Essential Money Skills You Need to Know

If life came with a handbook, there would be many chapters about money skills. Unfortunately, most people figure out finances the hard way, but we've compiled a few easy modules on topics we see everyday. 

Understand the Five C's of Credit

Your job, your housing, and your loans are all impacted by your credit score. But what makes up that credit score? The Five C's are what lenders look for when deciding how much to charge or if they'll make a loan at all. It also impacts other decisions people make about you.

• Credit history
• Capacity (to repay your loan)
• Collateral
• Capital (savings you have or equity in an item)
• Conditions (of the loan itself or economic conditions)

Check out this learning module for more information on credit as well as tips to hit your money goals.

Embrace mindful spending to avoid debt and regret

Much like yoga or meditation, managing your finances requires being present in the moment. Life bombards us with cues to impulse spend, but this usually leads to debt and regret. Mindful spending is one of the easiest and best financial wellness tips. Before making a pricey purchase, pause and think on it for 24 hours. That short pause often helps us realize we didn't need to spend on whatever we thought we had to have — or confirms it would be a smart purchase. Watch our Financial Wellness videos for more tips on navigating your financial journey.

Understand your Digital Wallet

Use your phone's free Digital Wallet to store your VCCU debit and credit cards and easily pay when you shop in stores or online. Digital Wallets can also manage your concert, movie, and plane tickets, and are a safer way to send or receive money from others. Try it a couple of times and you'll be convinced. Read our "How Do Digital Wallets Work?" blog post to learn more.

The magic of compound interest

The best part of saving money is watching it grow as it earns more for you. This happens thanks to compound interest. Simply put, it's the addition of interest on top of the interest your money is earning. With each successive period, your money is earning more money. Learn about the Rule of 72 that shows how long it takes an investment to double in our "Compound Interest in a Nutshell" blog post.

Should you slide into joint checking?

Did your relationship status change and you're thinking about a joint checking account? Before you do, there are some things to consider and serious discussions to have before merging your money. Read more about joint accounts and contact us to discuss your situation so we can help you set up accounts to meet your needs.

Everybody needs to learn about money management someplace. That's why we want our members to have the tools for a head start to financial success. Let us know how we can help you!