Monthly Archives: March 2019

preschooler

6 Money Themed Activities for Preschoolers

Is four years old too early to be learning money management? We don’t believe so! There are many American adults who still struggle with understanding their own finances and keeping a budget. By starting their education early on, you will build their confidence and familiarity with money in order to build a stable foundation for the future. The question is, how do you make it engaging for preschoolers? Here are our 6 favorite money themed activities for your youngsters!

1. Learning About Coins: Time to Sort

To begin teaching little ones about money management, it’s important for them to learn the money itself! A great place to start is to build their familiarity with coins. Grab a muffin tin and ten nickels, dimes, quarters and pennies. Challenge your preschooler to sort each of the coins and teach them the names. You could teach them how to make a pattern in each tin. For an additional challenge, you can label each muffin space with a value where the student can match to each coin’s value. Show them that ten pennies have the same value as a dime and so on.

2. Playing Store

Use the materials you already have around such as play food or simple toys. Label each item with a price tag of five, ten, fifteen or twenty-five cents. Play pretend by giving each student a certain amount of change and teaching them that items always have a value that is exchanged for money. This can help them with counting and remembering the worth of coins.

3. Clip Coupons

Sure, you might take the more tech-savvy approach when it comes to coupons, but the old-fashioned practice of clipping coupons is a fun hands-on way to teach youngsters the worth of items. Once you have the coupons of interest, take them to the store with you and make a game out of finding the items. This is a helpful way to teach them about the importance of saving money.

4. DIY Piggy Bank

Every child should have a piggy bank! Whether it’s a simply decorated jar or a paper mache pig, it is a smart way to teach them about saving early!

5. The Allowance Game

If you want to teach children that in order to get money, they need to work for it, there is no better time to start an allowance. For a preschooler, you can have them do simple tasks around the house. They can “purchase” items from your own DIY store in the home. You can purchase candy or small toys that the child can exchange their earnings for. Let them know the value of each item and clearly explain what they would need to do in order to earn this.

6. The Dollar Dance

To teach preschoolers about bills, grab some ones, fives, tens and twenties. Throw them in a hat and draw one at random. Whatever value you draw, have the child do something X many times. For example, if you drew a $5 bill, you could have them spin in a circle five times. This will help them to become familiar with the value of each bill and where it is located.

These are all good ways to start teaching today’s youth not only about money but how to manage it well. Starting young will give them the confidence they need to be successful with their purchase and investment decisions in the future. Open a savings account for your little one today to teach them more about money!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

home

5 To-Dos Before Buying a Home

Are you about to begin the hunt for your future home? We understand that the home buying process can become overwhelming, which is why we’d like to offer you a little insight. Start your home buying journey off right by completing this checklist!

  • Strengthen your credit.

A 620 FICO score means you can get a mortgage, but that doesn’t mean you’ll want to. According to recent data from myFICO.com, someone with the minimum credit score can expect to pay over $82,000 more in interest over the life of a $250,000, 30-year mortgage than a person with a 760-plus score. Working on making your credit higher, such as paying bills on time, will help lower your interest and save you some big bucks.

  • Get preapproved for a mortgage.

This is a very important step, and sadly, it’s missed frequently. Getting preapproved means you’ll have some advantage over other potential buyers. This letter shows Realtors and sellers that you’re serious about buying and provides evidence that you have the funds to pay for the home. Set up an appointment with us to get preapproved and utilize our handy-dandy mortgage calculators!

  • Figure out how much house you can afford.

You may get preapproved for a certain amount and have a good portion of money put away in savings, so why not spend it all on a home? Even though you have the funds, be sure to think ahead to future bills and emergency expenses that will have to be paid. You’ll also need to plan on spending in the range of 1-3% of the home’s price for closing costs. It’s important to downsize your budget a bit in order to make future costs and purchases feasible.

  • Get a real estate agent.

Hiring an agent does cost money, but they will help you through every step of the way. Real estate agents will make sure all of your closing documents are in order and give you recommendations on trusted inspectors, which will take a lot of stress off of you. They supply you with the knowledge of the buying process, so you don’t miss any steps.

  • Schedule an inspection.

Once you find your home sweet home, it’s important to cover your bases. Schedule an inspection to be sure a new HVAC system or roof isn’t in the near future. You’re going to be spending a large sum of cash, so spending a little more to have everything checked out is a good plan of action.

Congratulations! You’re now on the right track to becoming a homeowner. Peoples Bank & Trust offers mortgage options that fit your lifestyle. Stop in or give us a call to discuss your options today.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

retirement

Saving for Retirement: How Much Is Enough?

Over the years, we put away money for important events such as a baby, college tuition, a new car or house. Those tangible items make it worth the amount we set aside. However, retirement is a harder concept to grasp, as it is far off into the future. For this reason, we wanted to help shed some light on how much is actually enough when saving for retirement.

How much do I save at my age?
Trying to figure out how much to save at any age can be tough, especially when saving for other items. A good rule of thumb for your 20s is to save 10% of your pre-tax income. When you come to your 30s and begin saving, you’ll need to save 15-20%. If you start saving in your 40s, 30% will be the number to save. These numbers help show how saving young will help you in the long run. The longer you wait to save, the more you’ll have to put away which creates a tighter budget.

Why do I have to save that much?
Knowing how much you’ll need for retirement is tricky. There is no one answer to this question. Some people may need to save more if they live a more luxurious lifestyle. For those who are frugal, they may not need to save as much. Start by figuring out how many years you may be retired for. The average is anywhere from 20 to 30 years. Take your annual income and multiply it by 25. For example, take your $40,000 annual income, multiply it by 25 and you’ll get $1,000,000. This is what your retirement profile should look like to live a very comfortable life. However, not all people will reach this goal, but it’s important to know how much you can expect to have saved when retirement comes.

Where are you at financially?
It’s important to look at where you are at right now. What age are you and how much have you saved? Will you be getting a different job with a higher salary or will you plan on retiring early? Looking at your life and figuring out what your future holds will help you learn the amount you should be putting towards retirement. If you planned on retiring early, for example, you’ll have to save a lot more ahead of time.

Do you plan to invest?
Investing is a great way to make extra money on the side. Work with a trusted company or person, find what accounts you’d like to invest in and what way you’ll choose to invest. When you make the right investments, you’ll be able to save less for retirement.

Thinking this far into the future can be intimidating. While having all types of things to save for and bills due right now, it’s easy to forget about saving for retirement. Push yourself to start putting away the correct amount you need, so you’re not unprepared when the time for retirement comes near. We offer some amazing savings accounts and other options to grow your money. Contact us today to learn more about how our products can help you!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

finances

6 Steps To Improve Your Finances

Staying on top of your finances can prove challenging, especially when bills, debt, daily expenses and saving come into play. Finding your way to financial freedom takes time which is why Peoples Bank & Trust has compiled a few steps you can take to improve your finances.

Coupon Like Crazy

Some people always pay full price for items. Nowadays, there should be no reason to empty your wallet to that extreme. You can go old school and buy extra newspapers when the coupons are good. We also recommend that you utilize the clearance rack and collect rewards cards. Technology also gives you the capability to search coupon sites and download coupon apps, which gives you a plethora of options to save!

Increase Your 401(k)

Even if it is just by 1%, increasing the amount of money you are putting into your 401(k) can change the end results dramatically. It’s always important to think about your future, as you’ll need those funds to support you and your family. Employers may also match your 401(k) to a certain amount, so be sure to know what your company offers and use that to its fullest.

Add To Your Emergency Fund

Now that you are a little more established, a few hundred to a thousand dollars won’t cut it anymore. Your house may need reroofing, you might have to buy a new car or your deductible won’t cover a certain emergency or procedure. These unexpected events will cost a pretty penny, so upping your emergency fund will protect you.

Make An Extra Payment Towards A Debt

If you were able to cut expenses this month, put that saved money towards a debt. Pay off a little extra of your car payment or student loans. The Snowball Method teaches you to start by paying off the smallest debts first while paying the minimum on larger debts. Then keep snowballing to the biggest one as time goes on. Always utilize this tip when extra money comes your way, as becoming debt free is the ultimate goal!

Create A Will

According to AARP, “78 percent of millennials (ages 18-36) and 64 percent of Generation Xers (ages 37-52) do not have a will.” This is a crucial step in your financial life to not have planned out. No matter what age, you have finances, dependents and property that will be left unattended if something were to happen to you. Be sure to get a will put into place, so your assets can be handled correctly.

Get on track with your finances and tame your budget with these simple tips! If you need any assistance with a savings account or future planning, give us a call or stop in. Aiding you through your financial journey is what we’re here for.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender