In a world where the financial landscape seems to constantly change, from rising grocery prices to a fluctuating housing market, responsibly managing your money is increasingly important. Statistics show that Americans are struggling with money. In fact, a recent CNBC poll revealed that more than 65% of people reported that they live paycheck to paycheck. It’s obvious that building your financial wellness is important, but what is financial wellness, and how can you ensure that you achieve it?
Financial wellness starts with education and grows throughout your lifetime with the appropriate support. It is the reason so many people turn to credit unions rather than traditional banks for all their financial management needs. In fact, due to practices such as offering better products and services, implementing practices that build trust, and investing in customer service and the community, credit unions give members all levels of financial literacy in a safe, supportive environment that allows them to build financial wellbeing and thrive well into the future.
What Sets Credit Unions Apart from Traditional Banks?
One of the most important reasons credit unions serve as the perfect financial partner is because of their structure. While banks answer to shareholders who aim to create wealth for individuals, credit unions are member-owned, which means that putting the customers — also the owners — first is the cornerstone of their work.
As member-owned institutions, credit unions have a vested interest in their members’ financial wellness because it directly impacts their own profits and helps them grow and thrive. As a result, many credit unions invest heavily in their members’ financial education, often offering online and in-person member resources to improve financial wellness along with financial products and services that are built for growth and long-term financial health.
Credit Unions Offer Better Financial Products and Services
Because of their commitment to members‘ financial health, credit unions specifically design many of their products and programs to promote members’ financial wellness. For example, many credit unions offer emergency savings plans that allow members to set up automatic contributions. These “hidden” accounts could be a lifesaver when life pitches a financial curveball, such as an unexpected auto repair or healthcare bill.
In addition to various helpful products, credit unions offer programming and services aimed at building their members’ financial literacy and providing support as they change their spending and savings habits. Such programs may include setting up online communities, conducting webinars and in-person workshops, and providing one-on-one counseling.
Why Credit Unions Are the Smart Choice for Your Financial Wellness Journey
Entrusting your finances to a credit union is a smart choice, regardless of where you are in your financial wellness journey. Because of the way they function and their deeply held beliefs about the way they serve their communities, credit unions offer members many tangible and intangible benefits.
Trust, Transparency, and Community
Credit unions are financial cooperatives, which means that their members (not clients or customers) own these businesses. All credit unions were founded to offer membership to certain groups of people, often based on their jobs or residential locations. This common trait unites members and helps credit unions as a whole promote their shared interests. As a result, credit unions are often seen as essential members of the communities they serve and have a vested interest in providing members with complete and transparent information in order to build and maintain trust.
More Personalized Services for Every Stage of Life
The position that credit unions hold in their communities allows them to offer context-based advice and services that are designed for their members. Credit unions are locally focused institutions that hire local professionals and serve specific communities, which means that the products and services offered are specifically designed to meet community needs. As a result, credit unions are well-equipped to provide financial counseling to members throughout their lives and to tailor products and services to meet those needs.
For young people just starting out, credit unions offer foundational checking and savings accounts. For those looking toward the future, credit unions can help in setting up college savings and retirement accounts.
Better Customer Support and Accessibility
The local footprint of credit unions also extends to customer support and accessibility. Unlike national and international banks that may have websites and local ATMs, credit unions take pride in establishing local branches where they offer members personalized support and advice.
In addition, contrary to what many large banks would like consumers to think, credit unions like Hudson River Community Credit Union (HRCCU) offer online and geographic convenience by providing fully loaded websites and mobile apps as well as connections to a national network of ATMs.
Financial Education and Smart Saving
The financial wellness programs offered by credit unions go far beyond online articles and videos. Like all their services, establishing financial wellness through credit unions is a personalized and tailored experience. For example, many credit unions will host seminars for people at all phases of their financial lives.
For example, for young people or those just beginning their financial wellness journeys, they may sponsor classes to help them learn budgeting basics. On the other hand, those looking to put their money to work for them may benefit from information regarding investment strategies that can help grow wealth in any economy.
At the heart of all these topics is the focus on what members want and what they need. Because they are part of your community and because they are member-owned, credit unions often ask members directly about what topics they are interested in learning more about and how they can effectively communicate with them.
Visit Hudson River Community Credit Union for Information for More Information
Make the Switch to HRCCU for Better Financial Health
Those who are looking for focused and personalized support to help build financial wellness are a good match with HRCCU. As a state-chartered community credit union, we serve individuals who live, work, or worship within Saratoga, Warren, Washington, and Rensselaer counties or the Towns of Cohoes, Watervliet, or Green Island. Our local focus means that the services we offer are always tailored to your individual goals and dreams. Contact HRCCU for more financial wellness tips and to learn more about becoming a member.
FAQs
Q: What is financial wellness?
A: Like personal wellness, financial wellness is the art of adopting practices that promote a better financial life. Specifically, this means mastering the art of budgeting, learning savings and investment strategies, and doing the work you need to help improve your overall financial health, both in the short and long term. In a nutshell, the measure of a person’s financial wellness is based on their ability to lead a healthy, successful financial life.
Q: Are credit unions more affordable than banks when it comes to fees and interest rates?
A: Yes. Because they are member-owned, credit unions’ financial structure does not focus on making a profit for board members and shareholders. Instead, it focuses on reinvesting and offering the best deals to its member-owners. As a result, on average, credit unions offer lower interest rates6 on all types of loans, including mortgages, car loans, home equity loans, and personal loans, according to data from the National Credit Union Administration.
Q: Can a credit union help me with debt management and financial planning?
A: Yes! Credit unions are highly focused on building relationships and offering personalized services and care to its members. This includes one-on-one financial management and coaching provided by certified professionals, such as loan officers and certified financial planners.
Q: What financial education resources do credit unions provide to its members?
A: Credit unions provide members with a variety of online and in-person financial resources. Minimally, this includes articles, videos, and advice through websites as well as one-on-one financial assistance and coaching. In addition, many credit unions host in-person classes and webinars dedicated to popular financial wellness topics, such as budgeting, savings, and investing strategies.
Q: Can a credit union help me build an emergency savings fund?
A: Absolutely! One of the central financial wellness products that credit unions offer is emergency savings. Often, they can help members set up emergency savings accounts that are supported by automatic deductions from their main accounts. This helps them keep funds safe and available for use in case of true emergencies.
Q: Can credit unions help me with retirement planning?
A: Yes! Just like with emergency funds and other financial wellness products, credit unions can help members plan for retirement through automatic savings. In addition, the financial literacy services offered by credit unions often extend into retirement options that apply across lifespans. Finally, through one-on-one coaching, credit union financial planners can help members design individual retirement plans that work with their income, age, and goals.
