Category: Budgeting

10 Ways to Save Money in College

Savings

With delicacies such as ramen, easy mac, and PB&J, college doesn’t always seem as glamorous as it is in the movies. Learn how to build up your bank account this year with these helpful savings tips courtesy of Peoples Bank & Trust! We’ll show you how to make the most of your dining dollars, classroom supplies, and other on campus opportunities!

Books. Instead of purchasing those $300+ textbooks, utilize your university’s library and study using the same materials without any of the cost!
Coffee. Get the best bang for your buck when you go for your next caffeine fix. Many coffee shops offer free Wi-Fi for studying in addition to free refills on basic coffee and teas. Simply purchase the size of your choosing, and stick around for a proper study session complete with all the coffee you need!
Meal Plans. Dining dollars aren’t just for dinner. Utilize those additional funds to purchase other necessities such as toiletries to ensure you never leave any allocated dollars unused.
Student Activities. Keep tabs on school events. With many university sponsored events offering free food or drinks, students tend to jump at the opportunity, so it’s best to arrive early!
Scholarships. You never know until you try, or in this case submit, but in many cases writing a simple essay and answering some questions is all you need to do to be considered for a $500+ scholarship.
Student Discounts. They’re everywhere; whether you’re on campus, or out and about, always be sure to carry your student ID to save a little extra money at various retailers.
Loan Interest. Start paying off your student loans ASAP. Compounding interest especially can rack up additional expenses quickly, so be sure to begin paying down your debt as soon as you can.
Cars. Ride your bike around campus instead of paying for costly gas, auto maintenance, and parking passes. During the winter months, you can skip waiting in the cold for the parking lot shuttle, and warm up as you cycle home!
Recycle. Those pop cans and soda bottles can be valuable. It may not seem like a lot of money at first, but over time you’ll find yourself saving more and more.
Work. Get a part-time job during the school year that offers great benefits like free gym membership, discounted meals, or free drinks!

Whether you’re a first year, or a PhD student, there are countless ways to save some green throughout your college years. Let us help you tuck away some of those valuable dollars with a structured savings account at Peoples Bank & Trust!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How a $1,403 Cup of Coffee is a Bargain

Retirement

What do you dream of doing when you retire? Relaxing at home, traveling the world, or maybe a mix of both. Wherever your retirement takes you, you’ll want to be sure your savings can support your future lifestyle. Keep your dreams on track and follow this simple guide courtesy of Peoples Bank & Trust.

When you decide to retire, you start to receive the benefit of those hard-earned savings you’ve tucked away. Interest earned from these savings, along with any assistance you may receive, will soon become your primary source of income. This means that in order to have a successful retirement, you need to have a successful savings.

As of today, the estimated cost of future income is $16.75. This means that if you want to accrue $1 in earned income each year, you need to keep a savings of $16.75 in the bank. Now, let’s say for example, one of your retirement goals is to go down to the local diner each weekend and meet with friends for a cup of coffee. This cup of coffee costs $1.61, and for the sake of simplicity we won’t factor in inflation.

$1.61 x 52 weeks = $83.72 for your yearly coffee.

At $83.72 for the year, that would calculate to be $837.20 over the course of a decade, and $2511.60 over the next 30 years. However, once we calculate the current dollar of future income:

$83.72 x $16.76 = $1403.15 to cover your coffee for 30 years.

By this measure, you can pay for $2511.60 of weekend coffee, over the course of 30 years, by utilizing the $87.72 yearly interest on a total sum of $1403.15.

Concepts like this help showcase the incredible potential your retirement can hold! If you’re curious on how to maximize your savings, stop in today to speak with one of our knowledgeable customer service representatives.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Start Saving for the Holidays in 7 Easy Steps

saveforholidays

The holidays are just over a hundred days away! In three short months, the days will be filled with wrapping paper, holiday cheer, and ringing registers. Instead of waiting until December to begin financing your family traditions, get started early this year, and make it easier on both you and your budget!

Start a Separate Account for Holiday Savings

At Peoples Bank & Trust, we want to help you achieve your savings goal. You can open a Christmas Club Savings Account with a deposit as low as $5. This account accrues interest daily, and a check is sent to you for the balance during the third week of October.

Create an ACH Deposit with Your Employer

Speak with your employer to see if you can set up an additional account for your payday ACH deposit. By doing this, you will start saving a designated amount each month, before you’re tempted to spend it!

Set Aside Your Budget Surplus

If you’re sticking to your monthly zero-based budget, you could end up with some extra funds if you don’t spend as much on entertainment or food as you’ve budgeted for. Add those extra dollars to your savings account to help it grow even faster!

Earn Extra Income to Contribute

Bolster your bank account with a little extra revenue. Whether its raking leaves for a neighbor, babysitting for a friend, or selling unused items online, there are a variety of ways to add some additional earnings to your holiday savings.

