In the world of personal finance, there are myths and misconceptions that can hinder our ability to make informed decisions and achieve our financial goals. By debunking these myths, we can gain clarity and navigate the complexities of personal finance more effectively. Keep reading as we explore common financial myths and the truth behind them!

Myth 1: Credit unions are just like banks.

Reality: Credit unions are member-owned, not-for-profit financial institutions. Credit unions prioritize the best interests of their members rather than generating profits for shareholders. At First Financial, for example – you can benefit from lower loan rates, personalized customer service, and access to a wide range of financial products tailored to meet your unique needs.*

Myth 2: Paying the minimum on your credit card statement is fine.

Reality: Paying the minimum balance on your statement actually costs you more in the long run. You’ll end up having to spend more on interest this way, which could double the cost of the items you purchased. Paying your credit card statement on time and in full every month can help improve your credit score and save money on interest too. See our handy guide on credit card mistakes to avoid to learn more.

Myth 3: Saving money is solely about setting cash aside.

Reality: While saving money is essential, there are various strategies to make your savings work harder for you. Exploring different savings products, such as high-yield savings accounts, certificates of deposit (CDs), or individual retirement accounts (IRAs) – can help you grow your savings over time and work towards your financial goals.

Myth 4: Loans are only for emergencies or significant purchases.

Reality: Loans can serve multiple purposes beyond emergencies or large purchases. They can be valuable tools to seize opportunities, consolidate debt, or invest in personal or business ventures. Understanding the different loan options available and their terms, can help you make informed decisions that align with your financial objectives.

Myth 5: Retirement planning is only for the wealthy.

Reality: Retirement planning is crucial for individuals at all income levels. Regardless of your current financial situation, developing a retirement strategy early on can help you secure a comfortable future. Here at our credit union, we offer the First Financial Investment & Retirement Center to help support your future through investments and insurance.**

By debunking these common financial myths, you can gain a better understanding of personal finance and make more informed decisions to achieve your financial goals. Whether it’s exploring savings and loan options, or planning for retirement – taking a proactive approach to your financial well-being is key.

Remember, knowledge is power – and First Financial is here to provide you with all the tools for your financial success. For more insights and tips on personal finance, check out our First Scoop Blog!

*$5 in a base savings account is your membership deposit and is required to remain in your base savings account at all times to be a member in good standing. All credit unions require a membership deposit. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.

 **Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are: