Checkpoint Magazine - Spring 2023

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Copyright ©2023 by Spero Financial and The Brand Leader. All foreign and U.S. rights reserved. Contents of this publication, including images, may not be reproduced without written consent from the publisher. Published for Spero Financial by The Brand Leader.

Your Money Matters.

And so does your Financial Health.

Soaring financially starts by knowing how to spend money, save it, budget it, and invest it. Many Spero members agree this is overwhelming. That’s where we come in! We’re here to help our members be smart with their money.

Start by scheduling a free credit score check-up with us today! Then, unlock your access to financial tools at spero.financial/financialwellness.

The best part – it’s free!

Insured by NCUA.

CERTIFIED FINANCIAL COUNSELOR

Mackenzie Parks

Letter from the President

Brian McKay PRESIDENT

Dear Members,

Happy New Year! Another year is here, and with it comes the excitement of new opportunities and an inner drive to be the best version of ourselves.

As you determine what changes you will make in the new year, I encourage you to do a check-up on your financial health. I will be the first to admit that this is not the most enjoyable exercise but a necessary one –especially considering that money matters are a part of our everyday lives.

When choosing the best way to manage your money, it is easy to get overwhelmed. If you’re feeling this way, you are not alone. We’ve all been there. The good news is that as your credit union, we’re here to help.

Over the last two years, many of our Member Service Advisors have completed the Credit Union National Association (CUNA) Financial Counseling Certification Program, certifying them as financial counselors. This equips our team to be personal financial coaches, helping our members draft a game plan to meet their money-related goals. The best part: they will cheer you on to the finish line.

Chelsea Newton, Spero’s Community Relations Specialist, leads this charge. I’ve asked her to share a little about the program and how it can benefit you.

“As financial responsibility increases, many people must manage their retirement accounts, student debt,

mortgage debt, and many other financial things – often turning to family, friends, or co-workers for advice,” Chelsea shared.

“The Financial Counseling Certification Program provides our Member Service Advisors with the skills and knowledge to help our members soar in their financial lives. Having a financial counselor is like having a teacher, investigator, and coach all in one. We aim to help our members improve their money habits, get out of debt, and be confident about achieving their financial goals.”

One-on-one financial counseling is one of many financial wellness tools you can take advantage of as a member of Spero! I encourage you to visit the Financial Wellness section of our website to explore the full range of free resources. This includes our online platform, Your Money Matters that features a personalized experience based on your money goals. Plus, turn to page 9 of this Checkpoint edition to pinpoint your money personality. Knowing this will give you the “why” behind your money management style.

The new year may have just begun, but I have no doubt that 2023 will be a good one. We have some exciting things on the horizon for our members. Thank you for your continued loyalty and trust!

I appreciate you!

Community & Events

HABITAT FOR HUMANITY WOMEN’S BUILD

| The women of Team Spero (and some men, too!) put on their hard hats and tool belts to support Habitat for Humanity of Greenville’s annual Women’s Build.

AIM HATS OFF TO WOMEN

| The AIM Hats Off to Women event has become an annual tradition for Team Spero with proceeds supporting AIM’s Women and Children Succeeding program. Spero Accountant Lori Campbell leads the table decoration – this year inspired by the simple act of passing along kindness and earning Spero first place in the contest!

PRINCIPLES AND PHILOSOPHY CONFERENCE

| Members of Team Spero attended the Principles and Philosophy Conference in Sofia, North Carolina! During the conference, Spero representatives were reminded of the Cooperative Principles that empower what we do each day with our members.

FAMILY DAY | Over 190 employees, family, and friends gathered to cheer on the Greenville Swamp Rabbits for our annual Family Day.

HABITAT FOR HUMANITY DINNER

ON ICE | We joined Habitat for Humanity and the Greenville Swamp Rabbits for Dinner on Ice.

While it was a chilly evening, our hearts were warmed by hearing all that Habitat is doing in the Upstate! Funds raised from the event will be used to further Habitat’s mission.

THE GIVING WONDERLAND WORKSHOP |

Santa made a stop at Spero! We enjoyed hosting families for our Giving Wonderland Workshop, as we discovered the wonders of being kind and giving to others.

CLASSIC | Members of Team Spero hit the green in support of Homes of Hope. Proceeds from the event further Homes of Hope's mission to inspire lasting change in our community through their affordable-housing, economic, and men’s development program.

HOMES OF HOPE GOLF

Employee Spotlight

Mackenzie Parks

Meet Mackenzie! A reading and crafting fanatic, a true crime podcast binge listener, an invaluable member of Team Spero, and most recently, a Certified Financial Counselor… and these are just to name a few. We had the opportunity to sit down with Mackenzie to learn more about her role, what she enjoys most about serving our members, and best yet, what it means to be a Certified Financial Counselor.

