COVER Goals, Resolutions, and Unlocking Success in 2020 I N
Letter from the Financial Wellness Coordinator
Save More Money in 2020
T H I S
I S S U E
Seven Ways to Better Manage Your Time
Steps for Successful Family Goal Setting
contact LOCATIONS Columbia
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IN THE ISSUE: 3
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Events & Community
5
Partner Spotlight
6 10 11 12
Q1
Letter from the Financial Wellness Coordinator
SAVE MORE MONEY IN 2020
What We Read: THE SPEED OF TRUST
Money Matters with Moxie: INTEREST: TO COMPOUND OR NOT TO COMPOUND
Lifestyle: SEVEN WAYS TO BETTER MANAGE YOUR TIME
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Tax Refund Ideas
16
Steps for Successful Family Goal Setting
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 ©2020 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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Personal finances just got personal. Your financial goals are unique to you. Your financial tools should be too. Kick off the new year with Your Money Matters! This exclusive online resource gives SC Telco members 24/7 access to courses, tips, and tools that cover topics from banking and budgeting to insurance and investing. Best of all, you can customize the content to address the details that matter most to you. Visit
yourmoneymatters.sctelco.com
YourMoneyMatters.sctelco.com is powered by Enrich, Inc.
Dear Members, Welcome to the first Checkpoint of 2020 — focused on financial wellness in the New Year! As you can see, I’ve hijacked the letter (usually written by our Executive Vice President, Brian McKay) because I have incredible news to share with you about NEW financial wellness initiatives available to our members. When beginning to build our financial wellness program at SC Telco, we went to you, our members, and asked one very specific question: What tools would you like to have to help you become financially healthy? Some of you told us that one-on-one coaching would help you best; others said a class or workshop would be preferred; and there were others that said they wanted a platform that they could work on in their own time, on topics that mattered most to them. We listened to every answer given to us, researched solutions, and I am happy to say that we now offer tools for each preferred learning style: • In 2019, we announced one-on-one coaching opportunities through GreenPath Financial Wellness. Learn more at sctelco.com/greenpath. • Later in 2020, we’ll be offering special financial workshops throughout the community for those who like more of a communal learning setting. Stay tuned for more details coming soon! • I am most excited to announce that our newest addition to our financial wellness offerings — Your Money Matters — is now live and ready to use!
LETTER FROM THE FINANCIAL WELLNESS COORDINATOR
This FREE online platform is unique in the level of personalization it allows you, the user, to achieve in planning your financial goals. Simply take a few minutes to answer questions about what’s important to you — maybe it’s saving for a new home, paying for your child’s education, planning for retirement, or even eliminating debt. Your Money Matters takes this information and creates a customized course listing just for you! You can work on them anytime you want, as you have the time, and take the necessary steps toward achieving your goal. Your Money Matters also includes a few tools so you can learn more about yourself and your financial health in a matter of minutes! Two of my favorites:
Andrea Finley
• Your Money Personality helps you understand the “why” behind your financial decisions and gives you ideas on what you can do to be financially stronger. • The Retirement Analyzer shows you if you are “on track” for your retirement, and what to do if you’re not. Your Money Matters is a personal way to take on financial education on your own time, at your own pace, and I’m so excited that we can now provide it to our members. So what are you waiting for — visit yourmoneymatters.sctelco.com to get started! And remember, if you have questions as you work through your financial plans, ask someone at SC Telco! Our team is here to serve you — no matter what your goals may be, or how you want to go about learning more about your own financial health. Happy 2020!
Andrea Finley ® 3
EVENTS & COM M UN I T Y
2019 SNAPSHOT:
20 SC TELCO H O L I D AY CLOSINGS
20 N E W Y EARS DAY
01/01 W E D N E S DAY
MA R TI N LUTH ER KIN G JR . DAY
01/20 M O N DAY
PR E SI D E N T ’S DAY
02/17 M O N DAY
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Community Outreach As a cooperative, one of our greatest desires is helping people in the communities we serve — not only financially but with everyday life needs. With a focus to improve the financial lives of our members, and a stance against housing instability in the Upstate, we believe financial stability begins with a place to call home, and in the power of financial education. Here is a snapshot of SC Telco’s impact in our local communities, by joining forces with key organizations to make a great impact:
Habitat for Humanity of Greenville County Since 2014, SC Telco has been a supporter of Habitat for Humanity by: • Providing more than 50 mortgages (100 percent financing at a zero percent interest rate for 30 years) to Habitat homeowners. • Impacting 47 families through SC Telco-led personal finance classes • Sponsoring one full home build and participating in seven other home builds • Fundraising for the Habitat’s CEO Build program, No Place Like Home Gala, and the Joe Barron Golf Classic
Homes of Hope SC Telco has provided $50,000 in low-interest equity funding to support Homes of Hope affordable housing programs.
