Checkpoint Magazine - Summer 2020

Summer Savings I N

Letter from the President

What’s a Sinking Fund?

T H I S

I S S U E

Gorgeous Getaways in South Carolina

Are You Ready to Buy a Boat?

contact LOCATIONS Columbia

1025 Pulaski Street Columbia, SC 29201

Corporate Office & Support Center

420 E. Park Avenue, Ste. 100 Greenville, SC 29601

Easley

118 Brushy Creek Road Easley, SC 29642

Five Forks

117 Batesville Road, Ste. 200 Simpsonville, SC 29681

Member Service Center

Greenville: 864.232.5553 Nationwide: 800.922.0446

Mills Avenue

300 Mills Avenue Greenville, SC 29605

Spartanburg

130 North Town Drive Spartanburg, SC 29303

Taylors

3237 Wade Hampton Boulevard Taylors, SC 29687

Verdae

601 Verdae Boulevard Greenville, SC 29607

24/7/365 SERVICE MONEYLINKSM Online at sctelco.com

MONEYLINKSM Audio Response

Greenville: 864.232.3645 Nationwide: 800.633.4364 Visit our website sctelco.com to locate an ATM near you!

FIND US ONLINE SCTelcoFCU @SCTelco_FCU @sctelcofcu sctelco.com

IN THE ISSUE: 3

4

Events & Community

5

In the Spotlight

6 10 11 12

Q3

Letter from the President

WHAT’S A SINKING FUND?

What We Read: EMOTIONAL INTELLIGENCE 2.0

Money Matters with Moxie: SAVING FOR SCHOOL WITH A SINKING FUND

Lifestyle: GORGEOUS GETAWAYS IN SOUTH CAROLINA

14

Boat Basics: Are You Ready to Buy a Boat?

16

Financial Literacy for Kids

Insured by NCUA SC Telco is a proud member of the Credit Union Service Center Network. co-opcreditunions.org SM

Copyright ©2020 by SC Telco Federal Credit Union and The Brand Leader. All foreign and U.S. rights reserved.

Contents of this publication, including images, may not be reproduced without written consent from the publisher.

Published for SC Telco Federal Credit Union by The Brand Leader.

SM

1

Kasasa Cash®

Auto Loan

It’s the perfect time to go for a drive.

Get the funding you need to travel in style.

Plus, enjoy 60 days of no interest and 90 days of no payments with SC Telco’s 60/90 Auto Loan special.* A new set of wheels, your best friend, the open road, and incredible loan terms — now that’s a trip worth taking!

Apply today!

In nature, growth is a sign of health.

The same is true for your finances.

Grow your money with Kasasa Cash! ®

Open a FREE Kasasa Cash® checking account and watch your money blossom by earning rewards.

Plus, link the account to a Kasasa Saver® to watch your money grow even more!

Open your account today! *Membership required. Subject to credit approval. Must meet minimum credit and collateral criteria to qualify. Actual term of loan begins no sooner than 60 days after the loan origination, and payment is based on actual term. Existing Credit Union auto loans are not eligible for refinancing with this offer. Program, rates, terms, and conditions are subject to change without notice.

*Membership required. Additional terms apply. Kasasa Cash and Kasasa Saver are trademarks of Kasasa, Ltd., registered in the U.S.A.

Dear Members,

I

am so excited to welcome this new season — both figuratively and literally. As a community, we are transitioning out of a season that was

anything but normal into a new season; where the summer heat has brought a new wave of energy (or should I say, hope) that’s helping us move forward together.

LETTER FROM THE PRESIDENT

We realize that for many of our members, the impacts of COVID-19 are not yet passed. There are many still struggling to make ends meet, to keep employees working, or to recover, physically or financially. Please remember that we are here for you. To date, we’ve helped over 600 members through Emergency Assistance Loans and Skip-A-Pays. As your trusted financial partner, if we can help you in any way, please reach out.

Speaking of a new season, it’s officially a summer party at our newly opened Five Forks branch. The branch is unlike any other, with a blend of new technology and an enhanced member experience, underscoring our commitment to unmatched, personal service each time you visit an SC Telco location. I invite you to join the party on Thursday, August 27 from 5 p.m. to 7 p.m. for our Grand Opening celebration. And if you get the chance to stop by before then, you are more than welcome! There’s no doubt that Five Forks is a wonderful neighborhood to settle our new roots, and we are excited to become part of the community. Get to know our new community a bit more by flipping to page 5.

I encourage you to explore this new edition of Checkpoint to the fullest, as we’ve focused the topics on things that make summers in South Carolina

Brian McKay PRESIDENT

the best around! Get a deeper understanding of a great savings tool called a sinking fund — perfect for saving for your summer adventures. And on that note, flip to page 12 to discover four summer getaways in our state.

Or, if you prefer to spend long sunny days on the water, check out page 14 for tips on purchasing a boat. And finally, with the kids home all summer, it’s the perfect time to sharpen their financial literacy skills. Page 16 has all the details.

On behalf of the entire SC Telco team, I wish you and your family a wonderful and safe summer season. I encourage you to enjoy the moments in life that truly matter, soak up the summer fun, and find gratitude in the little things of life. If we can serve you in any way, please let us know. ® Sincerely,

3

EVENTS & COM M UN I T Y

SC Telco Celebrates Kindness Did you notice anything different in our branches recently? If you happened to run across us during Kindness Week, you might have!

With a full week of themed days (like Western Day), we used this lighthearted time to lift up our teammates, but that’s not all. We also lifted up our members by randomly giving out gift cards during this time of need, and also responded to needs within our communities by giving a donation to Harvest Hope Food Bank in the Upstate and Midlands, and sponsoring 85 meals for first-responders at AnMed Health.

It’s been said that “kindness is not a trend, it’s a way of life,” and we are thankful for the opportunity to continuously find new ways to care for our members and communities — especially if it means donning a cowboy hat for the day!

Financial Wellness Workshop

20 SC TELCO H O L I D AY CLOSINGS

20 L A B O R DAY

09/07 M O N DAY

As part of our ongoing mission to help improve our members financial lives, our Financial Wellness workshop series focuses on decisions and circumstances we all face during each stage of life.

Our June event, held on June 18 and hosted by SC Telco’s Financial Wellness Coordinator Andrea Finley, discussed how to best protect yourself from common scams and financial exploitation, and was a huge success. Thank you to all who came out for this event!

If you didn’t make it, there’s still time to hone your financial skills.

Just keep your eyes out for future Financial Wellness programs and workshops — we’d love to see you there!

Join the Party:

Five Forks Branch Grand Opening Celebration Join us on Thursday, August 27, from 5 p.m. to 7 p.m. to celebrate the Grand Opening of our new Five Forks branch! Come experience the new branch first-hand and meet the new Five Forks team.

The party is taking place at

117 Batesville Road Simpsonville, SC 29681 4

IN THE SPOTLIGH T

IN THE SPOTLIGHT Five Forks

SC TELCO’S NEWEST COMMUNITY

Eight square miles. That’s the entirety of one of the fastest growing suburban areas in South Carolina.

Over the last 20 years, the area — named for the five roads that intersect each other in its center — has grown more than 75 percent, and was named by Niche.com as the number one Best Place to Live in all of South Carolina. As one of the newest neighbors in the Five Forks community, we thought we’d take a minute and give you a quick tour of the area.

Family-Friendly

Athletics

The area truly is family-friendly, with almost 87 percent of the population being a family household. Families enjoy local establishments such as the newest branch of the Greenville County Library with weekly programs designed for all ages, special sections for both kids and teens, and even an outdoor play area. (A unique feature of the library is watching the automated book intake that helps re-sort books by a series of robotic lifts, moving counters and barcode scanners. It’s a kid favorite for sure!)

For the sports enthusiasts, the area not only plays home to the Greenville Tennis Club, but also, only a few miles away, you can find the MESA Soccer Complex, where soccer-players of all ages fill the fields week after week.

Restaurants In the area, you’ll have no problem finding great places to eat. Five Forks is home to a number of restaurants and shops — from national chains like Starbucks and numerous pizza places, to local favorites like Java Bistro, Uncle Berto’s Burritos, a Peruvian restaurant Golden Llama, or community-centered Maple Street Biscuit Company.

Find it Nearby While there’s little not represented in the Five Forks area, should there be anything you can’t find, you can be sure it’s close by. Just down the road sit the shopping centers of Woodruff Road — complete with everything from Whole Foods to Cabela’s, Target, Costco, and more. In nearby Mauldin, you’ll find a city park and a local cultural center with events and arts education, and in Simpsonville, you’ll find everything from the CCNB Amphitheatre at Heritage Park, which is a concert haven for music lovers, to a downtown escape with restaurants, coffee shops, and the not-to-be-missed Ice Cream Station.

