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Scholarships vs. Student Loans: How to Fund College without Debt

The rising cost of college tuition has left many students and families wondering how to pay for higher education without accumulating massive debt. While student loans are a common solution, they come with long-term financial obligations. On the other hand, scholarships offer a debt-free way to fund your education. Understanding the differences between these options can help students make smarter financial choices and minimize or even eliminate student debt.

What are Scholarships?

Scholarships are financial awards that do not require repayment, making them an ideal way to cover educational expenses. They come from a variety of sources, including colleges, private organizations, non-profits, and employers. Scholarships can be awarded based on different criteria, such as:

  • Merit Based: Awarded for academic excellence, athletic ability, or artistic achievements.
  • Need Based: Given to students from low-income families or those demonstrating financial need.
  • Demographic Based: Designed for specific groups, such as first-generation students, minorities, or veterans.
  • Field Specific: Offered to students pursuing careers in specific industries like STEM, healthcare, or education.
  • Community or Employer sponsored: Provided by local businesses, credit unions, or employers as an incentive for continuing education.

Where to Find Scholarships

To maximize scholarship opportunities, students should explore multiple sources, such as:

  • FAFSA (Free Application for Federal Student Aid), which can reveal eligibility for grants and institutional aid.
  • University financial aid offices, which often have lists of available scholarships.
  • Online databases like Fastweb, Scholarships.com, and the College Board’s scholarship search.
  • Local organizations and non-profits, including community foundations, credit unions, and religious groups.

What are Student Loans?

Student loans are borrowed funds that must be repaid with interest. They are typically used when scholarships, grants, and savings are not enough to cover tuition and other expenses. There are two main types of student loans:

  • Federal Student Loans – These are government-backed loans with lower interest rates and flexible repayment options. They include:
    • Subsidized Loans – The government covers interest while the student is in school.
    • Unsubsidized Loans – Interest begins accruing immediately upon disbursement.
  • Private Student Loans – These are issued by banks, credit unions, and other private lenders. They often have interest rates that depend on your circumstances, and may require a cosigner.

The Long-Term Cost of Student Loans

To minimize the need for student loans, consider these strategies:

  • Prioritize Scholarships & Grants – Apply for as many scholarships as possible to maximize free funding.
  • Consider Community College First – Attending a community college for the first two years can significantly reduce costs before transferring to a four-year institution.
  • Explore Tuition Reimbursement Programs – Certain employers and organizations offer tuition assistance for employees.
  • Use Savings & Smart Budgeting – Setting aside money in a college savings account can help cover tuition without relying solely on loans.

Scholarships are a powerful tool for funding college without the burden of student debt. While student loans may sometimes be necessary, they should be a last resort after exploring scholarships, grants, and other financial aid options. Taking the time to research and apply for scholarships can save students thousands of dollars in the long run.

At York Educational Federal Credit Union, we are committed to helping our members make informed financial decisions. Contact us today to learn more about financial planning, student loan options, and scholarship opportunities!

Fresh Start Finances: Opening a Savings Account for the New Year

About half of Americans dedicate themselves to a new year’s resolution once a new year begins. Are you one of them? If you’ve set out to adopt better financial practices in 2025, then this list is for you! There’s no better time than the beginning of the year to set achievable financial objectives, like opening a new savings account. While you can start saving anytime, there are multiple reasons that opening one for the new year can set your funds up for success.

1. Consistent Saving

If you stay consistent with any of your new year’s resolutions, then the change you wish to see is bound to be achieved. The same thing goes with your money! Consistent smart savings practices, especially over time, can progressively grow the sum of your savings. That way as you grow throughout the year, so does your savings account. So stick to your resolution by adopting practices like automating your savings each month, cutting back on spending or even doing it the old fashion way with a piggy bank. No matter how you decide to save, remember that consistency is key! 