Mackenzie Parks joined Team Spero as a Member Service Specialist in August 2017. She’s changed roles in the organization since then – becoming a Lending Service Specialist in 2018 and now NEST Specialist. Her favorite part of the role is serving members from all ten branches through the NEST virtual assistance technology.

Over her time with Spero, she’s had the opportunity to help our members with banking transactions, opening accounts, getting loans, and much more. But the most rewarding part of her job has been helping members achieve their money goals.

In her own words, “I’ve had the pleasure of helping members from no credit or lower-tiered credit set a budget and plan for upcoming purchases such as a car, vacation, or even Christmas expenses…” She continued, sharing about a specific member that frequently visited her at the Mills Avenue branch to talk about money habits and how she could improve them.

“At the time, this member was working hard and making good money but still living paycheck-topaycheck. She couldn’t understand why her bank account didn’t reflect it. She asked what to bring to our appointment. I remember saying, ‘Just bring it

all. We’ll sort through it together.’ We met for a few hours. We laughed, we cried, and eventually, we got her organized. She hugged me when we were done and promised to come in every other week to let me know how it was going… After a year, the member had enough money in her checking and savings accounts to set up a share-secured loan to boost her credit score. I talked to her a few months ago about doing a third consecutive loan. If this were the only success story from my career, it would be worth it!”

But luckily for Mackenzie, this is not the only success story. She’s helped many other members and will continue to do so, especially now as a Certified Financial Counselor!

Mackenzie recently joined Spero’s team of Certified Financial Counselors, undergoing a six-week program through the Credit Union National Association (CUNA). She, along with 9 others, completed course webinars, weekly study groups, and a rigorous reading regime to prepare them for the 2-hour certification test. The program expanded her knowledge of financial scenarios – like taxes and insurance – equipping her with more tools and resources to serve our members. When asked what she found most interesting about the program, she noted that she enjoyed learning how to phrase recommendations in a way that sounded less robotic and more human – especially considering everyone’s financial situation is unique.

We’re so appreciative of Mackenzie and the help that she gives our members on a daily basis! We’ll leave you with a piece of financial advice Mackenzie always shares, “Trust yourself. Stand firm in your decisions – especially those regarding personal finances. You know what is best for you. Now is always a good time to start!”

Trust yourself. Stand firm in your decisions – especially those regarding personal finances. You know what is best for you. Now is always a good time to start!”

More time. More control. More ways to bank at your fingertips. Sounds pretty awesome, right? (We thought so!) Get all of this and more with Online Banking and the Spero Mobile Banking App. It’s your account - your way!

Financial Approaches to Money

Everyone approaches money differently. We all know someone who’s extremely frugal, and we probably have a friend who’s always ready to swipe their card while shopping. There’s a good chance we’ve also encountered someone who always seems to have their budget in order.

People may approach money the way they do due to their upbringing, career choices, current financial situation, and many other things – all of which form their subconscious beliefs about money. For better or worse, everyone has their own relationship with money. Yes, even you!

Curious about your relationship with money? Try a test called the Klontz Money Script® Inventory.

The Klontz Money Script® Inventory

The Klontz Money Script Inventory measures your relationship with money in four categories. Every person has a score within each of these categories. By determining which ones best describe you, you can gain insightful information about your relationship with finances. Why is this important? Knowing why you interact with money the way you do helps you pinpoint actions to improve your financial health.

Those who score high in Money Status equate their self-worth with their net worth. They may have grown up in a lower socioeconomic class or a household where outwardly wealthy people were highly regarded. Money Status folks tend to wear their wealth on their sleeve, preferring to make it obvious how much money they have. They are more likely to overspend and hide their spending habits from their spouses.

ACTION ITEM:

If you think that Money Status might fit your money personality, consider each purchase you make carefully before making that spend. If it’s not a necessity like gas or groceries, ask yourself why you are making the purchase. Do you need it, or is it just for status?

Money Worship

People with high Money Worship scores think money equals happiness and that one can never have enough money. To them, money is the solution to any problem. Money Worshipers are more likely to have debt, and their pursuit of money never seems to satisfy them.

ACTION ITEM:

Money Worshipers will benefit from finding activities that bring them joy that do not cost a significant amount of money. Whether it’s baking, reading, or hiking, look for ways to have fun and enjoy life without spending too much money. Money is nice to have, but it doesn’t buy happiness!

