Checkpoint Magazine - Fall 2019

COVER The Top 5 Ways To Stay Debt-Free I N

Letter from the Executive Vice President

Car Buying: The True Cost of Going Luxe

T H I S

I S S U E

How to Stay Debt-Free During the Holidays

Take Control with Six Debt Payoff Apps

dontgetbanked.com

Ever look at the terms of an auto loan & worry your banker didn’t have your best interests in mind?

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T I N O BANK Call me old-fashioned, but I don’t think you should have to agree to a loan you hate just to get a car you love.

When one of their members needs an auto loan—or a home mortgage, a personal loan, an IRA, or anything at all—the SC Telco team works to meet that need and exceed expectations, so their member drives off happy, with regret-free financing.

dontgetbanked.com

ore.

ore— m t c e p x E

becaus

serve m e you de

G T ’ N DO

D E K N ET BA A better way to bank.

contact LOCATIONS Columbia

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Events & Community

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In the Spotlight

6 8 9 10

Q4

Letter from the Executive Vice President

Car Buying: THE TRUE COST OF GOING LUXE

What We Read: BE OUR GUEST

Money Matters with Moxie: HOW TO STAY DEBT-FREE DURING THE HOLIDAYS

PAY IT OFF, KEEP IT OFF:

THE TOP FIVE WAYS TO STAY DEBT-FREE

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Take Control: Six Debt Payoff Apps

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College Credit: Pros & Cons of Opening Your First Account

SCTelcoFCU @SCTelco_FCU 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 ©2019 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.

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FREE CHECKING THAT PAYS YOU BACK? YOU GOT IT! Introducing Kasasa.

A better way to bank.

Learn more at

sctelco.com/kasasa-cash

Insured by NCUA. Kasasa is a trademark of Kasasa, Ltd., registered in the U.S.A.

Dear Members, In our last few issues of Checkpoint, I talked about building the discipline needed to accomplish your financial goals and the types of financial goals you should pursue. As a next step, I want to address a question I get asked a lot: How do you know if you’re achieving those goals?

LETTER FROM THE EXECUTIVE VICE PRESIDENT

Let’s look at an example: In every well-functioning, successful business, you’ll see a common process: a periodic financial review.

Now, some companies do these reviews every quarter, others every month, but the goal is the same: to find out how the company is doing, in general, and to align the financial progress they are making with the goals they set earlier in the year. In doing this, smart businesses will find many things: (1) where they are succeeding, (2) where they are missing the mark and have room for improvement, and (3) where they need to reconfigure the goals based on more realistic insight they now have available.

There’s a lot to be said for taking this process and applying it to your own finances, creating a periodic review of your own household or personal accounts. By doing so, you may realize things such as: you’re overspending your food budget each month or the rebate check you were expecting never came in. It could also be a cause for celebration because you paid off your credit card a few months early!

Whatever it is, this check-in on your personal finances doesn’t have to be long, or over complicated—it just needs to answer the questions: How am I doing so far? And am I closer to the goals I set for myself or family earlier in the year? If so, then congratulations! You’re right on track! But if not, it’s time to reset and get a better handle on what’s happening in your financial present—and your financial future.

Brian McKay EXECUTIVE VICE PRESIDENT

Know that here at SC Telco, we are always here for you. We want to come alongside you to assist with your financial check-ups, ultimately helping you take the steps to achieve your big goals and all the little ones in between. Please stop by any of our branches to speak with a representative on how we can help in your financial growth process.

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EVENTS & C OM M U N I T Y

20 SC TELCO H O L I D AY CLOSINGS

19 C O LU MBUS DAY

10/14 MONDAY

V E TE R AN S DAY O B SE RVAN C E

11/11

MONDAY

TH A N KS GI VI N G DAY

11/28 THURSDAY

C H R IS TM AS EVE

12/24 TUESDAY

C H R IS TM AS DAY

12/25

WEDNESDAY

Financial Wellness Made Easy At SC Telco, we take our mission to improve the financial lives of our members seriously. We continually look for ways to provide you, our members, with helpful resources and are excited to showcase several new initiatives to assist you on your financial journey.

Your Money Matters

Financial wellness is the essence of our mission. To bring this to life, SC Telco is excited to unveil Your Money Matters—a suite of engaging financial tools and resources for our members.

In early 2020, we will launch the Your Money Matters website, offering a personalized learning experience to help you focus on achieving financial goals. The site features personalized courses based on your goals, calculators, videos, a surplus of tips and more. Plus, learn on the go, as the site will be optimized for viewing on mobile devices.

