AACFCU Completes Inaugural Youth Council Sessions

Army Aviation Center Federal Credit Union (AACFCU) recently completed its inaugural sessions of Youth Council meetings for the 2011-2012 school year. High school juniors and seniors from six Wiregrass area schools served as the Credit Union’s first student ambassadors. Youth Council members learned about the Credit Union and its operations and smart money management practices in addition to providing insightful feedback on what today’s youth is looking for from the financial services industry. Many Youth Council members also volunteered with AACFCU at numerous projects around the community.

AACFCU is now accepting applications for 2012-2013 Youth Council. For more information about the Youth Council or to obtain an application, visit www.aacfcu.com and click on About Us. Applications are due September 14, 2012.

Dothan Youth Council members pictured left to right:
- Patricia Decker, Northside Methodist Academy
- Ellis Landers, Northview High School
- Adam Rinehart, Rehobeth High School
- Becky Schumaker, Providence Christian School

Enterprise and Ozark Youth Council members pictured left to right:
- Robert Benders, Enterprise High School
- Ashton Howe-Aley, Carroll High School
- Seth Hundley, Enterprise High School
- Imani Anderson, Enterprise High School
- Paige Sormrude, Enterprise High School
- Imara Anderson, Enterprise High School
- Caleb Richey, Enterprise High School
- Andrew Workman, Enterprise High School
- Daniel Stevens, Enterprise High School
- Not pictured, Samantha Bullinger, Enterprise High School

Parents: Get Your Kids & Teenagers Online with AACFCU’s Googolplex

AACFCU’s Googolplex offers your kids and teens a fun way to learn about money with games and articles that fit their age groups. Visit our website at www.aacfcu.com, click on accounts, checking, youth accounts (or just click here) and there you will find Googolplex.

Turn the computer over to the “under 20” members of your household with these features:

5-Spot: Introduce your elementary school age children to important financial concepts by igniting their natural love of play with highly interactive games, stories and more. Kids earn virtual money and spend it decorating their private online clubhouse.

A-J’s: Offer your middle school students a fun meeting place, encouraging creative interaction while educating them about money and responsibility. In addition to informative stories and entertaining videos and games, young teenagers build a superhero identity, post notes to their friends (monitored) and vote on plot developments for Kid Kred, a comic series that teaches money management in the guise of fun.

C-Note: Stimulate your high school students and provide sound money-management information with the interactive stories, games and videos in C-Note. Students have a chance to win and save money by entering photo contests, and reach out to others using a moderated comment feature and blog posts.

Sending Kids the Right Money Message

Money does not grow on trees. Okay, you know this – but do your kids? Teaching children the meaning of money is vital to ensuring they know how to survive in a world full of financial hazards.

There are many ways to instill healthy habits, but the most important method is to teach by example. If your children see you using credit cards to pay for what you can’t afford, it won’t be long before they believe that depending on loans is the only way to make ends meet. If they hear you argue or fret about bills, they are likely to have a negative association with money management. As a parent, coming to grips with your own financial mishaps will not only benefit you, but will have a tremendous and lasting impact on those who are watching you. And they are watching.

Teach early
How young is too young to learn about money? This question has been much debated, but even toddlers can and should be introduced to certain rudimentary ideas. Rather than giving formal lessons (that are sure to confound and bore a three-year-old), make your outings together fun learning opportunities. By the time he or she knows numbers and the concept of less and more, hit the world together and begin the learning process.

Teach good shopping habits
When shopping, teach your child to be a selective consumer. Discuss price versus product. For example, when you are at the supermarket, pick up a couple of boxes of cereal and say, “this one costs $2.50, and this $4.50. Which should I buy?” In age-appropriate language, discuss why you would – or wouldn’t – choose the less expensive box.

At the checkout counter, hand your child the bills and allow him to pay for what you’ve chosen together. That action will help him understand that things don’t magically appear, but are bought. If you use a credit card for purchases, make sure you explain that there will be a bill at the end of the month that must be paid by a specific date.

Teach the work-income connection
Before heading off to work, take a moment to explain that you are going not just because you like your job (associating work with enjoyment and fulfillment is also an important lesson), but to earn an income so you can pay for the things you need to buy for the household. Keep it simple, light, and positive. 