2. Set Goals

Whether your goals are open ended or you’re saving for something specific, having an account dedicated to saving is a step you shouldn’t skip. If you have a big vacation in the works, give yourself the first half of the year to put money away for it. Already got exciting plans for the holidays next year? You have all of 2025 to work towards them! Even if your goal is generally to save with nothing specific in mind, having a savings account that you can rely on for whatever happens in life is integral to meeting those goals. As long as you have something to work towards, it makes the intention of saving feel less like a chore and more like a productive habit.

3. Safety Net

It’s no secret that some things in life you can’t anticipate or plan for. One of the most common reasons to build up your savings is to have a monetary safety net that you can land on in case of emergencies. If your goal for the year is to grow your emergency funds, consider contributing to it with every paycheck. These funds keep unplanned costs from being too disruptive to our lives, and can aid in the mission to avoid debt. No contribution is too little as long as you’re making the effort to save! 

4. Monthly Contributions

The easiest way to put money into your savings account is to do so monthly. This could be through simple transfers and deposits, automating your savings so the transfers happen at the same time each month, or you could directly deposit funds from your paychecks. Best practice calls for dedicating 10% of your paycheck to saving if you want to see it grow. If that percentage is too high or too little, you can always alter the amount to be specific to your own goals. Growing your savings takes time, but contributing a little bit each month are the steps you need to take to see results. 

5. Saving Services

There are lots of financial services that exist for the sole purpose of saving money. Consider a CD or Money Market so that your accounts make money for you with little to no interaction. Our current CD Special is 4.75% for 12 months with a minimum of $500. If you’re looking to save with fewer penalties that come with CD’s, we have Money Market accounts that start at .75% for a minimum of $500. These accounts and services keep your funds safe from being spent and accrue interest as time goes on, and are a great tool to use to build up your savings in 2025. 

Overall, opening a savings account at the beginning of a new year gives you ample time to contribute to your goals. It facilitates smart spending habits and establishes a strong financial foundation for you to continue building upon throughout the year. Like all resolutions, it depends on just how dedicated you are to seeing it accomplished. But with a little consistency and being intentional with your funds, 2025 can be the year your goals are met!

5 Financial Habits to Start Before the New Year

As 2024 comes to an end, there’s no better time to review your finances in preparation for 2025. Looking to improve how you save and spend your money? By analyzing your previous financial practices throughout the year, you can pinpoint which ones are worth bringing into the new year, and the ones better left in the past. Adopt these smart financial habits by the end of the year and give yourself a head start to a successful 2025!

1. Track Your Spending

We’ve heard it all before – keep track of how much you spend in order to truly see how much money we’re losing rather than saving. It’s the oldest trick in the book. But what they don’t tell you is that this trick really does work! It’s easy for small expenses to add up over time (think that morning coffee run or an impromptu shopping spree), but when coupled with larger expenses like monthly bills? That means a lot of money is leaving your account rather than accumulating. When you track your spending and come face to face with just how much of your money is being spent, it’s easier to cut out the expenses we can live without. This way we can guarantee the funds for more expensive costs, like rent, car payments, and other bills. Keep yourself in the loop of your own spending by tracking them month by month.

2. Automate Your Savings

Most people have heard of automatic bill payments that are taken out of their account each month, but did you know you can do the same thing for your savings account? It’s recommended that 10% of each paycheck be deposited into your savings, but truly any amount is better than none! This is a great option for those who struggle with consistently building up their savings – whether it be because we don’t prioritize it, or simply because it slips our mind. Once these automatic transfers are set up, you can focus on other things while being assured that your savings is slowly growing. 

3. Create A Budget

Creating a budget is an extremely important step to saving money, and typically goes hand in hand with tracking your spending. By calculating how much money you spend each month, you budget those funds by deciding which areas of your life you can afford to spend more, and which ones you need to spend less. If you see that you’re spending more on impulse purchases yet come up short for bills, try cutting back on those costs. Best practice calls for us to decide what expenses are non-negotiables and adjust our spending around them. Things like bills, rent, credit card or other loan payments, etc. would be defined as things we can’t live without, and they should always be paid first. Money should also be set aside for everyday, affordable costs, as well as emergency funds for expenses we can’t foresee, such as car troubles or a cracked phone screen. Everyone’s budget is specific to them, and it’s the best financial act of preparation you can take for every year of your life. 