Be on the lookout for more details coming soon!

GreenPath

Becoming financially secure is one of the first steps to finding financial freedom. SC Telco has chosen GreenPath, a non-profit organization, to provide comprehensive financial counseling and money management tools to our members and employees. They can assist with an array of financial topics, including debt management, credit report review, first-time home buying and more.

Learn more at greenpath.com or call 877.337.3399.

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IN THE SPOT LIGH T

IN THE SPOTLIGHT Nicole Martinetti |

DIRECTOR OF MEMBER SERVICES

Nicole Martinetti has been a familiar face for SC Telco members since 2006. She began her career in the credit union industry in 1997, just after moving to South Carolina from New Jersey. Now serving as Director of Member Services, Nicole’s focus is on problem solving and building a positive experience for all members of SC Telco.

Not only was she selected to attend The Disney Institute for Quality Service this year, Nicole is also certified in Situational Leadership, Situational Coaching, DiSC, Emotional Intelligence, and Myers-Briggs Type Indicator®.

When she’s not at work, you will find her spending quality time with her family, or cozied up with a good book.

In her own words: Why do you enjoy working for the credit union?

I have loved my career at SC Telco. Each employee has a voice and is encouraged to share their thoughts on how to improve our processes to better the member and employee experience. Also, having the opportunity to save a member money on a loan or help them achieve a financial goal is the most rewarding. I have worked with members that thought purchasing a home was just a dream because of a small financial setback in their past.

Taking the time to review their credit, provide tools to help build a budget, and see their dream become a reality is extremely rewarding.

How did the Disney Institute for Quality Service impact your role at the credit union?

I was fortunate enough to be selected to attend The Disney Institute for Quality Service in May. It was an amazing experience! As you know, Disney has a brand that is associated with making dreams come true and providing a magical experience to each of their guests. Most people save for years to provide a Disney Experience for their families. Imagine if you were to get there and had a bad

experience. What if the staff was going through the motions because it was just a job or they didn’t take pride in the appearance of the parks? That would be a very expensive disappointment, and you would never return.

The class provided tips on how to provide quality service with each opportunity and how to do so with small details.

I was able to bring back some key takeaways for us to add to our member service toolbox.

What has working for SC Telco meant for your family?

My husband and I moved to South Carolina in 1996, and 10 years later I became part of the SC Telco family. Our management team genuinely cares for the employees and their families. My family knows this first-hand, and we are very grateful to be a part of this much larger extended family.

If you could tell our members one thing, what would it be?

What sets us apart from other financial institutions is our passion to serve our members. Our Core Values were created by the staff, and each of us are committed to living to the Core Values in and outside of work. Serving our members is our number one priority.

Do you have a story you’d like to share? Send it to Jessica Baker at jbaker@sctelcofcu.org.

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CAR BU YI N G

The True Cost of Going Luxe How to Determine if Luxury is in the Budget When it comes to buying a car, you have a lot of decisions to make. But before you head to the car lot, here’s one more option to consider: Instead of opting for a brand-new economy model, could you get more for your money by purchasing a used luxury car? Yes, you read that right!

Consider this list of pros and cons to aid you in your decision.

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CA R BUY ING

PROS

Higher Quality

Less Depreciation

It seems a little redundant to mention that luxury cars are crafted with higher quality, but facts are facts: upscale cars offer features that go well beyond the basics. In addition to style, these cars traditionally have more powerful engines, which may lead to longer engine life than you would find with less-expensive models.

On average, new cars depreciate by 10% in the first month after purchase and 20% within the first year, according to estimates from Carfax. In fact, most new cars lose almost 60% of their value after five years. Purchasing a used luxury car gives you the chance to drive a quality vehicle without the rapid decline in value that accompanies brand new models.

Better Care

Certified Pre-Owned Programs

This may seem like a pretty big assumption, but let’s be honest—people don’t spend money on luxury cars in order to mistreat them. Still, even if you’re buying a luxury car from a reputable dealer, it’s always a good idea to review the history report to find out what service work has been completed on the vehicle.

Most arguments against purchasing a used car focus on the fact that it won’t include a money-saving warranty. But thanks to Certified Pre-Owned (CPO) programs, you may be able to buy a used luxury car that includes a warranty. You can inquire about a CPO with the dealer before purchasing the vehicle.

CONS

Maintenance Costs

Decreased Fuel Efficiency

Due to years of wear and tear, used cars require more maintenance than new cars, and as a result, you should plan for increased maintenance costs to keep it functioning properly. Before making your final purchase decision, be sure the luxury features you’re looking for are worth the inevitable maintenance costs that come with buying a used vehicle.