The Dream Center SC Telco provides ongoing support to The Dream Center through weekly visits by our Financial Wellness Coordinator, for one-onone financial education, as well as group training sessions to help individuals prepare for homeownership and learn the fundamentals of financial stability.
United Way of Greenville County Each year, SC Telco teammates raise funds for United Way initiatives. In 2019, more than $40,500 was raised.
IN THE SPOT LIGH T
PARTNER SPOTLIGHT The Dream Center |
FROM DREAM DOLLARS TO FINANCIAL WELLNESS: INSIDE SC TELCO’S PARTNERSHIP WITH THE DREAM CENTER
Being involved in our local communities is at the core of SC Telco’s mission, and there are many opportunities for us to come alongside different organizations to truly make a difference. One of those organizations is The Dream Center, located in Easley, South Carolina, whose mission is to “encourage, educate, and empower those in need.” In 2018 alone, The Dream Center served 414 people — and over thousands since its incorporation in 2012. The organization serves community members in need, as well as residents of Opportunity Village — a unique homeless shelter program made up of 23 tiny units and 10 transitional homes. With a commitment to help with a hand up instead of a hand out, The Dream Center understands the importance of meeting needs today while preparing for tomorrow. To bring this to life, The Dream Center created the “dream dollar”. Used just like “real” currency, dream dollars are earned to be spent on everyday necessities that are provided by the organization. “We have essentials on campus — shampoo, deodorant, laundry detergent, diapers — and we have three resale stores. Clients can take those dollars and use them to purchase items,” says Shannon Leatherwood, who manages the Education and Discipleship courses for The Dream Center. “This is our way of supplementing somebody’s income at the base.” Dream dollars can be earned by attending classes in life management skills or financial management, like the financial wellness courses that SC Telco provides on
a regular basis. Last year, The Dream Center offered a total of 3,197 class hours, equating to $17,064 in dream dollars. In addition to necessities, dream dollars can be used in the Santa Shoppe, a North-Pole retreat for parents to “purchase” gifts for their children, and by clients of Opportunity Village — currently housing five women and seven children transitioning out of homelessness. With a deep belief that true impact is made by working together, The Dream Center facility is home to other nonprofit organizations that are able to provide necessary care to those in need: JC Cares (counseling services), Celebrate Recovery (12-step addiction recovery program), Ripple and One (empowers families to transition off government assistance), and more. The Shine Soup Kitchen offers meals during the weekdays for anywhere from 20 to 100 people, and the Samaritan Health Clinic of Pickens offers free dental assessments and extractions for those without insurance. In 2018, 65 organizations visited The Dream Center to find out how to duplicate this unique model. For Shannon, however, this boils down to one key element: a willingness to use community partners and their specialties — like SC Telco — to provide whatever services are needed to the people they serve. “One of our organizational core values is that we collaborate; we don’t duplicate. When you have a partner like SC Telco who can bridge a need from their company to our organization, then we don’t have to duplicate that.” says Shannon. “Instead, we choose to collaborate with others and allow them to help us empower people to better lives of self-sufficiency.” 5
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Save More Money in 2020 Y
ear after year, saving money ranks as one of the five most popular New Year’s resolutions, along with eating healthier, losing weight, getting more exercise, and learning a new skill. A study by the University of Scranton showed that around 45 percent of us make resolutions like these, but only eight percent are successful at keeping them. If you want to save more money in 2020, it’s going to take hard work and dedication to beat those odds. It’s also going to take a little creativity. (We know you can do it!)
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When it comes to saving money, people will try some crazy things. Over the years, we’ve heard saving tips ranging from sensible (i.e., spend less than you earn, cancel cable TV subscriptions) to strange (i.e., planting fake flowers in your garden, separating two-ply toilet paper to make it last longer). While we agree with the practical suggestions, we’ve got more than a few questions about the others. To make saving as easy as possible, check out this list of six simple ways to help you save more money throughout the year.
