Your guide to a successful fi nancial path

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A message from Mountain America Credit Union

As a credit union, we recognize the positive impact financial education

has in the community. From balancing a budget to buying a home, funding education and planning for retirement — we all need the skills and knowledge to make effective and informed financial decisions.

This is why Mountain America exists. Our mission is to guide others forward in achieving their financial dreams. Our Financial Success Series provides the community with access to free financial education. Each year, we offer financial education resources

along with a variety of training programs and content to thousands of students, adults and families throughout five western states.

We are here to support you in your journey. We trust the information contained in this guide will increase your financial knowledge and help you work toward achieving your financial dreams.

Best regards,

Sterling Nielsen President & CEO

You’re going on a road trip and have $50 to spend. What do you need to buy? What do you already have? What could you borrow?

Travel bag

$40Water bottle

$10Hat

$15

Snacks

$5Earbuds

$15Game download

$5Sunglasses

$15

4

5

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3 Responsible use of credit cards

Pay your mortgage faster

Tackle the debt snowball

Rethink retirement

Strategically improve your credit score

Creative ways to save for a down payment

Money-related teaching moments

TABLE OF CONTENTS

Deseret News 3

Responsible use of credit cardsBY NATHAN ANDERSONMOUNTAIN AMERICA CREDIT UNION

While credit cards are often associated with overspending, when used responsibly, they can be a great way to boost your credit and earn rewards.

Stay on budget — think debit, use credit

Think of your credit card as a debit card. Rather than spending based on your credit card limit, spend only what you have in your checking account and according to your budget. If you are concerned about overspending, start by using your credit card for one item (i.e. gas or groceries) until you are confident this approach will work for you.

Control spending by paying off your credit card more frequently — bi-weekly, weekly or even daily. Seeing money leave your checking account frequently can give you the sense of paying for things with cash and help you not overspend.

Build credit Paying on time and

keeping your credit card balance at less than 30 percent of your limit can help boost your credit score (for a $10,000 line of credit, keep the balance under $3,000).

When it’s time to buy a house or car, or if you want

to apply for another kind of loan, you’ll need a good credit score. When you pay your credit card balances consistently each month, this tells the lender you are trustworthy with finances. Payment history* (35 percent)+ Amount owed (30 percent)

= 65 percent of your credit score

*How long you’ve made payments and how often they’ve been on time.

Earn rewardsMost financial institutions

don’t offer traditional rewards with debit cards. Using a credit card responsibly for everyday purchases can generate “earned money.” Look for a credit card that offers points or cash bonuses for travel and experiences or one that gives you built-in discounts on things you already buy.

Nathan Anderson is the Executive Vice President and Chief Operating Officer at Mountain America Credit Union.

Did you know?

Mobile card manager allows you to:

Temporarily disable lost cards

Set travel notifications

Change your PIN

Request a new card

Activate a new or replacement card

Would you rather...Buy something expensive on credit and

take 8 months to pay it off?Save the money and buy the item with your debit card?

Save for the item first. You won’t pay any interest.

Pay your credit card off each week? Make larger payments to your credit card each month?

Pay each week. It will be easier to cover the balance and avoid interest.

Max out and take your card to the limit while buying cool stuff?

Use your card on things you need while keeping a low balance?

Use it on needs. By keeping your balance at or below 30 percent of the limit, you will increase your credit score.

Have many credit cards? A couple that you use regularly?

A couple cards is better. With responsible use, you’ll have a better chance to build credit.

Check your credit card balance often? Check your balance every three months?

Check your balance often. You’ll know where your money is going and be better able to catch fraudulent charges quickly.

4

5 tips to pay off your mortgage faster

There’s nothing quite like the feeling of buying your own home. You finally have your own space, and your money is going toward

something that one day will be yours … and will most likely appreciate in

value over the years!

BY MIKE TURNERMOUNTAIN AMERICA CREDIT UNION

Owning your own home outright is part of the American

dream — but it doesn't happen overnight. Research shows 80–90 percent of homebuyers choose a 30-year mortgage; a long stretch of time,

during which a sizable amount of interest accumulates. The good news is you can pay it down faster, build equity and minimize interest on your loan.

Start by using a mortgage calculator to determine how much you owe and how much interest you'll pay. Then, follow these quick tips:

Make an extra payment every year, or each quarter

An extra payment every year can reduce your mortgage plan by 4 or 5 years. If you are ambitious, make an extra payment every 4 months and shave 10 or more

years off your mortgage. Keep the payments in a savings account, so you won't be tempted to spend it elsewhere. Before you do this, check with your mortgage company. Some allow additional payments only at certain times and some mortgages may include pre-payment penalties.