As you choose your new ride, it’s wise to remember that luxury cars often feature heavier frames and larger, more powerful engines. That means you’ll need to fill up with premium gas more often than you would in a less-extravagant vehicle.

Price of Repairs

Dated Technology

Luxury cars are built with quality in mind, but quality comes at a price. While high-class components used in luxury cars usually last longer than massproduced parts used in economy models, the cost of repair or replacement is often significantly higher when they finally do break down.

If you’re buying a used luxury car that’s five-yearsold, there’s a good chance that the cutting-edge technology it featured as a new car may be outdated compared to the new technology that comes standard on more recent models.

As with most purchases, the ultimate decision comes down to a matter of personal taste. If you’re in the market for a car and you’ve decided you want a luxury vehicle, buying a used luxury car is a smart way to get the prestigious make and model you want at a price that is a bit easier to swallow.

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RESO U RC E S

WHAT WE READ Synopsis:

A Special Takeaway:

If you’ve seen the Disney cartoon Meet the Robinsons, you’ve already been introduced to a key principle that Walt Disney subscribed to “Keep Moving Forward”. This key principle, along with others like “Celebrate Success” or “Never Stop Believing” are fundamental to this book.

Be Our Guest reveals just how the Disney brand became the preeminent icon for customer service across the entire world.

Ever wanted a checklist on how to create a better work culture? Well, look no further—it doesn’t exist. When diving into culture, Be Our Guest lays out the philosophy that there is no science to it—it’s simply being able to understand people’s wants and needs, and unite them toward a common cause. And if that common cause happens to be your customer? You’ll not only find that your employees tend to focus on the customer always, but they work successfully as a team to do it, too.

Why Read It: Disney—and Kinni—get that customer service is a moving target. If we want to create truly unforgettable brands, we have to provide truly unforgettable service.

That’s what Disney has successfully done, decade after decade. In this book, you’ll learn not only how they do it—consistently and constantly—but how to adapt some of the same principles to your own brand.

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The Final Word: You never get a second chance to make a first impression, and this book makes a great first impression.

If you’re looking to up your game among your own clients or even simply make people remember you after you’ve gone, this book is a great first step in the “how to” process.

RE SOURCE S

MONEY MATTERS WITH

NO-CHAOS CELEBRATION:

How to Stay Debt-Free, Even During the Holidays The holidays are coming, and your budget is already crying out for some extra love.

Shop the Specials It may seem that everybody and everything wants your money during the holiday season. There’s a war for your wallet. From Black Friday to Cyber Monday to the Final Sales on Christmas Eve, take advantage of the opportunities to grab those gifts at the best price. Do some price comparisons online, or use a coupon code finder. Now that’s how you put the tools in your arsenal to use!

But while this time of year can be financially stressful for many, it doesn’t have to be that way.

Don’t Go Overboard Speaking of specials, we know: there are a lot of them going on. You may feel like it’s in your best interest to buy all the things you’ve ever wanted, especially while there’s a discount tag on them but resist! If you are in the danger-zone of going over budget, or worse, racking up a big credit card bill, keep in mind that the interest you’re going to pay will probably eat that super-seductive discount for lunch. Stay the course. Buy what you need or want to give, and leave it at that.

With just a few quick tips, you can keep your holiday season merry and bright.

Remember: Cash is King Let’s reiterate: most people get in trouble during the holidays because they rack up an incredible amount of debt on their credit cards and then take months (or years!) to pay it off again. Don’t fall victim to thinking credit is the end-all to making a memorable holiday. Set your budget before you even start to shop, and keep an eye on it as you go. You may find that using cash, versus a card, also helps you keep track of what you have left to spend. Your bank account will thank you later, and you won’t have to spend the next 11 months making things right again before next year.

With these few tips, you’ve got a strong foundation for going into this holiday season. And for added festive bliss, ask about SC Telco’s Christmas Club savings account to make next year’s holiday shopping even easier!

Learn more & see Moxie in action: sctelco.com/MeetMoxie 9

Pay it Off, Keep it Off The Top Five Ways to Stay Debt-Free

E

xperiencing financial freedom is unlike any other! It’s almost like

you live in a different world, because the opportunities are endless. But we don’t want this to be a one-time thing, instead, a lifestyle of making sound financial decisions again and again. Check out this guide for tips to staying debt-free.

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ONE

1 3

Avoid temptation to spend again.

