Making Money Personal

What is PMI And When Do You Need It? - Money Tip Tuesday

Buying a home is a huge step in your life. If you’re new to the homebuying process, you’re probably learning a bunch of new terms and information. One of those terms you’re going to hear is PMI and if you’re curious about what it is and how it works, keep listening. 
Links: 
NerdWallet PMI Calculator
Triangle's Mortgage Calculator
Contact a Mortgage Originator 
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Learn more about Triangle Credit Union
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast. 
When you’re looking into the costs of buying a home, you’re likely familiar with the interest rate, downpayment and even closing costs. But how familiar are you with the PMI that might be included in your monthly payment?  
If you’re curious about what PMI is and whether or not you’ll have to pay it, here’s a little explanation.  
PMI stands for private mortgage insurance that protects the mortgage lender if you stop making payments on the loan. If you have less than 20% of your own money into the transaction, then the Credit Union or lender will get PMI on the loan. If you’re able to put 20% or more down then you won’t have to pay PMI at all.  
PMI is most often factored right into your mortgage payments which means you don’t have to make it a separate payment each month on top of your mortgage. In some cases, certain lenders might provide you a different option when it comes to paying PMI but most lenders require it to be wrapped into the mortgage payment. 
As a homebuyer, you may not be thrilled to have to pay PMI with your mortgage. Who wants to pay a higher monthly payment? But believe it or not, there are actually reasons for PMI that benefit you as a buyer. Plain and simple, PMI makes it easier for you to buy the home. If lenders didn’t require PMI then they would require a much higher downpayment which would make it harder for first time homebuyers to qualify for the loan. PMI is not something to be afraid of because it allows you to put less money down when you finance.  
Now, you might be wondering, if I buy a home with less than 20% down and have to pay PMI, will I be paying it for the entire duration of my loan? If I have a 30 year mortgage, will I be paying it every month for the next 30 years?  
The good news is that you won’t have to. The PMI payment exists as long as you don't have 20% equity in the property. Once you have more than 20% equity in the property the PMI will automatically disappear.  
So, if you’re looking to buy a home, but you don’t have the 20% downpayment, how much should you expect to pay in PMI? 
The amount you’ll pay is based on many factors and is not a set number for everyone. If you’re trying to determine how much you’ll be able to afford, you can look into it beforehand to get an idea of what to expect to pay.  
The amount depends on size of loan, your debt-to-income ratio, your credit score and the downpayment amount. Fortunately, there are PMI calculators out there you can use to get an estimate. There’s a useful one at NerdWallet.com and if you’re interested, check out the link in the show notes.  
If you’re concerned about PMI or anything else related to financing your home, Triangle has a great team of Mortgage Originators available to meet with you and answer any questions you have.  
You can visit one of our branches or set up a time to meet or email right from the mortgage portal on our website, trianglecu.org.  
They’ll help you look through the different options available to you and find the one that will work best for your situation.  
If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  
Have a great day! 
 

Episode 56: How Rising Inflation Affects Your Money | Scott MacKnight, CEO

Inflation is a popular word these days, leaving many of us feeling confused or concerned about the future of our money.
In this episode, we're chatting with Triangle Credit Union CEO Scott MacKnight about what inflation is, and how we can make appropriate financial decisions to counteract its effects. 
Links: 
Get up to date finance and inflation information at Bloomberg
Try Triangle's Money Management tool within online banking
Follow our Facebook, Instagram and Twitter pages!
Learn more about Triangle Credit Union
View episode transcript.
 

