COVER
contact LOCATIONS
Corporate Office & Support Center
864.232.5553 420 E. Park Avenue, Ste. 100 Greenville, SC 29601
Mills Avenue
300 Mills Avenue Greenville, SC 29605
Verdae Office
601 Verdae Boulevard Greenville, SC 29607
IN THE ISSUE:
Taylors Office
3237 Wade Hampton Blvd Taylors, SC 29687
Spartanburg Office
130 North Town Drive Spartanburg, SC 29303
Easley Office
118 Brushy Creek Road Easley, SC 29642
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Columbia Office
1025 Pulaski Street Columbia, SC 29201
Florence Office
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Events & Community
2321 Trade Court Florence, SC 29501
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Member Service Center
Greenville: 864.232.5553 Nationwide: 800.922.0446
24/7/365 SERVICE MONEYLINK℠ Online at sctelco.com
MONEYLINK℠ Audio Response Greenville: 864.232.3645 Nationwide: 800.633.4364
Members Financial Services
In the Spotlight
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Q3
Letter from the President
Car Loans: SHOULD I REPAIR OR REPLACE?
What We Read THE FRED FACTOR
Money Matters with Moxie BUDGETER’S GUIDE
FINANCE A FIXER-UPPER
Gary Williams: 888.746.0002
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Ways to Stop Wasting Money
Visit our website sctelco.com to locate an ATM near you!
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Simple Ways to Teach the Value of Money
FIND US ONLINE SCTelcoFCU @SCTelco_FCU @sctelcofcu sctelco.com
This credit union is federally insured by the National Credit Union Administration. SC Telco is a proud member of the Credit Union Service Center Network. co-opcreditunions.org SM
Copyright ©2018 by SC Telco Federal Credit Union 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 SC Telco Federal Credit Union by The Brand Leader. SM
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Dear Members, Many think of the New Year as a natural time for change and growth, but the end of summer brings its own share of significant life events. The long, lazy days of summer are over, the leaves turn colors, kids go back to school, and we dive into our projects at work and at home. Research shows that summer time is the most expensive season for families. The majority of people spend money on vacations, weddings, parties, home renovations, and additional child care. But during fall, people tend to take a closer look at their financial well-being. This makes fall a wonderful time to scale back, reflect on your own personal finances, and make the necessary adjustments so you finish the year strong.
LETTER FROM THE PRESIDENT
As you move forward this fall, I encourage you to take advantage of this season of change and do three things that will benefit you and your family for years to come: 1. If you haven’t already, start tracking your monthly spending. It’s difficult to create a budget if you don’t know what you’re spending. Use the mobile tools provided by SC Telco to keep track of expenses. 2. Create a household budget. Once you know what you spend per month, you can compare income to expenses. Do you have money left over or do you need to trim spending? You don’t have to continue to track every expense as long as you know your broad categories and are spending and saving consciously. 3. Set financial goals. You’ve seen where your money is going, but what are your goals for the money you make? Does your spending match these goals? Your money represents opportunity, and the quickest way to feel wealthier is to make sure you’re spending and saving for opportunities you value.
Steve Harkins PRESIDENT & CEO
Taking these three steps isn’t only about managing your money. People who are able to budget and align their financial goals with their values experience less stress and a greater feeling of control. Often times these individuals report fewer feelings of guilt associated with money, better family dynamics, stronger relationships with their spouses and children, more self-confidence, a feeling of freedom and security, and a greater willingness to take risks and respond to opportunities. Whether you have a child headed to college or you’re simply trying to spend less and save more, SC Telco is here to guide you. We understand it’s not about your money, it’s about your life.
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EVENTS & C OM M U N I T Y
SC TELCO HOLIDAY CLOSINGS IND EPENDENCE DAY
7/4 9/3 L ABOR DAY
F E AT U R I N G O U R
MODEL MEMBERS SC Telco conducted a model contest, looking for members to feature on our website, Checkpoint magazine, in-branch posters, brochures and other print pieces. The photoshoot paired selected members with local professional actors and models to create true-to-life, natural images for our ongoing campaign. We had a great time on set with our members and are pleased with the results of the shoot. Who knew we had so much talent within our membership? Visit the website, check out the cover of this issue of Checkpoint, and keep an eye out for future materials—you just might see someone you know making an appearance.
