Tag Archives: Financial Education

How Reading Can Improve Your Financial Well Being

Does being a reader make you more of a leader? Well that might be the case in life and the financial world.  When infamous Warren Buffett was asked about his success he pointed to a stack of books and said, “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.” Most likely if you’re reading this article, you already see some value in the declaration and are here for affirmation. However, for those of you who still aren’t convinced and maybe even guffawed at the notion of fitting in that much reading into an already hectic schedule, let Peoples Bank & Trust give you some insight to consider.

It’s a Low-Cost Investment

Instead of taking an expensive flight to a costly conference, you might consider swinging by your nearest bookstore. Because there is no limit to where knowledge can take you, investing in books is a low investment, with an infinite ROI. You can learn from the best in your business field, or pick up a novel.  The jury is still out on whether memory or comprehension is better with print vs. digital, so get what works best for your lifestyle. Owning the book is preferred if you want to become more engaged by writing in the margins, but stopping at your local library is another great option!

Makes You More Employable

You can make a great difference in your success by expanding your education. Generally, knowledge cannot be lost. What you learn from reading a few books will set you apart, in that you already know something that has taken others years to learn from experience. Unfortunately, only 42% of adults will read a book after they graduate from college-just think about how much of an advantage that can give you! You will be a great resource for your team and have greater ability to think on your feet because of the reading “vitamins” you consume. This makes you desirable to potential employers and encourages a higher salary because of the value you bring to the workplace.

Boosts Brain Power

You’ve heard it said, knowledge is power. Are you unhappy about your financial situation? Pick up the Wall Street Journal or the financial matters section in newspapers. You are sure to gain a wealth of information to help you out of your current situation. Some studies show reading will help strengthen your analytical skills, increase your vocabulary and help you to prioritize goals. Your knowledge of the world will be stronger, and you may just notice your financial skills sharpening as your mind is being refined. This is especially true when you read chapter books, as it encourages deep reading and assessment.

The majority of what you read will not only make you a more rounded individual, it will help you to make more sound, financial decisions. You will be a greater financial asset to your company, and yourself. So grab a book, a hot cup of coffee and settle into your next lesson!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Why Your Child’s Allowance Should be Tied to Their Chores

Financial Education

There are literally thousands of how-to’s and self-help books for parents, but truly the only real way to learn how to raise a child is to do it! Luckily our growing team of parents at Peoples Bank & Trust have some true hands-on experience when it comes to upbringing and explaining money management to little ones.

One of the most common fiscal questions parents have concerning their child’s financial education is, “How do I teach them about money using an allowance.” The simple answer is, however you want. There are a number of ways you can utilize a recurring allowance to help your children understand both the importance of good money management and a sound work ethic. Below are two of our favorite strategies:

Example #1: Earn Your Extras

In this scenario, allowances are guaranteed to an extent. Every two weeks give your child a pre-determined amount of cash, say $5.00. That money then has to be split evenly between their educational savings and their retirement savings (yes – retirement savings!) While this money is technically theirs for future use, they have no tangible money to immediately spend. Where the fun part comes in, is the commission. Assign a small dollar value to various tasks around the house. Ensure things like making their bed, or doing their homework are givens, and they are required to do them no matter what. However, extra work such as mowing the lawn, cleaning the bathroom, or cooking dinner, earn a predetermined amount of commission. Paid every two weeks, this commission is then theirs to split between three areas: save, spend, and donate, but they MUST allocate at least $0.50 in each area. This lesson teaches three primary lessons: the first is housework is a part of everyday life and it doesn’t come with a paycheck. The second lesson is that working hard pays off, and the third is that creating a plan or budget for your money allows you to use it as a tool instead of using debt as a burden.

Example #2: Ambition Is Important

There is a viral story trending about a young boy whose allowance was determined by how many self-help books he read and wrote a report on. This simple lesson offers many variations and proves an important point on the dedication to values at a young age. For this example, there is no guaranteed allowance on a weekly or monthly basis. In this scenario, all funds are accumulated via commission. How that commission is earned is determined by you. This can be the number of extra assignments completed or the amount of successfully replicated YouTube tutorials. It could even be the quantity of miles your child is dedicated to running each week. Through this valuable learning experience, you can showcase to them that a solid work ethic is pinnacle to success, and can at times even out earn an education.