How To Spot A Fake Shopping Site - Money Tip Tuesday

As you browse a popular social media site or search the internet, you’re likely to come across a tempting ad selling something at an incredible price. You get excited and click the link because you don’t want to miss out on this rare opportunity.  
Before you do anything, stop and investigate a bit more because you might be falling for a shopping scam. 
Links: 
Learn more tips on how to spot fake shopping sites
Report a suspicious site with the Federal Trade Commission (FTC)
Report a suspicious site with the Better Business Bureau (BBB)
Learn more about Triangle Better Checking with identity protection
Follow our Facebook, Instagram and Twitter pages!
Learn more about Triangle Credit Union
Transcript: 
Welcome to Money Tip Tuesday from the Making Money Personal podcast. 
80% of Americans shop online. That comes to a count of over 263 million people.  
Online shopping is fun and convenient, plus you can find almost anything you want. Unfortunately, like other things associated with technology and the Internet, online shopping can also be a way for fraudsters and thieves to steal your personal information and money.  
If you’re an avid online shopper, it’s important that you stay informed of these shopping scams, so you don’t fall for these fake stores trying to rob you.  
A recent report from Experian has stated that online shopping fraud is rising. This is partly due to the growing volume of internet users and online shopping platforms we are accustomed to browsing on a daily basis.  
Online shopping scams tend to be more common around busy online shopping days like Prime Day and Black Friday but are still very real threats that can pop up any time of year.  
Scammers set up websites to deceive you into purchasing something from them. You may end up getting a shoddy product or you may not get anything at all.    
How do these scams work?  
They set up a storefront or website that looks very convincing and offers products that you might recognize from other sites or brands. They’re even known to copy professional photos and graphics to try to make the website appear as legitimate as possible.  
These scammers then post an ad with a very appealing offer to direct you to the website. For example, it’s not uncommon for a scam to offer a luxury item at a ridiculously low price.  
You may have come across some of these ads on social media or in browsers. They’re designed to get you to act quickly and purchase the item before you even realize the ad led to a dishonest site.  
Luckily, if you’re aware of the ways to recognize these scams, you can easily keep yourself from falling for them. Here are a few tips on spotting a fake shopping site. 
If you see a bad or mismatched domain name. If the domain is slightly different, it should be suspicious. Check the URL for added words or misspelled names. If the name should be Namebrand.com but instead reads like NamesBrand.com or NameBrandOnline.com then it’s most likely a lookalike site trying to trick you.  
If there’s no S in HTTPs in the URL address string. Look at the web address in the top of your browser for the letters HTTPS. The S stands for secure and it means the site is encrypted. You should also see the little padlock icon at the front of the URL. If you don’t see an S then the site isn’t encrypted, and you shouldn’t give them any of your information. 
If there’s no return policy. Look around the product information or description for the company’s return policy. If there isn’t one at all, on a site that looks like it should have one, that’s a big red flag. 
If you get pushy popups asking for your financial information. Some sites set up annoying pop ups that ask you for your payment information while you browse. This is a serious red flag. Don’t give them your information and leave the site right away.  
If you see luxury items for unbelievably low prices. If it looks too good to be true, it probably is.  
No credit card payment option. If the site requests immediate payment, wire transfers or other forms of payment without accepting credit cards then it’s probably not legitimate. 
Even with all the awareness and precautions we can take, sometimes scammers are so convincing we fall for them anyway. If you think you fell for a scam you can report the malicious site with the Federal Trade Commission. If you unfortunately used a credit or debit card on the scam site, contact your financial institution immediately. And finally, contact the BBB to report the fake business and help protect others from falling for the same trick.  
One last note, make sure you have identity theft protection. If you have a Triangle Better Checking account, you have identity theft protection and you have access to other tools that can help protect your identity from the many ways thieves try to get a hold of it. Learn more at trianglecu.org or check the link in the show notes.  
If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  
Have a great day! 