Community SC Telco Teams with Habitat for Humanity To Change Lives
This past spring, Steve Harkins, President & CEO and Brian McKay, SVP/COO joined representatives from 27 other organizations in the sixth annual CEO Build, which marked the start of construction for Habitat Greenville’s 350th new home. This build will benefit Betty Powers, a member of the Greenville community, and her special needs son.
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We are proud to be a partner in this program because we believe Habitat Greenville’s values closely align with ours. Recipients of these home-building services complete 25 hours of homeownership education classes to help them achieve long-term stability. At SC Telco, we also try to enrich and educate our membership, providing tools and resources to help members find financial success and improve their family’s wellbeing.” — STEVE HARKINS
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H A B I TAT G R E E N V I L L E
remains dedicated to addressing the affordable housing crisis in our community and helping our neighbors become more stable and self-reliant through homeownership. Participants in the CEO Build worked alongside the Habitat team and the future homeowner to raise the frame for the new home and look forward to seeing Betty take ownership.
IN THE SPOT LIGH T
IN THE SPOTLIGHT Leigh Wright | Leigh is a recent transplant to the Upstate. In November 2017, she took a position as SC Telco’s Easley Branch Manager. She has a 23-year career in banking, including 15 years in bank management. Leigh enjoys the opportunity to truly make a difference in the lives of our members by matching their needs to the products and services that work best for them. Leigh holds a Bachelor’s of Finance Degree from Georgia College and has also completed the University of Georgia’s Banking School. When she’s not helping members get approved for mortgages and car loans, Leigh loves to cook, travel, and spend time with her family. She also loves the outdoors and looks forward to exploring the Upstate this fall.
SC TELCO EASLEY BRANCH MANAGER
In her own words: What have you learned by working at SC Telco? I have learned the value of a good work and home life balance. I value family, and I love working for an organization that feels the same, in addition to having strong core values. I have felt a true sense of family and teamwork at SC Telco that, I think, tends to get lost in other organizations. It feels great to be part of the SC Telco team.
Tell us a little more about your family and home life? After living in Georgia most of my life, I moved to the Upstate last year. My husband and I have been married since 2016. He is the owner/operator of his own logistics business. I have one stepson who graduated from high school this year. My husband and I enjoy living downtown and have three fur babies, Deuce, Sam and Sasha.
What has working for SC Telco meant for your family? Working at SC Telco has given me an opportunity to be much closer to my family. Living in Georgia, I saw my family only a few times a year because of the time and distance to travel. Now, I am able to spend time with them much more frequently. It has also given my husband and I the ability to explore a new city and connect with new people.
If you could tell our members one thing, what would it be? To always support your local credit union. Credit unions, like SC Telco, take pride in offering products and services that truly improve the financial lives of their members. I can proudly say that when I offer a member a credit union product, they will benefit by saving or earning money.
Do you have a story you’d like to share? Send it to Melody Vega at mvega@sctelcofcu.org. 5
CAR LOAN S
Should I Repair or Replace? Y
our 12-year-old car is suspiciously clicking. It’s the CV axle…and joint. Your trusted mechanic promises it’s regular wear-and-tear and you needn’t be concerned about the $675 to get back on the road. Two weeks later it’s $400 for the brakes. The mechanic points out this is just more wear-and-tear. All this wear and tear—maybe a new car is in order.
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CA R LOA NS
If you feel like you are buying a new car one piece at a time, maybe it’s time to find something else. Or, maybe not. SC Telco can help take the guesswork out of deciding whether to repair or replace:
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Step 1: Find out how much the repair will cost. Take your car to a trusted, reputable mechanic to find out how much the repair will cost. Ask your mechanic if there are ways to cut costs on the repair. Often times, auto salvage yards are a great resource for used parts. Next, refer to the Kelly Blue Book or Edmunds to compare the value of your car with and without the repair. Will the cost of the repair be fully covered by the increase in the car’s value? If so, you are more likely to recoup what you spend on the repair should you need to sell or trade-in your car later.