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ONE
Visit your local library. From books and magazines to movies to music, libraries offer a wealth of free educational and entertainment options, and many libraries now let you check out eBooks, audiobooks, and digital movies through apps like Libby and Hoopla. Rather than spending money on books you’ll read once and forget about or paying to rent movies from a kiosk, hang onto more of your hard-earned money by taking advantage of everything your local library has to offer.
TWO
Find savings around the house. You can save a lot of money by making little changes in your household habits. According to industry professionals (and even the Department of Energy), you can save up to 40% on your shower-related costs by switching to a low-flow showerhead (1.5GPM). Updating your old thermostat to a smart model like Nest or Ecobee can save you up to $145 on your home’s annual energy costs, as a study provided by Nest Labs in 2015 showed. Little changes can really add up — or as your dad would’ve said, “A penny saved is a penny earned.”
THREE
Slow down when you shop. Have you ever bought an item and immediately wished you hadn’t? Buyer’s remorse is real — and depending on what you purchased, it can be rather expensive. Rather than shopping with a “get in and get out” mentality, give yourself time to think about your decision. For big-ticket items, financial experts recommend waiting at least 24 hours before making a purchase. This pause gives you time to consider whether you really want or need the item, if you can do without it for a little longer, or whether you can find it cheaper somewhere else.
S IX WAYS TO SAVE M O N EY IN THE NE W Y E A R
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FOUR
Invest in your health. As it turns out, many unhealthy habits are also expensive to maintain. If you start drinking water instead of soda, not only will you reap a world of health benefits, you’ll spend less on groceries. But even more — according to a recent study by the National Institute of Health, a 20-year-old adult who goes from obese to a healthy weight can save more than $28,000 in direct medical costs and productivity losses over their lifetime. An average 50-year-old who makes the same change can save more than $31,000 in the same costs. No matter what age you are, we can all agree that savings of that magnitude are well worth the effort.
FIVE
Automate your saving. If you want to start saving consistently, direct deposit can help. Many employers offer a payroll option that allows you to designate a portion of your check to be deposited directly into a savings account. By placing money in your savings before you see it in your paycheck, this automatic option can help you develop a saving habit that is persistent and painless!
SIX
Reward yourself. You’ve probably heard the saying, “All work and no play makes Jack a dull boy.” Even though the adage references work, the adage applies to saving money too. Rewarding yourself (without breaking the bank or torpedoing your budget, of course) for achieving a saving-related goal provides positive reinforcement and helps you look forward to hitting the next goal.
Whether you’re saving for retirement, saving for college, or saving for a rainy day, SC Telco offers a wide array of financial products and services designed to make it as convenient and rewarding as possible. Whatever your personal goals may be, our member representatives are ready to help you achieve them. ®
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RESO URC E S
WHAT WE READ
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Synopsis:
A Special Takeaway:
While it’s a pretty big statement to make, Covey’s book The Speed of Trust focuses on the virtue of trust and how it affects a variety of spaces that we inhabit — from our relationships, to workspaces, to new partnerships and beyond. It is the cornerstone of Covey’s fundamental thesis: trust makes the world go round, builds relationships, and encourages success.
As our world continues to change and grow, it can leave many people (employees, partners) feeling left behind and insecure about the future. In leadership, however, we need to understand that change will happen and should be embraced. By embracing it and encouraging others to do the same, we can truly succeed and thrive.
Why Read It:
The Final Word:
You don’t have to look far to realize we are in an increasingly distrustful world. And worse, as Covey himself notes, “distrust is contagious.” Ironically, however, trust is the foundational element to our own growth. We need to learn how to turn distrust on its head and instead build meaningful, trusting relationships and character.
Never in our lifetime has such a book been more crucial. Through learning to trust more openly and becoming a person that others can trust fully, we can all make our corner of the world a bit better. ®
RE SOURCE S
MONEY MATTERS WITH
Interest: To Compound or Not to Compound? You’ve probably heard the saying, “Put your money to work.” But what does this actually mean? The short answer: compound interest. Before we jump into compound interest, let’s start with the basics. When you put money into an interestbearing account such as a savings account, the financial institution will pay you to hold your money. This is called interest and is expressed by a percentage. Compound interest takes this a step further… think of it as earning “interest on interest”. It’s defined as interest earned on the money you put into the account (aka “principal”), plus the accumulated interest you earn periodically. The result: your money grows at a faster rate compared to simple interest, where you only earn interest on the principal.
