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Proactive steps to protect the financial wellbeing of tomorrow's worker

Understanding your employee population helps you target and assist varying degrees of financial life-stages, personality types, behavioral influencers and current needs. According to the U.S. Bureau of Labor Statistics, workers between the ages of 16-34 will make up 33% of the labor force by 2030. During this time of life, many workers are engaged in the day-to-day process of earning a living, increasing wage growth and building toward a future. They are saving for both short and long-term goals while also focusing their efforts on accumulating and converting their earnings into assets.

These workers are referred to as accumulators. Accumulators value personal time and want to enhance their quality of life and that drives most of their financial decision making. The challenge of juggling work demands while nurturing family and friend relationships leaves little time for them to focus on their personal finances.


And that can be the fundamental financial literacy gap: the expectation of financial independence before understanding how to apply financial principles to meet their goals. Young workers need access to easy-to-understand and actionable financial information at an early age so they can be a prepared and informed consumers - of not just goods and services, but also financial products.
 

What are the fundamentals? And where should young professionals start?

• Manage cash flow - Set a budget (assign a dollar to everything), “pay yourself first”, understand a “need” versus a “want”
• Avoid debt as much as possible and learn to manage “good” debt versus “bad” debt
• Concentrate on behaviors - set a framework for good decisions; “know thyself”, and play to your strengths
• Automate finances to avoid missing payments and to consistently save or invest
• Avoid pitfalls - Don’t fall for financial trends or succumb to materialistic instincts
• Seek professional financial advice
• Think about why you have money, why you spend it, and visualize how money can be a constructive tool on your way to achieving your life’s goals

When working with a services provider to offer financial wellness, ensure that employees in this age group receive relevant content to support the Pillars of Financial Planning--“BPI”: Budgeting, Protecting, and Investing. Focusing on these well-established foundational concepts will position this growing employee population for long-term financial health and success.
 

Tired of carrying around a wallet stuffed with cards? Don’t like waiting for a chip card to process? Worried about the germs on the payment terminal? Try using a mobile wallet!

What’s a Mobile Wallet?

Your smart device can do more than manage your financial accounts and make mobile deposits. Another tool at your disposal is the mobile wallet. You might have heard of mobile wallet apps such as Apple Pay^®, Google Pay^TM or Samsung Pay^®. These special apps can hold digital versions of your compatible credit and debit cards so you can use your smartphone or smartwatch to make purchases in-store or online – simply look for the logo of your mobile wallet or the contactless symbol. It’s a fast, secure and convenient way to pay.

The Benefits of Mobile Wallets

Mobile wallets come with a few advantages over their plastic counterparts:

• Payments are made in seconds by tapping or waving your smart device over the payment terminal.
• They’re more secure, for multiple reasons. One is that while it’s easy for someone to use your card if you lose it, it’s much harder for someone to use a mobile wallet on your lost (and locked) phone. Additionally, mobile wallets send a secure, single-use signal every time a payment is made, which isn’t useable even if intercepted by a thief.
• Millions of retail locations let you pay with mobile wallets, with more adding compatibility each day.

Add Us to Your Mobile Wallet!

If you’re an Advancial member with an Ultimate Checking account, you can add your debit card to your mobile wallet and enjoy the fantastic benefits of your card alongside the security and convenience of your mobile wallet. Plus, if you have a Visa^® Rewards Plus credit card, you can add it to your wallet and enjoy the flexibility of choosing the right card for the right moment. Learn how to add your Advancial cards to your mobile wallet.

 

You would never run a marathon without building up the strength, endurance and mental stamina needed to cross the finish line. Reaching fitness goals requires training and dedication. The same is true for financial fitness. If you have financial goals, you’re much more likely to reach them if you acquire and practice the fundamentals of financial fitness.

Set a training plan with a sound budget. Creating a budget is an important step because it helps you to understand where your money comes from and how you spend it. Once you understand your finances you can make choices that help you reach your goals.

• Fitness tip: Tackle one adjustment at a time. If you’re trying to save money, begin by looking for ways to cut spending that you won’t notice like canceling unused subscriptions. Once you gain a little momentum, try setting up direct deposit from your paycheck to a savings account at Advancial.

Build strength by improving your credit score. A strong credit score is important to your overall financial health. Your credit score is a number based on your credit history. The score, tabulated by three major credit bureaus – Equifax,^® Experian^® and TransUnion^® – is based on aspects of your financial history like paying bills on time, how much money you owe and how many credit cards you have. A good credit score gives you more power to finance major purchases such as a car or home.

• Fitness tip: You can view your credit score free of charge every year from each of the three credit bureaus. Check your credit report for discrepancies and look for ways to improve your score.

Increase endurance by paying down your debt. Sometimes borrowing money is necessary but debt, especially if it’s held on a high interest credit card, can keep you from going the distance.

• Fitness tip: One strategy to pay down debt is to transfer high-rate credit card balances to a new credit card with a lower rate and 0% interest period. With VRP from Advancial, there’s no balance transfer fee and you’ll get 0% interest for the first 12 months. After that, you’ll enjoy a low rate of 8.90% - 14.90% APR based on credit worthiness.

Improve your flexibility with an emergency savings account. An emergency account gives you the flexibility to clear unexpected financial hurdles. Experts recommend you save enough money to cover your basic living expenses for three months.