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Step 2: Weigh your options. The next step is to compare the costs of repairing versus replacing. The answer is not always black and white. A good rule of thumb is if the repair a) costs more than your car is worth, b) costs more than the increase in value to your car, or c) costs more than a year’s worth of car payments, it might be best to consider shopping for some new wheels. On the other hand, buying a new car is almost always more expensive than repairing the car you already own. You will need to consider monthly payments, increases in taxes and insurance, etc. If the extension in the life of your car is longer than it’d take you to pay off the amount of the repair in a car payment, then repairing is a good option.
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Step 3: Consider your specific needs and budget. There is no one-size-fits-all decision when it comes to repairing an old vehicle versus purchasing a new one. Even if repairing the car seems best financially, you may wonder about the hidden costs of having it back in the shop from time to time. Will it cost you in wages or time away from the office? Is your teenager the primary driver of this vehicle and causing you concern for her safety?
If you and your mechanic determine that repairing your vehicle is the most cost-effective solution, but the repair is too expensive, SC Telco can tide you over with a low-interest personal loan. However, if it’s in fact time for a new car, SC Telco is an excellent place to get a great rate on a new or used car.
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RESO U RC E S
WHAT WE READ Synopsis:
In The Fred Factor, Mark Sanborn, a notable expert on leadership, customer service, team building, and change, explores how each and every one of us can transform our lives from ordinary to extraordinary. Using the example of Fred, his mail carrier, Sanborn discusses four basic principles that can lead to fresh energy in your work and more satisfying life and career choices. Where most people might see delivering mail as monotonous, Fred looked at it as an opportunity to truly serve those on his route and created more opportunities for himself through his service.
Why Read It:
Many businesses assume that customer service is easy, or think of it as secondary to their product rather than the core of what they do. Customer service may be a simple concept, but it’s quite difficult to put into practice consistently and effectively. The Fred Factor takes a compassionate approach to the topic, for both business leaders and individuals, giving practical tips for serving others more in an increasingly hectic world.
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A Great Read If:
You’ve ever worried about work-life balance or wondered if there’s more you could be doing to further your career. This engaging, powerful book also details simple steps that we can all take to build strong relationships, create real value for others, and excel in our lives and careers. According to Sanborn, everyone has the potential to be a Fred by shifting perspective and following these steps.
A Special Takeaway:
SC Telco’s business model is built on service—so this book is really resonating with us. We exist to educate our members and improve their financial lives in the long-run. The story Sanborn presents is challenging us to dig deeper and find new ways to serve our membership.
The Final Word:
The Fred Factor provides an easy-to-follow guide to help you enrich two of the main aspects of life: personal relationships and business relationships. Anyone who could use stronger relationships and greater life satisfaction will benefit from this book.
RE SOURCE S
MONEY MATTERS
50/20/30 BUDGET
$2,000 take-home pay monthly
—>
$1,000 $400 $600
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THE 50/20/30 APPROACH
The Lazy Budgeter’s Guide to Financial Security So, there are as many ways to do your monthly budget as there are hair colors—and I’ve tried them all. The budgets, I mean. I was born with the blue hair. One method I like a lot, called the 50/20/30 plan, was first proposed by Harvard economist Elizabeth Warren and her daughter, Amelia Warren Tyagi. Yep, you heard that right. This budget is Harvard-approved, which means it has to be good! It’s also incredibly accessible and great for beginner budgeters. First, look at your take-home pay. What are you bringing home every month after you pay taxes, health insurance, 401K, etcetera?
fixed costs
debt reduction & investments flexible spending
C R EATE YOU R B U D G ET I N TH ESE 3 ST E P S :
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Calculate your fixed costs. What do you spend on housing, car payments, utilities and subscriptions? If it’s more than half of your take-home pay, start trimming. Put at least 20% of your take-home pay toward payments and investments that secure your long-term financial foundation. Three goals to start on: paying down credit card debt, funding your retirement, and creating an emergency fund. Calculate your flexible costs. What’s left over is for groceries, eating out, entertainment, shopping, hobbies, gas, and other day-to-day expenses. Don’t think it’s enough? Go back to those fixed costs and trim again.
PSST... Want to make budgeting even simpler? Try the 80/20 budget instead.
