News & Press: Credit Union News

Great River Federal Credit Union on Keeping Your Kids Out of Debt

Monday, September 19, 2016  
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St. Cloud Times (September 19, 2016) - In a recent article for Forbes, contributor Jennifer Calonia listed 10 money tips for millennials, the generation of young adults aged 18-35. In that piece, she outlined a report about their current debt and savings rate. On average, young adults carry $47,689 in debt – yet 41 percent of them report that their overall financial goal is to increase their savings.

The dance between debt reduction (or avoidance) and savings can be a tricky one, even for middle-aged (and older) adults. Debt isn’t always a bad thing, but it can quickly spiral out of control. What’s the best strategy for young people as they invest in education, enter the workforce, and build their adults lives?

The first – and most important step – is planning. Specifically: sound financial planning. Avoiding debt may be hard – perhaps even impossible – but lessening its impact and improving financial literacy can help a young person build a strong financial foundation for his or her future. The key is to be smart and proactive. It might be a cliché, but it’s true: “a dream without a plan is simply a wish.”

“Financial planning can begin with simply listing all your goals and how your finances can support those,” says Jessica Filiaggi, financial advisor with Great River Investment and Financial Services, a division within Great River Federal Credit Union of St. Cloud. “Everyone’s economic and life situation is unique. What does the next year look like? The next five years? The next ten? Do you want to buy a house? Take a vacation? Go to grad school? All those dreams impact your finances. And you need a plan to achieve those dreams,” Filiaggi said.

Great River Federal is a full-service credit union, offering all the services of a bank but with the benefits of a member-owned credit union. And, with four locations and more than 14,000 members, it’s been a trusted financial institution for more than 65 years.

Sitting down with an experienced financial professional to talk over goals and dreams can be a great complement to starting a new job. Young adults that already have one or two years in the workforce would also benefit from a financial check-up. A financial check-up is a service offered by Great River that’s an annual, overall strategic look at an individual’s economic picture, including debt and expenses. It can be a great way to stay in good financial shape.

Another pitfall? Emergencies. Young people may do well when saving for a vacation or car purchase, but can forget to plan for the unknown or may rely on parents to bail them out of a bind. But as their parents age, cash reserves tighten and young people need to financially plan for their own needs. Creating a savings fund, through a variety of financial products, can support them through unpredictable times – and teach a valuable lesson on the importance of financial planning.

You are eligible to join Great River Federal Credit Union if you live, work, worship, or attend school in Benton, Sherburne, or Stearns County. A $5 deposit gets you started as a credit union member (that’s the same as being an owner!). Stop in at any of our four convenient locations and speak to a member service representative to start your owning your financial future today. 

Securities and Investment Advisory services are offered through Cetera Advisor Networks LLC, member FINRA & SIPC. GRFIS and GRFCU and GRFCU are not affiliated with Cetera Advisor Networks LLC.

Not NCUA Insured. May Lose Value. Not a Credit Union. Not a Deposit. Not Insured by any Federal Agency.

This story provided and presented by our sponsor Great River Federal Credit Union.

Minnesota Credit Union Network
555 Wabasha Street N, Suite 200
St. Paul, MN 55102

(651) 288-5170
(800) 477-1034