Discover the vital role of credit union Board Chairs in driving strategy, fostering collaboration, and ensuring sustainable growth by balancing oversight with future-focused governance, as shared insights from a recent conference.

The Mantle of Credit Union Leadership: Board Members

Recently, I had the opportunity to participate in a conference uniting credit union Board Chairs and CEOs. Having observed a host of chair/ceo relationships throughout my career especially during my time at Filene when leading strategy work and most recently from having experienced firsthand forming one with our Community Financial Credit Union Board Chair, Teri Kuehn. As keynote presentations, roundtables, dinners, and hallway conversations fade into memory, I revel in inspiration and encouragement. I also recognize several paradoxes.

I am a firm believer in the cooperative finance model. When a group of people with shared communities come together and form a system to accomplish the goals of the whole, it creates the best possible outcome for human beings. In credit unions, members elect a peer group of volunteers to represent their interests in the dedicated Board of Directors who serve in this role. These volunteers hire a competent CEO capable of not only managing the everyday operations but with the vision to manifest the members’ dreams to life using important tools like loans, deposit products, payment tools, technology solutions, and guidance and advice to support financial well-being.

The complexity of twenty-first-century banking at times distracts us. I often revisit the cooperative principles for credit unions, which are eloquently illustrated on the 

National Credit Union Foundation’s website

The fact that credit unions are not-for-profit financial cooperatives, offering services to people willing to accept the responsibilities and benefits of membership.

Credit unions serve their members most effectively and strengthen the cooperative principles by working with other cooperatives.

While focusing on member needs, credit unions work for the sustainable development of communities, including people of modest means, through policies developed and accepted by the members

I have always believed that two seemingly opposing concepts can be true at once. We can simultaneously be not-for-profit and grow sustainably. In fact, growth matters deeply because it maximizes the potential of a financial cooperative. The more members that use a credit union more deeply, the more value the credit union provides to each member that have been there the longest. I firmly believe that the operational demands of complex banking must be every credit union’s strength. And there is so much more we can do by listening to members’ aspirations (especially the impossible ones), strengthening our cooperation, and making our impact on the sustainable development of our communities reverberate loudly. This symbiotic relationship between membership and strategy is fed daily by their liaison, the credit union’s Board of Directors.

The most recent conference reaffirmed that while many traditional Boards focus solely on oversight, the best Boards go beyond this responsibility, to challenge the organization to create even more impact and bring to life a vibrant future. Doing that requires a Board to take a more active role in engaging in future-focused dialogue, bringing richness and color to the strategy, and collaborating fully with the leadership team who carry imperative subject matter expertise. And it all starts with the Board Chair. An effective Board Chair ensures not only productive meetings and nurtures a Board/CEO dynamic but also nurtures a culture of trust and feedback, sparks constructive debate, and actively participates in the manifestation of the strategy.

For those avid readers in my circle (I see you!), that wonder how to leap forward to do even more, I suggest the following "future read" entitled “

The Future of the American Board Report: A Framework for Governing into the Future

It lays out 10 principles for Boards to consider as they tailor their governance for changing circumstances. Yes, it is for all Boards, including for-profit companies, and the principles can be translated from Corporate Purpose to Ends or Mission. Their advice resonates loudly.

I feel invigorated by the incredible people volunteering to represent the interests of our membership at Community Financial Credit Union and those volunteering at their credit unions across the globe. Cheers to all the Board Chairs taking on the heavy mantle of leadership and representing the thousands of member voices you amplify locally. You are the heart of our movement.

orsa, the credit union you knew as Community Financial Credit Union (CFCU)
Content before 2026 may contain references to our former name.

The Mantle of Credit Union Leadership: Board Members Blog Content

Reflecting on the pride and excitement of our partnership with the Detroit Lions, inspired by the team's leadership and grit to fuel the credit union's mission of helping Michiganders achieve their impossible dreams.

Let's Roar! | orsa credit union

As the Lions prepare for the NFC Championship game, I vacillate between nervous energy in preparation to cheer our team on and reflection about what incredible pride we feel at Community Financial Credit Union as an official Proud Partner of the 

. Similarly, the decision to partner with an organization as iconic as the Lions was thrilling and nerve-racking. The scarcity of having only 32 football teams in the country, the millions of fans each team has, the emotional connection of being part of a team, its identity, the communities it represents, and the loyalty through the many ups and downs. It is so primal.