Bump-up the lessons
As your child gets older, keep the lessons up but increase their complexity. Read the business section of the newspaper together and discuss the basics of economics. If you are fuzzy on the details of how the stock market works or the impact of taxes in our lives, make a commitment to learn more – and to share that knowledge with your child.

Talk about marketing and advertising too. While it may not change the fact that your daughter wants a hundred dollar pair of jeans, she will at least be aware of why she desires them.

Allow them the opportunity to make mistakes and have successes
Giving money to children is a very hot topic, and there are a great many philosophies about how and when to do it. Each family has their own way, and what works for you and your kids may not for the family down the block. However, learning how to handle money is best done with cash in hand. 

Whether you give an allowance that is based on chores, is freely given, or you provide a “base salary” with an opportunity to earn bonuses, make sure you give your child the chance to make mistakes. Made on a small scale, a mistake such as blowing a months’ allowance on a toy that immediately breaks can be the most effective learning device around.

Emphasize Saving
Many children are natural savers; stockpiling coins like squirrels hoard nuts. Others have to be taught to sock money away. But whether saving is innate or learned, it should always be encouraged and praised. Once again, the best way to teach is to lead by example. Talk about saving – what you do, how you do it, what you are saving for. Your excitement and commitment will be transferred to your child.

Teaching children about money – how to earn, use, and save it – can be a very enjoyable experience for all involved. However, to be the most effective instructor, you may have to change some of your own notions and habits, or learn a little more than you know now. The end result will be children who are more apt to survive the lean times – and maybe teach you a thing or two when they get older!

Sending Kids the Right Money Message

Money does not grow on trees. Okay, you know this – but do your kids? Teaching children the meaning of money is vital to ensuring they know how to survive in a world full of financial hazards.

There are many ways to instill healthy habits, but the most important method is to teach by example. If your children see you using credit cards to pay for what you can’t afford, it won’t be long before they believe that depending on loans is the only way to make ends meet. If they hear you argue or fret about bills, they are likely to have a negative association with money management. As a parent, coming to grips with your own financial mishaps will not only benefit you, but will have a tremendous and lasting impact on those who are watching you. And they are watching.

Teach early
How young is too young to learn about money? This question has been much debated, but even toddlers can and should be introduced to certain rudimentary ideas. Rather than giving formal lessons (that are sure to confound and bore a three-year-old), make your outings together fun learning opportunities. By the time he or she knows numbers and the concept of less and more, hit the world together and begin the learning process.

Teach good shopping habits
When shopping, teach your child to be a selective consumer. Discuss price versus product. For example, when you are at the supermarket, pick up a couple of boxes of cereal and say, “this one costs $2.50, and this $4.50. Which should I buy?” In age-appropriate language, discuss why you would – or wouldn’t – choose the less expensive box.

At the checkout counter, hand your child the bills and allow him to pay for what you’ve chosen together. That action will help him understand that things don’t magically appear, but are bought. If you use a credit card for purchases, make sure you explain that there will be a bill at the end of the month that must be paid by a specific date.

Teach the work-income connection
Before heading off to work, take a moment to explain that you are going not just because you like your job (associating work with enjoyment and fulfillment is also an important lesson), but to earn an income so you can pay for the things you need to buy for the household. Keep it simple, light, and positive.

Bump-up the lessons
As your child gets older, keep the lessons up but increase their complexity. Read the business section of the newspaper together and discuss the basics of economics. If you are fuzzy on the details of how the stock market works or the impact of taxes in our lives, make a commitment to learn more – and to share that knowledge with your child.

Talk about marketing and advertising too. While it may not change the fact that your daughter wants a hundred dollar pair of jeans, she will at least be aware of why she desires them.

Allow them the opportunity to make mistakes and have successes
Giving money to children is a very hot topic, and there are a great many philosophies about how and when to do it. Each family has their own way, and what works for you and your kids may not for the family down the block. However, learning how to handle money is best done with cash in hand.

Whether you give an allowance that is based on chores, is freely given, or you provide a “base salary” with an opportunity to earn bonuses, make sure you give your child the chance to make mistakes. Made on a small scale, a mistake such as blowing a months’ allowance on a toy that immediately breaks can be the most effective learning device around.

Emphasize Saving
Many children are natural savers; stockpiling coins like squirrels hoard nuts. Others have to be taught to sock money away. But whether saving is innate or learned, it should always be encouraged and praised. Once again, the best way to teach is to lead by example. Talk about saving – what you do, how you do it, what you are saving for. Your excitement and commitment will be transferred to your child.

Teaching children about money – how to earn, use, and save it – can be a very enjoyable experience for all involved. However, to be the most effective instructor, you may have to change some of your own notions and habits, or learn a little more than you know now. The end result will be children who are more apt to survive the lean times – and maybe teach you a thing or two when they get older!

Youth Accounts: A First Step in Money Management

Teens spend billions of dollars in earnings each year on clothing, food and entertainment. Once they sample this newfound spending power it’s a good time to encourage them to open a youth checking account. Parents, do so when they’re still under your roof and you can guide the first efforts in basic money management.

Begin basic instruction before your teen even opens an account.

• Instill the habit of reconciling checking account transactions with monthly statements. Take your own receipts, such as ATM/debit card receipts or check stubs, and–with your teen–record transactions and calculate the balance in your own check register as you pay monthly bills. Then, when your teen’s first account statement comes, help your teen compare the balance in his or her register with that on the account statement. If figures don’t match work through the numbers together, double-checking the math and making sure to record all drafts, fees, deposits, withdrawals, and ATM or debit transactions.
• Make it clear that once your teen opens the account he or she cannot spend more money than is in the account. Explain the costly financial and legal consequences of having an overdraft on the account.
• Remind teens that checks and ATM/debit cards are stand-ins for money that must be kept in a secure place. That means they never should give a blank check to a buddy, lend out an ATM or debit card, divulge a personal identification number (PIN), or even be careless with deposit slips, which may reveal account information.

Once your teen gets the basics down and successfully manages a checking account, it’s on to other good financial habits–say, like acquiring and repaying that first car loan.

Visit any of our branches today to get your teen started with his or her own Youth Account.

How to Teach Your Kids About Money from Wall Street Journal’s SmartMoney.com

Take a look at this article we found at SmartMoney.com for tips and ideas on how to teach your kids about money. Do you have other tips that have worked for your family? Leave us a comment and let us know!

Back-to-School: Plan Your Budget

Back to school means expenses! Clothes, shoes, and school supplies can drain a budget quickly. According to The National Retail Federation, the average family with school-aged children spends $606 on back-to-school items–clothes, shoes, supplies, and electronics–each year. It’s no wonder setting a budget is essential for all parents with school-bound youngsters.

To avoid falling into debt at back-to-school time, plan ahead for how much you want to spend. You also may want to budget for the changing technology of school supplies. More classrooms are using computers and computer-related study materials. And with many electronics now somewhat affordable to most families, classrooms may be requiring or recommending tech-smart supplies and materials.

Also, don’t forget about doctor checkups, school fees, and athletics or other extracurricular fees, which often are overlooked when setting a back-to-school budget.

Birth of a Consumer: How to Teach Your Preschooler About Money

How families use money can influence young children into adulthood. At one extreme, children can become financially secure adults, while at the other extreme, they can grow up to live paycheck-to-paycheck in a state of constant financial anxiety.

Here are some ideas for helping your preschool-age child develop healthy, productive financial attitudes and behaviors:

Look for the “teachable moment”

Learning takes place every day and does not require a classroom or a formal lesson. Educators refer to the teachable moment as the time when a child is open to a new idea. Be alert for your child’s questions and comments that let you take advantage of her curiosity to teach about money.

Ask “open-ended” questions

Questions that have single-word answers–”close-ended,” yes-no questions–do not encourage further discussion. They force you to keep asking more questions. Open-ended questions, which are less likely to be answered with a single word, are more productive because they encourage conversation. Instead of asking: “What color was the man’s uniform?” ask: “How could you tell the man was working?”

Build on past learning

Children learn at different rates. There is no “right age” to teach any particular money concept. Financial questions can come up at any time and in any order. Whenever these topics come up, try to connect them with ideas you have discussed with the child earlier.

Read together

Books can be a big help in explaining the often-puzzling real world to a child. Read to your child daily and use the public library as a doorway to his interests and for some great stories for preschoolers about money.