A high score in money vigilance typically points to someone who keeps a watchful eye on their finances. This is likely someone who budgets well, doesn’t overspend, tends to be frugal, and already has a solid foundation of financial wellness. Those who score high in this category also save well and think money should be something people work for, rather than a handout. They make good spending choices and typically find it improper to talk about finances with anyone other than their spouse or partner. One downside to a high Money Vigilance score is that it indicates someone may be anxious about their finances and unable to enjoy the money they earn.

ACTION ITEM:

Money Vigilance Money Avoidance

Try not to get caught in a cycle of constantly worrying about money. If you identify with Money Vigilance, set aside a small sum of your budget to treat yourself now and then. It could be as simple as a nice meal out, or as extravagant as a weekend getaway. Allow yourself to responsibly enjoy those funds that you worked so hard for.

Which category sounds the most like you?

Money Avoidance tends to be higher in those who are already wealthy. These people believe money is inherently bad, that they don’t deserve money, and that rich people are greedy. They frequently give money away and try not to think about money if they can help it. Sometimes, people’s professions also reflect Money Avoidance. Psychologists and social workers tend to score higher in Money Avoidance, while those in business tend to be lower in this category.

ACTION ITEM :

Although it seems counterintuitive, avoiding money can cause more problems with money. Those who deal with Money Avoidance should check their bank accounts regularly to make sure they still have enough to cover their own expenses. Then, if you have some disposable income left over, pick some of your favorite charities to donate that money to.

Take some time to understand these four categories, and see if they help you better understand your relationship with money! Want to dig more into your money personality? Check out Mind Over Money, written by Ted and Brad Klontz (fatherson duo), who’ve pioneered the field of financial psychology. Also, complete the Your Money Personality quiz online at yourmoneymatters.spero.financial.

Ready to take the quiz?

What is a Certificate of Deposit, and What Can It Do For You?

Because of the rapid changes in today’s financial market, many folks are realizing the impacts on the value of money. Simply put, as inflation increases, the value of the dollar decreases.

Inflation hits our wallets by increasing the prices of goods and services (think: groceries). Inflation also means that interest rates increase. For example, if you take out a loan today, you will pay more in interest over the length of the loan than you would have a year ago. However, on a positive note, inflation also means that banks and credit unions often raise the interest rate on savings accounts (the amount of money they pay you for putting your money in an account with them).

That’s where a certificate of deposit (CD) comes in! If you want to see your money make money, a CD may be a great option. A CD is a lot like a savings account. It

is an account that earns interest – usually at a fixed rate – on a lump sum of money for a set period. Almost every bank and credit union offers at least one CD option.

Although CDs are similar to savings accounts, there are a few key differences. First, the money in the account must stay untouched for a set period. Otherwise, you may have to pay a penalty for pulling out the money before the period ends. Terms and interest rates vary based on the financial institution, so it’s always important to get the details before opening your account.

There are a variety of terms that CDs offer. The best one for you depends on your financial goals. Some CD terms are as short as 90 days, while others can be up to five years. If you can let your money sit for a while, a longer term may be best because you will earn more money over time. If there’s a chance that you will need those funds in the near future, then a shorter term may be better for you.

Is a CD Right for You?

Are you close to retiring? If so, a CD may be a good option for you. Why? If you are currently invested in mutual funds or the stock market, you may have noticed the ups and downs of the market, which has direct impacts on your earnings. However, with a CD, your rate is fixed, so the money you earn is not tied to the market's volatility. It is a less risky retirement savings option for your money. Also, many financial institutions allow you to use your IRA money to fund your CD.

CDs may be a wise choice if you are saving for a large expense, such as a down payment on a home or a big family vacation. Many people prefer CDs over investing the lump sum in other ways because it is safe, the rates are fixed, and they are federally insured up to $250,000 – meaning you get your money back in the unlikely event that your bank or credit union goes under.

CDs can also be an excellent option for those who want to set aside and grow an emergency fund. The point of an emergency fund is that the money shouldn’t be used unless it’s absolutely necessary. CDs add a level of accountability because there is a penalty if money is taken out before the term ends – hence, you’ll think twice before pulling out funds. Plus, you’ll grow that fund over time and improve your financial well-being. If you would rather have an account that gives you more access to the money you’ve deposited, a traditional savings account may be a better option – though you will more than likely earn less in interest.

Interested in opening a Certificate of Deposit? Spero Financial offers some of the best interest rates in the market. Stop by a branch or contact us today. We’ll help you figure out which option works best for you.

There are a variety of terms that CDs offer. The best one for you depends on your financial goals.

Can you guess one of the most searched financial topics on Google?

If you guessed “credit,” you would be correct! While credit isn’t always the easiest topic to understand, it is a financial reality that most people will encounter at some point in their life. Credit is critical in many aspects of financial wellness, especially when getting a loan. With that in mind, let’s break down some popular credit questions and start getting your credit on track!

