Hobbies are fun, especially when they make money for you. Today we look at 7 financial hobbies for credit union members to engage in when they want to help their financial situation.
Consider the following seven financial hobbies you can pitch to your credit union members. They may not realize how much fun they could be having! Financial Hobbies for Saving Credit unions are known for offering different types of savings accounts. Make sure your members understand what you have to offer. To illustrate, let’s look at a few examples.
1. Savings Club for Kids. Prosperity Credit Union in Appleton, Wisconsin has a great savings account set aside for kids. This savings program is specifically targeted at those 12 and under. Children earn one point for every dollar they deposit. Later, they can later redeem the points for things like electronic devices, movie tickets, gift certificates, and even cash in some instances. What a great way to teach kids to save early by starting them off with a hobby that makes money!
2. Goal Setting. Many credit unions offer a goal-setting account. Larger expenses like buying a new house or vacation can be funded with a goal-setting account. So what is the catch? Typically, you can’t access the money as frequently. In fact, members may be limited to only one complimentary withdrawal, as is the case with Municipal Credit Union in New York. Their Holiday and Vacation Club accounts are set to automatically deposit money on a certain date into the member’s checking account. Consequently, members gradually build funds over time. Indeed, this is a fun way to work towards achieving a goal.
3. New Member Accounts. Make sure your new members understand the advantages you offer. Many credit unions offer a slightly higher interest rate for new members but limit access until a certain benchmark is achieved, say $500 or so. This is the case with Delaware Alliance Credit Union in New Castle, Delaware. This savings account is quite popular with new members.
4. Linking Accounts. Some credit unions offer a savings account that will link to rewards checking account in an effort to help effect saving. This is attractive to members because the yields are more lucrative than they would be with a standard account. Kasasa Credit Union offers this service, which requires no minimum balance and carries no monthly service fee. All rewards are deposited directly into the member’s savings account. while their rewards checking account yields an interest rate that is a full 1% higher.
5. CDs. This can be a great pitch to a member looking for a place to park their money, short-term. The economy and other circumstances can cause CD interest rates to vary. However, financial advisors traditionally view CDs as a safe bet. Keeping your money somewhere for a short-term period (where you can’t get your hands on it) while earning interest is attractive to many people. Make sure your members understand the different types of CDs you offer and what the limits are surrounding them. This could be a lifelong hobby once they realize the returns for merely being patient.
Financial Hobbies for Budgeting
This is perhaps one of the best financial hobbies to enjoy. The word “budget” conjures up many images for different people, and if presented correctly, can turn a member into a budgeting enthusiast. Let’s look at a few ways to help your members get their budget under control.
6. Loans. Personal loans are a great way to help your members strengthen their budgets. Consolidating several outstanding debts into one monthly payment is convenient, efficient, and stress-reducing. Also, make sure your members understand the types of mortgage loans your credit union offers. Whether they are buying a new home or looking to refinance an existing home, the right loan can make all the difference when it comes to their budget. As a result of this, members can use extra funds to make repairs, take a vacation, or for any other financial needs they might have.
Financial Hobbies for Retirement Planning
7. IRAs and Roth IRAs. This is a great way for members to prepare for their financial future. Individual retirement accounts and Roth IRAs are invaluable when it comes to retirement. Make sure your members understand the benefits and value offered by each. In addition, be sure to send them information on IRAs now, for success in the future.
Looking over these options, it is obvious that saving and investing can be one of the best hobbies to get into. Oak Tree Business Systems, Inc. credit union forms packages will help you get your members started quickly and easily. From home loans to personal loans to new members, we have a package to suit your needs. Plus, credit unions can rest assured knowing all forms are compliant and up to date, so you can put your attention on getting your members started with their newest financial hobby!