The Bottom Line
Small business is important to Central Oregon, and to Mid Oregon. Find tips and resources for business, and information about Mid Oregon’s commercial services and business members.
Millennials: Rethink Credit vs. Debit
Millennials: Rethink Credit vs. Debit
There is a generational divide when it comes to shopping: A CreditCards.com survey indicates that boomers and millennials both choose plastic, but for the older cohort the word is “credit,” and for the younger it is “debit.” Do millennials need to rethink credit vs. debit?
Both systems work well but boomers might point out to their juniors that using debit to the exclusion of credit has its handicaps. Millennials prefer debit over credit by a ratio of nearly 3 to 1, according to the survey, even though debit cards offer fewer protections and rewards and don’t help young people build credit.
Matt Schulz, senior industry analyst at CreditCards.com, suggests that psychology may be a factor in the decision; consumers may be trying to limit spending to the money they have by using a debit card, which pulls money directly from a checking account. But if a scammer gets hold of a debit card, the consumer could be liable for unauthorized charges of $500 or more. Credit card holders are only responsible for up to $50, and can report a bogus purchase as fraud.
“If your debit card information gets stolen, somebody can take real money out of your account that you won’t be able to use to make a car payment or pay a doctor’s bill,” Schulz says. “That money may be gone for a week or two.”
Credit Union National Association Center for Personal Finance editors point out that, by choosing “debit” and entering a personal identification number, your transaction is treated as an ATM transaction. The editors advise, “Instead, when you’re making retail purchases with your debit/ATM card, choose “credit.” You’ll bypass any potential fees—and the funds still come out of your share draft/checking account.” Another good reason: Credit transactions require a signature, which helps guard against fraud.
If you have questions about our credit or debit cards, give us a call at (541) 382-1795 or visit our website at www.midoregon.com.
Bill Anderson Celebrates 25th Anniversary
Bill Anderson Celebrates 25th Anniversary as Mid Oregon Credit Union President
William R. Anderson celebrates 25 years of dedication and service as President and CEO of Mid Oregon Credit Union. When he came to the Credit Union in 1990, there were 10 employees, 5,975 members, one Bend location, and $19 million in assets. Currently Mid Oregon exceeds $200 million in assets, they have six branches, nearly 25,000 members, and 75 employees. Mr. Anderson’s devotion to credit union ideals, his identity with the principles on which credit unions are built upon, and his strong core values contributed to the stability in growth and success that Mid Oregon Credit Union enjoys today.
Commitment to Central Oregon
“We pride ourselves on the fact that our impactful community service is second to none”, remarked Bill. “As the region prospered, so did the Credit Union. When the region suffered, so did the Credit Union. I am proud of how we weathered the recession and the position the Credit Union is in to succeed going forward. What has stayed the same is the focus on Central Oregon and how best to serve our growing membership and communities.”
Serving Central Oregonians Since 1957
“As a cooperative, there is no organization more “local” that Mid Oregon Credit Union”, continued Bill. “In 1957 it was created by a small group of educators in Prineville and is literally owned by its 25,000 members, the vast majority of which live and work in Central Oregon. The credit union exists solely for the purpose of serving its members. While it must generate positive earnings, the bottom line is not financial, it is value. Mid Oregon exists to help members meet their needs and achieve their dreams.”
Pros and Cons of College Payment Strategies- Part 2
What Are Your College Payment Strategies?
Are you or a family member on the cusp of making college attendance decisions? Or have you already decided? So, how will college expenses, tuition, room and board, books and incidentals, living expenses, how will they be paid? What college payment strategies do you have today?
In Central Oregon we have great options where students can live at home while they attend COCC or OSU Cascades. That can save a significant amount of money. But that still leaves many school costs to be funded.
This is the second in a series of articles designed to help students and their parents make the best choices on how to pay for college. Read the first in the series, Pros and Cons of College-Payment Strategies- Part 1.
Custodial accounts
Pros: You manage the account until the child reaches 18 or 21, depending on your state. After that your adult child owns the account (this could be a con).
There are no limits on how the money can be used. There’s no limit on how much a parent can put into a custodial account.
Full-time students younger than age 24 pay no tax on the first $950 of unearned income and pay the child’s rate on the next $950. Earnings above $1,900 are taxed at the parents’ marginal rate. Investment choices aren’t restricted.
Cons: If your contributions surpass $13,000 a year you’ll have to pay a gift tax. Large balances in a custodial account can hurt chances for financial aid.
Private scholarships
Pros: The money is free and many scholarships are awarded to students based on need or special interests.
Cons: Schools might reduce aid if scholarships and aid combined are more than a student’s calculated need.
With soaring tuition costs, borrowing is often necessary even after accounting for savings and scholarship money. Investigate government-sponsored loans, federal work-study programs, state programs, and institutional aid with the Free Application for Federal Student Aid (FAFSA) form.
Consider federal PLUS loans. Private student loans come into play after all other resources are exhausted.
Basic Savings Accounts
Children with savings accounts have improved early childhood development and future financial capability. Adults who had savings as children have improved financial literacy, a greater diversification of savings, and a higher level of savings overall.
Pros: Easy to set up, flexible deposit options and great at instilling lifelong savings habits for children.
Cons: Can be easily accessed and used for other things,and building significant amounts takes time, patience and contributions.
According to CFED, children with college savings have greater college expectations and do better academically. Even though it’s never to late to start, having that savings build over time, with regular deposits, can provide a source of funds for school but more importantly can better position your child for success!
Whether college expenses are in the distant future or weighing you down today, the professionals at Mid Oregon Credit Union can help you figure out the best savings strategy to avoid negative tax consequences and the best loan options when all other sources are exhausted.