Credit scoring companies typically follow similar tiers to “categorize” credit scores. The most widely known credit scoring model comes from FICO – which ranges from “poor” to “exceptional.” Below is a chart detailing the numbered range for each category.

Lenders use credit scores to justify approving or denying a credit application based on an assumed risk level. Credit scores represent the likelihood a borrower will pay back money borrowed from a lender. The higher the credit score, the more likely the borrower will repay the loan, and vice versa.

Credit scores also help determine what terms a borrower receives and the interest rate they will qualify for. With a higher credit score, borrowers get better terms and lower interest rates.

While there are many ways to find your score, these are the four best ways:

CREDIT BUREAUS

The three major credit bureaus –Experian, Transunion, and Equifax –allow you to pull your credit report for free once a year. While your free credit report will not include your score, it will allow you to review your report to determine if there are any inaccuracies. You can purchase your credit score directly from the bureau for a small fee.

YOUR CREDIT/LOAN PROVIDER

This is probably the easiest way to access your score since most major providers provide free access to credit scores. If your loan/credit provider offers an online payment portal, explore the platform or contact them directly to locate your score.

A CREDIT OR FINANCIAL COUNSELOR Financial counselors are excellent resources for your credit questions. Seek out financial institutions in your area and ask if they have Certified Financial Counselors. Spero Financial and other credit unions are a fantastic place to start!

SOME CREDIT SCORING WEBSITES

When looking for your credit score online, be sure to choose a free credit scoring website. It is important to research these sites to make sure they are reputable. And remember, your score may report slightly lower or higher than your actual score.

The first step to building your credit score is to focus on your money habits. This differs from person to person, so assessing your spending habits and figuring out how to use credit responsibly is key. Meeting with a financial counselor can help tremendously. Responsible credit use is vital. Make payments on time, pay down any balances, and maintain a low utilization ratio (i.e., how much credit you use versus how much is available).

Start by taking small steps, and with the help of a Financial Coach and your rock-solid credit habits, you can lay a strong foundation for good credit in no time.

How do I know what my credit score is?

How can I build credit?

What is a good credit score, and what is it used for?

Building credit doesn’t have to be a daunting task.

How Do Different Generations View

have you ever noticed that you have a different view than your parents? Or your grandparents? Perhaps you’ve even noticed that as your children grow older, they seem to have different ideas about money than you do. People from different generations tend to view money differently, and their views are shaped by life experiences unique to their age group. Let’s look at the money habits and opinions of five generations in the United States and the circumstances that molded these views.

SILENT GENERATION (1954 AND EARLIER)

The Silent Generation, or Traditionalists, is the oldest in the United States. The Great Depression and World War II shaped this generation’s views of money. Because they largely grew up with little money and needed to stretch their dollar when they could, the Silent Generation is quite frugal and emphasizes the importance of saving. They are understandably cash-reliant, as credit was not common early in the 20th century. The Silent Generation also does not like going into debt, preferring to pay for items in full with cash they already have.

BABY BOOMERS (1946-1964)

Baby Boomers are much different than their Silent Generation parents. Boomers, motivated mainly by prestige and work accomplishments, are more materialistic than the Traditionalists, often as a quiet rebellion against the frugality they experienced growing up. This generation eagerly adapted to credit spending and traditionally spent more than the previous generation on housing and retail purchases.

GENERATION X (1965-1980)

Generation X may have the most complex relationship with money, as they grew up in a time when cash, checkbooks, and credit cards were used interchangeably. They experienced the contrast between “real,” tangible money (cash in their pocket) and dollars that existed only as numbers in a bank account. Because of this, Gen X tends to spend more on consumer goods and larger purchases such as education and housing.

MILLENNIALS (1981-1996)

Millennials have experienced significant financial challenges over their lifetime and face an inflated economy that makes larger purchases (e.g., homes and cars) more difficult. They also tend to carry significant debt compared to other generations. Since their dollar doesn’t go as far as the generations before them, they tend to focus their money less on material goods and more on experiences. It’s worth noting; however, Millennials aren’t afraid to splurge on quality and convenience.

GENERATION Z (1997 AND LATER)

The oldest members of Gen Z are just out of college and entering the workforce, so many of their money habits remain to be seen. What we do know is that this young generation is on top of their spending habits. These technology natives check their bank accounts regularly, track their money, and are the least likely generation since the Traditionalists to take on any unnecessary debt. Perhaps we can learn something from this youngest generation!

However you view your money, it’s important to bank with an institution that cares about your financial future. Get your money habits on the right path today by speaking with a Spero Financial member service advisor.

PO Box 10708 Greenville, SC 29603 www.spero.financial