Let’s compare the two: Say you put $1,000 into a savings account that earned three percent annually. After five and 10 years, check out the difference in the total account balance: Simple Interest
Compound Interest
In 5 years
$1,150
$1,159.27
In 10 years
$1,300
$1,343.92
See the difference? And keep in mind: this example assumes no additional money is put into the account over the time period. If there was, the account with the compounded interest would grow at an even faster rate. While money doesn’t grow on trees (we wish!), it can grow — so it is important to start saving early so you can sit back and watch your money grow year over year.
If you still have questions, visit yourmoneymatters.sctelco.com for a surplus of resources about compounding interest or visit one of our locations. We’ll be happy to help you weigh the pros and cons of any of your financial decisions. 11
LIFEST YL E
Seven Ways to Better Manage Your Time We
all have 24 hours in a day. It’s what we do with that time that matters. Fortunately, good time management isn’t an innate talent you’re born with; it’s a skill that can be developed. If you want to improve your life, all you have to do is find a system that works for you.
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LIFE STY LE
1. Know your starting point. Take the time to do a personal time audit. For a few days, track how you spend each hour. Recording your activity — or lack thereof — can help you pinpoint unproductive time and identify changes that will provide the most benefit.
2. Establish daily routines. When you think about it, most days are essentially the same. Why not plan ahead and automate as much of your daily life as possible? Lay out the next day’s outfit the night before. Develop a regular morning routine. When you do essential tasks the same way each day, your brain identifies the pattern and locks it in, leading to greater efficiency.
3. Prioritize tasks. Rather than letting your big projects loom over you as you occupy yourself with busywork, try tackling the most important things first in your day. Not only will you miss fewer deadlines, you’ll gain momentum that will help you get smaller tasks completed with ease.
4. Give yourself a cushion. When you’re setting up your schedule, try to build in breaks and allow “life” to happen. Little inconveniences will still be frustrating, but they won’t
threaten to derail all of your plans for the day — which, in turn, means you’ll be able to be more relaxed and efficient.
5. Just say no. If you’re a people pleaser, just the thought of saying no is probably enough to make you uneasy. Learn to prioritize your time and set boundaries. And if somebody asks you to do something that doesn’t fit your schedule, give yourself permission to politely — but firmly — say no.
6. Get enough sleep. Want to get more done during the day? Go to bed! Even though you’re not actively checking things off your task list, proper rest is not wasted time. Quality sleep allows you to be more effective and focused, which, in turn, reduces mistakes and lost productivity.
7. Set a timer. Ever said or thought, “I’ll get to it when I get to it”? This easy-going, laid-back approach can cost you a lot of time — at home and in the office. By giving yourself deadlines for everyday responsibilities, you can increase your focus, decrease potential distractions, and save time in the process.
As the old saying goes, “Time is money.” When you become a better time manager, you free yourself to be more productive in other areas of your life as well — financial management included. ®
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MONE Y M AN AGE M E N T
TAX REFUND IDEAS
7 SMART THINGS Y OU CA N D O W I TH Y OUR TAX REF UN D 14
MO N EY MA NAGE ME NT
A
re you among the lucky folks getting a tax refund from Uncle Sam this year? If so, congrats! Now, you may be wondering what to do with these extra funds — spend them? Save? Pay off debt? Don’t fret, we have you covered! Explore these seven ways to put that money to work for you.
1. Fund Your Emergency Account Everyone needs an emergency fund. The dryer blows. The timing belt goes. Work hours get reduced. Life has a way of throwing us unexpected surprises — especially at the worst possible times (that’s Murphy’s Law after all). But with an emergency savings account, tackle life’s surprises by having the funds saved to cover these unexpected costs. If you don’t have one already, it should be a top priority, and what better way to start than with your tax refund? Experts say that ideally you should have enough in your emergency savings account to cover three to six months of expenses.
