Articles

If you think managing your money is challenging, you’re not alone! Nearly three-quarters of teens (74%) say they’re not confident about their personal finance knowledge, according to a recent survey.
 
Who can you turn to for learning more about money management? While most people (83%) agree parents are the most responsible for teaching their children about finances, about three in 10 parents (31%) “never” do and 24% discuss finances with their kids less than once a month, per a separate survey.
 
Some schools offer or even require students to take a personal finance course, but it depends on where you live.
 
Learning more about money management while you’re a teen is important, both now and for the rest of your life. Studies show that teens who learn about personal finance make better money management decisions later on, including around college financing, savings, loans and investments.
 
Here are five tips to help make managing your money less confusing:
 

1. Have “the talk” with your parents – If your parents haven’t yet discussed personal finance with you, ask them about it. For example, “What’s the best advice you’ve heard for managing money?” The subject doesn’t need to be covered in one sitting. Instead, regularly discuss it when it’s relevant, such as when you’re shopping together.
2. Track expenses and stick with a budget – Whether your money comes from a job, gifts or an allowance, regularly track what you spend and stick within a weekly or monthly budget you set for yourself. Within your budget, plan for what you’d like to spend on yourself, what you’d like to save for the future, and give as gifts or to charity.
3. Keep in mind buying “needs” versus “wants” – While having a smartphone might be a “need” for you, buying the latest and priciest smartphone is likely a “want.” Before purchasing anything you’d define as a “major” expense (such as, anything more than $20) decide if it’s really something you “need.”
4. Understand “credit” and “credit scores” – A credit card or loan are both types of credit in which someone provides you with money under the expectation you’ll pay it back. Those who get in financial trouble with their credit have spent more than they’re able to pay back. This in turn negatively affects their “credit score,” which predicts how likely someone will pay back credit. Know that having a bad credit score can affect your ability to get a loan for a car or home, rent an apartment, or even get a job.
5. Keep saving regularly – If you have a Dinero savings account with Advancial, that’s great! Keep saving your money regularly and you’ll be amazed how quickly your efforts add up!

 
For high-quality money management information as well as a variety of financial tools built especially for teens, turn to Dinero from Advancial.

Fraudsters are more active than ever and targeting credit union members and bank customers. Their new method is very clever and very deceiving.

The member receives a call or text with the number spoofed to look like it's from Advancial. It claims to be alerting the member to a fraudulent transaction. When the member responds that the transaction isn't legitimate, the fraudster then claims to be able to help and asks for the member's cuAnywhere^® Online Banking username and password so they can fix the fraud for the member. Don't be fooled! These texts and calls are not legitimate. Here's an example:



No one is safe, including you! You must protect yourself and your personal information.

Here are some friendly reminders to help you avoid being scammed:

• Don’t respond: If you aren’t familiar with the source of call, email, or text, hang up. Don’t click on any unknown links and don’t reply to unknown texts.
• Don’t always trust your caller ID: Numbers can easily be spoofed and may appear legitimate – even Advancial or another financial institution. If a call or text seems suspicious, hang up and call using a number you know is legitimate to verify the information. 
• Check for yourself: If a text or call alleges a transaction has been made on your account, log in to cuAnywhere Online Banking or the Advancial app and check your accounts.
• Don’t give out your information: Never provide your username, password, security questions or any personal identifying information.

When you receive a call about fraud, remain calm and consider the situation and what the caller is asking you. Is it really about fraud that has happened or is the caller attempting to commit fraud, right now?

Remember, Advancial will never ask for your sensitive information over the phone. If you receive a suspicious call, hang up and call Advancial directly at 800.322.2709.

College is the most exciting times of your life — a place to grow, learn, meet lifelong friends and jumpstart your career. There’s no question, however, that college is expensive. If you’re a current high school junior or senior in the process of applying to colleges, here’s how to get prepared.

Financial Aid

Financial aid in the form of grants, federal loans, tax credits and deductions can help pay for college. You can fill out a Free Application for Federal Student Aid (FAFSA^®) to find out if you qualify for financial aid.