Create a Personal Shopping List

Just like going grocery shopping when you’re hungry, purchasing gifts without a list may leave you with more than you budgeted for. Before you begin perusing the stores for the perfect items, sit down and determine the people you will be giving to this season. Once you have the names, you can then decide how much to spend on each, and if there are any specific things you plan to purchase for each individual. This gives you a great game plan, and helps to prevent overspending.

Shop for Deals Early

Who says you have to start buying gifts, or food for that matter, in December! If you see a deal that could save you and your family money on something you already planned on purchasing, act on it! This could be discounted wrapping supplies, a sale on items you have on your personal shopping list, or even large food items that can be properly frozen or stored until December.

Load Up on PTO and Vacation Days Too

The best part of the holiday season isn’t the gifts, or the budget you’ve stuck to so well, its spending time with your family and friends! Before the end of September, map out all of your scheduled time off leading up to December. If you haven’t already, start saving your available time to use during the holiday season. Between multiple family gatherings, Thanksgiving, Christmas, AND New Year’s Eve, you’ll want make sure you’re not left at the office while the family is out having fun.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

4 Ways New Homeowners Can Save on Their Taxes

Home owners

Becoming a homeowner is an exciting and trying time in your life. Once all the papers are signed, and the keys turned over, it all seems worth it. That is until a pipe bursts, lightning knocks out the tree, and your dog decides to burst through the screen door. Not all hope is lost however. In return for your endless work, and commitment to a never ending to-do list, the U.S. Government has provided four tax-based ways to reward you for home ownership. See how to take advantage of these four tax breaks, and make the most of your new home purchase:

Early IRA Withdrawal: For many new homeowners, securing the initial down payment can be the first hurdle in their real estate journey. If you’re a first-time home buyer and have an IRA, or Roth IRA, the IRS will allow you to withdraw up to $10,000, penalty-free, to aide in the cost of your new dwelling!
Valuable Deductions: Between your mortgage interest, mortgage insurance, and real estate taxes, your home deductions could make a big dent in your taxable income. When preparing your taxes as a new homeowner, be sure to bring any mortgage documents, and escrow account information, to your tax professional to gain the full benefit of the deductions.
Renewable-Energy Tax Credit: Did you upgrade your home appliances to more efficient and environmentally-friendly options? Did you install a geothermal system in your home? If so, this helpful tax credit may be able to take a portion of that improvement cost out of your deductible income!
Tax-Free Profit on Sale: When you go to sell your home, the IRS allows you to avoid the capital gains tax on the profits you generate from the sale. This means that if your home’s value goes up $35,000 in the two or more years you live there, you are then able to retain the additional $35,000 your home is sold for without having to pay any taxes on those funds. One other major stipulation of this benefit is that in order to avoid the capital gains tax, you must purchase a new home as your primary residence within the next two years.

With these key homeowner tax breaks, the next thing to put on your to-do list is to make a plan for those tax refunds! If you have questions on how to best budget for your new home, don’t hesitate to stop in. We’d love to talk taxes, financing, or other improvement ideas you have for your home!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

10 Things Financially Successful People Do

Personal Finances

Ever wonder how Mark Zuckerberg or Richard Branson got where they are today? Success doesn’t come easy, but it grows where it is watered. At Peoples Bank & Trust, we want to help you climb into financial success with these simple tactics! Learn how to begin your money management journey with these 10 key actions:

1. Wake up early. The early bird gets the worm! Take care of morning tasks at the start of the day to start crossing items off your to-do list before you leave the house. Paying your bills in the morning can be a great way to avoid stressing out about it later, plus then you’ll know where you stand before the day’s purchases!

2. Say no. No is a powerful word. When waiting in the grocery line, saying “no thanks” to those tempting impulse buys can mean the difference between saving each month and spending over your budget.

3. Create a routine. Pay your bills on time, at the same time each and every month. By establishing a regular bill pay schedule you can ensure that each month you allocate the appropriate funds before the designated day.

4. Treat failure as a lesson. Miss a payment? Over withdraw from your account? No worries, it happens. Instead of getting upset about this simple mistake, take a it as a learning experience. Commit to not making that error again, and determine what steps you can do to stay on track.

5. Organize everything. Between your income statements, taxes, payment schedule and more, ensure that all your financial documents have a designated home. Investing in sound organizational tools will pay off in the long run by eliminating errors and boosting your managing capabilities.

6. Think Long-Term. Do you know where you want your finances to be six months from now? How about six years from now? By thinking beyond your immediate financial needs, you can create a well-rounded plan to help you avoid future financial troubles!