Top Things You’re Likely To Overspend On - Money Tip Tuesday

Are you trying to find ways to cut your expenses this year but don’t really know where to start? The good news is you can start by recognizing the most likely places you’re overspending. 
Links:
Read this CNBC article for more categories you're likely to overspend
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Learn more about Triangle Credit Union
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast. 
With costs going up on everything from utilities to groceries, most people are taking a closer look at where so much of their money is going.  
It’s time to start evaluating your expenses and see where you’re most likely to be overspending.  
A 2019 survey from Slickdeals.net, reveals some of the most common areas adults overspend.  
If you’re ready to take back control of your spending this year, start by examining and adjusting your spending in any or all of these categories. 
 1. The first is online shopping. I know, big shocker right?  
You can’t beat the convenience of online shopping, and you’ll often find better pricing for goods than if you were to go to a physical store.  
The challenge with online shopping is the impulse factor. If you’re like me, you probably go online looking for one item, but then end up purchasing additional things you didn’t originally intend to purchase.  
Things like apparel, electronics, footwear and pet care items are some of the most ordered online. 
If you want to cut back in this category, try a few of these suggestions. 
First, set a spending budget. You need to set a limit on how much to spend online.  
Try switching your default payment method from a credit card to a debit card. This puts the responsibility on you to make sure you don’t spend more than you have. It’s critical that you keep an eye on your checking account, so you don’t overdraft your account.  
Disable notification from shopping sites and apps and unsubscribe from promotional emails. Don’t let the apps tell you when to buy or what to buy. Silence them so you don’t get pressured into making an impulse purchase. 
Uninstall shopping apps from your phone. If you constantly find yourself opening these apps, especially when you’re bored, it’s time to take away the temptation. You can always reinstall them later once you’ve grown more disciplined with your spending habits.  
 2. The second category adults overspend is on food. This includes both groceries and dining out. If you’re spending too much money on these then you should find a way to cut back. 
It’s so easy to impulse purchase at the grocery store, dining out daily for lunches, and spending too much when going out. I also want to mention that ordering through delivery apps like DoorDash or Uber Eats are part of this category. They’ve made it all too easy to conveniently order food that comes right to your door. Not only are you paying for the food, but you’re also tipping the drive and paying a delivery fee. Cutting back on food consumption is a must in today’s hyper-convenient dining world.  
How do you cut back here?  Make a shopping list and buy ONLY those items. This might sound simple but it’s not as easy as you think. Keep yourself limited to only the items you need to buy and nothing else.  
Bring cash to buy your groceries.  This might seem archaic, but can you think of a better way to keep yourself from overspending? You can’t spend what you don’t have and if you don’t have the cash, then you’ll be forced to either tally up all your items or put things back that you can’t pay for.  
If you’re used to buying lunches while at work, cut back on how many you buy. Instead of every day, bump it down to maybe once or twice a week and pack your own lunches for those days when you won’t buy lunch out.  
Set a budget for dining out. Cut back on how many times you go out and learn to make more meals at home. You’re less likely to be upsold on specialty drinks apps and dessert and you’ll likely cut calories too. 
 3. The third category where adults overspend is on subscriptions. How many subscriptions are you paying for right now? Are you even using them all? Most of us are paying for multiple subscription services that we barely use.  
Video streaming may be the first thing you think of, but there’s gaming platforms, food delivery subscriptions, other goodies like beauty products, personal care, online software and account access, online music platforms the list keeps going.  
If you want to cut back here, take an assessment of every subscription service you have. I mean EVERY, even if it costs you 2-3 dollars a month. 
 Ask yourself honestly how much value you’re getting for the service and if it’s worth the price. Look at which ones have gone up in price, because that can happen after a few years or if they change their pricing models.  
Cut out anything you don’t use anymore. If you’re not using it, then you’re overspending on it. 
 4. The fourth category adults overspend is on technology products. This includes phones, smart speakers, TVs and other gadgets. 
Stop and take a quick look around your environment whether you’re at work or home. How many tech devices do you own? This includes smartphones, tablets, computers, gaming consoles, smart speakers, smart watches, TVs, plus any other home devices like Nest and Ring. All those items come with upfront costs and sometimes recurring costs like a service charge or maintenance costs. 
How do you avoid overspending on technology since it’s practically a necessity for our day-to day living?  
Try to make your devices last as long as they can. Take good care of them and keep up with maintenance.  
Wait a little longer to purchase the newest item. Prices are usually high at the time of release, but can fall a bit if you wait a little longer 
Consider purchasing a used or refurbished item. You can save quite a bit of money. Just make sure the reseller is reputable. 
If you’re feeling the crunch and are looking for ways to cut back on your spending, start by cutting back in any or all of these categories. 
If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  
Have a great day! 