Refinance to a shorter mortgage

Shortening the term could help you save 5 or more years of mortgage payments and tens of thousands of dollars. Plan ahead by saving for a few years or waiting for a raise before taking on these higher payments. One rule to refinancing, unless the new interest rate is lower than the old rate, it probably isn’t beneficial.

Find extra money in your home

Decluttering could increase space and decrease your mortgage in a matter of days. Look in your garage, closet and kitchen for unused items to sell online or in a garage sale. Make it a friendly competition between

family members to see who can sell the most. Use the profits to make an extra payment, and repeat as needed.

Round up Up your monthly payment

by one-twelfth. This small increase means you’ll make one extra payment each year and save tens of thousands in interest. Or, round each payment to a whole number. For example, a $1,738.81 monthly payment becomes $1,750 or even $2,000 — depending on your budget.

Put any unplanned income into your home

Finally, contribute additional or unexpected income to your mortgage. While it may be tempting to take that bonus check or holiday money to the mall or try a new restaurant downtown, a few extra deposits can really make a difference on your mortgage — no matter how big or small. Just don't put so much toward home payments that you can't meet other monthly expenses.

Mike Turner is the Senior Vice President of Lending at Mountain America Credit Union.

Deseret News 5

BY TONY RASMUSSENMOUNTAIN AMERICA CREDIT UNION

Feeling “snowed in” by too much debt? Regardless of the season, a heavy debt burden

can seem like climbing a steep, snowy mountain while worrying that an avalanche might bury you at any moment. Take a moment to answer these questions:

Does it feel like all my money is going

toward payments? Am I only making minimum

payments and are my credit card balances increasing?

Have I recently been denied a loan or new credit card?

Do I have little to no savings or is my savings balance going down?

Am I late or frequently making payments on the due date?

Do I constantly feel worried or stressed about money?

If you answered yes to one or more of these questions, it may be time to make some financial adjustments. Rather than being a financial avalanche victim,

the following five steps can help you “snowball” out of debt:1. Dare to make a change and create a debt

pay-off plan. Start by listing all of your debts — total amounts owed, monthly payments and interest rates.

2. Eliminate one debt at a time while making the minimum payment on the others. Start by tackling the debt with the highest interest rate or the smallest balance. The first approach will save you money in the long run; the latter may give you greater momentum to keep going.

3. Find a way to pay more than the minimum balance. Increase the amount you’re paying on your target debt. Say no to frivolous spending, bring your lunch to work and eat out less, cancel unneeded subscription services, sell unwanted or unused household items and put raise or bonus money toward your debt. Finally, consider a second job or add income through tutoring or driving for a rideshare service.

4. Once the first debt is paid, add that payment amount to the next debt listed. When the second debt is eliminated, add the amounts you were paying on debts one and two to the payment of

debt three — and so on. Over time, your snowball will get bigger and you’ll see progress as you combine amounts to pay off all your debt.

5. Reward yourself. You’re unlikely to pay your debts faster if you view this commitment negatively. Give yourself a reasonable reward, something small and meaningful, as each debt is paid off. This will keep you motivated for long-term change and continued success.

A significant debt payoff can bring a host of mental and emotional benefits. It will restore self-esteem and instill a sense of confidence that can keep you stable through every financial season.

Tony Rasmussen is the Vice President of Financial Education at Mountain America Credit Union.

Tackle the debt snowball

6

Rethink retirement: Life after a careerBY CHAD WADDOUPS LPL FINANCIAL AT MOUNTAIN AMERICA CREDIT UNION

The retirement landscape has changed over the years. While past

generations could rely on their employers and the government to provide financial security, it’s now up to the individual to create a

retirement plan. Whether you’re 21 or 51, creating a retirement plan and reviewing it often will improve your ability to retire on time while getting the most out of your returns.

3 tips to prep for retirement 1. Plan your strategy —

Write down what you want

retirement to look like. Will you own your house? Do you want to travel? Decide at what age you’d like to retire and estimate how much money you’ll need to

live comfortably. Evaluate these details to help you pursue your goal.

2. Plan for emergencies — We all know life takes unexpected turns. A three- to six-month

emergency fund can help cover these challenges without tapping into your retirement savings.

3. Plan your budget — As you near retirement, take a look at your fixed expenses and create your post-working budget. Determine if you are on track or need to do some tweaking.

Financial planners can help evaluate the performance of your investments based on market history and other economic factors. Include life insurance and estate planning in your retirement plan. Making these decisions now will spare your family members from having to make them without your input. Meet with your financial planner each year to make needed adjustments. Before you know it, you’ll be retirement ready!

