Category: Personal Finances

baby-hand

Smart Money Choices for First-Time Parents

Entering parenthood can be one of the most exciting yet scary times in life. The financial aspect of raising children is just one small piece to the parenting puzzle, but it’s an important piece. We’re here to help you make smart money choices you might not have thought to make. 

1. Re-think Your Budget 

Budgeting for two is completely different than budgeting for a family of three. The list of supplies needed for a baby is long and continues to grow as the baby gets older. Spend time sitting down with your partner to map out a new and improved budget for when the baby arrives. 

2. Get Rid of Debt 

It’s easier said than done, but if you’re in debt, getting rid of it before your baby arrives will be extremely beneficial. Not only will the debt still be lingering until you pay it off, but on top of that, you now have a baby’s expenses to pay for. Don’t let the baby purchases add to the pile of debt you’re in – instead, try to remove your debt before the baby even arrives. 

3. Start a College Fund 

Although it may sound like you’re getting ahead of yourself by saving for your newborn’s college tuition already, your future self will be thankful. 18 years goes by faster than you think and the cost of college continues to grow as time goes on. The sooner you start saving, the less stressful paying for tuition will be down the road.  

4. Don’t Forget About Retirement Planning 

Just because a new member is entering the family doesn’t mean you should put your future on the back burner. Remember to make your retirement fund a priority, too. Not only will this be of benefit to you, but it will take the financial stress off of the entire family’s shoulders in the future. Grow your money with compound interest by starting sooner rather than later! 

5. Increase Your Emergency Fund 

Just as your budget changes when you have a child, so should your emergency fund. With another person in the house comes more possibilities for an emergency to happen, so you’ll want to be prepared. Increase the emergency fund you currently have to have greater peace of mind when disaster strikes. 

Exciting times are ahead and with a new baby comes great joy. Becoming a parent can be scary, but with some planning, you’ll feel well prepared and excited. We hope this financial advice will benefit you and your growing family in the years ahead.  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

piggy-banks

Finance Tips for Newlyweds

Whether you’re getting married in the coming years or just recently said “I Do,” this exciting time of your life comes with things to think about and discuss. How you manage money will change and be adjusted once you get married, so planning it out beforehand is a must. Here are some tips for you and your partner to remember for after the wedding day. 

Talk about your debt 

Honesty is key in a relationship, which means it’s time to be honest about what debt you have. Whether you have student loans, a car loan, credit card debt or something else, knowing how much there is left to pay is important before planning your budget. This might not be the most fun conversation to have, but it’s an important one nonetheless. 

Discuss your financial past 

How your family handled money when you grew up can play a part in how you deal with finances when you’re older. It’s always a good idea to hear where your partner or spouse is coming from to get a better understanding of why they do things a certain way when it comes to their finances. 

Plan a new budget 

Once you get married, your individual budgets become one. Figuring out a monthly household budget is important so you’re on the same page. A good place to start is listing all of your monthly expenses, then deciding which ones aren’t necessary. Knowing what your budget is will help both of you avoid overspending. 

Decide on a bank account option 

Something to consider is whether you plan on having a separate or joint bank account. While there are pros and cons to both, one decision might benefit you over another. Once you decide what to go with, you’ll have to go over the cons of that choice and figure out how to handle issues that may arise in the future. For example, if you choose separate bank accounts, you’ll have to decide how to handle separating bills. On the other hand, with a joint bank account, budgeting can become a future issue. 

Think about retirement 

Retirement might seem far out, but it’s something that will play a big role in your life together. It’s better to start saving for retirement sooner rather than later. 

Keep the conversation going 

Continue talking about finances after you get married – conversations about money are important in every phase of life. Keep the financial talks going so you stay on the same page. 

Congratulations on your soon-to-be or new marriage! We wish you and your spouse the best and hope these financial tips can be beneficial to your relationship. Contact us to learn more about our financial services!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

money

Simple Money-Saving Advice for Big Families

With each new addition to the family, expenses rise and finances can become more difficult to handle. That’s no reason not to enjoy having a big family, though! With these simple and effective money-saving tips, you can maintain peace of mind knowing you’re handling your money in the best way possible. 

Check the Discount Stores 

Going to a thrift store or discount store is especially helpful when shopping for kids’ clothing. Since the day they’re born, children grow out of their clothes faster than ever and the new clothes shopping can seem endless. Secondhand stores can be lifesavers for large and growing families! 

Do Your Research 

Before making larger purchases, make sure to do some research and compare what different stores have to offer. You can also find out if any sales are coming up as well as find coupons online. Putting a little bit of extra time towards research can save you lots of money! 

Don’t Fly When You Can Drive 

If you’re planning a family vacation, driving instead of flying will save you hundreds if not thousands. When you drive, you can take your entire family on vacation for the same price as just one airplane ticket. If you don’t want to take the family vehicle, you can rent a car for a much lower price than flying. Not only will it save you money, but it provides time for some great family bonding, too! 

Make Grocery Lists 

Going into a grocery store with your big family without a list is a recipe for disaster. Avoid the hassle of everyone throwing what they want in the cart by making a list and taking fewer people along. Relying on your grocery list can help you stay away from buying more items than you need, plus it can help you stick with healthier choices, too. 

Save for the Future 

The time will come when all of your kids will be old enough to need money for a whole new range of things. Whether it’s for a high school prom dress, a first car or a new iPhone, the expenses will continue to rack up. Eventually, they’ll be heading off to college and you’ll want to be prepared for those costs, too. Keep in mind what future payments will be down the road so you can adjust your budget accordingly. 

Having a big family comes with all sorts of wonderful experiences, and every member of the family is just another person to love. Keeping up with the finances of a large family can be tricky, but it’s doable – sticking to these helpful tips will make a big difference! Start by opening a savings account with us today.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

piggy-bank

How Can My Teenager Start Saving for the Future?

High school years are often tricky when it comes to money. Your teenager might have a part-time job, but how can they start using that money wisely and investing in their future? Keep reading to find out how you can guide your child towards smart financial decisions.  

Open a savings account and don’t touch it! 

The first step is for your child to open a savings account. Here they can stash a percentage of the money they’re making for future use. Time works wonders on money, so investing what they have will allow it to grow and become much more than it once was. That’s not all, though – make sure their savings account is strictly for saving and that it’s not being tapped into for other reasons. This will help them work on patience and self-control, too! 

Record and keep track of purchases. 

A great way for your teenager to find out if they’re overspending is to put it on paper. Have them keep a book and write down all the purchases they make. At the end of each week or month, they can look back at what they’ve spent and know what changes to make in their spending habits. 

Find a part-time or summer job. 

If your child is too busy to work during the school year, a great solution is to help them get a summer job. If weekends are open, they could even find a part-time, weekends-only job during the school year to help rake in some extra money. Working during summer break might not sound appealing to them, but many jobs aren’t bad if they are interested in what they’re doing. A common summer job that many high school students enjoy is lifeguarding since they can still be outdoors. 

Get a jumpstart on an emergency fund. 

If you haven’t talked to your teenager about the importance of an emergency fund, now’s a good time to do so. If they start putting money aside for emergencies only, they’ll be way ahead of the game by the time they need one as an adult. It’s never too early for your child to start investing in their future. Odds are, down the road they’ll need that emergency fund and will be more than thankful they started it early. 

Plan ahead and set goals. 

Once your high schooler graduates, they’ll be paying for things they might not have thought about. One smart move is to think ahead about what they’ll need to pay for so they can set a goal amount to save. For example, maybe they’ll need to buy a car, pay for college, move out and pay for rent, etc. Whatever it may be, having a goal in mind is a good motivator. 

There’s nothing better than planning ahead, achieving your goals and getting a jumpstart on the future. Your teenager will thank you later for guiding them towards smart financial decisions, and the best time for them to start implementing these tips into their life is now! To help them start saving, set up a savings account with us today! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

money-chain

I’m in Debt – What Should I Do?

While struggling with debt isn’t uncommon, getting out of it as soon as possible is important. Student loans, car loans, credit cards and other payments can lead to your pile of debt getting bigger and bigger. So, what steps should you take if you are in debt? Keep reading to find out. 

1. Clean Out Your House & Sell What You Don’t Use 

Start small and simply sell the things you don’t need. You’d be surprised how many things you have around the house that you never use. While doing this won’t erase your debt, it will give you some extra money to put towards paying it off and help you recognize some of the unnecessary purchases you’ve made. 

2. Find a Side Job 

If you have a full-time job but have weekends open, finding a part-time job to fill that time would be extremely beneficial. Working on your days off might not seem ideal, but if you’re serious about paying off your debt, it’s a great step in the right direction. Just remember these circumstances are temporary and the bigger your steps towards erasing your debt are, the quicker you can get it done. 

3. Analyze Your Spending Habits 

The best way to understand your spending habits is to write all of your payments from the last month or two down on paper. Once you see everything in front of you, try dividing that into categories – necessary expenses (like rent, utilities, groceries, etc.) and unnecessary expenses (coffee trips, clothes, video games, etc.). Now that you see how much you’ve spend on things that aren’t necessary, start rethinking the way you handle your money every day. Next time you think of buying that cute shirt, ask yourself if you need it. These small purchases add up and the money could be put towards your debt, instead! 

4. Never Spend More Than You Make 

How do people get into debt? They spend more money than they’re bringing in. If you’re trying to get rid of debt, you definitely can’t be adding more money to that pile. Trim down your budget so you know you’re making more than you’re spending. The best way to know if you’re doing this is to simply track everything you spend and everything you make. At the end of your pay period, make sure the money earned is higher than the money spent. 

Paying off the debt you owe might seem like a big job, but freedom from debt starts with taking the first step. Start by implementing these effective tips into your daily life, stay organized and keep a positive mindset. Debt is temporary if you work hard and stay motivated! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

piggy-bank

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

toys

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

dog

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

money

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

piggy-bank

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