| Why Checking and Savings Accounts Are Important | • | The Good and Bad of Credit Cards | • | Student Loan Basics |
| Financing Your First Car | • | Renters and Auto Insurance | • | Avoid Identity Theft |
Congratulations! Earning your own paychecks, paying for your own apartment, or moving into the dorm can be a fantastic time. Let's face it - you are on your own. Sure you have your support network, but as an adult, you know that it's time to take matters into your own hands. You'll make new friends, buy some cool stuff, and some not so cool stuff (school books are expensive, aren't they?), and probably open your first bank account.
You are at a critical time in your life, some of the financial decisions you make today can affect you for years to come. You may still have family advice to lean on, but isn't it better if you learn the basics on your own?
Why Checking and Savings Accounts Are Important
Getting out on your own usually means you are in dire need to save for a car, college or possibly even a house. The initial cost of starting off on your own can be expensive, with so many necessary major purchases. That is why Univest offers checking and savings accounts to help you achieve the goals you have set for yourself.
Building a good credit history by using a credit card is beneficial for your future, but it is also easy to fall into debt by overspending on credit. By using a checking account, you can learn to save and balance your money, never spending more than you intend. Some checking accounts also offer interest rates on the money you keep in the account. Compare checking accounts to see which one best suits your needs.
Keeping a savings account is important for when unexpected expenses arise. Plus, you can usually earn even more interest with a savings account. Some savings accounts reward you for the balances you maintain, meaning the more you save, the higher your interest rate. Check out all of Univest's savings options to choose an account that is right for you.
The Good and Bad of Credit Cards
Credit cards can be incredibly useful. You can buy something on credit and pay it back later. They are extremely convenient when you don't have enough cash on you, if you are paying for items online or if you want a hassle-free way to pay for travel expenses. They are also great for emergency situations and can be cancelled if stolen. Plus, building credt is important for making big purchases later in life. Just remember to spend only what you can pay off soon after, or you may find yourself heading down a path of debt.
Often, people who are not informed about acquiring bad credit can put themselves in danger. They often buy expensive items that they cannot afford, thinking they can pay it later with no consequences attached. What many young credit card users don't know is that interest is charged on balances not paid. Even if the card holder pays the minimum balance, interest is still charged on the remaining balance every month until it is paid off. Often, a person cannot afford to pay the constant fines and, as a result, finds himself with bad credit. When you have bad credit, it is difficult to qualify for loans for important purchases, like a house, because the bank sees the client has bad habits with making payments.
If you are responsible enough for a credit card, consider Univest's Visa® Platinum Rewards Credit Card. You can earn points towards merchandise, gifts, and airline miles.
Student Loan Basics
The thought of going to college can be nerve-wracking; you're meeting new people, adjusting to a new campus and attending classes that are tougher than you're used to. With so many worries, funding your education shouldn't be one of them. There is no doubt that college is a great investment and will repay itself with time, but not everyone is able to pay for it right away. Luckily, everyone has the chance to go to college with the use of student loans.
More people take out loans than one might expect; college tuition is becoming so high that even upper middle class families need some sort of financial aid. The amount of financial aid given depends largely on the family's need. Aid usually is granted by the federal government, the state government or the college or university. To determine how much and what kind of aid you are eligible to receive, a FAFSA (Free Application for Federal Student Aid) form must be completed and reviewed by both the government and the school you are attending. It will then be determined if you will be offered a grant, scholarship, loan and/or a work-study award.
After completing the FAFSA, you can apply for the Federal Stafford Loan, which is a long-term, low-interest loan made to enrolled students by a lending institution. These loans can be subsidized or unsubsidized, depending on your financial situation. If you are a parent seeking to pay for your child's education, you could apply for a Federal Plus Loan, which allows the parents to borrow up to the difference between the child's educational costs and other financial aid each year.
To learn more about student aid and other tips, visit Univest.net or speak with your guidance counselor and university.
Financing Your First Car
Whether you're in college or new to the workforce, you're really going somewhere. But to get there, you might need a car. Financing your first car can be a challenge, but with the right help, it is entirely possible.
When considering what car to purchase, there are many factors to take into consideration in order to determine what you can afford:
- How much will insurance cost?
- How much money are you willing to spend on gasoline each month?
- Is the car dependable?
- Will repairs be affordable?
- Are you willing to buy a used car?
- What features do you "have to have" and which ones can you do without?
- Have you shopped around to make sure you are getting the best deal?
- Do you want to buy or lease?
Buying a first car is an exciting experience that brings new personal freedom. Such a big purchase can be intimidating, but buying a car doesn't have to be a financial burden. With the proper financial planning, a first car can bring you the independence you've been craving.
When deciding to apply for an auto loan, Univest can help. Univest offers new and used financing options with competitive rates, flexible terms and fast approvals.
Renters and Auto Insurance
Renters Insurance
Whether you are renting a house or an apartment, it is important to know whether your insurance policy offers actual cash value or the replacement cost of personal property damaged by weather, fire, burglary and so on. Actual cash value will pay only what your belongings were worth at the time they were damaged or stolen. Replacement cost coverage will pay whatever it costs to replace your items, minus the deductible. Make sure you take an inventory of what is in your home so if anything happened you can more easily replace what you lost.
Auto Insurance
It's important to protect your investments should any accidents occur. You never know when you will have a car accident (whether it's your fault or not) or if a fire or theft will occur in your apartments. Accidents happen, but with the proper insurance, you don't have to suffer the full expenses for them.
When shopping for insurance, it's important to understand what coverage you will receive. For auto insurance, you should take into consideration:
- Liability Insurance – usually required by law. If you are at fault in an accident, liability covers you for bodily injury and property damage. It includes paying for medical bills and lost wages as well as damage done to the other car.
- Collision coverage – used to pay for the damage on your vehicle if you are at fault for the accident. Comprehensive coverage is used if your car needs repair from a non-vehicle incident, like from natural disaster or vandalism.
- Medical payment – pays for your and the passengers' medical bills after an accident, whether or not it was your fault.
- Uninsured motorist coverage – pays for damage from a hit and run or if you are in an accident with an uninsured driver.
For additional information, please visit www.univest.net or call 800.220.3077 for a FREE consultation.
Insurance products offered through Univest Insurance, Inc., a licensed insurance agency affiliate of Univest Corporation, are obligations of and underwritten by unaffiliated insurance companies. They are not insured by the FDIC or any other agency of the United States and are not deposits of or guaranteed by any bank. The purchase of insurance is not a condition of any banking product or service and will not affect credit decisions.
Avoid Identity Theft
Identity theft instances seem to be on the rise. Some people don't find out their identity has been stolen until they go to purchase a home or take out a loan. At that point, it could take months to clear your good name. What you distribute and store via your computer can give hackers easy access to your accounts and other personal information.
Here are some simple precautions to avoid identity theft:
- Enter personal information on secured websites only
- Log out of any secure websites and do not store your username and password on the site
- Make sure all files are deleted if selling or throwing away a computer
- Do not carry any personal papers (i.e. passport, birth certificate) with you unless absolute necessary
- Shred all account statements, credit card bills and loan documentation if they are no longer needed
Sometimes an identity thief can strike even if you've been very careful about keeping your personal information secure. If you suspect that your personal information has been misused to commit fraud or theft, take action immediately, and keep a detailed record of your conversations and correspondence. Visit www.univest.net for additional tips on how to keep your personal information private and what to do if you find that your identity has been stolen.