Retirement strategiesWhich investment scenario will provide the most money for your retirement?

Scenario 1: You invest $5,000 a year from age 25 to 35 and then stop investing. You invest a total of $55,000.

Scenario 2: You invest $5,000 a year from age 35 to 60. You invest a total of $130,000.

Thanks to compound interest, if you invest just $55,000 between the ages of 25 and 35, you will end up with $615,580 for retirement, compared to $431,754 if you start saving at 35.

Remember: When it comes to compound interest, time is more important than the amount you invest. Start saving as early as you can to improve the chance of retiring comfortably.

Source: darwinsfinance.com

Decode the message: $%^@ &*# =* @%!& ?*!@ Answers: 1. Compounding 2. sooner, will 3. Investing 4. plan,

Message: Save now to earn more!

Decode the words to get the final message. (Hint: The alphabet has 26 letters.)

* ? &

3 15 13 16 15 21 14 4 9 14 7

1. _____________________ means earning interest from the money saved and on the interest that money earns.

$ @ !

19 15 15 14 5 18

#

23 9 12 12

2. The _______________ you invest, the more money you _______________ earn over time.

%

16 12 1 14

^ =

9 14 22 5 19 20 9 14 7

4. It’s never too early to start a savings ___________ .

3. _______________ smaller amounts of money now, verses bigger amounts later, results in more money.

Investment Mode DecoderWhen you are young, retirement seems far away. However, if you start saving early, you’ll need to save less while acquiring more money for retirement.

Deseret News 7

Question: How much money will I need for retirement?

Answer: This equation helps you estimate the amount:

Annual income before retirement

Annual retirement income*

Number of years you expect to live in retirement

_________

Target retirement amount*Include Social Security income, pensions, trust accounts, etc. Use the retirement estimator at ssa.gov to find out approximately how much Social Security income you’ll receive.

Potential short-term investmentsBY CHAD WADDOUPS LPL FINANCIAL AT MOUNTAIN AMERICA CREDIT UNION

If you’re looking for a way to save and earn interest, short-term investments can be a way

to go. The shorter term and low minimum investment — sometimes as little as $25 — can provide great flexibility.

Here are a few optionsTerm deposits — A term

deposit, sometimes referred to as a certificate of deposit (CD), is an account at a

financial institution that offers a fixed term, usually 6 months to 5 years. Term deposits are insured by either the NCUA or FDIC and have a

guaranteed rate of return. A traditional term deposit requires you invest

a lump sum at the beginning of the term. When it reaches maturity, you receive your investment plus a guaranteed return. Some financial institutions offer special term deposits that allow you to add money throughout the term.

Government bond — I-bonds are interest-bearing savings bonds purchased from the U.S. Treasury department. This secure investment is guaranteed to grow at least as fast as the inflation rate. U.S. residents can buy up to $10,000 worth of I-bonds each year with the option to buy an additional $5,000 in I-bonds with your tax return.

Laddering your short-term investments — Laddering” is when you have multiple

investments with varied maturity dates — typically 1, 2, 3, 4 and 5 years. When the 1-year investment matures, flip it over into a new 5-year investment or account. This creates a train of investments that mature once per year, giving you access to a portion of your money, if needed, while still earning good dividends.

However you decide to invest your money, be sure to vet each fund, loan and financial institution.

This is a hypothetical example and is not representative of any specific investment. Your results may vary. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Mountain America Credit Union and LPL Financial at Mountain America are not registered broker/deals and are not affiliated with LPL Financial.

Not NCUA Insured May Lose Value

Not Credit Union Guaranteed

Does more money give you a better return?Tyler and Jordan both want to save money over the next 3 years. How will they do it?

Higher interest rates earn you more money. Jordan put more money in her account than Tyler did each month. However, if Jordan got the same interest rate as Tyler, in three years she would have earned $50.95 in interest instead of $1.76. Would you want Jordan’s interest rate or Tyler’s?

Tyler starts with $200. He puts the money in a 3-year youth term deposit at 2.81 percent.

He mows lawns and shovels snow during the year, adding $10 per month to the term deposit.

Tyler ends with $592.72 with $32.72 in interest.

Jordan starts with $235.

She babysits often and gets a summer job at a snow cone shack, adding $20 per month in a 0.10 percent yield savings account.

At the end of three years, Jordan has $956.76, which includes $1.76 from interest.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.

