Category: Personal Finances

Most Common Money Mistakes to Avoid in Your 30s

Welcome to your 30s! This time of life is exciting, eventful and often comes with many financial decisions. These decisions have a big impact on your future as well as the future of your family. We hope you can learn from others’ mistakes and make smart money choices for a bright and less stressful future.

Avoiding the Retirement Planning

No matter what age you are, retirement often seems too far off to even imagine. In reality, it will sneak up faster than you think and the earlier you start preparing, the better off you’ll be. Talk to a financial advisor and get planning – your future self will be thankful you did!

Living Beyond Your Means

Comparison is dangerous and you might find yourself comparing your financial situation to others’. Doing this causes many people to make purchases they can’t afford, accumulate debt and end up regretting it. Now is the perfect time to build your wealth, so stick to a budget and make sure you’re living within your means.

Breaking the Bank for Your First Baby

Whether you have your first child in your early 20s or later in life, this is a common mistake so many first-time parents make. The medical expenses are one thing, but when excitement takes over, you may find yourself making big and often unnecessary purchases for your new arrival. Enjoy these times while you can, but remember to invest in your child’s future, too.

Money Planning Before the Wedding

If you plan on getting married soon, don’t forget about having the money conversation. It might not be appealing to discuss finances with your partner, but planning your financial future will help you avoid the common arguments and conflict that money can bring about in marriage. It’s also important to have a common financial goal when you’re married so you can be on the same page and both work towards achieving it.

Whether you get married and have kids or not, this decade of your life will hold many important moments and decisions. We hope you can enjoy these moments while still making smart choices for you and your family’s future.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

5 Games That Will Help Your Kids Learn About Savings

Teaching your kids about saving money can be quite the undertaking. Luckily, there are games and fun ways to help your children engage with this learning process. Check out these 5 games that will help your kids learn more about saving.

1. Monopoly

Not only is Monopoly a fun family game, but it’s also a great game to teach kids about money. The game can get lengthy, but it teaches some valuable lessons. Not only do you learn how to save your money, but you also learn about making good purchasing decisions and investing. There are other fun versions of Monopoly that can cater to your child’s interests, such as Star Wars Monopoly, Pokémon Monopoly, Disney Monopoly and many more.

2. Online Games

There are countless online games made for the purpose of teaching kids about money. Simply search “money games for kids” in a Google search and you’ll find a bunch of options. You can find a game that fits your child’s age, interests and the topic that you want to teach them. Two examples of popular online money games include Change Maker, where the user practices counting money, and Financial Football for those big sports fans.

3. MySims

MySims is a popular video game where you become a character who is placed in a real world setting. Players have many roles in this game, like building new places and attracting residents to their town, but they also use a form of currency called Simoleons. As the player, you’re responsible for managing your Simoleons well and spending them wisely. This game teaches young kids the importance of saving and the consequences of impulse buying.

4. The Game of Life

Another very popular and common board game is The Game of Life. Players go through important stages of life, deciding things like if they want to go to college, what career path to take, when to buy a home and much more. Along with these decisions, players start with a certain amount of paper money and make purchasing decisions that affect the outcome of their role in the game.

5. Pretend Bank

Sometimes the simplest at-home games are the most fun for kids. Try creating fake money by cutting up paper or using money from board games you already have at home. Your kids can pretend to be the banker or the customer, either having to count and collect money or make decisions on how to spend it. There are lots of additions that can be made to this simple game, like making a fake grocery store of play food or a fake toy store. With these, kids are able to decide how much to buy, how often to buy it and decide if they really need it or not.

There are limitless options when it comes to games involving money. Teaching your kids these money saving skills while they’re young prepares them for the lifelong money choices they’ll make in the future! Open a savings account for your child when you feel they are ready for real money decisions.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How Much Does a Pet Really Cost?

If you or someone you know has a pet, you understand there are lots of factors that go into purchasing one. How do you know if getting a furry friend is the right decision for you? Keep reading to learn about the one-time pet costs you might not have thought about.

Initial Adoption Cost

The most obvious payment you’ll make when purchasing a pet is the cost of actually adopting one. What you’ll spend for adoption completely depends on the breed, size, gender and type of pet you go with as well as the place you get your pet from. Buying from a breeder can cost anywhere from $300 to $1,500. If you’re looking to save some money, consider adopting from a shelter as the average rescue pet costs only $70 to $300. The type of pet you are interested in completely changes the cost, so if you’re on a tight budget but you really want a pet, go with something more wallet-friendly at first like a fish or a hamster.

Food

You’ll start by purchasing one bag or container of food, but the money racks up over a year. For starters, an average big bag of dog food costs anywhere from $20 to $50 depending on the brand. Over the course of the year, though, the cost of food can reach $200 or $300 total. A fish, on the other hand, only eats a couple dollars’ worth of food per year.

Medical Costs

There are various forms of medical attention your pet will need, especially dogs and cats. They’ll need to go to the vet for vaccinations, which can cost anywhere from $50-$300. Secondly, to protect against heartworm, ticks and other things, you’ll spend about $50-$100 for prevention. Getting your pet spayed or neutered costs $50 to $300, and a microchip is about $50. Some pets don’t require much medical attention at all, such as a hermit crab.

Startup Items

The items to get your pet journey started could include things like toys, crates, leashes, a bed, tags, bowls, a collar, brushes, training pads and pet shampoo & conditioner. Just to give you an idea of some of these expenses, a dog bed or crate could cost $20 to $100 depending on the brand. No matter what kind of pet you get, you can’t escape the startup expense. Fish and crabs need a tank, hamsters need a crate, birds need a cage… the list goes on. Some startup items are definitely cheaper for some pets than others!

If you’ve been looking into getting a dog, be sure to consider all of the price factors that come along with owning one. If you have always wanted to own a pet but don’t have the money for the dog you’ve always dreamed of, the good news is that there are cheaper pets out there. Whatever you decide, do what’s best for your bank account and live within your means. Not sure if you’re financially ready for a pet? Contact us – we’d love to help!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Our Complete Guide to Saving Money

Saving money isn’t a one-step process – there are tons of tips and tricks out there to help. We’ve narrowed it down to some of the most practical but impactful changes you can make to maximize your money saving.

Plan Out Your Grocery Trips

Going to the grocery store without a plan can be a dangerous game to play, and most people spend way more than needed at those registers. Start by planning out your meals for the week and only purchasing what you need for those meals. You’ll be doing your wallet and your body a favor!

Cut Down on Those Subscriptions & Memberships

Netflix now has over 150 million people subscribed to their service, so this step most likely applies to almost everyone. Some subscriptions are fine to have, but there are many unnecessary and unused memberships out there. They might seem relatively cheap per month, but once you add up all of the subscriptions and all the months of use, you’d be surprised how much money you could have saved without them.

Set Up Automated Savings

If you haven’t set up your bank account to automatically transfer money to your savings yet, it’s time to start. It might be weird and frustrating at first, but soon enough you won’t even notice the money you’re missing, and your future self will thank you!

Sell What You Don’t Need

Go through everything you own and sell the things you don’t need anymore. The random items you have laying around can add up, and odds are you won’t even notice that they’re gone. This is a great way to invest in your emergency fund, too!

Skip the Restaurants & Coffee Shops

You’d be surprised how much of a difference preparing things at home instead of going out can make. For example, most people spend around $2-$5 at a coffee shop, while making coffee at home only costs about 16 cents per cup. Start skipping overpriced food and drinks and start making some homemade goods!

Save Some Energy

Not only is saving energy good for the environment, but it’s great for someone looking to save money, too. Your electric bill can make a big difference in how much you pay per month. Take a few practical energy-saving steps, like taking shorter showers and shutting off unused lights, to see a big drop in your bill.

Taking some practical and simple steps towards saving money will produce big results. There’s no better time to start saving than now, so open a savings account with us and give these tips a try!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Spring Cleaning Your Budget 101

Maybe you’ve started a budget but have found it complicated, time-consuming and not worth it. In the spirit of springtime, consider cleaning up your budget and starting fresh. A new season means a new and improved budget!

Find A Purpose

What’s the reason you started a budget? Maybe you are saving for your wedding, or possibly wanting to reduce your debt. Whatever the purpose is, make it clear and remind yourself of the reason you started. This will give you motivation to continue sticking to your budget!

Establish Your Priorities

What’s your main finance priority right now? Two of the most important concerns should usually be building an emergency fund and repaying debt. Keep these things in mind and be sure to incorporate them into your budget.

Write Everything Down

Sometimes the best way to clearly see the problems in your budget and spending is to put everything on paper. One idea is to keep a pen-and-paper list of every single thing you spend for an entire month. Look over the list at the end of the month, and you’d be surprised at the changes you could make to your budget.

Learn From Your Past

If you’ve tried budgeting before, you probably know a little about what works for you and what doesn’t. For example, let’s say you went way over budget in the month of December because of Christmas. Try adjusting your budget in other months to give yourself more leeway in December. Take what you’ve learned into account and make alterations to your budget based on them.

Plan For The Unexpected

Maybe in the past you stuck to your budget, but out of nowhere, something threw a wrench in your plans. You could lose your job, have car problems, need maintenance on your house… the list goes on. This is where your emergency fund comes in; having a backup plan relieves a lot of stress!

Be Proud of Your Progress

Whether you’ve saved thousands of dollars already or just recently decided to start budgeting, you’ve made important progress. Take a moment to gain motivation by looking at how far you’ve come!