How To Get Your Paycheck Up To Two Days Early - Money Tip Tuesday

Have you ever wished that you could get your paycheck a few days early? With early paycheck, that is now possible! Here’s what early paycheck is and how it works. 
Links: 
Learn more about Triangle checking accounts that offer Early Paycheck with direct deposit
Follow our Facebook, Instagram and Twitter pages!
Learn more about Triangle Credit Union
Transcript: 
Welcome to Money Tip Tuesday from the Making Money Personal podcast. 
Early paycheck is when your check is deposited into your account earlier than Friday. You may receive it as early as two days before payday. But how does this work? Well, direct deposit payments have an official payment date, which is the date employers intend the payment to be made.  
Most businesses use a system called automated clearing house, or ACH for short, which processes electronic payments. When employees are signed up for direct deposit, businesses use the automated clearing house system to process the check payments. 
The payroll file of direct deposits will then be sent to the corresponding employees’ financial institutions. The deposit will then go through the automated clearinghouse system. If your paycheck is deposited before payday, your financial institution is advancing the funds to you, knowing that they will receive the money when the funds become available. 
If this sounds good to you, it’s easy to get your paycheck early! First, look to see if your financial institution offers early paycheck. It might be called something else, like early direct deposit, or something similar. If your financial institution doesn’t offer early paycheck and you really want it, don’t worry, there’s plenty of options to choose from. Look around at other financial institutions to see if they offer early paycheck. For example, it is included with both Triangle Credit Union’s Basic Checking and Better Checking Accounts.   
Next, make sure that you are enrolled in direct deposit. You will need to provide your employer with your financial institution’s routing number and your account numbers for checking or savings, depending on which account you want your paycheck to go. 
Then you’re all set! It’s that easy!  
Early Paycheck also works for US government ACH payments like social security, so if you’re still waiting until Friday for a check but need it sooner for bills or other expenses, set up direct deposit and you’ll likely gain access to that money sooner.  
Direct deposit gives you more benefits over a physical paper check. First of all, you get your paycheck on time, or early with early paycheck. With a physical paper check you would have to either pick it up in the office or have it mailed to you. Second, it eliminates the additional step of having to deposit the check, with either remote deposit using your mobile device or computer or physically going into your financial institute.  
If you have questions on getting started, reach out to us via our website, give us a call.  
If there are any other tips or topics you’d like us to cover, let us know at tcupodcast@trianglecu.org and don't forget to like and follow our Making Money Personal Facebook, Instagram, and Twitter pages and look for our sponsor, Triangle Credit Union on Instagram and LinkedIn to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  
Have a great day! 

Ways To Save On A New House - Money Tip Tuesday

Buying a house is one of the most important purchases of your life, but it is also one of the most expensive too. This can be very distressing for some, but don’t worry – we're here to provide you with some ways to save money when buying your new house. 
Links: 
Check out current mortgage rates
Chat with one of our Mortgage Originators
Watch out First Time Homebuyer Workshop on YouTube to learn more about getting pre-approved and the right financing
Follow our Facebook, Instagram and Twitter pages!
Learn more about Triangle Credit Union
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast. 
Before you buy your new house, there’s a few things you’re going to want to do to get started. First, figure out how much you can afford. Then, figure out what you want in a house. Things like house type, square footage, how many bedrooms do you need and how many bathrooms you need are all important. Other factors to consider include how nice the neighborhood is and how far away your house is from stores and things to do. If you have kids, you will also want to see if the school district is good. Of course, factor in that you still have to pay for all of this, so keep it within your budget. 
Once you have a good idea of what you want in a house, it’s time to go out and find it! A good first step is to get a real estate agent who can walk you through looking for and buying your house. Houses that are generally cheaper include houses that have been on the market for a while and fixer-uppers. Owners of these houses generally just want to get rid of the house by this point and you may be able to negotiate a better deal. The only downside to going this route is that the house will probably need a lot of work. Houses that have been foreclosed on are also generally cheaper, so you can keep a look out for those. 
You may also want to look into houses that aren’t currently on the market. If you know of anyone who might be moving soon, see if they are willing to sell. If you’re bold enough, you could also try door-knocking. This is where you find a neighborhood that you want to live in and go up to a house you’d like to buy and ask if they’d be willing to sell to you. Just be respectful of the residents, and don’t approach houses with a “no soliciting” or “no trespassing” sign.  
Once you’ve found your dream home, it’s time to look at your finances and get a mortgage. Your credit score is a big factor when applying for a mortgage. Lenders use your credit score to determine your loan pricing and see if you will be able to pay back the mortgage. The better your credit history, the better rate you can secure. Even a small increase in your credit score can get you a reduction in your mortgage rate.  
If your credit score isn’t as good as you’d like, a few ways to improve your finances to ultimately improve your mortgage application is to start paying off any existing debts. Paying down high-interest debt, such as credit cards, personal loans, and student loans, will positively affect your debt-to-income ratio, which is another key factor in mortgage eligibility. This also means that you shouldn’t open any new credit accounts or take out any new loans. 
Adding money to your savings for a house is another way to get a better rate. Being able to make a down payment that’s a little more than the minimum can show lenders that you are reliable when it comes to saving money and may give you a better rate.  
Buying a house can be stressful and complicated, but it doesn’t have to be! Talk with your friends and family about their experiences, they might have some valuable insight to offer. Your real estate agent and mortgage originator will also be able to guide you as you go on this new journey. 
If there are any other tips or topics you’d like us to cover, let us know at tcupodcast@trianglecu.org and don't forget to like and follow our Making Money Personal Facebook, Instagram, and Twitter pages and look for our sponsor, Triangle Credit Union on Instagram and LinkedIn to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  
Have a great day! 