7. Live Frugally. Stretching those hard earned dollars doesn’t always come easy. Cooking instead of eating out, or buying used instead of new are some common ways to save throughout the year. By spending less you can increase your available funds to pay down debt and build your savings.

8. Automate Payments. Between tucking funds away for your 401(k) and paying your cell phone bill, there is a wide variety of ways to automate your money management. For monthly expenses and incomes, automation is a great tool to use. The old saying, “out of sight out of mind,” is tried and true. By automatically debiting your 401(k) each month, you’ll learn to budget your available funds without your subtracted savings.

9. Eliminate Balances. Credit Card and other debt balances pull your credit score down. Boost your numbers up and up by paring down your debt!

10. Grow Your Goals. Setting goals help you and your family determine what it is that you’re working towards. By increasing your goals as you begin to reach more and more of your commitments you can continue building your financial knowledge and capabilities.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

What Your Teen Needs to Know About Money Management

Money Management

Throughout their teenage years, your children will begin to grow their personal money management style. Offer them some assistance by offering these four financial lessons from Peoples Bank & Trust.

Securing Their First Job

No matter if it’s babysitting, lifeguarding, or bagging groceries, there are plenty of employment options for eager high school students. These opportunities typically start at minimum wage with zero benefits, but offer a foundation of experience and learning. Talk with your son or daughter, and help them select positions to apply for that resonate with them. Resources such as the Chamber of Commerce often list local job openings, and are a good place to comb for recent availabilities.

Managing Money

The younger you begin various habits, the better they stick with you. Teach your children the positive effect proper money management can have on their pocketbook. Start by opening both a savings and a checking account for your teen. Each pay period, help them figure ten percent of their earnings to put into their savings. You can also work with them one-on-one each month to help balance their checkbook and plan for any large expenditures.

Saving for College

Secondary education isn’t cheap. If your son or daughter plans on attending a college or trade school, the time to start saving is now! Work with your future student to determine an educational budget, providing an estimate of upcoming expenses. Once you know the amount needed you can set savings goals for both you and your teen to start tucking money away. The sooner you begin your savings journey the smoother the road will be to your target amount.

Making Payments

Whether it’s purchasing their first car or simply covering the cost of meals at school, learning how to maintain a payment plan is an important life lesson. Explain your personal bill paying system to your teen and see how they can tailor it to their needs. Once they have a grasp on the system itself, gradually add payments to your child’s list of responsibilities, even if you add the money to their account. This will help them learn to keep an updated payment calendar before they graduate high school.

Money management is a continual learning process. There are always new techniques or tricks to better arrange your finances. Don’t stop honing your teen’s money management after these four lessons – stop by Peoples Bank & Trust and see how you can keep growing your family’s financial skills today!

Different Ways to Save

Savings

After the bills are paid, the groceries purchased, and the kids taken care of, it’s time to decide what to do with your monthly surplus. One of the most financially responsible choices you can make is to save those additional dollars! By tucking away even a small amount of money each month you can prepare your finances to withstand any unforeseen expenses. Check out these important savings options available at Peoples Bank & Trust, and get started towards your next financial goal.

IRA: These Individual Retirement Accounts are typically divided into two categories, the Roth IRA and the Traditional IRA. It’s best to speak with your financial advisor or tax representative to determine which option best suits your personal finances. These accounts allow you to contribute funds pre or post taxes and after years of accumulation and compounding enable you to withdraw them upon your retirement.

CD: When you have funds that you intentionally don’t want to touch for a set period of time, a CD or Certificate of Deposit, can be a great resource! By depositing your money within a CD you are guaranteed interest on your account, often higher than the standard savings account. You must leave these funds untouched for the agreed period, typically a minimum of six months, ranging upwards to nearly five years.

Savings Account: Your typical savings account can help you manage personal funds without the hassle of navigating around any red tape. With constant access to withdraw and deposit post-tax funds you can set up multiple savings accounts for various needs. These accounts can help you save for emergencies, vacation, retirement, or other important purchases while gaining a small amount of interest.

For all of your savings needs, Peoples Bank & Trust is here to help! Our new account representatives will help you find the ideal savings option for you and your family. Get started and stop by today!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

How-To Protect Your Finances During Vacation

savings

Vacations are about relaxation and enjoying yourself, so don’t let the worry of your finances bog you down! Keep the sunshine your first priority with these traveling safety tips courtesy of Peoples Bank & Trust.

Only Carry What You Need

With beach towels, cameras, and sunblock already filling up your bag, it’s no use bringing extra items that could slow you down. The same is true with your wallet. Keep your pocketbook light with only essential payment options. This not only helps you to not overspend, but also allows you to store other payment options in your hotel safe as a backup in case any cards are lost or stolen.