4. Tackle Debt

Make the effort to improve your debt in the upcoming year by making payments when you’re able. You can have your payments automated monthly to ensure consistent payments, or you could even pay them in advance if that fits better into your budget. Diminishing debt can be a time consuming job, which is why any attempts to pay it back is best practice. After all, any payment is better than none! You never want to let debt go unchecked, so start paying it back slowly and your debt will decrease over time. If what you owe seems unmanageable, speaking to a professional like our loan officers is an irreplaceable resource. They can aid in breaking down what you owe and creating a payment plan that works best for you. You can schedule a meeting with a YEFCU loan officer here.

5. Set Clear Goals

Like any goal, it’s important to be as specific as possible with what you’re trying to achieve. Are you looking to grow your savings in the upcoming year? Do you have a loan you’d like to pay off completely? Once you decide what you’d like to accomplish, write down every step you need to take to get there. This allows you to visualize the process and make it less daunting, and more doable. How much can you budget to go towards this goal? Can you increase potential payments to speed up the process? These are all important questions to consider when planning just how you want to tackle your goals in 2025, and the first step in working towards materializing them.

Looking back on the previous year is imperative to improving the one ahead. By doing so we analyze what practices worked, what didn’t, and what we can improve on. Adopting better habits not only improves our daily lives, but our financial futures in the long run. Consider tweaking the way you interact with your money and 2025 could be your most financially successful year yet! 

Shopping Smart On Black Friday

Are Black Friday deals really worth the budgeting? The holiday is famous for steep discounts limited to a single day, but not all the sales you’re bound to see are truly worth the rush. With tips from The Real Deal, we’re providing a guide to what you should snag this Black Friday for the best savings and what you’re better off buying at other times in the year.

What To Buy On Black Friday

1. Small Kitchen Appliances

Best time to buy: Black Friday and Cyber Monday

From the seasoned chef to the humble home cook, holiday sales are a great opportunity to expand the wares in your kitchen. Appliances like air fryers, blenders, and coffee makers tend to be steeply discounted on Black Friday. Look to big brands like Walmart, Kohls, Macy’s and Bed, Bath & Beyond who often offer up to 50% off on these items. Rather than wait until later in the year to upgrade your cooking gear, Black Friday deals on kitchen appliances may save you money in the long run.

2. Smart Home Gadgets

Best time to buy: Black Friday, Cyber Monday, and Prime Day (July)

Looking to upgrade your home security? Black Friday is prime time for deals on smart home devices like smart speakers, thermostats, and security cameras. This is a great time to set up a smarter, safer home while still saving big. Check Amazon and Google for the best price drops. If you miss these sales, watch for similar discounts on Amazon Prime Day later in the summer.

3. Video Games & Consoles

Best time to buy: Black Friday and Cyber Monday

While popular gaming systems like the PlayStation, Xbox, and Nintendo Switch tend to stay the same price on Black Friday and Cyber Monday, stores like Walmart, Target, Best Buy and GameStop often offer discounted bundles that include games and freebies. Video games themselves frequently see the biggest discounts during this time of year and are the perfect gift for your resident gamer.

4. Laptops & Tablets

Best time to buy: Black Friday, Cyber Monday, and Back-to-School Season (August)

Black Friday offers some of the year’s best prices on laptops, tablets, and other tech gadgets. Great deals can be found at Best Buy on quality computers without paying full price, as well as on Apple and Dell’s home websites. If a tablet is more your speed, Target, Amazon and Best Buy are the best places for deals on Samsung, Apple and Amazon models. However, you can also find great deals during the back-to-school season, especially for students and teachers looking to upgrade before the new school year.

5. Wireless Earbuds and Headphones

Best time to buy: Black Friday, Cyber Monday, and Super Bowl Season (January-February)

Brands like Bose, Sony, and Apple frequently offer significant discounts on headphones and earbuds during this time. This Black Friday, visit Walmart, Target or Amazon to upgrade your audio gear without breaking the bank. If you miss the sales during the end of the year, some brands also offer great markdowns in January, particularly on models designed for sports and fitness.