Episode 55: Special Discussion About Silicon Valley Bank | Scott MacKnight CEO

In this short episode we chat with Triangle CEO and President Scott MacKnight about all the news surrounding Silicon Valley Bank and what it means for the financial industry as a whole. 
Links: 
Get updates and breaking news from Bloomberg
Read Triangle's article with more information about what the Silicon Valley Bank news means for your Triangle account
Visit the NCUA website for important information on how your funds are protected
Follow our Facebook, Instagram and Twitter pages!
Learn more about Triangle Credit Union
View episode transcript.
 

3 Steps To Finding Your Dream Home - Money Tip Tuesday

Finding the right home can be a challenge. If you’re preparing to embark on the homebuyers’ journey, there are three things you can do to give yourself the best chance of finding and buying the home of your dreams.  
Links:
View our current mortgage rates
Get in touch with one of our Mortgage Originators
Learn more with our Securing Financing for Your New Home article 
Listen to our other conversations with industry professionals about closing costs and home inspections
Sign to attend one of our upcoming homebuying webinars or watch on our YouTube channel
Follow our Facebook, Instagram and Twitter pages!
Learn more about Triangle Credit Union
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast.  
When it comes to your first home search, if you have the right plan in place, there’s no reason that you shouldn’t be able to enjoy the home buying process with all the excitements and challenges it can bring.  
With these three steps, you’ll have a great strategy and plan for when you’re ready to make your move.  
Follow these three steps to find your dream home. 
The first one is to Form Your Team  
Deciding who is on your team goes deeper than just your lender and your real estate agent. When forming your team, you need to consider everything that is part of the home-owning process that might be more than just who ends up on the deed.   
This could be a family member who is involved in construction that will end up helping you with tasks around the house. This could also be someone nearby who you will use for childcare occasionally. It’s important to bring these people into the conversations around the home you’re buying as they will be involved in certain aspects of the house.   
Having meaningful conversations with your team allows you to gain a new perspective about the location and condition of the homes you’re looking at so you can make an informed decision on such a huge purchase. If you choose to purchase a fixer-upper, you will need to make sure you have the expertise to DIY the updates or have the funds to pay someone to help. These conversations will get everyone involved on the same page moving forward.   
The second is to Secure your Financing  
Looking at homes before you’ve secured financing is a dangerous game because you wouldn’t want to fall in love with a house you can’t afford.   
Securing financing can be as simple as walking into your nearest Triangle Credit Union branch and sitting down with one of our mortgage originators to discuss your options.   
Triangle’s Mortgage Originators will walk you through the process and connect with your realtor, or work with your existing realtor, to make sure you can get financing to purchase your dream home.   
For more information, read our blog post Securing Financing for Your New Home where we discuss the process and list the documents you will need to get pre-approved.   
The third is to Find Your Realtor, Find Your Home  
We’ve all been on various real estate websites searching for our dream homes. We flip through photo after photo and imagine what our lives would look like if we purchased that home, but did you know that there is an easier way to find a home?   
Realtors have direct access to listings before houses even hit the market so when you work with a realtor, they will be able to filter through properties you will be interested in and have you tour the home before those who use the apps even see it.   
This can take some of the stress of home-buying off you and allow you to enjoy the home-buying process, especially if you are a first-time homebuyer.   
Finding your dream home should be an exciting experience, not a stressful one. We hope these steps will put you at ease if you are in the home-buying process or getting ready to start. Do you have other first-time home buying questions? Attend one of our First Time Homebuyer Webinars to learn more information and to have your questions answered by the experts or watch one of our recorded webinars on our YouTube channel.  
If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  
Have a great day! 