Contact Your Bank and Credit Card Companies

Before taking off on your next getaway be sure to call both your bank and credit card companies. By communicating your travel plans ahead of time you can ensure that potential purchases aren’t rejected while you’re outside of your typical spending zone. If your card is lost or stolen these are great contacts to keep in mind to protect your finances in the event that they’re compromised.

Use a Credit Card for Major Purchases

If you find that perfect must-have item during your travels abroad it may be beneficial to use your card for larger purchases. With cards like Visa and MasterCard, their payments are accepted all around the world. Additionally, most credit providers have a maximum $50 liability, so if someone does steal your credit card you’re covered!

Plan for the Unexpected

You can plan and plan, but sometimes things happen that you weren’t anticipating. Whether it’s additional food expenses, a last-minute excursion, or a trip to the local urgent care, sometimes things happen. Make your travel fund work to your advantage by adding a cushion of 10% to cover those spontaneous expenses. If at the end of the trip you’re still ahead, you can use the extra money for an exciting last night out, or put it towards your next exciting destination!

Traveling is one of the most inspiring activities you can be a part of! Let Peoples Bank & Trust help you get to your next destination with one of our structured savings accounts. We’ll help you continue crossing destinations off your bucket list, one penny at a time!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

Budgeting for Your Big Day

budgeting

After the question has been popped, answered, and celebrated, it’s time to get into planning mode! Coordinating everything from table seating, gift registries, food, and more – putting together an exciting wedding celebration is no easy task! See how to get the most out of your big day, with these helpful budgeting tips courtesy of Peoples Bank & Trust.

Have the Money Talk with Your Family

One of the great parts about a wedding is the fact that it symbolizes two people, and two families, joining together. Like-minded, the budget is a joint effort as well. Sit down with your parents, spouse, and his/her parents to discuss what can be contributed by each. Once you have decided on a reasonable budget you can begin to look into venues and vendor options.

Be sure to also ask relatives with talents to help with various wedding activities. Whether it’s photography, floral arrangements, or simply singing during the ceremony, you’d be surprised how many talented family members are more than happy to help!

Pick Three

The golden rule to budgeting the perfect wedding is to choose your top three priorities. Whether that’s the food, venue, photographer, or other wedding elements, choose which components you want to put the bulk of your budget in. After these top three it doesn’t mean you can’t spend money – it simply allows you the freedom to save money in the areas that aren’t the main focus.

For the average wedding the top three expenses are the venue, dining, and entertainment, followed closely by the photographer, floral arrangements, and wedding dress.

Staying Under Budget

Like any good budget, staying on top of your numbers is a huge advantage! Be sure to keep all your receipts associated with the event to help track expenses and create a paper trail with your various vendors. Just like your personal finances, it’s a good idea to leave some cushion for the unexpected. Whatever your overall budget is for the event, be sure to leave 5% of it unused for various unplanned changes. This way if extra flowers or drinks are needed, the money is already set aside, headache free!

Setting the date is simply the start of your wedding planning adventure! If you need help structuring your big day’s budget, stop by Peoples Bank & Trust or give us a call at (636) 528-7001, we’d love to help make your wedding a success!

Peoples Bank & Trust Co.

NMLS# 407724

Equal Housing Lender

Member FDIC

How to Create your Emergency Fund and When to Use It

savings

Creating a structured savings plan is one thing that can set apart the financial dreamers from the financial doers! By setting strict guidelines to your goal, and ensuring the correct follow through with a backed up savings plan, you can be certain of your success in accomplishing your future achievement! One of the biggest obstacles in these plans is the unforeseen, and there is a way to manage even that. Using a well-rounded emergency fund can ensure that you don’t dip into saved funds for unexpected costs such as auto repairs, or medical emergencies. Want to get started setting up your emergency fund today? Follow these simple steps and you’ll be on your way to financial success!

Open a dedicated savings account.
Deposit Funds each month without withdrawing anything.
Start by saving $1000.

– Next save 3 months’ worth of income and expenses.

– Finally maintain 6 months’ worth of income and expenses.

The reason you have this fund is simple, to prepare for the unpreparable. Whether it’s an unanticipated job loss, a costly home repair, or other unplanned expenses, your emergency fund can help you stay afloat when the waters get rough.

The main objective of this account is to have it work for you and your needs! By specifically determining what you define as an emergency (job loss, vet bills, auto repairs) and what doesn’t (last minute birthday gift, broken TV, new clothes) you can generate a structured list to know when you feel safe using those funds, and when perhaps its best to leave them untouched. The idea of the emergency fund is to have it when you need it. By gaining access easily via checkbook or debit card, you can use the account more quickly when the unexpected strikes.

By generating your own emergency fund you can continue to save for milestones and pay bills, without worrying about the what if’s that lie along the road to the future. Get started with your emergency account today at Peoples Bank & Trust, we’ll help you get to your next savings goal!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

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