Category: Financial Literacy

When it’s time to make a big purchase like a new TV, computer, furniture, appliances, or yard equipment, most people wait for a sale to buy them. And that’s a great way to save money. But then they’ll put their purchase on a credit card and make monthly payments. Or even worse, they’ll take out a loan.

Waiting for sales isn’t the only way to save on big purchases.

When it’s time to make a big purchase like a new TV, computer, furniture, appliances, or yard equipment, most people wait for a sale to buy them.

And that’s a great way to save money. But then they’ll put their purchase on a credit card and make monthly payments. Or even worse, they’ll take out a loan.

So why is that so bad? Because what you probably don’t realize is that by paying for your purchase with monthly payments with a credit card or loan, the interest you pay will completely eliminate any of the savings you got from the sale. Or worse, make you end up paying even more.

To avoid making this costly mistake, try planning ahead when you want to make any big purchase. And start putting extra money aside every month until you have enough to pay for the item in cash.

You can earn interest on it by putting that extra money in your Compass CCU savings account. Plus, making direct deposits from your paycheck will make it even easier to save. Once you have the amount you need to make that purchase, then it’s time to start looking for the sales. It’s the best way to ensure that you’ll never pay more than the sales price for anything.

Of course, if it’s an absolute emergency to make a purchase before you save up enough money to pay cash, you can put it on a credit card or ask us for a personal loan. Just make sure you pay it off right away or at least make more than the minimum payment every month. That way, you’ll save on some of those extra interest payments.

Financial literacy starts here

As a parent, you instill good moral values and financial guidance in your children. Help your son or daughter toward a secure future by teaching financial responsibility early with a free checking account from the Credit Union.

“I wanted to teach my kids how to be financially responsible. I opened a checking with a debit card and transfer their weekly allowance into their account. They are responsible for tracking their money by using their smartphone. They pay for their own items, including clothes. It’s amazing the difference this has made. Now they watch for sales and are careful how they spend their money. Prior to this, I was their unlimited cash supply. This has taught them the value of money and prepared them for what lies ahead.”

Debbie L. – Member

In short, a credit union is a cooperative financial institution where people work together to make everyone’s lives better. Everyone who has an account here is a member. And every member is an owner.

Rather than making profits to send to far-off shareholders, Compass CCU reinvests in our credit union. Which means we reinvest in YOU. That’s why we say that, at Compass Community Credit Union, we guide you to better banking.