As you can see, the Five Forks community is a great place to settle in — which is why we are excited to have opened our newest branch in this area! We hope you’ll come by to see us soon! ®

5

What’s a Sinking Fund?

Your Best Tool for Saving

I

f you’re like most people, your financial goals may include paying

down debt, covering your bills, and saving for the future. But trying to tackle all three at the same time can be hard to do, as you try to determine where each dollar should go. Fortunately, there’s a simple answer to how to save for something special while you’re putting away debt — the sinking fund.

6

7

What is a Sinking Fund?

A sinking fund is a saving strategy that allocates a certain amount of money into “buckets� or funds designated for specific purposes or projects. Instead of a standard savings account, which may be used for either an emergency fund or a larger pool of reserves, a sinking fund is opened with the intention of saving for something in particular.

A sinking fund can play a valuable role within your larger budget, which is designed to manage your spending based on what you can afford. Since you set up a sinking fund after identifying something you want to save for and plan what you can afford to put toward it over time, it allows you to spend large sums of money without the guilt that often accompanies a big purchase. It also allows you to cover significant expenses without having to deplete your emergency savings fund.

In short, a sinking fund is a vital part of budgeting for anyone who has big goals that fall outside of their monthly household requirements.

What should you use Sinking Funds for?

One of the best parts about a sinking fund is that it can be used for anything, and there are many types.

Typically, you might set one up for a substantial purchase that requires saving over time, like family vacations, Christmas presents, a new car, or a medical or dental procedure. You can also use one to prepare for expectedbut-not-planned-for expenses (like car repairs) that are sure to come in the future.

8

S IN K ING FUNDS

How Do You Start a Sinking Fund?

Starting a sinking fund is easy, and it only requires a few steps to get your new savings plan off the ground. Here are a few tips on how to implement a sinking fund method that works for you.

1 2 3 4

Determine your timeline and input.

To start a sinking fund, you’ll first want to determine what it is that your fund will provide in the end. Are you saving up for a car and don’t want to take on a new car loan? Or are you saving up for that moment when your child’s dentist tells you it’s time for braces? Knowing what you’re saving for is important; new brakes for your car may cost $500, while a new home renovation could cost around $20,000. What you are saving for will help determine how much you’ll need to save overall and how much you’ll need to set aside on a regular basis.

Decide what type of account will work best.

In reality, you can use any type of account for a sinking fund — a simple savings or checking account will work just fine. However, to get the biggest bang for your buck, consider a money market account, which will allow you to earn a higher rate of interest on your savings while also giving you easy access to your money. Also, take advantage of specialized accounts designed specifically for sinking funds — think Vacation Club or Christmas Club accounts — that are easy to set up and access.

Organize a tracking system.

Many people who set up a sinking fund decide to set up multiple funds, allowing them to save for vacation while also stocking away money for tuition or tax payments. While you can use any checking or savings account, having multiple funds under one account may get confusing. Make sure you take time to set up a system for tracking exactly how much you’ve put toward each goal and how much of your account is allocated for each project. This simple step will keep you from accidentally spending the money you’ve put so much effort into saving.

Get started!

Start a consistent habit of putting away a little bit of money toward each of your sinking fund goals, and watch your dreams get closer! Frequency doesn’t matter — weekly or monthly is fine. What matters is that you remain focused on saving up for the things you want to make happen. And when it comes time to cash in? Go ahead and enjoy yourself! You can spend without guilt because you haven’t negatively impacted your budget to get there.

Regardless of your savings goals, our team at SC Telco is here to help! If we can help you in any way, let one of our member representatives know! ® 9

RESO URC E S

WHAT WE READ Synopsis:

A Special Takeaway:

You may know what emotional intelligence is — your ability to recognize and understand emotions in yourself and in others — but even if you didn’t... would you know how to use that knowledge to better relationships and improve your life overall? If not, this book, written by Doctors Travis Bradberry and Jean Greaves, is a go-to for not only understanding what emotional intelligence is and how it affects all of us, but how you can get better at “reading the room” — and interacting with the people within it.

As a bonus to purchasing the book, you’ll get access to a free assessment to measure your EQ rating.

The results of the assessment provide personalized, tangible action items to truly understand the behaviors that impact your EQ calculation and ways to improve. But, even better, you’ll have access to re-take the assessment after you conclude the book and put the best practices into action to measure your emotional quotient growth.