Play together

Play is one of the most important parts of childhood, during which children try to mimic and make sense of the world. Playing grocery store and other activities with children not only teaches them basic money concepts, but also reveals what they don’t yet understand and might be ready to learn.

Plan together

Involving children in planning for family events helps them learn to be responsible for wise spending. A child who has some say in where to go on vacation and what to do there is more likely to accept spending limits.

Set a good example

Let children see you doing the things you want them to learn, such as making plans to save for a goal and accepting spending limits.

Click here to find a set of free activities from the Credit Union National Association to help teach your child about spending and saving.

Also, don’t forget about AACFCU’s kids savings accounts. Consider allowing your preschooler to set his own savings goal and begin learning the importance of saving regularly and keeping money in a safe place. He’ll also be introduced to the concept of making deposits and how financial institutions operate. Click here to learn more about Kirby Kangaroo Kids Club accounts for children up to 12-years-old.

Invest Wisely to Maximize Student Aid

How do you plan to pay for college? Will your family apply for need-based financial aid? If so, review the following checklist to learn how capital gains, retirement accounts and more may help or hurt eligibility for aid on the FAFSA (free application for federal student aid).

What You Can Do – and When

Right now: Balance saving and spending priorities.

Save in a 529 college savings plan or other account that holds the assets in the parent’s name. Parent assets are not weighed as heavily as child assets in federal aid formulas. If a grandparent owns the 529 college savings plan, the impact on financial aid is zero.

Two years before enrollment: Pay attention to financial and investing decisions that may affect eligibility for financial aid.

Spend smart. If you are planning any large purchases, make them now and pay in cash – just don’t raid emergency savings to do it.

Pay down debt. Consumer debt is not subtracted from family income in student aid formulas, so it’s wise to pay off credit cards, auto loans and other consumer debt.

Maximize retirement contributions before your child’s college years. Retirement assets are sheltered from the aid formulas, so loading up on contributions early is a win-win strategy. During the college years your retirement contributions are reported as income for the following year’s financial aid.

During the application process: For financial aid purposes, the most crucial year is the base income year beginning on Jan. 1 when your child is a junior in high school.

Minimize capital gains, which are counted as taxable income. Talk to your investment advisor and set a strategy for holding or selling appreciated assets.

Review real estate assets. Don’t make the mistake of overestimating (or underestimating) your home’s value on the FAFSA. If you don’t have a recent appraisal, you may want to try the Federal Housing Index Calculator available at www.fhfa.gov.*

During the college years: The way you pay for tuition could affect your child’s future eligibility for aid.

Spend the child’s assets first. A student is expected to contribute a larger percentage of his or her assets in financial aid formulas, so spending the student’s assets first may net a larger aid package in the future.

Don’t withdraw money from retirement accounts to pay for college. Doing so may shortchange your retirement future and reduce next year’s financial aid eligibility since retirement distributions are considered taxable income.

Maximize monetary gifts. A grandparent or relative may choose to send money directly to the school to pay tuition rather than giving money to the child (and avoid gift tax in the process). Ask the school if a direct payment can be made without affecting your family’s eligibility for financial aid.

AACFCU Offers Free Seminar to Spell Out Five Simple Steps to Create a Spending Plan

Some experts estimate most American consumers waste 20% to 30% of their money because of poor spending habits and poor planning.

When it comes to improving your personal finances, start by asking yourself these questions:

• Do you spend more than you make?
• Do you live beyond your means?
• Do you pay yourself last?
• Do you charge items instead of saving for them?
• Do you think about an emergency fund, but fail to have one?
• Do you spend uncontrollably without a budget to guide you?

If you’ve never mastered the “B” word, then don’t think of it as a budget—think of it as a plan to spend your money.

If you want to take control of personal spending, you will want to attend our free seminar called “Build a Basic Budget: The Five-Step Spending Plan” on Tuesday, January 25, 2011 from 8:00 a.m. to 9:00 a.m. The program will show how to create a spending plan, explain how to set realistic goals, highlight several ways you can track your spending, and expose budget busters that could destroy your spending plan.

Join us for a fun learning experience to help you develop a personal action plan and gain financial peace of mind. All are welcome, but space is limited. Breakfast will be provided. RSVP to Cheryl Walker at (850) 267-2163 ext. 4211 or cwalker@aacfcu.com to reserve your spot before January 21, 2011.