Life Changes

Life Change To-Do Lists

Life changes - such as getting married, divorced, having a child, or facing widowhood--require more than the subsequent emotional adjustment. These milestones also signal the need to take stock financially and make any necessary adjustments.

Marriage

Have the money talk. Sit down and set financial goals--do you want to save for a new house? Have five kids? Decide if you're going to pool your assets or maintain separate share draft/checking or savings accounts.

Corral credit. Exchange credit reports and take a financial inventory. Focus on cleaning up any credit problems and curtailing future debt.

Make name change notifications. Make a list of agencies to notify if you're changing your name, including credit card issuers, the Social Security Administration (www.ssa.gov), the motor vehicle department, and the U.S. Passport Office.

Create or update your wills and powers of attorney.

Check your insurance. Review your auto, health, property, disability, personal liability, and life insurance coverage. Update beneficiaries on your policies, your IRAs (individual retirement accounts), and other investments.

Divorce

Educate yourself. Go through financial accounts and figure out where the money is. Pull credit reports to see if there are any credit cards or loans that you don't know about.

Collect information. Before your first visit to an attorney, make copies of all financial records, including statements from financial institutions and brokerage companies, tax returns for the past two or three years, mortgage, copies of financial statements on file at any financial institutions, insurance, safe deposit boxes, wills, and trusts.

Establish credit. Open and fund a share draft/checking and savings account in your own name. Get a credit card in your own name and manage it carefully.

Update wills and beneficiaries.

Separate credit accounts. Debt incurred in a joint account will follow both spouses after the divorce. Talk to your lawyer about how to best close joint accounts and limit your liability.

Maintain insurance coverage. During separation you'll still be covered under your spouse's health insurance, but once you're divorced, health insurance must be specified.

Death of a spouse or parent

Get 10 death certificates. You'll need these extra copies for such things as insurance, 401(k) payouts, Social Security, probate, and to change the title on property.

Organize finances. Go through all financial papers and make a list of assets and liabilities; gather statements from financial institutions and brokerage companies, insurance policies, employment records, tax returns, and so forth.

Cancel accounts and services. Check for and cancel any automatic or online bill paying services unless you'll continue to use them. Notify any fee-based membership or subscription services to cancel accounts such as health clubs, magazine subscription, online services, and so forth.

Contact income providers. Notify old employers, pension fund administrators, and financial institutions holding IRAs or other retirement income accounts. Each may have a different beneficiary. If the deceased received Social Security benefits, notify the Social Security Administration as soon as possible, since the estate will have to pay back money received after the death. Check with a certified public accountant or tax preparation service to see if there are tax considerations that need attention.

Contact life and health insurance providers. Insurance companies will distribute money to the beneficiary listed on the policy. Don't cancel health insurance until all outstanding bills have been paid.

Expecting a new baby (birth or adoption)

Understand your finances. If you're planning on moving, buying a bigger car, or want to quit work to raise the baby, you'll need to create a budget that allows you to forecast where you will be financially.

Insure coverage. Visit your employee benefits department to find out what your policy covers, and how much time you have to add a new baby or adopted child to your policy. Research and understand other policies at work relating to such things as maternity or family leave, and flex spending accounts.

Create or update your wills. Besides instructions about how the estate should be distributed, wills also should include the name of whomever the parents have chosen as their child's guardian. Parents also may wish to appoint a different person to be the guardian of the child's money.

Going to College?

Are you leaving town to attend college? You might think that means you need to leave Hopewell Federal Credit Union behind, but we'd hate to see you go.
Once you join a credit union, you're a member for life--no matter where life takes you. So even if you're leaving the state to go to school, you can stay with us. We're here to help you with all your financial needs.

We enjoy having you as a member at Hopewell, and we'd like to keep you with us.  Click here to find out how Shared Branching can keep you connected with HFCU while you are away at school.

Tips for Parents of College-Bound Students

High-school students bound for college will embark on many new experiences--including financial independence. Here are some tips for parents to help kids prepare for what's in store.

• Explain how credit works. A credit card is not free money; it's instead a means of putting off paying for purchases until a later date. Accompany your child to the credit union for the best rates on credit cards and consider urging him or her to use a debit card instead.
• Create a spending plan. Write down all college expenses such as tuition, books, room and board, toiletries, entertainment, and so forth. Determine which expenses you'll be paying and those for which your child will be paying.
• Come to a no-bail-out agreement. If your child ends up charging more than he or she can afford, or runs out of money before the end of the month, your first reaction may be to send money and bail him or her out. Don't do it. If your child needs to figure out a way to get out of debt, such as working or staying home on weekends, chances are good he or she won't make the same mistake twice.