living Paycheck-to-Paycheck” by Dawn Rivera, Marketing Director.

What is a secured credit card?

By: Dawn Rivera Hopefully you live in a perfect world and nothing bad like a divorce or unemployment has ever happened to you. However, if you live in the world that most do, a secured credit card can become an essential part of building credit or getting back on firm financial ground. Late bills? In the midst of bankruptcy? You might be turned down for a regular credit card until your credit score goes back up. Secured credit cards can be used like regular cards but one caveat—they require a minimum up-front payment of anywhere from $200 on up. Your spending limit will normally be 50-100% of your down payment, with a bill due each month to pay off the difference spent.

We can help with your rebuilding efforts. Generally within the first six months of responsibly using a secured card, you’ll begin building credit or see a difference in your credit score. If you miss a payment or default, your down payment will also cover the bill so your account won’t head straight for the collections department. If you pay your monthly bill on time, it usually takes about a year to be eligible for an unsecured card. And don’t worry, secured cards also look exactly like a regular card so no embarrassment about swiping pre-paid plastic necessary.

You’re more likely to be approved by a lender like us if you are interested in establish a longterm relationship. A secured card should help, not hinder, your financial goals. Here are some occasions when a secured credit card can help: No Credit? No Problem If you are paying everything with cash or never started building credit, a secured credit card can be your ticket to being approved for a mortgage!

Bouncing Back From Major Life Changes Foreclosure, medical bills, and personal bankruptcy kills thousands of individuals credit every year. Once you’ve started to get back on your feet, consider putting a small amount toward a secured card that can be used for inexpensive regular purchases. It doesn’t have to be much at all, just enough to make the card a worthwhile long-term investment. You won’t get stuck with an unmanageable monthly balance or hidden fees, and you’ll still improve your credit score through responsible credit management by making regular purchases and paying them off. It won’t be long before you’ll start to incrementally rebuild your credit!

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