Building Your Financial Future: Getting Started

In our previous article, we discussed the importance of starting to save for retirement at the age of 25. Now, let's explore how a credit union can be a valuable partner in your journey toward financial security and the specific products and services that make sense for someone at this stage of life.

The Credit Union Difference

Credit unions are not-for-profit financial institutions that are owned by their members. This cooperative structure often translates into lower fees, competitive interest rates, and a strong focus on community involvement. When it comes to preparing for your financial future, credit unions can offer unique advantages.

1. Savings and Checking Accounts

• High-Yield Savings Accounts: Credit unions often provide savings accounts with better interest rates compared to traditional banks. These accounts can help your money grow faster, making them ideal for building an emergency fund or saving for short-term goals.
• Checking Accounts: Choose a checking account with no or low fees to manage your day-to-day finances effectively, like Abound’s Free Checking Account with no monthly fees, access to mobile money management tools, and Get Paid Early* with Direct Deposit.

2. Credit Building and Management

• Low Interest Credit Cards: One of the best ways to begin establishing credit is by using a low interest credit card from someone who cares more about you than about their profit. Use your credit wisely and it will help to get you the credit score you deserve. The higher your score, the less it costs you to borrow money.
• Credit Builder Loans: If you're working on building or improving your credit score, credit unions offer credit builder loans. These loans help establish a positive credit history while allowing you to save money for your future.
• Credit Counseling: Credit unions often provide free or low-cost credit counseling services to help you understand your credit report, manage debt, and improve your financial health.

3. Personal Loans

• Low-Interest Personal Loans: Credit unions typically offer personal loans with competitive interest rates. These can be useful for consolidating higher-interest debt, financing education, or covering unexpected expenses.

4. Auto Loans

• Affordable Auto Loans: If you're considering purchasing a car, credit unions often provide auto loans with lower interest rates and favorable terms, helping you save money on your vehicle purchase. Getting pre-approved let’s you know how much you can afford, gives you negotiating power at the Dealership and keeps you from being oversold on a car that will make affording everything else you need and want to do harder.

5. Home Buying Guidance

• Abound Credit Union has over 300 years of combined experience in guiding Members through the Home buying process. With a loan to fit every need, including low or no down payment options, Veteran’s Administration (VA) Loans, Land and Construction Loans, Adjustable Rate Mortgage(ARM) Loans and more, we also provide educational resources and personal, local service to help you navigate the home buying process.

6. Retirement Planning

• Individual Retirement Accounts (IRAs): Credit unions offer various IRA options, including Traditional and Roth IRAs, which can be instrumental in your retirement savings strategy.
• Financial Advisors: Many credit unions provide access to certified financial advisors who can help you create a personalized retirement plan and investment strategy. You can meet Abound’s here. 

7. Online and Mobile Banking

• Convenient Digital Services: Abound offers robust online and mobile banking platforms that make it easy to manage your finances, check account balances, open new accounts and transfer funds 24/7.

8. Educational Resources

• Financial Wellness Programs: Credit unions often host financial education workshops, webinars, and provide resources to help you make informed financial decisions. Abound has an army of financial wellness experts that teach in classrooms from Kindergarten to College and work with Members individually to make better financial decisions. Plus, we have an online library of educational materials for self-guided learning.

9. Community Engagement

• Community Involvement: Credit unions are deeply rooted in their communities and often engage in philanthropic activities and initiatives. By banking with a credit union, you're supporting local causes and making a positive impact. Abound supports community events, and is particularly active in Veteran and Military support, and Financial Education at every level.

10. Member-Owned Benefits

• Profit Sharing: Credit unions may share their profits with members in the form of dividends or lower fees. People Helping People has been the Abound Credit Union battle cry since 1950, we stand by the philosophy of people over profits.
• Democratic Control: As a member, you have a say in the credit union's operations, ensuring that your financial institution aligns with your values and needs.

In conclusion, when you're young and planning for your financial future, a credit union can be an invaluable partner. Abound’s range of products and services tailored to your age and financial goals, coupled with our member-focused approach, can help you build a strong foundation for a secure and prosperous future. Whether you're saving for retirement, managing debt, or pursuing other financial objectives, consider joining Abound to leverage the benefits of this cooperative financial institution.