This one is hard, because temptation is everywhere. From extra discounts, new credit card offers, not to mention the day-to-day marketing of sales, specials and combos on all your favorite products and services makes it difficult not to go into debt again. However, there are a few steps you can take to help keep you on track.

First, establish a budget. This will let you know exactly how much money you have to spend. Make sure your budget allows money for what you “need” and if able, some for what you “want”—so you don’t feel restricted.

Track to this amount with each purchase to ensure you don’t overspend.

For some, utilizing cash or a debit card helps with monitoring spending because it’s easy to see the amount diminishing in their wallet or account. On the contrary, credit cards can be a bit harder to track, requiring more discipline to keep up with ongoing purchases. Give yourself a gut check here. If you can use a credit card responsibly, go for it as many offer reward options. If not, it’s better to stick with cash or a debit card.

Be cautious to not impulse buy—usually once you think the purchase through, you’ll realize you don’t really need it. And consider opting out of as much junk mail (and email) as possible, so those “special offers” don’t end up in your hands on a daily basis.

TWO

2

Reset your mentality and focus on the positive.

Do you feel that? The burden of debt is officially off your shoulders. Let’s keep it that way! Don’t focus on the things you don’t have, but instead, focus on the things you do! It may take a conscious effort to leave that new movie at the store or pass on the morning coffee stop, but it’s worth it— especially if it means that you can rest easier at night due to financial peace of mind. Isn’t that a win? Make sure you stay focused on the positive angles of your debt-free lifestyle, so that you are constantly motivated to stay that way.

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THREE

Plan for the future.

What do you want your future to look like? Do you want to travel more? Is your retirement plan in place? And how are your short-term savings? Once you have a bit of money freed up, you may want to focus on two things immediately: saving more and evaluating your insurance.

According to a GoBankingRates survey in 2017, most Americans have less than $1,000 in savings—barely enough to cover a medical visit or an insurance deductible if you were in a car accident. That said, start working on your emergency savings. You should have enough money to cover about three to six months of living expenses, in case of a major incident. At the same time, re-evaluate your insurance options. Make sure you are covered adequately so that unexpected incidents don’t turn into crippling events.

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TO P FIVE WAYS TO STAY D EBT-FRE E

FOUR

Give more.

Most people want to give more to others, but their own debt makes it difficult to justify. Now that you are debt-free, you have the ability to make choices on who you want to give to, how much, and when. Start by choosing a few things you are passionate about, or a few organizations you are already connected to. Additionally, make sure you keep track of any and all charitable donations—they may come in handy at tax time when you need an extra deduction. Consult a qualified tax advisor for details.

FIVE

Follow your passions.

This is the fun part! Have the freedom to use your money to truly experience life and explore your passions. Do you love to scuba dive? Have you always wanted to go to Bali?

Go through the items on your bucket list (or build a list if you don’t have one) and start picking which ones you’ll tackle first! Remember, though: your goal is to stay debtfree, so make sure you aren’t adding things in that you can’t afford. If you need to start a special savings account for an adventure on your list, do that. In any case, follow your passions, and have fun doing it. You’ve earned it!

With these tips, hopefully you can keep all the hard work you put into getting debt-free into staying debt-free.

We know you can do it. If there’s any way that we can help, visit your local SC Telco branch, and let us know!

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MONE Y M AN AGE M E N T

TAKE CONTROL SIX D E BT PAYO FF A PP S T O HE L P YO U DO I T

T

here are more than two million mobile apps available today, which means our phones are capable of much more than just snapping selfies. There are even debt payoff apps that can make it easier for you to get out of debt by putting your finances at your fingertips. We know the holidays add another challenge to becoming debt-free, so check out these apps that will help you stay on track.

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MO N EY MA NAGE ME NT

Debt Book (Android) . . . . . . . . . . . . . . . . . . . . . . Price: Free, (offers in-app purchases) This handy app provides an intuitive user interface that makes it simple to record various loans and accounts. In addition to giving you an up-to-the-minute snapshot of your debt, this app also tracks your activity over time and provides a visual representation of your progress.

Debt Free (iOS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Price: $0.99 One of the most popular apps in Apple’s financial category, Debt Free offers remarkable versatility and control. From debt summaries and graphic reports to payment reminders and loan calculators, the features in this app allow you to manage daily activity and plan potential repayment strategies.

My Debt (Android) . . . . . . . . . . . . . . . . . . . . . . . . Price: Free, (offers in-app purchases) This app has one goal only: to help you pay off your debts as quickly as possible.