Why Read It: This book is an easy read, and far more than a book of “what to dos”. Instead, it offers practical advice and guidance on how to implement best practices within your own life. The book does this based on four core skills within EQ (emotional quotient, the measurement of emotional intelligence) — self-awareness, self management, social awareness, and relationship management — as well as practical examples that make it easy to understand and put into practice.

10

The Final Word: According to the authors, emotional intelligence is far more important in being successful in life than IQ, as IQ is something you are born with and EQ is something that can be developed over time.

If that’s the case, then this book is a “must” for your bookshelf. From the first read to multiple re-reviews, we think that everyone — no matter their job, their age, or even their level of formal education — can walk away from Emotional Intelligence 2.0 with something to grow on. ®

RE SOURCE S

$ $ $ $ $ $ $ $ $ $

MONEY MATTERS WITH

Saving for School with a Sinking Fund August will be here before we know it. If you’re looking to attend college soon (or paying for your child’s tuition in the future), you know that it can be expensive. From books to your own apartment, furnishings and, of course, paying for your own food (gulp!), there’s a lot of things that you’ll need to cover. Fortunately, saving can be easy with a Sinking Fund — an account that you stash money in over time that is focused toward a specific goal. Here is how you can make a Sinking Fund work for school.

1. Make a list.

What expenses will you need covered? Are you getting an apartment, or will you have increased gas costs to get to school? Do you expect to have a lot of lab supplies to buy? Whatever it is that you’re going to have to cover out-of-pocket, put it on a list. Once you add it up, that’s your savings target.

2. Open a savings account.

For this type of savings, a savings account may work just fine. Do your due diligence and shop around for the best interest-earning rate, or talk with your SC Telco member representative to find out which type of account would be best.

One quick note: there are special accounts designed specifically for educational savings that may save you money — be sure to ask your member representative about your options!

3. Start saving!

Now that you have a place to stash your cash, start doing it! If you can, divide the total amount you need by the number of months you have until you need that disposable cash, and save that amount each month. As an example, if you’re saving up around $1,000 to buy a new laptop next year, you’d simply divide $1,000 by 12 (months). That means you’d need to save about $84 a month to make your goal!

By following these simple steps, you can easily cover everything you need for school, with less guilt or worry about overspending or not having enough. And, it’s one great exercise for adult financial management, too! Happy Saving! ®

11

LIFEST YL E

Gorgeous Getaways Slip Away for a Romantic Trip in South Carolina Maybe more so than ever before, people are looking for a getaway — to escape the house and have some time away together. But for those who aren’t quite ready to hop on a plane and head to the islands, there are still great escapes within South Carolina, and if you want it, your next romantic getaway is only a short drive away.

12

LIFE ST Y LE

1

Blue Ridge Mountains For outdoor adventure seekers, there’s no better place than the mountains. Roll your windows down and enjoy the fresh air with a drive through the foothills of the Blue Ridge Parkway. If you’re up for a little adventure, there are plenty of places to hike — for a challenge, try Sassafras Mountain, the highest point in the state of South Carolina. On your way back to your place of stay, stop by a local restaurant like The Hare and Hound in Landrum for a quiet dining treat.

2

Hilton Head/Beaufort At the southernmost tip of the state, you’ll find Hilton Head, a golfer’s paradise and couples’ dream. Take a ferry to Daufuskie Island, and wander among the Spanish moss-covered oaks that are iconic to South Carolina’s Lowcountry. History lovers can schedule an excursion with the Gullah Heritage Trail Tours, which explores the life and culture of the Gullah people. Once you’re done, take a short drive into nearby Beaufort, where you’ll find a quaint downtown full of restaurants, wine bars, bookstores, and more.

3

Aiken If the arts are your thing, make your way to Aiken, SC. Start your day with a stop by New Moon Cafe for coffee and pastries, then head toward the Aiken Center for the Arts to check out the latest exhibition. Take time to visit the various shops and stores in downtown Aiken, then tuck in at one of the local stays like the Rose Hill Estate or The Willcox hotel. As an added bonus, make it into town for the Aiken Steeplechase, which highlights the region’s love of horses.