Surprising Benefits of Adjustable Rate Mortgages - Money Tip Tuesday

Achieving your dream of owning a home isn’t out of reach. With all the financing options available, how do you determine which one is right for you?
You may have been told that adjustable-rate mortgages aren’t the right option. But there are some surprising reasons why an adjustable rate could be the right option for you.  
Links:
Check out Triangle's mortgage rates
Contact a Mortgage Originator to meet and discuss your options
Follow our Facebook, Instagram and Twitter pages!
Learn more about Triangle Credit Union
Transcript: 
Welcome to Money Tip Tuesday from the Making Money Personal podcast. 
If you’re hoping to own a home one day, one thing you’ll need to decide on is what type of financing you’ll choose.  
Finding the right mortgage can be difficult and intimidating. There’s no one size fits all solution for financing your new home. One of the biggest questions concerning mortgage options is whether to choose a fixed rate mortgage or adjustable-rate mortgage (also known as ARM). 
Though, many people immediately decide they want a fixed rate, because it seems safer, they may be overlooking the benefit that an ARM might provide them.  
Ryan Campbell, Mortgage Originator at Triangle Credit Union mentions that many people start out with a negative view of ARMs. He says, “For many people, an ARM is a scary option. They may have heard from friends or family to avoid adjustable-rate mortgages at all costs. But this advice can often be misconstrued, because adjustables might give you the best option for your financing, with the smaller financial burden.” He followed it up with, “Don’t do a loan because someone else told you, do it because it works for you.” 
Don’t dismiss ARMs before you’ve first considered the benefits.  
Here are some of the surprising benefits of ARMs that you may have not considered and might make you warm up to the idea of using one to finance your house.  
The first benefit is that you’re likely to get the best rate with a lower introductory payment.  
Traditionally ARMs offer great terms and rates which tend to be lower than fixed rate options. This also means that the lower the rate, the lower your monthly payment could be. There’s also a chance you can get a longer-term mortgage with an adjustable rate meaning you’ll get a more attractive rate AND a longer term, making that monthly payment even more attractive. For example, Triangle offers a 40-year term adjustable rate mortgage option. This is a great offer because it means you can pay off your loan over 40 years instead of 30 ultimately lowering your monthly payment.  
The second benefit is that there are caps to how high the rate can adjust.  
If the word adjustable scares you because you know the rate can go up over time, you don’t have to fear too much. Adjustable-rate mortgages have caps set on how high the rate can adjust. Ryan explains that certain caps are put in place to ensure the rate only goes up a certain amount. It can’t go any higher or lower over the life of the loan. Don’t think that if rates adjust up, your rate will adjust out of control. Figure out whether you’ll be able to continue to afford your payments if your rate adjusts to the max cap, and if you can, then you’ll be prepared for when it does.  
The third benefit is that there’s a chance depending on market conditions that they could adjust down. 
Believe it or not, there have been times in history when rates have adjusted lower. If rates are better by the time yours is set to adjust, they restructure at a lower rate. Although this isn’t too common, it’s certainly something you may not have considered when you hear about adjustable-rate mortgages. Pay attention to the economic climate and who knows, you may get fortunate with a rate that adjusts down without having to refinance to get a lower rate. 
Get the benefit of automatically adjusting to that lower rate without having to refinance 
The fourth benefit is that there aren’t any prepayment penalties. 
A lot of times people move from home to home. They either get a new job, retire, or just decide to move away. In the past, paying your mortgage off early meant you would need to pay pre-payment penalties. Now, if for whatever chance you decide to move, or refinance, then you won’t be charged any fees for prepaying the loan. This is a huge benefit if you don’t plan on being in the home for a long time. If you buy a home with an adjustable-rate mortgage but then decide in a few years, maybe even before the rate adjusts, that you want to move, you won’t get slammed with fees for doing so.  
If you’ve shied away from ARMs for some time, a few of these benefits might surprise you.  
But, how do you know that an adjustable rate is right for you?  
Ryan recommends you ask yourself some of these specific questions when you’re considering the different types of loan options.  
How long do you think you’ll be living in that home? 
Right now, what’s most important to you, low payment or best rate?  
Based on your budget, what can you afford? A lower rate and longer term help with buying power.  
How much do you have saved for the downpayment and closing costs? 
Ryan also stresses the importance of educating yourself. He recommends you do research to learn how mortgages work. You’ll learn about terms, adjustment periods, how the loans are structured and more.  
Learn all you can about the different types of options available, how they work and what you should consider before signing that line.  
Ryan shares, “Get educated. Absorb as much as possible. The more you know the better decision you can make. Work with someone who can explain it to you so you can understand the products.” 
That’s what Triangle’s Mortgage Loan Originators are there for. They take the time to meet with you and discuss your options to help you get the best mortgage you can. 
Visit any of Triangle’s local branches or schedule an appointment online to get in touch. 
If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  
Have a great day! 

