Ages 18-24

Credit Card Considerations

This is a great time to get your first credit card so you can start building your credit history. But before you sign that application, take time to research your card options and understand all the details.

Interest Rates: With credit cards, the lowest rate is the best rate. This will determine how much you pay each month in finance charges if you carry a balance. It's important to pay off your balance in full each month and to find the lowest rate possible.

Late Payment Penalties: If you miss your payment due date, you could end up with $35 late fee, even if your monthly payment is small. Missed payments also negatively impacts your credit score. 

Analyze Introductory Offers: You might find a credit card with ultra low or no interest for the first six months to one year, but after that the rates go up. Make sure you read the terms of the credit card to understand how the rate will change.

Annual Fees: If the credit card you're considering has a fee, find out why. It might offer exclusive benefits like store discounts or travel rewards. If those benefits don't appeal to you, pick a card with no annual fee.

Savings & Investing

As you build up your savings, you have more options to keep it growing: 

• Savings Account
• Money Market Account 
• Share Certificate 
• Mutual Fund
• Stock Market

Some options are riskier than others, some are more accessible and some might lead to higher returns. Before choosing, consider these factors:  

Liquidity: How easily can you access your money in the account? That's liquidity. Some investments require you to wait until a maturity date before you can withdraw cash, or pay a penalty for withdrawing your money early.

Safety: Your deposits in Securityplus accounts are insured up to $250,000 or more by the NCUA. If you invest in the stock market or buy mutual funds, there is no guarantee. 

Risk and Reward: Because there's no insurance, there's greater risk with mutual funds and stocks. If the stock price drops, you lose money. However, if the price rises, you may earn a much larger return than you would get with a savings account. 

Fees: Mutual funds typically have management fees. Also, stock market trading fees are assessed when stocks are bought or sold. These fees don't exist with Securityplus accounts.