According to data from the College Board, undergraduate students received an average of $14,940 in financial aid in 2019-20. However, the cost of going to college keeps rising. The average budget for the 2020-21 school year was estimated at $26,820 for a public four-year in-state college or university and $54,880 for a private nonprofit four-year college. This includes tuition, fees, room and board.

Here are some tips to help you plan for and manage college costs:

• Talk with your parents. Find out how much they are able to contribute.
• Meet with school counselors. They may be able to help you search for scholarships and grants. They can also steer you toward schools that offer the best financial aid packages.
• Consider community college. If you complete required courses at a community college, you may be able to transfer to a four-year school later. Be sure to find out whether your targeted school will accept the credits. You can also take introductory courses at a community college and transfer over the credit to the university you’re attending.
• Get a job. Many schools offer work-study programs. You could find a job on your own, but be realistic about balancing work while keeping up with your studies.

Save, save, save

A college education is an investment in your future. Save as much as you can, from the money you receive for your birthday, graduation or part-time jobs, in your Dinero savings account at Advancial. Small changes you make now can pay off in greater job satisfaction and higher earnings later.

Source: The College Board

While you may know a lot about test scores, how much do you know about credit scores? One day, these scores will have an important influence over financial matters in your life, so it pays to learn about them sooner rather than later.

Credit Score History

Credit scores are like the grades on your report card. They’re a way to quickly summarize how well you’re doing financially. Credit scores help lenders gauge how good you are at making timely payments. This helps lenders understand if you’re a trustworthy borrower. Before credit scoring existed, determining creditworthiness was difficult and relied a lot on reputation and word of mouth.

How Credit Scores Work

Today, credit scores are calculated based on your credit history, which is tracked by credit reporting agencies. Your credit history includes your payment track record, public records information and personal data, such as where you’ve lived and worked. Companies take this information and use a mathematical formula to figure out your credit score. In general, the better you are at paying back loans on time, the more your credit score improves.

The Importance of Credit Scores

Having a good credit history and credit score is the key to qualifying for loans and credit cards with low interest rates and flexible terms. You can start building good financial habits today by managing your money wisely and paying bills on time.

A credit card can help you establish credit and build your credit history. It’s a good tool for learning to handle credit responsibly. Learn more about credit cards at Advancial by visiting Dinero Visa®.

You may be able to snag a smartphone for around $200 (or free!) with a one-year service contract, but the cost to operate a smartphone is not free or cheap. Whether you or your parents cover the cost, the monthly cellphone bill can take a bite out of the family budget. However, if you’re a savvy shopper, you can score a great deal.

Check all of the major mobile carriers, smaller carriers and brands, then weigh your options. You can usually find two common smartphone deals. One type offers a discount on the upfront price of a phone. Another comes as a bundle deal when you buy a new plan or trade in a used device.

Plans with talk, text and data can be pricey! A basic smartphone plan with one line might set you back around $75 a month. Plans with multiple lines cost more, but the cost per line is usually less. The price depends on which carrier you use and what’s included in the plan.

• Unlimited plans are the most expensive with unlimited talk, text and data.

• Shared plans may have a monthly limit on the data that can be used by everyone on the plan.

• Plans with limits on talk, text and data are generally the cheapest, but be aware of plan caps to avoid burning through your data each month. Overage fees can add up fast.

• Prepaid plans have no annual service contracts. With this type of plan, you prepay for service.

When you’re ready to manage your own mobile device, be smart about the costs. Start saving money now in your Dinero Teens savings account at Advancial.

One-year cost of a smartphone

If you buy a smartphone with a 12-month service agreement, you’ll pay about $60 a month for a basic plan with 4GB of data. If you use more data for streaming music and videos, the costs may be higher!

Cost to buy a smartphone [2 $100 bills stacked] $200

Yearly cost to operate [7 $100 bills & $20, stacked] $720

Source: Consumer Reports. Hypothetical example based on average monthly cost for a basic smartphone plan with one phone line with 4GB of data per month.