8

Strategically improve your credit scoreBY SHARON COOK MOUNTAIN AMERICA CREDIT UNION

Credit scores provide creditors with important information regarding a person’s

ability to make payments and pay bills. Understanding what goes into a credit score and how it’s affected by different actions can help guide your

financial strategy. Follow these steps to improve

your credit score: Monitor your credit score —

Check your credit score regularly to gain a better understanding of your creditworthiness. View your credit report once per year at annualcreditreport.com. Many financial institutions also offer the ability to check your FICO® Score* anytime on their mobile banking app. Review your credit report thoroughly to ensure that it is free from errors or fraud.

Pay on time, every time — Payment history has the greatest effect on your score; it accounts for 35 percent of your FICO® Score calculation. A history of late or missing payments gives your credit card company a reason to refuse to raise your limit or offer you a better card. Set up automated payments to ensure that you make

your payments on time. Use your credit, but don’t

max it out — When lenders evaluate whether to approve you for a loan or credit card, they typically look at your utilization rate. This is the percentage of credit available compared to your total limit. For example, 30 percent credit utilization on

$10,000 is $3,000. Going above a 30 percent utilization rate can have a negative impact on your credit. Charge a few things each month that you can easily pay off in full by the due date. This will help keep your credit score high.

Avoid opening or closing new accounts — Only apply for new credit card accounts as needed. A hard inquiry by a lender or credit card issuer will affect your credit for a year, and multiple inquiries in a short time could flag you as a credit risk. Keep existing accounts open, as credit length has a positive impact on your score.

Minimize existing debt — Instead of only moving debt from one card to another, or from one loan to another, focus on paying debt down.

A higher credit score will save you money through lower interest rates on loans and a stronger borrowing capacity.

Sharon Cook is the Senior Vice President of Marketing/Public Relations/Financial Education at Mountain America Credit Union.

30%Accounts Owned

10%New Credit

10%Credit Mix

15%Length of

Credit History

35%Payment History

Source: myFICO.com

Life is full of choices!Draw a line from the item to the picture that matches them. Here’s the catch, you can only choose 6. Choose the 6 that are most important for your future. Talk to your parents about what you chose and why.

A high-paying

jobA job I love Dual-income

household Nice car Reliable car Big houseApartment

with no yard

Suitable house

Exercise to stay healthy Older phone Latest new

phone

*FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.

Deseret News 9

Mountain America Credit Union supports educationMountain America Credit Union

is honored to fulfill the credit union philosophy of “people helping people” by investing in future generations. Providing educational opportunities promotes economic growth and strong communities.

Student matinee programHale Centre Theatre at the

Mountain America Performing Arts Centre in Sandy is a fabulous venue to enjoy the arts. This past spring, over 7,800 high school students were able to attend a free production of Tuck Everlasting or The Hunchback of Notre Dame. By providing students with this creative outlet, the program further elevates the many benefits of arts education and increases the likelihood for academic success.

Keys to Success and scholarships

Mountain America is a proud sponsor of Keys to Success, a program of the Success in Education Foundation, developed to motivate students through the establishment of goal-setting habits. Two scholarships are awarded each school year as part of this program. In addition, the credit union offers academic scholarships for Mountain America members who are also Megaplex Theater employees, Westminster College students or for Utah Public Employees Association (UPEA) employees and families. For a complete list of scholarships, visit macu.com/scholarships.

National PTA®Mountain America supports local

schools through the PTA Grant program. This past school year, the PTA Grant program provided funding for items such as wobble chairs, ukuleles, science fairs and book corners for schools in Utah and New Mexico. Visit macu.com/PTA for more information.

Timmy Keopraseuth (Granger High School)2017–2018 Keys to Success scholarship recipient

Jacklyn Sullivan (Oxford University) 2018 Mountain America general academics scholarship recipient

Windridge Elementary2017 PTA Grant recipient

Alyssa Baer (Brigham Young University)2018 Mountain America community and social service scholarship recipient

Grace Osusky (University of Utah)2018 Mountain America business and communication scholarship recipient

Rachel Macdonald (Skyridge High School)2017–2018 Keys to Success scholarship recipient

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5 creative ways to save for a down payment BY AMY MOSERMOUNTAIN AMERICA CREDIT UNION

Saving for a home is no easy task. The good news? There are several ways to make your

dollars add up more quickly. Use an online down payment calculator to estimate how much you will need, then follow these tips to save:

1. Turn talents into side hustles

Photographers and musicians can share their work on websites that pay them for each download. Writers and designers can freelance for marketing companies, news services or blogs. If you like to drive, consider working for a ridesharing or food delivery company. If playing sports is your passion, find a weekend coaching job. Visit sites like TaskRabbit and SlapUp to find local people who want to hire help for home improvement projects, baking and more.