Budgeting can seem scary and complicated at first, but sometimes you just need to take a step back and plan your next steps. This spring is the perfect time to start fresh with your budget! Open up an account with us to store your savings this year.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Homeowner Costs People Forget About

Are you thinking about taking the big step of becoming a homeowner? Purchasing your first house is a significant and exciting change, but it can be easy to get caught up in the excitement and forget about certain costs. If you want to make sure you have all of your financial bases covered before owning a house, keep reading!

Lawn Upkeep

The cost of maintaining a lawn is one people often underestimate. Whether you hire someone to keep your lawn looking fresh or decide to do it yourself, it will cost some money. Besides needing a lawn mower for cutting your grass, keep in mind things like pest control, weed killer, fertilizer and landscape. Some other equipment needed in lawn upkeep includes a hose, sprinkler, rake, weed wacker, trimmers and much more.

Keeping it Clean

Keeping a house clean is much more challenging and costly than cleaning a small apartment. Many families not only add onto their collection of cleaning supplies, but usually double almost all of the supplies they own. It may sound unnecessary, but once you have to start making trips up and down stairs to clean different levels of the house, you might want to double your supplies, too.

Property Taxes

One of the biggest payment differences between paying rent for an apartment and paying a house mortgage is property tax. It’s important to figure this out beforehand and add it to your estimated monthly payment so you know what to expect. To get a general idea of how much you’d be spending in property taxes, use an online property tax estimator.

Immediate Renovations

After buying a house, it’s normal to want to turn that house into a home. Homeowners are constantly looking for things to improve, like redoing the kitchen cabinets, fixing the deck, changing the wall colors, finding a new floor you love… the list goes on. Keep in mind when house hunting what you’d want to change about the houses you look at and add this to the list when considering your expenses.

Time

This one seems obvious, and although this particular cost won’t be coming out of your pocket, it’s a very important component to consider. Owning a house means doing everything yourself – something you didn’t always have to do while living in an apartment. Keeping up with maintenance, dealing with pest control and tending to the lawn are some of the many time-consuming things that come with being a homeowner.

Now that you’ve considered some of the unexpected costs of owning a house, you’re able to make a more informed decision on if taking this step is the right choice for you right now. We offer mortgages that will help your homeowner journey become a little smoother.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

5 Things to Teach Your Kids About Money

Parenting isn’t easy, and we are here to help you in whatever ways we can. Keep reading to learn about these 5 simple and important things to teach your kids about money!

1. The Importance of Saving

The easiest way to encourage your kids to save money is by getting them a piggy bank. Some kids are fascinated by the piggy banks that automatically count your change, and other kids would enjoy a lovely glass pig to keep their money in. Go to the store and let them pick out a piggy bank they love, and they’ll soon find that keeping their money inside is enjoyable. Encouraging them to put their earnings in their piggy bank will teach them the importance of saving money early on.

2. How to Make Money

Implementing chores as a regular thing is a great way to teach them about earning their money. Start simple and give them a small allowance when they help out with some household tasks. Giving your kids an allowance without having them work for it is giving them the wrong idea about money. Chores are a perfect way to get your housework done quicker, and you’re teaching your kids a valuable lesson while you’re at it!

3. The Danger of Impulse Buying

Kids tend to be very impulsive and often have a hard time thinking through their decisions before making them. Teach them about the danger of impulse buying by not giving them everything they ask for right away. For example, if they see a toy in the store that they’re interested in and immediately ask for, don’t give in. Start saying “no” and explaining why it’s not a smart purchase. Kids learn by observing, so make sure you’re controlling your own impulse buying so they are observing good spending habits.

4. How to Budget

If your middle school or high school child has a part-time job, odds are they don’t have a whole lot to provide for quite yet. Teach them the importance of budgeting while they’re still living under your roof so when they move out, they’ll already know how. There are lots of helpful budgeting apps or plans online to get them started on.

5. Giving Back

Giving back is an important part of being an active community member, and also teaches kids other great qualities like being selfless and considerate. Let them choose a charity, organization or church they are interested in and teach them the importance of giving.

If we all do our part to teach our children about money, we’ll be bettering the next generation. Open a savings account for your child with us!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Financial Planning Basics

If you’re thinking about revamping the way you handle your finances, the first step is to plan. If you lay the details out and write things down, you’ll be much more likely to follow through and be financially wise. We’ve gathered some of the basic and practical tips when it comes to financial planning!

Start an Emergency Fund

You don’t realize how fast your money can disappear until an emergency happens and you have no choice but to spend your hard-earned money. Planning and implementing an emergency fund into your finances is so helpful and gives you a sense of peace knowing you have a backup. This emergency fund can start small and build over time, but having some sort of cushion in case of emergencies is better than nothing.

Live Within Your Means

This is a hard concept for many people to grasp. The mistake of living beyond your means for a temporary period of time is commonly made and always regretted. Remember the stage of life you’re in, then think about the unnecessary items you’ve been spending money on. Living within your means is easier said than done, but your future self will be thankful.

Review Last Year’s Spending

A great way to plan ahead financially is to look back on previous years’ expenses. If you’re hoping to save more money this year, reflect on your purchase regrets or unnecessary spending from the year before. What did you spend money on last year that you really didn’t need? Now start cutting back on those things in the future.

Contribute to Your Retirement Plan

Studies show that millennials are waiting longer and longer to start saving for their retirement. With things like student loans, housing, cars, etc. it’s not easy to save for so far in the future. It might seem far away now, but it will come sooner than you think and it’s much better to be prepared. Start small if needed and work your way up, but start nonetheless.

Save, Save and Save!

Start factoring savings into your expenses. If you put it on the backburner while trying to meet all of the other expenses first, you won’t be able to build up a healthy savings account. Set aside a certain percentage of your salary before paying all of the bills, or to make it even easier, just have it automatically deducted into a savings account.

These are just some of the many factors that go into smart financial planning. It’s always nice to be reminded of the basics, because sometimes those are what make the biggest difference! Start planning your finances wisely today by opening an account with us!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How To Save On Your Taxes

Are you kicking yourself for how you handled last year’s taxes? You can feel better about next year by learning a little bit about tax savings now.

Consider Donations

Not only is donating to charity a great way to give back to the community, but it is also a smart way to have a tax write-off. It needs to be a charity that is recognized by the IRS in order to do this. This will require some organization on your part over the course of a year. You will be required to have written records. It should say the date of the contribution, the amount you gave and to who. If the amount is over $250 and you don’t have a receipt, the IRS may reject it.

Increase Contributions to Your Retirement

If you contribute to a 401(k) plan or an individual retirement account, you can reduce your income tax. You would need to increase the amount that is withheld from your paycheck automatically.

Start Saving for Your Child’s College Tuition

It’s never too early to start saving for your child’s education. A 529 is a college savings plan similar to an IRA except it’s for college. The contributions grow tax-free, and withdrawals are not taxed for a college education. You can either use this for your children or for yourself to take a fun college course in retirement.

Review Tax Credits for Children

Having children is incredibly expensive. Double-check that you’re getting all the tax credits you qualify for. You can itemize medical and dental expenses. As we all know, these costs don’t come cheap. Whatever you are paying out of pocket for these costs may be itemized along with the child tax credit.

Begin a Health Savings Account

To help decrease some of the common stress of medical bills, consider starting a health savings account. Contributions made to an HSA are pre-tax dollars that can be applied to medical expenses. If you contribute the maximum amount, you can potentially save thousands on your taxes this year.

It is possible to pay less in taxes next year; you just need to put the work into finding some ways that you qualify for exemptions. For more ways to save, contact us at Peoples Bank & Trust.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Graduation Is Coming – Have You Been Saving?

It’s never too early to save for college. Some parents start college funds even before their kids are born. If you have yet to jump on the savings train, it’s not too late to get serious about saving while in high school. The average cost of in-state tuition is around $10,000. Every dollar that you can save now will make a difference in the long run.

Beef Up Those Grades

If there’s any time to hit the books, it’s now. Grades never mattered as much as they do in high school. Colleges will look at these to determine scholarships and admission to their programs. Even though getting good grades takes some effort and dedication, it will help you financially in the long run. Not to mention it will help to make you a better student in college, which may lead to you getting more scholarships in college.

Get Involved

Don’t shy away from putting yourself out there! Sign up for extracurricular activities whether they are academic or athletic. Colleges will like that you have interests outside of the classroom. They may notice that you’re a team player, creative or like to challenge yourself.

Look for a Side Gig

Don’t turn away from a part-time job! Any money you save now can make a difference, especially if you’re able to work all four years. Even if you make $400 a month, that is potentially close to $20,000 you can have by the time you graduate.

Take AP and College Courses Now

Advanced placement classes are incredibly challenging. However, if you’re able to take them and do well on the final exams, you can earn college credit for free! Take advantage of every opportunity you can to get college credit while in high school. Any classes you take while in high school are free. Think about how great it would be if you could cut down your college years by a year or more!

Start Scouting for Scholarships

Another side job you should consider is researching and applying for scholarships. There are scholarships for nearly everything – even being left-handed! Consider spending an hour writing a scholarship essay, and you could end up receiving $1,000. You just made $1,000 an hour.

Start a 529 Plan

Is high school too late to start a 529 savings plan? Absolutely not. There are tax benefits to having one that will still be a helpful fund towards college admission.

To learn more about ways to save or starting a savings plan, contact us at Peoples Bank & Trust.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Avoiding the Retirement Planning

Living Beyond Your Means

Breaking the Bank for Your First Baby

Money Planning Before the Wedding

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