By focusing on simplicity, My Debt provides a side-by-side comparison of income and expenses that allows you to track your debt payment progress. With its handy calendar and customizable notification options, the My Debt app also allows you to set reminders, which can save you hundreds of dollars in missed or late payment fees over the life of your loans.

Debt Payoff Pro (iOS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Price: $0.99 Designed around the “snowball method”, Debt Payoff Pro takes the guesswork out of the snowball strategy. Just enter your information, and let the app show you the best way to proceed. While the traditional snowball approach focuses on building momentum by paying off the account with the lowest balance first, this app also compares the pros and cons of alternative payoff strategies that include highest balance first, highest interest rate first, and custom ordering options.

Debt Tracker Pro (Android) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Price: $1.99 Debt Tracker Pro takes debt management to another level by incorporating personal and business finances. While the personal debt tracking features are on par with most of the other top applications, this versatile app also makes it simple for business owners to monitor their expenses and payments, as well as the money owed to them by their customers.

Debt Strategy (iOS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Price: $0.99 Rather than limiting debt repayment options to a single focus or strategy, this app gives iOS users the opportunity to determine which approach works best for their situation. With its minimalist interface and graphic summary tools, Debt Strategy keeps the focus where it’s meant to be—on your finances.

Looking for additional tools to help manage your spending? Check out SC Telco’s My Spending app at sctelco.com/MoveToMobile. Simply signin to MONEYLINKSM Online, and click “My Spending” to get started.

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TEENS & M ON E Y

college credit Pros & T Cons of Opening Your First Account

uition, financial aid, and campus meal plans usually top the list of college-related financial concerns, but when it comes to day-to-day finances, parents and students face another question: Should a student open a credit card while they’re in college? The answer depends on who you ask. If you’re trying to figure out whether opening a credit card in college is right for you, here are some pros and cons to consider.

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TEE NS & MONE Y

Pros of having a credit card in college:

Cons of opening a credit card in college:

1. Establish your credit rating.

1. Credit cards reveal bad financial habits.

By opening a credit card and keeping your balance under 30% of your available credit, you can start building a positive credit history that will have positive implications for future financial decisions, such as buying a home or car.

2. An early start leads to a longer credit history.

Length of credit history is one of the primary factors of a good credit rating. So, the sooner you begin managing a credit account, the more time you’ll have to secure a strong credit rating.

3. Gain practical financial experience.

By opening a credit card during your college years and using it responsibly such as making your monthly payments on-time, you can learn valuable budgeting skills that will benefit you long after you’ve completed your degree.

4. Cover emergency expenses.

For many students, a first-time credit card can be a much better option for covering unexpected expenses than relying on lenders and payday loans. But if you’re going to use a credit card to cover emergencies, it’s critical to understand what an emergency really is. (Hint: late-night pizza cravings don’t count.)

5. Earn valuable perks and rewards.

When you’re a college student trying to make ends meet, you take any help you can get. If you open a credit card that offers incentives such as airline miles, travel discounts or cash back, using it for day-to-day purchases and paying it off each month will let you rack up rewards that can make trips home much easier to afford.

If you haven’t established smart financial habits before opening a credit card, it’s unlikely that having access to a credit limit will change your established patterns. If you want to open a credit card while you’re in college, learn to live on a budget first.

2. Spending doesn’t hurt.

Cash transactions involve a physical exchange of your hard-earned money for something else. On a psychological level, that decision hurts a little. Credit cards eliminate that “pain” associated with spending, which makes unwise purchases all-too-easy.

3. It can be hard to keep up with payments.

It’s challenging to hold down a job while taking full-time college classes—especially for first-year students. If you’re not able to work while you’re in school, it can be challenging to keep up with a monthly credit card payment.

4. Credit cards could add to college debt.

Recent figures from Experian’s State of Credit report show that the average credit card holder owes more than $6,000 on their cards, and statistics from the U.S. Federal Reserve show that the average college student graduates with nearly $30,000 in student loans. Without careful planning, opening a credit card could saddle you with additional debt, limiting your financial freedom before you even graduate.

5. Intro offers don’t last forever.

What’s dangerous about that? After the introductory period, many first-time credit cards default to higher interest rates. A $500 balance with 0% interest may be manageable. That same balance with a 24% interest rate can leave you unable to pay more than just the minimum balance.

When you are ready to start establishing your credit, check out SC Telco’s credit card options at sctelco.com.

Easily apply online.

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PO Box 10708 Greenville, SC 29603 sctelco.com