One for All Alaska Blog

Five PFD Pitfalls to Run From

Posted by Credit Union 1 on Sep 25, 2015 10:19:40 AM

5 PFD Pitfalls to Run FromCan you feel the excitement in the air? PFD season is upon us, and Alaska is brimming with joy! This year, you’re going to make that PFD stretch further. Have more fun, reach more goals, and most of all avoid PFD hiccups that can cause a serious hassle. How exactly? Check out the following five mistakes that Alaskans commonly make with their PFDs, and learn how to avoid them. With our advice in your pocket, you’ll save time, energy and funds!

Mistake #1: Getting a paper check in the mail.

Why wait longer for your money when you can set up Direct Deposit instead? This method is safer, more reliable and you won’t need to fuss with a paper check deposit. It’s too late to switch this year’s PFD to Direct Deposit, but here’s the info for next year. If a paper check is in store for you this year, avoid long lines at a branch by using Mobile Deposit within the CU1 Mobile App. Or, you can deposit your check at a CU1 ATM!

Mistake #2: Not using deposit alerts.

What’s more instantly gratifying than waking up on October 1, looking at your phone and BAM! There’s a notification saying “$2,072 has been deposited into your Credit Union 1 account.” You won’t need to call, wait in line or even log in to Online Access to check on your PFD! Trust us, PFD deposit alerts are the best thing ever. Set yours up now! Also, make sure you’ve got Online Access or our Mobile App so you can modify your alerts and manage funds any time. Or use ART to check your balance, if that’s your thing.

Set Up Alerts Now!

Mistake #3: Forgetting to set aside $$$ for taxes. Especially if you have kids!

With kiddos, the dollar amount of family PFDs can really add up. Don’t forget to claim that as income on your taxes! Unfortunately, added income may also mean you owe money come tax time, so ask your tax professional for details today. You’re welcome for the heads up :).

 Mistake #4: Spending your PFD as cash.

Cashing your PFD is the worst thing you can do, even if you got it direct deposited! Cash can be lost or stolen, and nobody likes accepting large bills. Instead, spend your windfall using your debit card and rack up some sweet rewards! #SwipeAndSign Just make sure that your debit card is linked to a Spending Account, since multiple withdrawals from savings means Reg D could get you.

Mistake #5: Spending your PFD all at once!

We mean it. Come up with a spending plan. You’ll thank us later! Ideally, you’ll want to pay down at least *some* debt, set aside money for a rainy day, and THEN have fun with what’s left. After all, we all deserve some PFD joy!

 

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Topics: Financial Fitness, Savings, PFD, Alaska, Credit, Spending