Make sure your fixed costs, flexible costs, and discretionary spending are less than 80% of your takehome pay and apply at least 20% to savings and debt reduction. Be a ninja and take that 20% off the top, before you spend on your household—financial security in progress, zero expense tracking.
Learn more & see Moxie in action: sctelco.com/MeetMoxie 9
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Finance a Fixer-upper How to Finance That Remodel You’ve Been Dreaming About
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ot your eye on a fixer-upper that could be adorable, if you had enough money to finance your vision? Are you planning to move and want to invest in your current home so you can sell it quickly and for a better price? There are many reasons to remodel— and there are many ways to finance a remodeling project. Before you start swinging that sledgehammer to knock out a wall (come on, you know you want to), it is worth taking some time to evaluate how best to pay for the project.
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TH E
TOP
WAYS
TO
Finance Your Remodel You have multiple options for financing your renovation project, all of which are at least in part determined by your financial situation, your credit score, and your home’s value. If you have a generous stash of cash under your mattress or in your savings account, then you might prefer to avoid debt and interest rates by using that to fix up your home. While you can’t go wrong with cash, you don’t want to deplete your life savings or withdraw retirement funds to improve your home. If your project is small and will cost only a few thousand dollars, you could possibly come out on top by using a credit card—but only in specific circumstances. If you can pay off a low-cost project with a lowinterest credit card in six months, then consider this option. If you know you lack the discipline to stick to the pay-off plan, or your credit score is fragile, we do not recommend this route. If cash or credit card are not a good match for your project, there are multiple good financing options, and one is surely to fit your specific needs:
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FHA 203(k) Mortgages
Renovation Loans
If you are purchasing an older house that needs some TLC, an FHA 203(k) loan, (also known as a mortgage rehab loan) might be a great resource. It allows you to combine two major purchases— the house itself, and the needed repairs—into one transaction. With a mortgage rehab loan, the lender will work with you to identify needed and wanted repairs, and track the process. As with any loan, there are pros and cons. You can qualify with a lower credit score than other mortgage loans, and a lower down payment is required. But closing times can be longer, and interest rates a bit higher. In addition, there are limitations applied to income as well as home value and loan amounts, so the FHA rehab loan is not for everyone.
Another option tailored for the fixer-upper is the renovation loan. The cool thing about these loans is that they allow you to borrow against your home’s future appraised value (after the completion of your home improvement), increasing the amount of money to invest in your project. Unfortunately, these loans often come with higher interest rates as well as closing costs.
FIN AN C E A F IX E R-UPPE R
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Home Equity Loan or Line of Credit
Cash-out Refinancing
Both of these products are second mortgages and are reasonable options for financing minor home renovations. With these loans, you use your home itself as collateral, which gives you access to lower interest rates and usually qualifies you for a tax deduction on mortgage interest. A Home Equity Line of Credit is a revolving loan on your home that works much like a credit card. Over the life of the loan, you can spend up the line of credit and pay it down multiple times. A Home Equity Loan, by contrast, is a fixed-rate, fixed-term loan.
This is a great option if you have built up some solid equity in your home and qualify for competitive interest rates. Cash-out refinancing allows you to refinance your entire home and take out cash from equity at closing, giving you a nice chunk for a renovation. Terms vary, but you can typically borrow up to between 80% and 90% of the current value of your home. Note that cash-out loans often incur closing costs.
At SC Telco, we recognize that choosing the right financing for your home remodel project might feel overwhelming. Call us today, or come in and let us walk you through the process. We can help clarify how to best pay for your renovation and free you up to focus on making that house the home of your dreams.
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MONE Y M AN AGE M E N T
7 WAYS TO STOP WASTING MONEY
WHY SPEND MONEY ON THINGS YOU DON’T WANT.
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MO N EY MA NAGE ME NT
S
pending money and wasting money are entirely different things. While it’s easy to overindulge once in a while, at least those small habits do bring some value.
Usually, wasting money includes things like subscriptions you don’t use (or forget you even have), unnecessary late fees, high bank and ATM fees, and other expenditures that bring absolutely no value. Here are some simple ways you can stop wasting money and start saving. Before you know it, you’ll notice the results. And that can mean feelings of security that money can’t buy:
1. Gym memberships are rarely a good investment. We aren’t down on exercise, but 67% of people who have gym memberships rarely or never go. There are places in your community where you can exercise just as well without paying for a gym membership. Parks, community centers, and churches offer free or very low-cost opportunities for exercise and recreation.
