Category: Budgeting

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

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

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

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

Money Management for College Students

If you’re fortunate, your parents may have taught you how to save your allowance or a certain percentage of each paycheck. However, if those skills weren’t taught to you or you just plain didn’t listen, we are here to help you at the beginning of your financial journey as an adult! Stay tuned for some simple tips you can start doing now to strengthen your current and future financial habits.

1. Create a Budget

Most adults who have been managing their money for years have yet to figure out how to stick to a budget. You now have the opportunity to stay ahead of the curve by building the right habits now. Most people are under the false assumption that they have to have a lot of money in order to budget. This is not true, as no matter how much money you do or don’t have, everyone should have a budget. This will help you to control your spending and saving.

You first need to decide what amount you want to put into savings every month. Next, determine how much money you need to spend on rent, food and other bills. You can make as many categories as you like. You especially need to have a category for fun. Use it as you please, but when it is gone, it’s gone. You are making a promise to yourself that your financial security is more important than a splurge.

2. Buy Used, Not New

Unfortunately, the cost of new textbooks is astronomical. As a college student, it is most often going to be wiser to buy used than new. With a used textbook, you will pay significantly less and may even be lucky to see the former owner’s notes. Think about what other purchases you need to make and if it would be better to buy them used. The answer will often be yes.

3. Be Smart With Your Credit

It is a great idea to start building up your credit history. However, if you aren’t paying off what is due at the end of every month, a credit card may not be the right choice for you. Deep credit card debt burdens many because they made purchases that they could simply not afford. Be sure to use the card for needed items and not sudden splurges.

4. Take Advantage of Free Entertainment

One great part of being a college student is all of the free activities that your campus has to offer! There’s no reason you need to spend money going to a big movie theater when most college campuses have their own movie showings free for students every weekend. Check out your campus Student Activities Board to see what free fun you can get in on!

5. Use Cash
This is a great rule for anyone, not only college students. However, we believe it is a helpful habit to start now. If you have a problem with impulse purchases, we recommend using the “fun money” portion of your budget as cash only.

If you go out to have fun with friends for the night, you know the exact amount of money you have to spend. No more, no less. For some reason, it is much harder to spend cash than it is to make a purchase on a card. This will help you to control your spending when you’re having fun.

We have plenty of savings options available for college students looking to grow their funds! Take a look to see what option suits your needs best.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

5 Creative Ways to Save for Your New Home

You’ve made the decision that you are tired of renting and ready to step into the world of home ownership. Good for you! You may be wondering what your next steps should be in order to be financially prepared for this major investment. Here are some creative ways to ramp up your savings for this exciting adventure!

1. Consider a Move Now

Is the place you’re living now truly the most cost effective for your budget? Consider moving to a temporary location that can significantly trim your monthly expenses. This is especially helpful if your home purchase is far into the future. No, it might not be the nicest place you’ve ever lived in, but imagine your dream home even closer on the horizon because of the sacrifices you are making right now. Place all of the added savings directly into your savings account.

2. Show Up for Your Budget

Many people begin the new year with excitement about all of the ways they are going to change their purchasing habits in order to achieve their big financial goals. However, like most resolutions, they are abandoned within the first few months. This is the time for you to show up for yourself, your goals and your budget. How? By continually reviewing how you are meeting or faltering your savings goal on a weekly basis. This will keep the financial goal of buying your first home at the forefront of your mind.

3. Purge and Sell Your Belongings

This is a great way to prepare for the big move in more ways than one. Like many adults, we have plenty of items that we don’t need or use gathering dust in our closet. It’s time to part ways and sell them at a garage sale or post them online. Put the profits directly into saving for the down payment that will likely be a minimum of 3.5 percent.

4. Look for a Side Gig

Every little bit counts! If you even have ten hours a week extra that you could commit towards another job, it can be a big boost to your savings. Whether it’s freelance work in an area you are experienced in or applying to be a server at a local restaurant, this is a great way to see your savings climb.

5. Automate Savings

Although this isn’t exactly creative, we would be remiss to not include this incredibly important part of any savings plan. For every amount of money you take in, automate a percentage of that towards your savings account to take any of the temptations of spending out of the mix.

Open a savings account today to begin to build the funds you need for your dream home.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Money Savings Tips to Keep Your Finances On Track

saving

Does it seem like your savings plan always becomes derailed? Starting too big or having unrealistic goals can prove faulty. Once you do have some money saved, it may be difficult to know what to do with all of it – leaving you wondering where to go from there. Luckily, we have compiled a list of simple saving guidelines to keep your finances on track.

Stop spending money you don’t have.

This may be one of the hardest rules to follow. Even though that check is coming on Friday or you’ve been doing “so good” with savings, doesn’t mean you get to throw it all away. The money you accumulate all has a place it needs to go, so don’t convince yourself otherwise.

Use less than 30% of your income for your wants.

Wants include movies, shopping, restaurants and nights out on the town. While allowing yourself to have fun, you’re still able to save as you’ve put a 30% cap on your monthly limit.

Reevaluate all of your bills.

Be able to look through your bills and know if you’ve got the best deals. If you’re already getting the best prices, try to find places to cut expenses. Do you need cable or can you switch to a cheaper option? Is an unlimited data plan necessary or do you fall into a different category that may cost less?

50% of your income should go to necessities.

Groceries, housing, utilities, health insurance and your car payment all fall under necessities. Work on your budget to see how you can make these payments fit under your 50% cap. If you’re lucky and have some left over, put that towards an emergency fund or vacation fund. This will make you more motivated to meet these limits.

Create a budget and stick to it.

Creating a budget is easy – sticking to it is the tricky part. Be sure to make your budget realistic, which is why we mention the 30% of wants portion. You’re going to spend the money, so allocate for it. Downloading a budgeting app will also help remind you when you’re close to reaching your budget.

Set 20% of your income aside for financial priorities.

As the 50/30/20 budgeting rule goes, 20% of your income should go to savings. By auto transferring a portion of your paycheck straight into savings, you won’t even realize you have more money you could be spending! These savings could be used for a house down payment, tuition for a child or part of an emergency fund. When you put a name to your savings account, it will make it easier to save for.

Keeping your finances under control can be fun! Challenge yourself to see how long you can go meeting all of your budget goals. Find ways to skimp on expenses and become a super saver. If you’re looking for a place to store your savings, our accounts are a great option. Give our team a call at a location near you to set up a savings plan that fits your needs!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Why Choose a Local Bank?

local

Whether in bustling cities or the rural Midwest, community banks improve lives in the communities they serve. This seems to be a popular notion across the nation, as can be seen by their large local support. According to the ICBA, community banks make up 96 percent of all banking institutions in the country. They are successful because they work and are a positive light in the community.

You take great care when it comes to choosing a financial institution that you trust. If you haven’t made the switch to a local bank yet, here are just a few reasons why you may want to make the switch.

They support community organizations.

While we can’t speak for every community bank, we make it a priority to give back to the area. We realize the importance of donating to local charities and even encourage employees to volunteer to local regions of need. Every individual at every level of service in the bank is personally connected to the community and wants to see it thrive.

They have the same state of the art resources of big banks.

Some may think that community banks are still in the Stone Age when it comes to technology. This could not be further from the truth. We know that the future of banking is online and we have made it a priority to meet our customers in a way that is easiest for them.

Customers can access their account information, make deposits or withdrawals when the office is closed or if they are traveling out of the area. Although, we still love to see your smiling face in person when you have a chance to come into one of our locations.

In addition to being technologically up-to-date, we have competitive individual and business services that a big bank has to offer, but likely at a better rate.

They have a personal approach to lending.

Unlike big banks, we know our customers. Our kids might play baseball with yours or we may have even gone to high school together. Whatever the case, our approach to lending is more personal, because it is personal. We take a more rounded approach to lending instead of simply seeing you as a credit number like a large bank might do. We are here to serve the average Joe and play no favorites.

They maintain great customer service.

Community banking is about relationships. With that comes a customer service approach that is caring and helpful. You will likely see the same people working there every time you need assistance and can develop relationships. You are able to really feel like your bank is looking out for you because they know you and have your family’s best interests at heart.

They invest in the community.

Because they are a small business themselves, community banks value local businesses and understand the benefit they have on the economy. When you invest locally, the entire community prospers. We aren’t interested in siphoning out investments to Wall Street. Right here is where we want to be and see the area grow.