5 Financial Lessons To Teach Your Kids - Money Tip Tuesday

How many times have you ever said to yourself or someone else, “I wish I knew this sooner?” When it comes to money, sometimes the hard lessons are best learned early. If you have kids, or work with kids, there are important financial lessons they can benefit from starting at an early age.  
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Transcript: 
Welcome to Money Tip Tuesday from the Making Money Personal podcast. 
Financial education is important for all ages. The earlier you understand important financial principles, the better off you’ll be as you grow up.  
It’s never too late, but if you’re a parent, you may be thinking you can help spare your kids from making the same financial blunders you did. 
Not to mention just getting a habit started early can make the difference in a child’s life when they become an adult.  
There are important financial lessons you can teach your kids at a young age to set them up for financial success well into adulthood.  
Teach them the importance of saving.  
Saving is an important financial discipline that everyone should practice.  It gives you purchase power, the ability to help others and helps you provide for your needs and the needs of your family. Getting started earlier is always better so try to start instilling this discipline in your kids' lives early. There are a lot of different ways to do this, so choose which is the best way for you and your kids. 
If your kids are old enough, you can start by implementing an allowance. If they get birthday or gift money you can encourage them to save some or all of it. You can also set up a system for them to make some money at home doing chores. If they’re still young, get them a piggy bank or make one with them so they can store all the cash and change they collect. If they are a little older, show them the envelope system as an early budget tool so they understand the process of dividing money up into portions for specific uses. 
Finally, set up a Kids Club savings account for them so they can learn what a bank account is, how to deposit money, and use a coin machine. 
Teach them the importance of working for money.  
As a kid, when I was too young to work a job, my parents encouraged me and my siblings to do chores for cash. This made their lives easier and gave us the opportunity to understand the importance of trading certain working skills in exchange for money. Try organizing regular chores for your kids like vacuuming, cleaning, trash duty, car cleaning, yard work and others. It gives them the opportunity to collect cash for their own use and gives you a break from some of the common household chores.  
When they grow old enough to have their own job, they will understand that trading time for money is productive and beneficial.  
Teach them to build knowledge  
Encourage them to learn about important money principles when they can. Find ways to get them engaged with money challenges, apps and other games that they might enjoy. Share age-appropriate financial resources like activity books, videos, games and more. There are a lot of finance professionals who create kids and teen related courses that your kids may be interested in and enjoy using. 
Teach them the importance of giving 
When I was young, my parents used the envelope system to teach me about budgeting. They made it clear that you can only do three things with money – save it, spend it and give it. This taught me that when we give money, we can make a difference in other people’s lives. It’s important to learn to spend and save money wisely, but it’s just as important to give money. Teach your kids why it’s important to give so they learn they have the power to use their money to benefit others. It can instill virtues like gratitude and generosity.  
Teach them that personal finance is a journey that you’re also working on. 
Depending on how you manage your own finances, this may be one of the trickiest. A great way to help somebody learn is to show them real world examples as they live them. Whether you like it or not, your kids are watching how you handle money, and they learn from it. Lead by example as you navigate your own journey. If you’re paying off debt, show them what you’re doing. If you’re saving money for retirement, or something else explain to them why it’s important. They see and feel the benefits and consequences of the financial decisions you make so you may be one of the biggest financial influences in your kids’ lives until they reach adulthood.  
Make sure that you are practicing what you preach so your kids will have a clear example of what good money management is like. You know that personal finance is a lifelong journey, and you’re on your own just like everybody else. Your kids will be there one day too. As they watch you save, spend, get out of debt and give they’ll learn the value of discipline, patience, and perseverance for their own financial journeys. 
If you have any comments or ideas for additional tips, please email us at tcupodcast@TriangleCU.org. Be sure to follow the Making Money Personal podcast page on Facebook and IG for more great content. 
Thank you to our sponsor, Triangle Credit Union, and to you for tuning in!  
Have a great day everyone!