2. Take a chance on yourself. The economic difference between buying a lottery ticket and setting your money on fire is embarrassingly negligible. “Get rich slow” does not sound as exciting, but the odds are much greater. So rather than frittering money on lottery tickets, sock it away in a higher-return investment such as a mutual fund or your retirement account. The accompanying feeling of accomplishment is a surefire bet.
3. Cancel subscriptions. Has your 30 day “free” subscription turned into a financial drain for months or even years? In 2018, there isn’t much in the way of news, reviews, recipes, or commentary that you can’t find online.
4. Cancel cable. Similarly, consider how often you watch cable. It may be better to choose a streaming service that you’ll really watch and cut the cord on the rest. Most streaming services now have premium channel upgrades that you can get when you’re binging the latest must-watch show.
5. Time to end late fees. Most bills can now be paid automatically. With a few clicks you can set yourself up to pay bills on a schedule that eliminates late fees. For those bills that cannot be paid automatically, set yourself a calendar reminder and pay them at the same time every month.
6. Get over the overages. It’s easy to slide past your data limit and get walloped with extra fees. In addition to using WiFi when you can, we recommend you check out an app like My Data Manager or DataMan which let you know when you are getting close to your monthly limit. If this is a regular problem, switch to an unlimited plan.
7. Are you renting things you should buy? The average cable TV watcher pays about $250 a year for the privilege of renting a cable box, and another $10 a month for a cable modem. You can buy both of these items and they will more than pay for themselves in less than a year. Maybe no single item on this list will really make or break your budget—but that doesn’t mean they aren’t important to attend to. The cumulative effect can be quite significant. Paying attention to the little ways you are losing out will help you focus your finances on what matters most to you. 15
K ID S & M ON E Y
Simple Ways to Teach the Value of Money
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hildren aren’t born knowing how to manage money, but teaching basic money skills to kids is often neglected. This can lead to poor choices in adulthood as
well as costly habits. As parents, we owe it to our children to talk freely about money and provide real-world opportunities for them to handle money on their own.
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K I DS & MONE Y
The Grocery Store is Your Friend For real-life budgeting and shopping, it’s hard to beat your local supermarket. Including kids in the weekly grocery shopping is an excellent way to let them practice the skills you are teaching them. Share your grocery list and budget and let them help you track down items. Or, give them a set amount of money and challenge them to purchase as much food as they can with it.
Make a Plan For Your Kid’s Allowance You can’t learn to manage money if you don’t have any. Children need access to money and opportunities to practice using it. Some parents link allowance to household chores; others expect their kids to help out with chores as a contributing member of the family and keep allowance separate. Regardless of which method you prefer, what matters is using allowance as a tool to teach your child how to handle money responsibly: • Preschoolers and Early Elementary Students Very young children can learn a lot from playing with Monopoly money and a toy cash register. Playing store and buying and selling items around the house is great fun for little ones. For school aged kids, a regular allowance is appropriate. A good rule of thumb is one dollar per year of age. So, for example, an 8 year old would receive $8 each week as compared to the 17 year old’s $17 per week. • Late Elementary Students and Junior Highers You may choose to provide your children with opportunities to earn over and above their regular allowance by taking on larger house projects like cleaning out the garage or washing all the windows. Plus, as they get older, money-earning opportunities outside the home will become a reality. Kids can babysit, pet-sit, mow lawns, and hold down part time jobs at stores or restaurants. • High Schoolers and College-Aged Kids Finally, at an appropriate age, replace weekly allowance completely with your kid’s own earnings. Let your child have a personal checking account to help build skills and practice with actual financial tools. Remember, your kid is going to make mistakes, but that is an invaluable part of the process. Better to make $50 mistakes now than $50,000 mistakes later. SC Telco is here to help you and your children work together to build sound financial habits. We are committed to providing the same excellent member service to your children that we give you and make it our goal to develop a long-term relationship with them as they launch into their own adult financial journey.
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PO Box 10708 Greenville, SC 29603 sctelco.com