2. Pay Down Debt Got high-interest debt? Consider paying it down with that refund! If you have multiple debts, there are several options to help you control and ultimately pay off your debt, including: the snowball strategy (which focuses on paying off your smallest debt first and then applying what you were paying toward that to your next smallest debt — and so on), a debt consolidation loan, or building a debt management plan. Reach out to your local branch, and we can discuss your best option.
3. Invest Your Funds Consider using your tax refund to invest in your future. Long-term money management (akainvesting) does not provide instant gratification in the now — but you’ll certainly thank yourself when you are older. Explore the surplus of investment options such as Share Certificates, IRAs or even stock, and pick the one that works best for you!
4. Contribute to a 529 Fund Whether your child has already taken the ACT or is still learning their ABC’s it is never too soon or too late to start an education fund. A 529 plan offers flexibility and tax-advantages specifically for funding education needs — plus, it is not only for college but for all qualified education expenses.
5. Invest in Yourself Since your most important money-making resource is you, why not increase your own value? Use your tax refund to take a class, attend a conference, or join a professional organization. It is an investment that can pay off in the long run through new opportunities, new skills, and new connections.
6. Donate to Charity There is no better feeling than supporting a cause near and dear to your heart. Your refund is an opportunity to make your community and your world a better place. You can’t really put a price tag on that. (Not to mention, it may be a deduction on next year’s tax return. Consult a tax advisor for details.)
7. Finally, Treat Yourself If you’ve covered all of the above, a little bit of self-indulgence can bolster your spirits — after all, you’ve worked hard this past year. It’s ok to use part of your refund to have a spa day, take your family to dinner, or splurge on that accessory you’ve had your eye on — but do so responsibly. You’ve earned it!
So if you ended up getting your kickback from Uncle Sam, there are great ways to put that money to work for you. And if you didn’t get a refund? There are ways we can help you reduce your tax burden next year. Talk to an SC Telco member representative about maxing out your retirement account, or other options available to you to keep your money matters in check. ®
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FAMILY
Steps for Successful Family Goal Setting
W
hen you think about goal setting, what comes to mind? If you’re like most people, you probably think about personal objectives like weight loss, spending habits, educational endeavors, and self-improvement exercises. That makes sense since working toward a goal requires self-discipline. But what about goal setting for a group — more specifically, what about goal setting for your family?
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FA MILY
Now, you might be wondering, why would I set goals with my family? Wouldn’t it be easier if each family member just focused on accomplishing their personal goals? Sure, it might be easier. But even if your family winds up as a collection of exceptional individuals, you miss out on the unique bond that develops when a group of people work together to achieve a common goal. We hope this simple list of goal-setting suggestions will set your family up for success — and help you make some wonderful memories along the way.
1. Make it fun. If you’re going to get buy-in from every family member, keep things fun!
2. Find what you’re doing well. Even though goal setting is ultimately about doing things better, your family is most likely doing some things well already. Highlight those positives before moving on to future goals.
3. Identify necessary changes. Ask each family member to point out something they would like to accomplish together. Then, after compiling a list that includes input from everyone, go through the options, and ask for feedback.
4. Think short-term for long-term success. In the game of goal setting, momentum is key. By setting shortterm goals, you give yourself the opportunity to get some quick wins under your belt, which gives you the confidence that you can accomplish the bigger goals on your list.
5. Be SMART. If you’re going to make your family goals a reality, you’re going to need a plan that is Specific, Measurable, Action-based, Realistic, and Timely (SMART).
6. Follow up. Working toward your long-term goals will require consistency and commitment. It will also call for occasional progress reviews. If you’re wondering how to go about that, just review steps one through five again. However you decide to move your family forward in the new year, our team is cheering you on! Call us or stop by your nearest SC Telco branch location to speak with one of our member representatives to determine what financial tools and services are best for you. ®
T E N FAMILY GOAL E XAMPLE S If you love the idea of family goal setting but aren’t sure where to start, here’s a list of suggestions to help spark your creativity: • Create a family calendar • Save for an annual family vacation • Plan healthy meals • Assign individual household chores • Plant a family garden • Choose a volunteer service project • Begin a new family tradition • Enjoy device-free dinners together • Visit somewhere new each month • Start planning a family reunion
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Success is the progressive realization of a worthy goal. EARL NIGHTINGALE
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PO Box 10708 Greenville, SC 29603 sctelco.com