6. Children’s Toys

Best time to buy: Black Friday, Cyber Monday, and After-Holidays Sales (Late December to Early January)

Toy stores and online retailers know parents are going to be holiday shopping, so look out for substantial markdowns on popular toys during this time. Black Friday deals often offer up to 30-50% off on trending toys specifically. You can also find clearance sales on toys right after the holidays. So if you’re buying gifts, it’s worth grabbing them now, but for general purchases, it’s best to wait until January.

7. Smartwatches & Fitness Trackers

Best time to buy:  Black Friday, Cyber Monday, and New Year’s Sales (January)

Fitness trackers and smartwatches get heavily discounted on Black Friday, so expect to see markdowns on brands like Apple, Garmin, and Fitbit. But if you miss these, watch for New Year’s promotions in January, as brands cater to those starting fresh health goals at the beginning of the new year.

8. Home Goods (Sheets, Blankets, and Towels)

Best time to buy: Black Friday, Cyber Monday, and White Sales (January)

If you’re looking for linens and home essentials like towels and bedding, expect to see excellent discounts on Black Friday. You can often find quality sets at half price or less as well. White Sales in January also offer similar deals, so you can wait if you’re not in a hurry.

9. Major Appliance Bundles

Best time to buy: Black Friday, Presidents’ Day (February), and Memorial Day (May)

Many retailers offer bundles or package deals during Black Friday, especially for kitchen and household items. Bundling these items can result in significant overall savings, especially if you’re looking to replace multiple items at once. If you’re looking to bundle appliances, Black Friday has some of the best deals. However, Presidents’ Day and Memorial Day also offer significant discounts if you miss out.

10. Gift cards

Best time to buy: Black Friday and Holiday Season (December)

Keep an eye out for brands that offer gift cards at a discount or as bonuses with purchases on Black Friday. This is a great time to snag extras for holiday gifts or future savings alongside your seasonal purchases!

What to Skip on Black Friday

1. Clothing

Best time to buy: Cyber Weekend and Winter Sales (January)

You’ll often find quite the deal on clothes during Black Friday, but they typically only apply to specific articles of clothing rather than a large array. Hold off until Cyber Weekend to take advantage of promo codes for up to 60% off of your whole cart, and the end of January for winter clothes as stores start to clear out for spring designs.

2. Furniture

Best time to buy: Presidents Day Sales

If new furniture is on your holiday wish list, skip the sales ads during Black Friday and wait until Presidents Day when most furniture and retail stores offer their largest discounts of the year.

3. Flat Screen TVs

Best time to buy: Super Bowl Season (Late January to Early February) 

Black Friday has a reputation for “doorbuster” TV deals, but these often feature lower-quality models. If you’re after a high-end TV, wait until late January when Super Bowl deals bring similar savings on better models.

Shopping Smart All Year Long

Knowing when to buy items throughout the year is a budgeting tip that can save you more in the long run rather than impulsively overspending on Black Friday deals. Keep an eye on seasonal sales and discounts, and you’ll get the best value for your money without splurging on everything at once. Incorporating these tips will have your savings account thanking you all year long! 

Financial Horror Stories: Avoiding Common Money Mistakes

When it comes to managing money, even the most careful planners can fall victim to financial fright. From unexpected fees to budgeting slip-ups, money mishaps can haunt us if we’re not prepared. In the spirit of Halloween, we’re sharing some examples of real-life financial horror stories to help you avoid common money mistakes. Whether you’re looking to sidestep credit card troubles, avoid impulse spending sprees, or dodge loan regrets, these tales offer valuable lessons to keep your finances safe and sound. Read on—if you dare—and learn how to avoid the most bone-chilling blunders!

Paying Bills On Time

Missing a payment can haunt your finances long after the due date. Late fees add up quickly, and falling behind can hurt your credit score, which affects everything from loan approvals to interest rates. Avoid this horror story by setting up reminders for yourself or automating your payments so you can rest easy knowing your bills are paid on time. A little organization now can save you from a financial nightmare later!

Saving Money Consistently

One of the scariest mistakes people make is not putting enough focus on saving money. It may seem harmless to skip setting aside funds each month, but over time, a lack of savings can leave you vulnerable. To escape this trap, make it a habit to put away a small amount from each paycheck, even if it’s only a few dollars. By consistently saving, you’ll be better prepared for bigger goals—and avoid the fright of living paycheck to paycheck.

Building an Emergency Fund

Life is full of unexpected twists, and failing to plan for them can lead to financial chaos. Without an emergency fund, surprise expenses like car repairs or medical bills can set you back or force you to take on debt. Start building a cushion by saving three to six months’ worth of living expenses. This fund can be your safety net when life throws you a curveball, ensuring you’re prepared for the unexpected.

Having Adequate Insurance

It’s easy to overlook insurance—until you actually need it. Whether it’s health, car, or renters insurance, lacking proper coverage can turn an unfortunate incident into a financial nightmare. Insurance protects you from large, sudden expenses that could deplete your savings. Take time to review your insurance policies and make sure you’re covered; it’s better to be safe than haunted by unexpected costs.

Avoid Overspending on your Credit Card

Credit cards offer convenience, but they can also lead to monstrous levels of debt if not managed carefully. Overspending on credit can quickly snowball, thanks to high-interest rates and minimum payments. To avoid this pitfall, only use your credit card for purchases you can pay off by the due date. By managing your credit wisely, you’ll stay debt-free and dodge the financial hauntings that come with high balances.

Steering Clear of Careless Spending

Small, impulsive purchases may not seem harmful at first, but over time they can drain your finances. Careless spending on things like daily coffee runs, online shopping sprees, or takeout can add up and disrupt your financial goals. Instead, practice mindful spending by budgeting for “fun” purchases each month. This way, you can treat yourself without the tricky risk of budget-breaking regrets.

Protecting Your Private Information

Identity theft is a real-life financial horror that can lead to stolen money, ruined credit, and months of cleanup. To protect yourself, be cautious with personal information. Avoid sharing sensitive details over email, and ensure you’re using secure websites for online transactions. Regularly monitor your accounts for suspicious activity, so you can catch any issues before they become a full-blown nightmare.

Tracking Your Spending

Not tracking your spending is like wandering through a haunted house blindfolded—you never know what will jump out at you. Keeping tabs on where your money goes helps you identify areas for improvement and stay within your budget. Consider using budgeting apps or reviewing your expenses weekly. By knowing where your money is going, you’ll have the power to make smarter financial choices and avoid budgetary scares.

By learning from these financial horror stories, you can steer clear of common money mistakes and take control of your finances before things get spooky. At York Educational Federal Credit Union, we’re here to help you make wise financial choices, offering tools to build a solid financial foundation. If you’re looking to boost your credit score, our Credit Builder Loans provide a safe way to build credit without risk, while our Holiday Loans offer an easy solution to cover seasonal expenses or unexpected costs. Remember, you’re never alone in your financial journey—your credit union is here to support you every step of the way!

Mortgage Shopping Essentials

Buying a home is a big commitment – that’s why you should cover every financial base before agreeing to a mortgage. Need some insight on what to look for when considering a house? Review this list of mortgage shopping essentials to prepare yourself (and your bank account!) for becoming a homeowner.

1. Mortgage Type

Mortgage payments come in many shapes and sizes depending on the lender. Knowing which type you’re interested in can help determine how much you’ll be paying. 

Most mortgages are defined by being fixed or adjustable. The interest rates of a fixed mortgage will stay the same the entirety of the mortgage, whereas the adjustable mortgage’s interest rates will change as the market does. Both mortgages types can either be conventional conforming or noncomforming. Conventional conforming loans are defined by Rocket Mortgage as, “a loan that’s not insured by the federal government.” These loans can be fixed or adjustable and are the most common mortgage you will run into. 

Nonconforming loans are government backed loans, and are ideal for borrowers with lower income, savings and credit scores. This includes mortgage types like FHA’s and VA’s. FHA’s are backed by the Federal Housing Administration and VA’s by the Department of Veterans Affairs that operate under certain qualifications for borrowers. These mortgage types tend to have lower down payments and interest rates, and are more accessible to those with credit issues. 

Young couple closes on house by signing official document with financial counselor.

2. Payments

Making loan payments is a crucial step to home owning. You should agree to a payment period that is realistic for you to prevent late or insufficient payments. The average mortgage payment is due every month at the same rate during the allotted time it will take to pay the loan off (think between 15 and 30 years). Balloon payments, on the other hand, are a mortgage payment that starts with a smaller interest rate and ends with a large amount upfront to pay the rest in full. Because of this, the payment period is shorter than average.

How often do you think you’ll be able to make your mortgage payments? Monthly payments are most common, but some lenders also offer weekly, biweekly and semimonthly payment plans depending on the circumstances of the borrower.

Smiling woman calculates payment costs on table with documents spread out.

3. Know Your Interest

Credit and the current housing market typically determine a borrower’s interest rates. So what can you do to make yourself appealing to lenders and secure a house? Rocket Mortgage explains, “While you can’t control market rates, you can have some measure of control over how a lender views your application. The higher your credit score, the more assured a lender will feel that you can repay the loan with on-time payments.” A good credit score coupled with minimal debt history and a steady income is a great start to preparing yourself for securing a mortgage.

House sits on street during a sunny day with a For Sale sign on its front lawn.

4. Insurance

Mortgages also come with insurance. PMI, or private mortgage insurance, is paid when their down payment is less than 20%. PMI’s usually cost somewhere between 0.2%-2% of your total loan amount, and can be paid on a monthly basis like your mortgage payment, in a lump sum, or a combination of the two. 

MPI’s, or mortgage insurance premium, are more common with nonconforming loans and are paid upfront. If borrowers put down at least 10% of your down payment, then you’ll only owe MPI payments for around 11 years. Anything less than 10% of your down payment, however, will mean paying MPI costs for the rest of loan’s payment period. 

It’s also important to factor in the cost of your Escrow – that is, the funds collected each month to cover real estate taxes and homeowners insurance. 

Financial counselor helps client with paperwork for owning a house.

5. Additional Costs

Other than the initial loan payments, some extra costs include application fees, closing costs, potential prepayment penalties, as well as aforementioned costs such as insurance, escrow and interest. Your budget should include these costs when looking for a home.

Young woman uses calculate to calculate budget with her savings in a piggy bank.

Owning a home can be a thrilling experience, especially to those who are new to it. While the process can be intimidating and lengthy, learning about each step can make things go smoothly. Through our partnership with First Heritage Financial we offer our members multiple rates to make their home owning dreams a reality. Do you have any questions related to loan payments/home ownership? Give our loan office a call or schedule an appointment and we’ll help you every step of the way! 

How to avoid financial stress

Personal finances can take up a lot of our mental space. While keeping up with your bank accounts encourages financial responsibility, it shouldn’t become stressful or obsessive. Help Guide says, “An American Psychological Association (APA) study found that 72% of Americans feel stressed about money at least some of the time.” When we focus too heavily on our finances it can become detrimental to our mental and physical health. Learn more about the multiple ways you can engage with your funds without succumbing to financial stress. 

1. Stay Organized

Consider taking inventory of all of your monthly expenses as a way to anticipate how much money you’ll be spending. Money Mentors says, “Understand the finer details of your finances, like when you get paid, when your bills are due, your monthly budget and your savings. Find an organizational tool that works for you―whether that’s in an app, spreadsheet or journal.” This way you can account for non-negotiable expenses and when they’re due, like bills, rent, child support, etc. as well as any money put into savings and spent on leisure. Budgeting your expenses this way can reduce the chance of being blindsided by monthly costs and becoming stressed about what you can or can’t pay.

2. Have An Emergency Fund

Life can be unexpected. Because some costs can’t be anticipated, it’s easy to stress over the unknown. Avoid digging into your savings by creating an emergency fund to pull from instead. This can leave you more prepared for whatever life decides to throw at you. It’s important to start small – depositing even a few dollars each paycheck into this account will build up over time. But eventually you will have a reliable safety net when it comes to unplanned expenses.

3. Automate Your Payments

Tracking your costs not as efficient as it sounds? A great option is opting for automated payments. Citizens Bank explains, “Setting up automatic bill pay can help alleviate the stress of remembering to pay bills and avoid costly penalties for missed payments.” If you tend to be forgetful when it comes to paying bills, automated payments can help lift some of your financial burdens. This is also a great method to building your savings or emergency funds – you can also have funds automatically moved over each month to ensure your accounts are growing.

4. Reduce Debt

Debt is a huge contributor to financial stress. When creating a budget, try including a plan to slowly chip away at what you owe. Just like building up a savings account, debt won’t always go away overnight, but making any attempt at minimizing your debt will help you feel less stressed about it. If you need more professional help, financial institutions like ours have financial counseling services to aid in consolidating debt and creating a savings plan to build up your finances. 

5. Reach Out For Help

If your financial stress is all encompassing, reach out to someone you trust about your worries. This could be a friend, a loved one, or a professional. Speaking about your financial stress can help relieve any negative feelings you may have, as well as open yourself up to advice for your situation you hadn’t thought of alone. Allow yourself to speak without fear of judgement, and you may view your financial stress from a different perspective.

While there are certainly lots of economic factors outside of our control that can cause us stress, it’s important to focus on what you can control. If you don’t, you risk falling into a cycle where nothing productive gets done. According to Help Guide, “Financial problems adversely impact your mental health…The decline in your mental health makes it harder to manage money…These difficulties managing money lead to more financial problems and worsening mental health problems, and so on.” Break out of this cycle by adopting smart financial practices and getting the help you need for your financial stress.

Budgeting For Back-To-School

As summer winds down and the new school year slowly approaches, so too does the need to go back to school shopping. According to Credit.org, “The National Retail Federation tells us the average family spending for back-to-school expenses will be $696.70 this year.” For many, this number may be out of their family’s budget. So what are the best ways to save on school supplies that still set students up for success? The answer may lie in shopping with a plan, taking inventory of what you already have, comparison shopping and taking advantage of sales. 

1. Shopping with a Plan

Going back to school shopping without a plan or budget is an easy way to indulge in impulse buying you may not be able to afford. “Set a budget for back-to-school shopping before you go to stores, then figure out how much you can spend for various items on the list. “ says Consumer Reports. Making a list of the items you need and sticking to it will also help avoid unnecessary expenses while guaranteeing you get what you need for the school year. 

2. Take Inventory

If you’ve been buying school supplies for a while, there’s a good chance you already have a collection of items bought in previous years. Take inventory of what you already have before you go shopping, that way you know what you can recycle for the current year and what you absolutely need to buy new. This can also decrease the chance of buying duplicates of supplies you may already have.

3. Comparison Shop

While most shoppers flock to big department stores and make all of their purchases there, it’s important to know you have options when it comes to where to shop. According to Credit.Org, “Use web sites and newspaper ads to compare prices, and remember that a lot of stores will stock up on school supplies where they normally wouldn’t, so don’t just look at the obvious retailers.” Often times you’ll find items cheaper from places like the dollar store or bargain stores that aren’t always marketed for school supplies. 

4. Take Advantage of Sales

There’s no doubt about the prevalence of back to school sales during this time of year. Don’t feel afraid to take advantage of the discounts provided by popular brands! Feel free to use coupons as well as they can also help with saving money. As long as these sales aren’t used to justify impulse purchases, they are a great way to encourage shoppers to stick within their budget. 

