Financial

Saving for your child’s education is an important step for his/her future. With some smart financial maneuvers, you’ll be able to make your money grow, so that by the time high school graduation comes around, funds are available. As important as saving for college is, it’s critical to remember that you should not allocate your retirement savings for college expenses. Securing the funds for a college education is far easier than securing money to see you through retirement.

Start as soon as possible.

Saving now for college ensures that you have the most options available when the time comes. If you feel overwhelmed by such a large, looming expense, consider this: even modest investments can pack a punch. Whatever savings method you choose, it’s important to first do your homework. Consider your needs, objectives and personal financial situation before making your selection.

Savings Accounts:

The Coverdell Savings Account functions similarly to Roth IRAs but, instead of retirement, is instead used for educational expenses. With an annual contribution cap of $2,000, earnings within the account grow tax-free and can be used for any educational expense – not just college tuition.

Stocks:

With tuition costs rising faster than inflation, a portfolio of stocks is a smart way to build savings in the long term. As your child nears the end of high school, you can protect your returns by switching the funds into bonds and cash.

Mutual Funds:

Want to make college funds grow by investing? With a mutual fund, a professional is put in charge of your savings so that you don’t have to watch the market daily.

Texas Tomorrow Funds:

Chances are, you have plenty of time to save for your children’s’ or grandchildren’s’ education. After all, it could be 15 years or more until the money is needed. But have you factored in how much college will cost then? Tuition costs are skyrocketing, rising at a rate of approximately 6 percent a year. The truth is, time is on your side now. By getting a head start, you will be taking one of the most valuable steps to ensuring a good future for your child, grandchild or other loved one. For more information visit the Texas Tuition Promise Fund website.

Membership/Regular Savings account required. Programs (including without limit, fees, rates and features) are subject to change without notice. See rate sheets for applicable dividends. Fees may reduce earnings. Annual contributions cannot exceed $2,000. Consult tax advisor concerning maximum annual contributions and considerations for children with special needs to receive contributions after the child turns 18. Funds must be used for educational expenses and withdrawn before child reaches 30 years of age. 

A credit union is a member-owned not-for-profit financial institution that exists to serve its members rather than maximize corporate profits. Like banks, credit unions accept deposits and provide lending services. As member-owned institutions, credit unions focus on providing a safe place to save and borrow at reasonable rates. Federally insured credit unions, like United Heritage, are regulated by the National Credit Union Administration and backed by the full faith and credit of the United States Government.

Consumers and financial institutions are most impacted by the personal identification (ID) portion of the Act, which is designed to reduce the possibility of consumer identity theft. Instances of identity theft have increased in recent years and the Act, along with its Homeland Security features, strives to reduce the possibility of identity theft for each consumer. Financial institutions have the responsibility of verifying and documenting the identity of consumers opening new accounts. Consumers have the responsibility, when opening a new account with a financial institution, of providing acceptable ID and a physical address to verify their identity.

A personal credit score is a number that reflects the credit history, debt levels and other credit related items of each consumer. The score represents an individual's creditworthiness. Lenders and other service providers utilize this score as a risk factor indicator and may determine their lending rate or service based on the amount of risk the score represents. The impact on a consumer may be higher loan interest repayment rates or higher service rates if their personal credit score is deemed to indicate a higher financial risk. The timely repayment of debts owed and appropriate management of credit resources allows each consumer the best lending and service rates available in the financial market. For more information on financial tips click here.

Loans granted with United Heritage are assessed a finance charge by the simple interest method. This means that the interest due whenever a payment is made (regardless of due date) is calculated using the outstanding principal balance and the number of days between payments. The simple interest method allows you to reduce the finance charge on your loan over the term of the loan by: 1) making extra payments of any amount, 2) paying the regularly scheduled payment earlier than due and/or 3) paying the loan off early. Unlike some other lenders, United Heritage does not place all the interest due on the note at the front of the note. Your account statements display your annual percentage rate and your daily periodic loan rate. Using your daily rate, you can figure the interest that will be due when you make your next payment. Formula: Loan balance X periodic rate X number of days between payments. Example:
 
$1000.00
X.038082
X.30
$ 11.43 Loan Balance
Periodic Rate showing on statement [each loan reflects it own rate]
Number of days between payments

When you belong to a credit union you’re a member of a not-for-profit financial institution. This means that any profits made go back into the credit union in the form of better rates and lower fees for all members, who own and control the credit union. Credit unions offer many – and, in some cases all – of the same products and services offered by for-profit banks including, checking, savings, loans, and online banking. Credit unions, including United Heritage, even have their own nationwide ATM network. Today’s credit unions remain unique financial institutions with a “not-for-profit but for service” operating philosophy. Annual polls show that credit unions lead the financial community year after year by providing top quality personal service to millions of Americans. A federally insured credit union, United Heritage keeps pace with the needs of our members by offering a variety of products and services.