Humans have always craved a sense of belonging. We are conditioned to discover and become part of a tribe. Our energy ignites as the fire in our bellies rises, and we root for those we love. It manifests joy so deeply that many of us nearly burst to tell the world about it. In the last 12 months, I’ve reconnected with some of my tribes. I enjoyed the thrill of participating in a sensational year for my alma mater's football season, culminating in a National Championship (Go Blue!), I met Dave Matthews for the very first time, and I experienced the electrifying energy of a Ford Field stadium that recorded its loudest decibels ever three times this season! (Last week's game against Tampa recorded 134.3 decibels, roughly the sound of a 747-jet engine, according to the Center for Disease Control).

At Community Financial Credit Union, we admire and aspire to the kind of leadership Dan Campbell demonstrates. In a short three-year span, Campbell went from a 3-13-1 record in his first year as the head coach of the Detroit Lions, finished his second year with a winning record of 9-8, barely missing the playoffs, and in the current season, he has achieved many Michiganders' impossible dream of hosting two playoff games at Ford Field, and now being one game away from the Superbowl. The team’s tenacious, determined, and passionate approach fueled the decision to partner with the Lions. Each individual at CFCU puts the hustle and grind resembling the “grit” coach Campbell elicits from his team. And through our partnership, our team has brought hundreds of impossible dreams to life at each game and well beyond. We are entering year two of a three-year strategy. We built the structure in year one; in year two, we'll continue to optimize the machine; and year three? We’ll leave that as a curiosity gap…

We are a Proud Partner of the Detroit Lions. Tying our Community Financial Credit Union brand affinity to the Lions fills our hearts with pride. It creates joy. And that is the essence of our purpose to create joy and ignite Michiganders' Impossible dreams.

Let's Roar Blog Content

Let's Roar

Tips to help your aging parents with their finances, from estate planning to wills to investments

Helping Aging Parents with Money

Disclaimer: The information provided is not intended as tax or legal advice. Individuals are encouraged to seek specific advice from their personal tax or legal counsel.

It can be difficult to figure out how to reciprocate and repay the people that have given you so much throughout your entire life. Yep, we’re talking about your parents.

Sure, they may have been the ones who taught you most of your financial habits. And, as our parents age, they may need your help to keep everything in order.

Maybe their mental or physical health is deteriorating, or you just think it’s time to incorporate their financial burden into your own plans. Whatever the reason, you’re helping your parents out with their finances, and we’re here to help make the transition as seamless as can be. And, in the meantime, you (and your parents!) will be able to sleep at night knowing your parents are financially well.

Helping your parents with estate planning

First off, we recommend you help your parents with their estate planning, if they haven’t already ticked that off the list.

Estate planning is making a plan for all of your assets—including everything from your jewelry to your pets—for the event of your death. Yes, it’s pretty morbid. But, it’s incredibly important to have these types of conversations early, so they’re not forced or overly emotional.

Since you’re helping your parents go through all of their assets and assigning a plan for them, it’s understandable that things can get rather tricky. If things get too confusing or difficult, remember that you can always hire an estate attorney. That way, you can ensure your parents are prepared and satisfied with their estate plans—and that everything makes good legal sense.

Have your parents assign a power of attorney

We recommend having your parents consider a power of attorney for both their finances and health.

A power of attorney helps to prevent a chaotic mess of arguments over who is to make the final call on your parent's financial or medical decisions. Even more than estate planning, we recommend having these conversations with your parents early. Especially when you’re making final calls on your parents’ medical decisions, you’ll want to have as much ironed out ahead of time to save yourself from unnecessary turmoil.

Help your parents with their will and living-will

You may be familiar with the term “living-will,” which is the same thing as an 

personal directive, advance directive, medical directive

That verbiage is just a list of fancy terms for a legal document that specifies how that person wants their medical decisions made if they’re not able to do so themselves. Take, for example, life support. This legal document helps the doctors determine if and when they should take the patient off of life support, pending things like if their condition is deemed incurable, or if they want to be kept on life-support for the hope of new treatment discoveries.

An estate attorney can help your parents determine if they should consider an individual, joint, or other trusts. Trusts can offer some flexibility, as they grant tax benefits and avoid the probate process. Establishing a personal trust is an often overlooked, but very beneficial, way to help your parents allocate some of their money.