2. Reduce household expenses In the age of Netflix® and Hulu®, cable is no

longer a necessity. To maximize your savings, eliminate cable, internet and cell phone services you don’t need. Consider cutting memberships and subscriptions (gym, beauty, meal delivery, etc.), and research ways to lower your utility bills.

3. Ask Uncle Sam The government has programs to assist

homebuyers who are law enforcement officers, teachers, firefighters, first-time homebuyers, veterans and more. Find out more about the programs and grants offered by these agencies:

The National Council of State Housing Agencies (NCSHA)

Housing and Urban Development (HUD) Federal Housing Administration (FHA)

4. Eat and drink at home Eating out and drink runs add up quickly.

The average American spends $3,884 a year at coffee shops and restaurants. In one year, you could set aside $3,650 by saving $10 a day instead of dining out.

5. Get time (and interest) on your sideUse secure, short-term investments such as

term deposits to boost your down payment savings. Financial institutions usually offer terms from 6 months to 5 years, and some offer term deposits that allow you to add money throughout the term.

Set yourself up for success by opening a savings account named “down payment.” Naming your account will help you track your goal, stay motivated and reduce impulsive spending.

Amy Moser is the Vice President of Mortgage Services at Mountain America Credit Union.

Reduce your monthly expensesSave over $5,600 in one year:

Get rid of

cable TV $1,236

Total savings: $5,606

Cancel your gym membership/ personal trainer

$720

Limit coffee shop trips and eating out

$3,650

How much housecan you afford?

Generally, your monthly mortgage payment (including property taxes and homeowners insurance) should not exceed 28 percent of your monthly income. Consider all of your financial obligations when deciding what you can afford to spend:

Child support

Car payments

Insurance premiums

Retirement contributions

Savings plans

Credit card payments

Student loans and other debt

Don’t forget to determine how the new home will affect your monthly expenses. The age and size of your home will affect the cost of maintenance, repairs and utilities. Make sure to budget for emergencies and any new monthly costs, such as HOA fees.

Tip: Plan for unexpected home repairs

Owning a home is expensive, and most repairs are not covered by insurance or home warranties. Set aside funds in a savings account named “home repairs” to avoid using a credit card or dipping into other savings when the water heater stops working.

Deseret News 11

8 money-related teaching moments BY KIMBERLY BOETTCHERMOUNTAIN AMERICA CREDIT UNION

Kids are perceptive — some of the most powerful things they learn come from the words and

actions observed in everyday life. Here’s how some everyday moments can become valuable financial teaching opportunities.1. Careers

“I’m not good at anything.”

Talk to your child about areas in which they excel. Are they good at art? Do they participate in STEM activities? Are they a good friend, great at organization, a hard worker? Find opportunities to encourage their abilities to help them identify career opportunities. 2. Family life “Why does Emily have to go to the babysitter after school?”

Take this opportunity to talk about family choices. Discuss why your family has made the choices they have with marriage, children and work. Describe the financial implications of those decisions. 3. Homeownership“I hate that I always have to mow the lawn.”

Talk to your child about how having a private back yard and lawn to play on is a benefit. Mention how other families choose to live in an apartment or townhome where a landscaper maintains the yard but the area is shared with neighbors.

4. Auto buying“Your car always breaks down. Just get a new one.”

Don’t let your emotions get the best of you here. Talk about how buying used cars may require more maintenance but have less initial expense. Share why saving up to buy an affordable vehicle is a benefit. 5. Health and wellness“Why do you get up early to exercise?”

As parents, we can sometimes forget to emphasize the benefits of living a healthy lifestyle. Taking care of your body is likely to help you avoid expensive health problems in the future. Teach children about the unseen costs of healthcare, such as deductibles, co-payments and payroll deduction.

6. Utilities, internet and cell phones “Why won’t you let me use cell phone data?”

Children need to understand the costs and options of running a household. Do you have cable or use streaming services? What about cell phone data — is it unlimited or by gigabyte? What is your strategy to keep track of electricity, heat and air conditioning costs? 7. Entertainment and dining out“I love eating at this restaurant! Why can’t we eat here all the time?”

When appropriate, let your kids get involved in planning nights out, vacations and other family events. Help them understand the expenses involved with travel, eating at a fast-food restaurant versus a sit-down restaurant and

various kinds of entertainment. This will help them learn why these activities are special occasions.8. Budgeting and saving “I want an iPad; all of my friends have one.”

This is a great time to discuss opportunity cost — giving up something now, so we can have something better later.

Parents and caregivers have such a profound effect on children. Don’t wait until they earn their first paycheck to teach them money management. If you do, you’ll miss out on these moments to help them learn key principles that will serve them well for their entire lives.

Kimberly Boettcher is the Financial Education Manager at Mountain America Credit Union.