Looking for more interactive resources? American Consumer Credit Counseling has a great budgeting worksheet perfect for keeping up with expenses while allowing users to personalize it to what they need. YEFCU also has a plethora of savings accounts to choose from for budgeters to use specifically for back to school funds. No matter what your situation, by adopting smart financial practices you can make the most of your back to school budget and manage your school supplies spending.

The Role of Technology in Modern Banking

It’s no secret that technology rules the modern world. It’s present in our homes, our hospitals, our transportation and even our kitchen appliances. So it should come as no surprise that technology also plays an integral role in how we do our banking. In the past 30 years alone we’ve seen almost every financial function go digital or advance in some way. While that may come as a relief to some, others remain doubtful about the need for technology in their financial practices in the first place. One thing’s for sure – without technology the financial world would look extremely different than the one we know today. For better or worse, technology is here to stay, and you may be surprised to learn what processes financial institutions rely on it to complete. 

Online & Mobile Banking

A man is sitting at a desk with an open laptop as he types away on his smartphone and dollar signs come out of the screen

The practice of interacting with your accounts online has quickly become a staple in modern banking. This is usually done through your financial institution’s official website or mobile app. Online banking is insanely convenient as it allows you to accomplish tasks at home that were previously only performed in person. Instead of walking into an office to apply for a loan or deposit a check, users can accomplish those things from the comfort of their own home. Mobile banking through your institution’s official app is even more convenient as it removes the need to be at home with a computer. The only thing you need for mobile banking? A smartphone. This allows users to bank from virtually anywhere as long as they have a phone, making their funds and the ability to interact with them always available to them. Without the internet, almost all a person’s banking would still need to be done in person. 

ACH

ACH (also known as Automatic Clearing House) allows for credit unions and banks to process electronic money transfers. This technology is responsible for processing things like direct deposit, bill pay, and even smaller electronic transactions like shopping online. Before the development of ACH, employees received physical checks on payday and had to take it to their bank to deposit it. Nowadays direct deposit sends money directly to an account digitally. Much like using online banking, this process cuts out the need for going in person to a credit union or bank. It’s the same for bill pay. Users rely on ACH to automatically pull the funds they need to successfully pay their bills from their accounts. If you’ve ever paid a bill online, you know just how much this feature comes in handy!

Credit & Debit Cards

Once upon a time there was a world without either debit or credit cards, so they both are pieces of technology within themselves. But did you know they didn’t always work the way that they do today? Magnetic strips on debit and credit cards didn’t come around until the early 1970’s, and it wasn’t until 2012 that they introduced the idea of the chip feature. In more recent years the tap feature has become the new norm, ceasing the need to insert your card anywhere and replacing it with a simple tap to purchase items. These cards play integral roles in modern day banking as they are the most commonly used forms of payment. Without them, cash would still be in the spotlight, and the convenience of an ATM (or making late night online purchases) would be obsolete. 

Artificial Intelligence

A common topic in technology is that of Artificial Intelligence and the benefits it may or may not bring to the table. What most people don’t know is that AI is already a fairly common part of our world, especially banking. If you’ve ever called your credit union or bank and gotten an automatic message, then congratulations! You’ve interacted with AI. Many financial institutions also have what’s called a virtual assistant feature on their website, allowing users to chat with AI to answer commonly asked questions. While Artificial Intelligence gets a bad rep, there are many ways companies use them to garner better user experiences for their members and make their transactions more efficient. 

Looking Towards the Future

Technology is ever adapting – what we see in banking today may be out of use in the next few years. Even now we’re seeing advancements in electronic payments through apps like Cashapp, Zelle, and Apple Pay. The need for physical debit cards has started to dwindle with digital wallets through Apple or Google becoming more common. Cryptocurrency like Bitcoin has become a notable addition to the financial world as it continues to go more and more digital. There’s a lot to look forward to when it comes to the technology used in modern banking. But just as it’s important to make these advancements, it’s equally important to appreciate the practices that have stood the test of time. At the end of the day, everyone has the right to choose exactly how they complete their finances. Thankfully technology provides us with multiple options to pick from!

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