When should your parents elect social security?

Depending on the year you were born, the earliest you (or your parents, for that matter) can start receiving social security is at age 62. But, not so fast. Unless your parents’ health is deteriorating rapidly, this may not be the best option for them. If they’re able to stick it out for a few more years, their annual income from social security will typically be higher.

Safe to say that delaying social security payouts typically result in more monthly benefits. So, if your parents can do without the money, we recommend they hold off on receiving their social security.

That reminds us...delaying distributions from retirement accounts such as 401(k) accounts and IRAs can also help maximize tax-free growth. If your parent can delay their social security payout until age 70, and can put off withdrawing from their retirement accounts, they may get higher monthly benefits and continuous growth. Now, that’s what we call a win-win!

For many, old age is synonymous with a conservative investment portfolio. Since stocks tend to out perform bonds over the long term, but are more volatile over the short term, you need to have a comfortable risk tolerance to maximize your returns.

Take it easy with yourself and your parents

Especially when it comes to wills and powers of attorney, no one likes imagining these scenarios. But, ensuring your parents are prepared puts your family in the best possible position where you can feel comfortable making choices you’re certain they’d support.

This process can be overwhelming—for you and your parents and family members—so make it as gradual as you all need it to be. Take it one step at a time and remember, you’re not alone. If you feel like it’s not a necessary transition in the given moment, start thinking about how you can prepare to make it smooth when the time comes.

Helping Aging Parents with Money Blog Content

Tips to navigate a more expensive world of debt when the cost of borrowing is spendy

How to Navigate Expensive Debt

Before we can understand how to navigate expensive debt, we have to lay down the basic tenets of debt. Or, in other words, the key pieces to the borrowing puzzle.

 is the rate at which banks charge one another interest for their overnight lending—something they do to meet reserve requirements, and subsequently impacts the entire financial market. From late 2008 through mid-2017, this rate sat below 1%, only trickling up to a 2.4% crest in 2019 and falling back to 0% during the pandemic (2020-2022). As of early 2025, the new, historic average is closer to 4.33%.

The prime rate is the interest rate that commercial banks charge creditworthy customers. Banks generally use fed funds rate + 3% to determine the current prime rate. Because this rate is preceded by the Federal Funds rate, it tracks right along with it.

Mortgages usually bear the brunt of the Fed and its interest rate swings. However, mortgage rates were unsustainably low, not having topped 5% between 2010 and 2022. Historically, the average 30-year fixed-rate mortgage has clocked in at 

As a result of economic moves, such as the pandemic stimulus and changes in interest rates, Americans can feel the pinch of inflation, unaffordable debt, and concerns for the future.

In 2022, for example, the Federal Reserve enacted record rate hikes, raising the cost of debt across the board in an already expensive environment.

Planning for changes to debt and borrowing costs

The rising cost of debt can take a toll on the market, creating a more volatile situation. Investors watch for Fed news like hawks (no pun intended) and react to news of more rate hikes. The markets will take dips and dives, but history is on our side. The right time to invest is now, later, and forever, and we wouldn’t suggest taking your foot off the pedal just because of the uncertainty. 

Handle debt of all kinds with prudence and make shrewd decisions. Don’t take on credit card debt if you don’t have to, use credit cards for their benefits, and make timely payments to avoid paying higher interest payments. Take a look at your student loans and see if you’re eligible for forgiveness or restructuring them with a new lender for a better rate.

We’re big fans of equity. When home prices cool, it’s more important to keep paying down your mortgage and racking up that equity if you can.

Uncertainty reminds us of the importance of having a solid plan in place. That plan should include things like 

, planning for the future, auditing your budget, and reviewing your insurance policies.

Debt may be a part of life, but it doesn’t have to take over it!

Sure, debt management requires care, planning, and due diligence. Pop into our 

 and get working at your Debt Elimination Plan. It only takes about 3 minutes and you’ll set yourself up for success. Let’s do this!

How to Navigate Expensive Debt Blog Content

Tips on how to build a stronger, more resilient budget during tumultuous times

How to Create a Resilient Budget

Budgeting is an essential component to our finances, and while it’s pretty basic from a distance, there’s truly a lot of planning and details that go into creating a good one. Life throws a lot of surprises at us, and because everything costs money, our budget must absorb most of that.