4

Georgetown For more of a quiet coastal getaway, head toward Georgetown, which serves as the halfway point between Charleston and Myrtle Beach. Start your visit with a morning walk a few blocks toward the river, where you can spend the rest of your day exploring the city’s famous riverwalk. Learn a bit of South Carolina history at the Rice Museum, then grab dinner at one of the local restaurants. To wrap up your day, take a romantic stroll on the riverwalk to catch the stunning sunset over the water. ®

13

MONE Y M AN AGE M E N T

BOAT BASICS

ARE YOU READY TO BUY A BOAT?

14

M O N EY MA NAGE ME NT

W

ith warmer weather comes more time outdoors, and for those who have access to waterways, the desire to own a boat increases. But when it comes to buying a boat, what do you need to know?

To determine if boat ownership is right for you, you should first identify what kind of boat would suit your lifestyle best. Consider a few things, first:

1. Frequency of Use How much will you actually use a boat? Do you currently hit the water just a few times a year, or are you there as often as possible? Do you enjoy or miss any water activities — like fishing, tubing, or water skiing — that a boat would allow you to enjoy on a deeper level? If not, or if you only go to the water a few times a year, you may want to consider renting or borrowing a boat instead.

2. Type of Use What kind of boat are you looking to buy? Do you want a pontoon that can host a party of people? Or are you considering a fishing boat that can go over open water? A boat’s utility will often determine how much and how often you’ll use it, but the type of boat you want to purchase will also dictate the costs you might incur.

3. Maintenance and Storage Storing a boat in the off-season can require a bit of effort and generate some additional costs. Depending on what kind of boat you choose, you might need an extra garage, an all-weather boat cover, or a private slip. These add-ons can be expensive, and each would factor into whether you will be able to care for a boat after you buy one.

4. True Cost of Ownership When you’re price shopping, look at the true cost of ownership — not just the sale price. That includes taxes, dock fees, insurance, storage, gas, and more.

With all of this in mind, a $20,000 boat won’t just cost you that amount; you’re also looking at about $6,000–8,000 a year in additional costs. And remember, just like cars, boats depreciate over time, so you will need to weigh maintenance costs against your boat’s overall value.

If you do decide that boat ownership is for you, there’s good news: if you’ve ever bought a car, buying a boat isn’t that different of an experience, and a boat loan is very similar in structure to an auto loan. When you’re ready, let us know, and we can help you with all the details to get you out on the water in no time. ®

15

for

K ID S & M ON E Y

Financial Literacy

kids

B

y the time your child graduates from high school, she may be able to calculate the hypotenuse of a right triangle, but will she be able to balance her checkbook? While kids may learn advanced math in school, the fundamentals of understanding money often fall to the wayside. If you want your children to be savvy about personal finances, you will likely need to teach them yourself. Here are a few tips to help you.

16

K I DS & MONE Y

1. It is never too early to start.

Even young children who cannot grasp the more abstract concepts of finance can learn important basics. With young children, consider a three-jar system.

This system entails three glass jars, labeled: give, save, and spend. It’s helpful if the jars are clear, as opposed to a traditional piggy bank, because it allows your little ones to actually see the money and watch it accumulate.

2. It is never too late to start.

You always have an opportunity to teach kids financial lessons. If your child has a job of any kind — even just occasional babysitting or lawn mowing — she will benefit from having a checking account of her own. Then, work with your teen to set some short- and medium-term goals. Help them devise a plan to reach those goals and track their progress. This will involve many of the same financial tactics you use as an adult, adjusted to an age-appropriate level.

3. Financial literacy is essential for the future.

There is a constant debate around how long it takes to form a habit, but one thing is for sure — it takes time! The same concept applies to establishing good money habits. Since their knowledge will continue to mature as they get older, having good money habits as their cornerstone will put them on the right course for achieving financial stability as an adult.

4. Mistakes are an essential part of the process.

Sometimes parents avoid engaging their kids in learning about finance because we worry they might make big mistakes. But if your child never has the opportunity to make her own mistakes while under your supervision, then what will happen when she is on her own? Establishing a joint savings or checking account with your child allows you to oversee how your kids are managing their money, allowing you to have regular, ongoing conversations with your teens about how they are progressing (or struggling to progress) toward their goals.

Keep in mind that financial literacy is an ongoing subject, so when it comes to teaching your kids strong money moves, realize you’re in it for the long term. But it’s worth it — teach them strong financial skills now, and they’ll be ready to take on the big stuff when they’re older. ®

17

SM

®

PO Box 10708 Greenville, SC 29603 sctelco.com