Ohio Operating Engineers FCU Winter 2018-1 Edition
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Understanding The Value of Saving Money

If you're like most kids, your parents have probably talked with you about the importance of saving money. Learning why and how to save with your [CREDIT UNION NAME] Share Account will come in handy, and is actually pretty simple. Saving means value - value in your money, value in your future, and value in yourself. These smart tips will help you remember the "VALUE" of saving!

  1. Various accounts are available at [CREDIT UNION NAME] to help you save:
    • A basic Share Savings Account to help you earn interest; lets you access your money at any time
    • A Coverdell Education Savings Account to help with saving for college
    • A Share Certificate (or CD) with a better interest rate on money you put away for a while
  2. Always pay yourself first. As soon as you earn money, tuck some away in your savings account.
  3. Limit yourself to one splurge per week. It's important to reward yourself for earning money and being a responsible saver but you don't want to overdo it!
  4. Understand your spending habits by keeping a savings journal. Write down how much you spent, what you spent it on, and how much you saved.
  5. Earn more by saving more at [CREDIT UNION NAME]. You'll earn interest on your money plus gain confidence as you learn more about the value of saving.


The Magic Of Dividends

If you have ever been to a magic show, you may have seen a magician make coins appear from behind an ear. But did you know that saving money in your credit union share account can also make money appear? When you save money in your share account, it grows. You earn interest on it. And then you start earning interest on both the money you save and the interest. This is called compounding.

It's what makes saving so worthwhile. Interest is paid to you as a dividend. You can see how much you are earning by looking at your statement from the credit union.

To find out how many years it takes to double your money, remember the rule of 72. Divide 72 by the interest rate you are earning. This tells you the number of years it will take to have twice as much money. It's the magic of dividends!


Credit Union Kids Club is Brought to You By
Ohio Operating Engineers FCU
3515 Prospect Avenue, Room 200
Cleveland, OH 44115
216-432-0300
800-462-0549
http://www.ooefcu.org/


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