• Fitness tips: Consider this recommended amount as a guideline, but any amount of savings is better than nothing. Start building slowly and work toward a goal that you are comfortable with.

When working on your financial fitness goals, remember you have many resources to help you at Advancial. Visit advancial.org to learn more.

Tips for online shopping

This year, skip the malls and enjoy the benefits of holiday shopping from home. Shopping online for holiday gifts can save you time and money – and help you earn rewards. Here are some tips to shopping safely, saving money and getting rewarded for your efforts.

Security first

Before you start loading up your virtual shopping cart, here are a few tips to help ensure your online security.

• Update your software, apps and browsers. Security fixes are often part of updates, so sign up for automatic updates to stay secure.

• Shop on known and trusted retail sites. If you’re clicking through to an online store from an email or social media ad, check the URL. Legitimate sites typically include a lock icon and start with https://, which means they’re encrypted.  

• Only shop over a secure and private Wi-Fi connection.

• Pay with a credit card and check your statements carefully during the holidays for any fraudulent charges.

Save while you shop

Doing your holiday shopping online has some natural cost controls built in: you save on gas, avoid the food court and bypass the temptation of impulse buys waiting in line. Here are some other ways you can save money while you shop online.

Research and compare prices. One of the benefits of online shopping is that comparison shopping doesn’t mean running around town – answers are just a few clicks away. You can even use a browser plug-in like PriceBlink, an extension that pulls pricing from many online retailers to show you price comparisons on items while you shop. The larger the ticket item, the more time you should spend researching.

Sign up for emails or other promotions to save. Many retailers offer a discount on your first order after signing up for email promotions. You’re likely to score additional savings through follow-up emails.

There’s an app for that. Look for money-saving apps like Honey, which applies online coupons to your purchase, or Rakuten, which offers cash back on purchases. There are even apps to help you shop on specific sites like Amazon, such as CamelCamelCamel which will provide you with price tracking and low price alerts.

Earn rewards

With rewards, your gifts keep on giving. Use your Ultimate Checking debit card and earn one reward point for every $5 spent on all non-PIN transactions. Shop with your Visa^® Rewards Plus credit card to purchase gifts online and earn one point for every dollar spent. Plus earn up to 1.5% on every purchase when you make more than 25 purchases or spend more than $2,500 during that billing cycle. Points can be used on cash back, merchandise, dining and travel from national retailers through the Advancial Rewards program.

Amplify Your Rewards

Earn bonus points at participating retailers by using your Advancial debit card or Visa^® Rewards Plus credit card!

With Ampre card-linked offers, thousands of online and in-store bonus point offers are already linked directly to your card. Simply use your Advancial debit card or Visa Rewards Plus credit card at participating retailers and you’ll automatically earn points.

Learn more about Advancial rewards at www.advancial.org/rewards.

If you’re in the market for a new vehicle, there is good reason to hold out for the end of the year. Car dealers are highly motivated to sell the current model year cars before the coming year models take their place on the showroom floor. And they may also be keen to make year-end sales goals. Armed with this knowledge, here are some tips to buying a car in December and getting the best deal possible.

1. Look for year-end incentives. Historically, December is one of the biggest months for dealer incentives. Typical incentives include low- or no-interest offers as well as cash back “rebates” on certain makes and models, but be sure to look at the fine print. Interest rate offers are usually still dependent on credit rating, and if you qualify for the lowest rate, you’re unlikely to negotiate other savings. Cash back is usually applied to your down payment – so don’t expect to walk away with a new car and a wallet full of cash. However, if the incentive applies to the car you want, and the financing works for you – these year-end deals can save you thousands on a new car.

2. Shop the last week in December. If you’ve already waited until the end of the year, saving your shopping until the last week could be another money-saving tactic. One reason is low competition with other buyers – many folks will have spent heavily on holiday shopping and be reluctant to make a large purchase. The pressure on the dealer, to meet sales goals and move cars off the lot, will be at its highest.

3. Make sure the dealer has your car. If you’re planning to swoop in and negotiate a killer deal, make sure the dealer has the car you want on their lot. Start by checking online, then follow up with a call to the dealer to verify their online inventory. You don’t want to waste time visiting a dealer unless the car you want is ready to drive home in. Year-end shopping is all about timing, so make sure time is one your side.

4. Do your homework. It’s always a good idea to research before heading to the dealer, but even more so if you’re hoping to get the best deal possible. Check websites like Kelly Blue Book or Edmunds to find out the sticker price, what equipment comes as a standard package and what’s included at each trim level, what financing and rebate offers are available and more. Based on all the information you gather, decide on the amount you are willing to pay before you head to the dealer.

5. Get pre-approved for an auto loan. Once you’ve found the car you want, secure a great rate and financing through Advancial Credit Union before you head to the dealer. Pre-approved financing allows you to shop as if you have cash in hand, and you can let the dealer know you’ve been pre-approved for the amount you want to pay.

Use these tips to capitalize on a prime buying time and find a great deal on the wheels of your dreams. Remember, good things come to those who wait … until December to buy a new car!

Get pre-approved, shop, finance and buy – all online!

Pre-approval is fast and easy and can be done online. Advancial has partnered with AutoSMART to give members a head start when car shopping online. Both sites have incredible inventories of cars listed – and both have special partnerships with Advancial that makes shopping, financing and purchasing a seamless experience.

Visit www.advancial.org/loans/auto-loans/ and start the process now.