CUs can help members manage the cash they get after filing their taxes.
By Bart Scott
Sponsored by LSC
It may seem hard to believe as it’s only February, but tax season is right around the corner. W-2s are appearing inside members’ mailboxes. It can be a stressful time, digging out paperwork, organizing receipts, adding up totals, wondering if a particular expense counts as a write-off. Credit unions can help their members cope with tax time tension, and prepaid debit cards can be a useful tool in this. Start by reminding your members how you can help manage that tax refund that may be coming down the line. It’s always a good feeling when that “extra” money appears in the mail or in your member’s account. The hard part is resisting the urge to spend it on something fun, and maybe a little exorbitant. As credit unions, we look out for our members and keep their best interests at heart. It’s our responsibility to advise against blowing their refund all at once. Put some away for a rainy day, or use it for a necessary home repair or project that’s been put off. That would be the safe, smart choice. That said, members worked hard for those refunds. Shouldn’t they be allowed to enjoy at least a portion of it as well? Just lumping it in with the regular funds to cover the day-to-day expenses is no fun at all. Your credit union can help; recommend a prepaid debit card. By loading all or some of their refund onto a prepaid debit card, members can keep that money separate from their other accounts. That way, it’s there when they want to spend it on that specific purchase, or even safely kept for that proverbial rainy day. Be sure to tell your members that prepaid debit cards are safer than cash, not linked to their accounts or personal info, and accepted everywhere. For instance, the CUMONEY® Everyday Spend card is accepted everywhere you see the Visa logo and protected by Visa Zero Liability Coverage. Since it’s not linked to your members’ deposit account, there’s no overdrawing or risk to their financial security. Plus in the case of Everyday Spend, CUMONEY offers a free mobile app so members can keep track of what they’ve spent and where. A prepaid debit card is a simple, responsible way for members to keep their refund separate and safe, and enjoy that money they earned.
Bart Scott is marketing communications coordinator for LSC, the Illinois Credit Union League service corporation.
Also read "Prepaid Cards Mitigate Millennial Angst" on this blog.