We can’t wait to meet you. Stop by our bank to see all the benefits our products can offer you!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Savings Resolutions For The New Year

resolutions

Now that we’ve welcomed a new year, we must also begin welcoming new saving habits. Setting reasonable resolutions isn’t always the easiest, which is why we wanted to offer some simple ideas to start. Begin promoting your financial positivity by picking one or two of these savings resolutions to implement for the rest of the year!

Make extra mortgage payments

Making your minimum payments on what you owe is completely fine. However, try stepping up your game by increasing the amount you pay towards your mortgage. We understand you can’t make extra payments each month, but when you can, put your cash towards that. You can even utilize a financial calculator to help!

Open a new savings account

We offer savings accounts that match your needs. Opening a new account will help you allocate money to a specific purpose. For example, one savings account could hold your normal funds while another is specifically for emergencies. Figure out what will work for you best and divide your money accordingly.

Save more for retirement

Until retirement hits, many people don’t think about putting plenty of funds towards it in their 20s and 30s. However, if you wait to save until you’re older, you won’t be able to have enough funds. Start thinking about how much you will actually need when the time comes to retire. 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.

Track your spending

Many don’t realize the positives of tracking how much is spent each month. Knowing how much money you make and where it goes every month will help you budget better. This will help you realize where you are spending too much and find ways to save!

Build an emergency fund

If you don’t have an emergency fund, this should be your first item on your resolutions list. The unexpected happens, well, unexpectedly. Don’t get caught off guard without the money to fix your problem. A new HVAC system or car can be needed out of the blue, and you’ll want to be sure you’re prepared for random expenses. If you already have an emergency fund, great! But, you’ll want to work on growing it. That 500-1,000 dollars you have saved for emergencies won’t be enough to buy that used car you need when yours quits.

Only pick one or two of the above items to implement this year. Once you’ve locked down your resolution, begin thinking which one you’ll pick for the next year. With these ideas in mind, you’ll be able to get closer to your financial goals sooner than expected! If you need help growing your funds, contact us – we’d be happy to provide a solution for you.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Ways You Can Teach Your Kindergartner About Finances

finances

Finding ways to make money fun can be difficult when working with your little one. However, starting money management off right when they’re small is a must! Use these tips and tricks to teach your kid to be a successful money master.

Utilize Clear Jars

Use a clear jar to allow your child to see their money grow. Just talking about how their dollar from yesterday is two dollars today doesn’t click for them. Let them put money into a place where they can continuously see it grow larger and it will maintain their interest in the saving lesson. Show excitement when they add to it because if mommy or daddy is enthusiastic, they will be too!

Start an Allowance

Help your child learn that time is money. Unloading the dishwasher could be worth a dollar while folding all the laundry could be worth two. If one job takes longer than the other, show that with the amount they obtain. Increasing the amount as they age can also show them how you grow with the jobs you get because of your new level of education. Help them see that money is earned, not just given.

Make It Visual

Your youngster will not understand the concept of saving by simply discussing it. Their short attention span calls for some innovation. Make a chart for chores to help them stay on task by coloring in a square next to the chore when it is complete. Different colors can help classify the item as more money or higher importance.

Teach Them to Give

Generosity is also an important lesson to teach at an early age. Have your child pick a cause they are excited about – pet shelters, for example, are a great choice! Your child can see where and what their money is going to. Helping others is a great quality to establish for the future. If they don’t know where to donate to, give them options such as the donation plate at church or a local food shelter. You can also find a place to volunteer their time if money isn’t an option.

Introduce a Side Job

If your kid wants a LEGO set, and they want it now, show them additional chores to do as a side job. Giving them extra ways they can make money here and there can teach them to have a high work ethic. Sometimes you need to work a little more to get the money you need. Setting up a “For Hire” board can help your kindergartner pick up some extra cash by sorting dirty laundry, emptying trash cans or picking up their toys before mom or dad mows the lawn.

These ideas will help aid you in teaching your kids that money doesn’t grow on trees. If you’re looking for other financial lessons and ways your child can learn about saving, stop on in. We’d love to set up a savings account for your youngster!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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