Realistically, it’s best to plan for the unexpected and have enough cash to help you get by. Life will inevitably put our budget and budgeting ability to the test. In order to craft a budget that’s sustainable, it must also be resilient.

Leave Room in Your Budget for “Extras”

The first goal of budgeting is to be able to account for all of your income and expenses and knowing where that next dollar should go. This is the first and most important step to establishing and following a budget, but there’s another one that will help 

If you’ve maxed out your budget, there’s not much room for unexpected expenses, savings, investing, new goals, or even discretionary spending. So, once you create a solid budget that fits all your expenses, your second goal is to create space.

Creating a buffer within your budget can be difficult when things are tight, but it almost always comes down to two things: spending less and making more. Easier said than done, of course, but achievable with enough commitment.

—we recommend you make sure you have an emergency cash reserve in place, you’ve paid off high interest debt, and you’re maxing out your retirement savings before you consider investing that cash further.

Roll up your sleeves and dig into your expenses and itemize. Find things you can remove or reduce—there’s almost always something, and this is something you should check up on routinely. As for income, side hustles and online jobs can be great sources of secondary income that don’t add too much time or stress to your current schedule. Searching consistently for something that meets your needs will almost always yield results.

Your budget is just one piece of your overall financial picture, and there are a lot of secondary aspects that can heavily influence it daily. One of the most prominent examples of this is savings—something that weighs heavily on your ability to absorb sudden expenses and pay for big-ticket items, and not to mention, gulps up your cash.

Saving is a habit and one that can really add up over time. The best way to attack this goal is to build saving into your monthly budget, and even throw in some extra, unbudgeted deposits if you’re able along the way.

Consider saving at least 3 months of expenses to cover any emergencies, plus maxing out your retirement savings. Once that’s established, and you’ve paid off high interest debt, look into a high-yield savings account (from a reputable source!) to stash it all and get to stacking.

Debt can easily destroy any budget if not managed properly, especially when it piles up. Beyond the dent in your monthly spending, their urgency and interest fees can drive you bananas!

That’s why it’s critical to create a debt elimination plan to settle your debts as soon as possible. By eliminating your debts, you’ll free up some room in your budget (maybe even a lot of room), which will automatically make it more resilient. If you were maxed out and operating at 100% capacity before, a budget without debt will make it feel like a breeze.

Organize and prioritize your debt in a way that makes sense for your style and situation. For example, paying off your student loans

first might not make sense if you’re still in school, but paying down credit card debt does.

Plan out your payments and plot out a timeline, a set plan will give you a sense of security throughout the process. Elsewhere, consider refinancing or consolidating if it makes sense for you, it might actually save you money.

Zooming out, it’s clear that there are numerous ways to beef up your budget’s resilience. These are just a few broad suggestions to consider. There’s no singular best way to go about it, and the option(s) that work best will be different for everyone’s circumstances.

You’re on the path to excellence and financial wellness—but there’s always a little room for improvement, right? Our 

 is a great place to start. Don’t forget to log in, log at least 3 minutes per week, and keep up your to-do list items as well.

How to Create a Resilient Budget Blog Content

Tips to overcome inflation and interest rate hikes—especially when cash is tight 

How to Fight Inflation

You know how when you go to the beach, sand just inevitably finds its way into anything and everything? There’s no stopping it, whatsoever. You know it’s going to happen, and no matter what lengths you go to try and avoid it, the outcome is the same: sand everywhere.

Inflation is kind of like sand. Okay, let us explain. Inflation is a broad, macroeconomic force that finds its way into every crevice of the economy, and inevitably gets passed down, around, and all over until those price increases reach the end consumer.

It’s a natural occurrence, because in the process of every individual trying to mitigate the impacts inflation has on their own finances, (things like profit margins, budget, etc.) we end up just passing it off to others. The implications eventually come back on us in the form of higher prices.

When it comes to large scale things like inflation, we can do little to nothing to change it on our own. But, what we can do is adapt. This certainly isn’t meant to undermine the very real impacts inflation can have on our finances, or assume that adapting will solve all our money problems though.

The reality is that we find ourselves in the midst of a transitional period of sorts in the economy. As a result of that, there’s a lot of us on the fringes who are struggling to get by. And inflation just makes it even harder.

Between this, global conflict, the increasing cost of just living coupled with more expensive debt, and a jobs economy undergoing a major shift, there’s a lot on everyone’s plate. But, luckily, sometimes "adapting to change" can mean doing 

Adaptation doesn’t always involve actively doing things though, and it can sometimes actually mean the opposite: doing less.

Everything costs money, and so the more we do, the more we inevitably spend. Simply “doing less” during periods of high inflation, or at least before wages catch up, can be boring, and even hard for some. But it can pay in dividends—like taking pressure off your 

 less, too. We often get used to the luxury of excess—getting those things we want, but maybe don’t need—and the impact on our spending being negligible. With the cost of everything rising, the implications are exponentially increased and more detrimental to your overall financial health.

The overarching takeaway is this: laying low financially for the time-being can potentially reap great benefits for your finances in the long-term during periods of high inflation. And, it'll be worth the hard sacrifices and spending adjustments we’re making in the meantime.

If you already have a budget, great, you’re ahead of the curve. However, you need to adjust your budget from time to time, and now is one of those times where it 

If you have greater aspirations than where you currently stand, or just feel that your earning potential is much higher, now could be an ideal time to further sharpen the skills in your tool belt. When demand for workers is higher, and there are labor shortages, then the labor market will be ripe with opportunity for new and improved specialists across the board. Not to mention, that pay increase will definitely soften inflation’s blow.

If you don’t yet have a fully funded emergency fund of 3-6 months of expenses, that should be your next priority, because emergencies just got noticeably more expensive. After reaching this point, it might be wise to build out your savings even further to whatever point makes you feel safest. Because, yeah, those “emergencies” are costing a lot more than they used to. Additionally, be careful about when you dip into that reserve cash

 too—i.e., make sure you can’t cover it with your regular income, first.

Although it might sound a little counterintuitive, paying off debt can be a return on your money. As opposed to losing interest, you now recoup that amount to the extent that you paid down the balance sooner than expected. Why is now a good time to get rid of your debt? Well, in addition to everything else getting more expensive, the cost of debt (interest rates) can often rise too, meaning debt can be more expensive than it was before, and therefore weighs more and more on your expenses.

Ultimately, it’s about a combination of both doing less, and doing more. Go figure! Doing less or more on its own probably won’t be enough to offset inflation’s impact entirely, but by combining a couple strategies from both departments, there's a solid bet to fare better during these uber-expensive times.

How to Fight Inflation Blog Content

An overview of common retirement accounts, from Roth IRA to a 403b—and guide to which is right for you.

Retirement Accounts from A to Z: 401k, Roth 401k, and More

Planning for retirement is an extremely necessary part of everyone’s life, and a foundational key to overall financial wellness. Although it’s easier to let go and live in the moment sometimes, the present moment can be made better by knowing our future is secured through the habits we engage today.

That being said, retirement investing can be a confusing road to navigate, especially for those who may be new to the process. There’s undoubtedly a lot to know, and a plethora of choices to make along the way.

So, below is an overview of some of the most common retirement accounts out there, and a guide to differentiate between these beasts.

Okay, first things first. A 401(k) is a specific type of retirement plan that’s employer-sponsored in nature, not typically something we open ourselves as individuals. What essentially qualifies it as a retirement account are the tax-benefits it may offer (compared to a traditional brokerage account for investing). This brings us to the Roth aspect.

A Roth 401(k) differs from a traditional 401k in how its contributions are taxed. Simply put, when you contribute funds to a traditional 401(k), those contributions are tax deductible from your taxable income (up to the annual limit set by the IRS). This can reduce your taxes owed, but you’ll have to pay taxes on that money later when it’s withdrawn.

So, a Roth 401(k) is in some ways, the opposite of this. Instead of getting a tax deduction off of those contributions, you’ll pay taxes on those contributions. However, under the Roth 401(k), you are not liable for additional taxes on the withdraws—neither on the contributions nor the gains.

Key characteristics of Traditional vs. Roth 401(k)

Roth 401k()s allow tax-free withdrawals and gains

401(k)s have a higher contribution limit than their IRA counterparts

Roth accounts should be considered for investors who expect to be in a higher tax bracket later

Withdrawals of both contributions and gains from a Roth 401(k) can be done without penalty after age 59.5, (assuming your account is 5+ years old), if you become disabled, or by a beneficiary in the event of your death.

Withdrawals that don’t meet this criteria are subject to a 10% penalty and income taxes if the amount withdrawn exceeds the original contributions, and therefore includes any capital gains.

IRA stands for individual retirement account, and they come in two main flavors (with a couple of additional options, let’s call them “sprinkles,”) for those individuals and businesses in more unique situations. These accounts are not employer-sponsored, and as their name suggests, are opened by individuals on their own behalf.

The traditional IRA, much like the traditional 401k, allows you to deduct contributions. You’ll save money on federal income taxes now, but bite the bullet later when it’s time to cash out. The typical 10% penalty and income taxes will be levied on unqualified, early withdrawals, unless they happen to be for a specific purpose that meets 

Roth IRAs allow you to pay now and play later. There are annual contribution limits based on earned income, and withdrawals can be made penalty free on qualified distributions.

Simple IRAs are designed to be opened by small business owners with enterprises of 100 employees or less. They’re also pre-tax retirement accounts, meaning the same taxation and withdrawal rules as the traditional IRA apply here too. However, they have a higher contribution limit than a traditional accounts.

SEP IRAs are yet another variation of retirement savings accounts meant for self-employed individuals and small businesses. They too are pre-tax accounts, and so the same tax and withdrawal schedule apply, yet again. The main difference here is the lofty contribution limits, which are tied to the employee’s total compensation, or a specific amount, whichever is the lesser.

Self-directed IRAs are a much more niche slice of the IRA pie. They’re unique accounts that allow investors to diversify into alternative assets not typically available in a traditional, or even Roth IRA, with things like real assets and commodities.

The 403(b) is a retirement account that non-profit organizations and employers offer, as opposed to the more traditional 401k that for-profit businesses offer. That’s truly the most noteworthy discrepancy between these two, just that differ entities offer them.

Elsewhere, and for all it matters to you the investor, the 403(b) functions much the same as a 401(k), with the only differences being that fewer 403(b) plans tend to offer employer matches, and those that do must comply with ERISA guidelines. That’s it.

A health savings account (HSA) is probably the most unique of the bunch here. It’s not a retirement account per say, but you can withdraw from it after age 65. Primary 

 requires you to be covered by a qualifying high-deductible health insurance plan, not be covered by other alternatives like Medicare, and not be able to be claimed as a dependent on someone else’s taxes.

HSAs allow savers to contribute to these plans and then deduct those contributions from their taxable income—saving you money on taxes. You can withdraw funds from an HSA tax free, too, as long as they’re used for a qualified medical expense. (Keep those itemized receipts!)

 is similar to using a traditional IRA or 401(k), and is taxed just the same. If you’ve not used the accrued balance by the time you’re ineligible to contribute, you can make withdrawals, or even add it to your estate by designating a beneficiary upon death.

As we can clearly see, there’s a lot to choose from just within these two branches of retirement accounts alone, not to mention the alternatives and even more niche accounts out there.

Nevertheless, this myriad of options we have available to us to invest in our future is also a blessing. Retirement investing wasn’t always so prioritized, and things have changed a lot over the years as both governments and individuals have worked toward creating more opportunities to save for the future.

Luckily though, you’re probably already on top of those things if you’re here. We’re striving to help make your financial future brighter, and we hope you are too by checking off your to-do items in the CFCU mobile app and logging a super quick 3 minutes a week to stay in the routine.

Retirement Accounts from A to Z Blog Content

Retirement Accounts from A to Z: 401(k), Roth 401(k), and More

Tips to build your credit while you're young—and a million reasons why it's important

Why Gen Z Should Start Building Credit

How to build up a good credit score while young and how to not get caught up in over-the-top marketing when choosing which options are right for you

Credit is the ability to borrow money with the understanding and under the agreement that you will pay later. A credit score is a three-digit, numeric representation of an individual’s capacity to repay a loan.

Buying on credit became popular during 1920s consumerism to allow average Americans the ability to finance higher-priced items like cars. These days, you probably think of credit more in terms of a credit card, and less in terms of having an account with a specific store.

Why is having “good credit” such a big deal?

Having good or even decent credit can help you big time in the long-term.

You can reap the benefits from the best credit cards

The top-tier credit cards provide users with special access to private lounges and clubs. Some credit card companies even have deals with popular restaurants where they have leverage getting you into an almost impossible seating.

You can get loans with more favorable terms more easily

In the loan-approval process, those with bad credit scores are often denied, as they’re considered unstable and risky. However, a good credit score can make the loan application process seamless, as they trust that you're "good for the money." With better credit, you're more likely to secure lower interest rates and better terms on loans, cards, and insurance. Why? Because lending companies tend to reward your responsibility with lower rates because you are deemed less of a financial risk.

The importance of starting building credit young

Your credit score will stick with you for your entire adult life. While it’s possible to improve a bad credit score, it’s much more work to fix than to just start out with a favorable one. Do yourself a favor and learn how to achieve and sustain a great credit score from the get-go.

. The most common is to open up your first credit card. However, if you are still financially dependent on your parents, you can explore the option of becoming an authorized user on their account, which is essentially another card for them, but in your own name. This will help your credit reputation—as long as your parents maintain good credit—and is easy to do while you’re still young. It’s beneficial to discuss how your parents manage their credit as insight into how you can continue their positive credit behaviors after you get your own card.

If you are at the stage at which you are ready to open up your own credit card, find a card where the terms are fitting for you and go for it! It’s time to build up a great credit history.

There are many mistakes that can harm your credit. Building good credit habits can prevent your score from dropping.

Having backed up or late payments even by a few days can initiate massive blows to your credit reputation. That's why it's crucial you're sure that every purchase you make is well within your means. Just because it's not immediately drawing from your checking account like a debit card, you're still on the hook to make those payments! Bottom line—if you can't afford it now, don't purchase it. And having a poor payment history is the easiest way to hurt your credit score.

Obviously, it’s best to pay off your credit card bills on time. If you find yourself in a tough spot, give your credit card company a call and see if they're willing to work with you.

A credit utilization rate (ratio) is a numeric expression of the amount you currently owe in terms of your credit limit. While you always want to meet your card’s minimum charge, it’s important to pay your outstanding balance in full to keep your ratio favorable.

Loans and previously opened accounts also factor into your credit score, so keep up with all of your repayments to ensure the best score. Additionally, mortgage foreclosures, bankruptcies, and car repossessions all pay into credit.

No matter how eager you are, don’t get into a credit application frenzy. When credit card companies detect that you've been applying for more credit options than a 90s one-hit-wonder, especially in a short period of time, it sends the message that you're financially unstable and not an ideal customer.

No matter your age, it's incredibly easy to be swept away by 

 or too-good-to-be-true deals. A large percentage of the credit cards you see advertised on TV or online use over-the-top marketing strategies that leave users confused as to which companies truly offer good deals and which are scamming their audience.

Beware of phrases such as “as low as” since this could give you an unrealistic example of the card rate you’ll actually be receiving. Also, think twice about introductory rates. While having a discount at the beginning of a contract can be a good thing, make sure your full-time rate is something you can manage. The first six months aren’t going to last forever.

Unnecessary points can also be a credit card scam. If your potential card helps you acquire a large quantity of points, but those points are useless to you, it’s not worth using points as a deciding factor. Some points quickly expire or have insane terms that make them practically impossible to redeem.

Remember you don’t need the physical card to act as a status symbol. Gold cards sound and look fancy, but in reality, (unless you actually qualify for the upgrade), you shouldn't waste your money on the special cards when the benefits aren’t often dramatically better.

Bottom line: if it seems too good to be true, do some more research and read 👏the 👏 fine 👏 print 👏.

Don’t beat yourself up if you can’t keep your credit perfect at all times: carrying some debt and incurring interest is inevitable at points. Start young, keep it up. And remember: you can always boost your credit score; no score is too high!

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7 reasons why Gen Z should start saving for retirement now

Start Saving for Retirement Early

Between keeping up with the latest TikTok trends and Outer Banks episodes, starting your retirement fund might be one of the last things on your mind, especially if you’re in your late teens or early 20s.

But we’re here to tell you that the time to start saving for retirement is now! So listen up, Gen Z! Below are seven reasons why you should start saving for retirement now.

Growth, baby! Or, Compound growth, to be more specific.

Two words. Compound growth. Once you put money into your retirement fund it will grow exponentially. No extra work needed!

So the amount you are putting aside into your retirement fund from your entry-level job may not seem like a lot at first but, over time, you could end up with thousands of dollars worth of interest.

Let’s say you have an annual income of $70,000. Then you invest 15% in a fund that provides you with a 7% return rate. Well, if you start saving at age 30, at age 67 you will have about $167K in savings. Whereas if you start saving at 20, at age 67 you will have about $330K in savings. That’s nearly double the savings!

For those over 50 who need to accumulate funds in their 401k fast, some plans allow individuals to make up a catch-up contribution. These contributions are in addition to the annual 401(k) contribution limit. (These catch-up contributions payments are also an option for some individual retirement plans; contributions vary, and change each year, so double-check!)

But if you start saving for retirement at a younger age, then you will not have to play catch-up when you're older to have sufficient retirement funds. This means you can avoid having large amounts withheld from your paycheck when you’re older, and in return, have a more relaxed budget.

Investing early means more money! Opening a retirement account and starting to accumulate compound interest in your 20s could result in thousands—even million—more dollars in your account. And this extra money can allow you to have more flexibility in your retirement plans. So if you dream of spending your retirement in Hawaii... who’s stopping you?!

If your employer offers a 401k or 403(b), a percentage of your paycheck may be automatically added to your retirement account. In that case, your taxable wages would be reduced by the amount of the contributions to a 401(k) or 403(b) plan, if you chose to participate in them.

Now, yes, when you take out your money upon retirement you will then have to pay the taxes on the distributions from those retirement accounts. (Note: details depend on if they are ROTH or traditional 401(k)s). But the hope is that you will be in a 

 after you retire, which would lead to paying less in tax.

Don’t have an employer-sponsored retirement plan? Well, don’t worry because you have options. An IRA account or individual 401k can still give you tax benefits.

When it comes to finances, nothing is guaranteed. But, by saving early and staying financially responsible there is the possibility that you could retire early if you wanted to do so.

In their 20s and 30s, people often have fewer financial obligations like a child’s 529 plan or mortgage payments. With a greater disposable income when you’re younger, placing a percentage of your salary in your retirement fund will be less of a hassle.

For those 62 or older, the average monthly social security benefit is around $2,000. Generally speaking, the longer you wait to file for your benefits, the larger your monthly benefit may be.

Now, depending on where you live, this benefit may not be enough money to cover your monthly expenses. But even then, in 2034, the Social Security OASI Trust Fund for retirement benefits is estimated to be depleted. This does not mean that no one will receive retirement benefits. However, it does mean that the fund is expected to see a 24% decrease—and therefore fewer benefits for you. Boo! With these factors in mind, be proactive and start saving early, so you don’t have to rely so heavily on social security benefits. Think of these benefits as a supplement to your retirement fund.

Tips for those who want to start saving young

Weigh in the financial benefits of prospective employers

Target a job that is going to help you achieve and maintain financial wellness. So before accepting any job offer, be sure to analyze the company’s financial benefits like 401(k) or 403(b), health insurance, financial wellness support, physical wellness support, etc.

Invest enough to maximize the company match

Do you already have a job with an employer-sponsored retirement plan? Awesome!

Many of these plans feature an employer match. This means that your employer will match your investment (or at least part of it) up to a certain percentage. This money is already earmarked as part of your compensation package—so, take it! If you don’t invest up to that matching percentage, you’re leaving free money on the table!

Have an old 401(k) account? There are a few ways to deal with this situation

 You may leave it where it is with your old employer, roll it into your new employer's 401(k) or roll it into a rollover IRA. Watch out if you are tempted to cash it out, this could result in penalties and tax payments.

By investing for your retirement early you can help make life for your future self easier. These payments don’t have to be big. Even small deposits can have a huge impact—remember compound interest?! With this head start, later in life, you’ll be able to rest easy, knowing you have enough saved up. And, not to mention, you could invest in other options like the market, your child’s college fund, home renovations, and more.

Next up? Hit up that To-Do list and make sure you’re keeping the Ts crossed and Is dotted in your financial plan!

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Belonging

Banking

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Get Inspired

Get Inspired

Thought Leadership

The Mantle of Credit Union Leadership: Board Members

Thought Leadership

Let's Roar

Guide

Helping Aging Parents with Money

Guide

How to Navigate Expensive Debt

Guide

How to Create a Resilient Budget

Guide

How to Fight Inflation

Guide

Retirement Accounts from A to Z: 401(k), Roth 401(k), and More

Guide

Why Gen Z Should Start Building Credit

Guide

Start Saving for Retirement Early

Guide

What is a HELOC?

Guide

How Much Car Can (Should!) I Afford?

Guide

Is Buying or Renting Right for You?