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All About Money Q & As

What is money?

Money is the way we get things we need and want. Money is a payment for goods and services that we need and use in everyday life.

Currency (another word for money) varies around the world. Here are a few examples of what other countries call their currency:

What should I do with my money?

We encourage you to follow the three S's: Save, Share and Spend.

• Save money for something you need or want. Set a goal - a new bike, an i-pod, college tuition or a car and start saving today! Save your money at a credit union or bank and your money will earn interest. Keep making regular deposits and you're on your way to reaching your goals!
• Spend your money. Who doesn't like to do this? Set aside some of your money to spend after you put some into your savings at your credit union or bank. Stick to the amount you have to spend and remember to be a smart shopper!
• Share your money. Sharing money can include donating to a charity, buying mom a Mother's Day gift, or treating your brother or sister to an ice cream cone. Whatever you decide to do, it will make you feel good to share!

How should I save my money?

Banks and Credit Unions are a great place to save your money. They are safe and you have access to your money whenever you need it. Banks and Credit Unions also pay you interest for keeping your money there. This means that, over time, your money will grow and make more money. Keep making regular deposits and watch how quickly your money can grow!

What is interest?

• If you are borrowing money, interest is the fee paid to borrow that money.
• If you are saving money, interest is money that the bank or credit union gives to you for saving your money at their institution. The more you keep in your savings account, and the longer you leave it there, the more money the bank or credit union will pay you.

What is a need vs. a want?

• A NEED is something you cannot survive without -- it is something you need to live, such as food, clothing and a place to live..
• A WANT is something that might make your life a little easier (and more fun) but you can survive without. An example of this could be a television. A television is nice to have, but you don't need it. All kids that have gone a day without TV have survived!

What is a budget or spending plan?

• A budget is just your plan for your money - it's something you create to help you keep your money organized.
• A budget helps you keep track of the money you have coming in and going out and also helps to keep you in line with spending so that you're not spending more than what you have.

A budget is a great tool to help teach you to live within your means, set goals and make progress at reaching those goals.

What are goals and why do I need them?

There are 3 different types of goals.

• Short-term goals are smaller things that would not take very long to save up for such as saving to buy a new pair of shoes or saving up for a new doll..
• Medium-term goals take a little longer to save up for and require a little more planning; they are things such as planning a vacation or saving for a big purchase such as a TV or video game system..
• Long-term goals are ones you set far in advance (years and years...) and work towards little by little such as saving for your first car, college or buying a house.

Setting goals can help to better prepare you for financial up comings and make you more aware of the things you want in life and would like to accomplish and what it's going to take to get there.

What is the difference between a Bank and a Credit Union?

• A credit union is "not for profit" and owned by its members. Profits of a credit union are given back to its members by giving them good or competitive interest rates.
• A bank is a "for profit" corporation owned by its stockholders. The profits made are returned back to the stockholders.