SeaComm Federal Credit Union OFFICIAL BLOG

Alternative Facts Our Parents Told Us About Money

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Parents always want to protect their kids from the mean and scary aspects of society. Sometimes the things they’ve said have stuck with us over the years. For example, I remember being told that my pool had a urine-revealing chemical that would catch those who pee in the pool with a special ‘dye.’ …I just recently learned that this is a total myth. (I was an impressionable child, what can I say?)

But more often, parents are deterring their children from reckless spending and bad money habits by filling their brains with these alternative facts about money. Sometimes, parents pass these alternative facts along to their children because even the parents, themselves, believe they are true. Read on to see your childhood myths, busted!

Alternative Fact #1: Credit Cards Are Evil

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A lot of people under the age of 30 seem to be weary of credit cards, due in part to the fact that their parents most likely scared them!

If used responsibly, credit cards are the farthest thing from evil- they’re actually an incredibly helpful financial tool.

These little plastic rectangles build your credit, help to track your budget, and SeaComm even offers a platinum card that gives you points or cash back for every dollar you spend.

If only they could do your laundry…

Alternative Fact #2: You Can Save Money on Gas by Not Running the Air Conditioner in Your Car

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Ever heard this one? According to Consumer Reports and Advance Auto, it’s a total myth. Turning on the A/C in the car doesn’t put more work on the engine and it only slightly decreases the fuel economy. You can still drive with the windows down as opposed to using the A/C (especially if you have a dog along for the ride) but avoiding the A/C won’t fill your wallet.

Alternative Fact #3: You Only Need Financial Advice If You’re Rich

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It’s always seemed that the titles ‘Accountant’ and ‘Financial Advisor’ are only synonymous with ‘wealth,’ which is not true.

It really doesn’t matter what the balance in your bank account is – professional financial services can only help you to save more and to build better spending habits.

Interesting Fact: SeaComm offers its members FREE (yes, 100% free) Personal Financial Advisor services. These services have been awarded to our membership with a goal of getting our members to meet their personal financial goals, whether it is retirement planning, investment planning, business planning, or even estate conservation.

Feel free to email our Personal Financial Advisor, Mathew Hastings, with any questions you may have, at Mathew.Hastings@cunamutual.com

To learn more about this free Personal Financial Advisor service, click here

Or to schedule an appointment, click here

Alternative Fact #4: Writing Checks Is Safer Than Using a Debit Card

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While there is nothing wrong with writing checks as opposed to using a debit card, debit cards are still a safe spending route. Some would argue that they are even safer than writing checks.

Most financial institutions, including SeaComm, will strive to protect your financial well-being, and keep you in the loop if there is ever a compromise to your account.

Alternative Fact #5: Insurance Is More Expensive for Red Cars

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I’ll admit, I am guilty of falling for this myth.

Progressive Insurance spokesperson Ron Davis states “You may have heard the color of your car is used in calculating car insurance rates, but this is something we (insurance companies) don’t even ask for…”

Rates are primarily affected by your age, driving record and driving experience. While there are some other factors- such as marital status, gender, the make and model of the vehicle, and more.

Did your parents tell you any of these alternative facts?

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