However you decide to help your children understand the complexities of personal finance, Peoples Bank & Trust is here to support you. Stop in today, and ask about our designated children’s savings accounts. We’d love to help your family get started on their journey to financial success.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Red Flags to Look for on Your Credit Score

Everyone and their brother seems to be sharing the importance of checking your credit score, but once you have the information, how do you actually know what it means? At Peoples Bank & Trust, we want you to not only have the information about your personal finances but be able to understand and act upon it as well. If you see any of the following red flags while viewing your report, you may want to look into the appropriate remedies as quickly as possible.

 

Missed or Late Payments

Your credit report should accurately showcase your current repayment history, which accounts for approximately 35 percent of your credit score. This area of the report should indicate if any payments have been missed and have been reported to the bureau as late. If you see a payment that you were unaware of, be sure to reach out to the company listed and contact them to pay off the bill in question.

 

Fraudulent Activity

It is possible to view your credit report and find bills or inquiries that you did not initiate. In this instance, it is important to take the appropriate steps to report identity theft and begin recovering your financial reputation. The sooner you alert the authorities and lending organizations to this unfortunate dilemma, the less likely you are to suffer any long-term side effects.

 

Excessive New Accounts

While having more than one account open can positively affect your credit score, attempting to open too many in a short time period can cause a negative reaction. If you see more than two accounts opened in the last three months, you may want to wait before attempting to apply for a credit card or other lending option.

 

Active Collections Accounts

If you haven’t checked your credit score in a few years, any potential missed or late payments may now have spiraled into active collection attempts. In this instance, the best practice is to contact the companies listed and discuss repayment options. Many times if you are actively working to pay down an account receivable, the company will work with you to structure monthly installments that fit within your personal budget.

 

At Peoples Bank & Trust, we recommend checking your credit score each month. If you’d like more information on how to increase your credit score, stop in today. One of our trusted personal bankers would be happy to answer any questions or curiosities that you have.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

10 Steps to Keep Your Identity Secure

Cyber Security

It may seem like protecting your personal information is just one more thing to add to the to-do list, but being proactive now could save you a mountain of work later. At Peoples Bank & Trust, we believe your identity is the most precious thing you have. To help you keep it safe we offer the following steps to help you keep it as secure as possible.

 

  1. Check your credit score. By looking at your personal credit report each and every month, you can catch any potential errors as soon as they occur instead of months or years later.
  2. Never give out personal details. Phishing scams can come by phone or by email. Always be sure to use your designated contact at a company and never give out information to someone you don’t know.
  3. Use software like Lifelock for extra support. Lifelock and other similar companies offer a valuable safety net when it comes to your individual identity. Their services can help to supplement the efforts you complete on a monthly or annual basis.
  4. Keep all sensitive or personal information secure in a safety deposit box. Items such as birth certificates, social security cards, and other valuable documentation can be secured in one of our insured safety deposit boxes. At an affordable annual rate, you can be sure all of your documents are always locked and stored away.
  5. If you’re unsure about a phone call, always check its source. If you receive a call and are unsure of the intentions of the caller, we suggest checking the source of the call through White Page’s reverse number
  6. Be on the lookout for tempting clickbait. As you browse across the internet be wary of clickable links that share controversial titles on the side or bottom of the page. These can lead to spam sites which could harm your computer and/or your personal information.
  7. Remember not to click on attachments from senders you don’t know. When you’re viewing your email, be wary of senders you don’t recognize. If the sender doesn’t appear to be a person or brand you know, avoid clicking on any attached links as they may attempt to hack or spam your device.
  8. Use different passwords for different accounts. There are numerous great services like Last Pass which can help you maintain different passwords and usernames for each of your various accounts. This ensures that should one become compromised, hackers are unable to access any other information through like logins.
  9. Always use upper and lowercase letters, symbols, and numbers when creating passwords. As you’re creating new passwords and accounts, remember to make your logins as secure as possible to avoid becoming an easy target for potential hackers.
  10. Steer clear of public wifi. While public wifi can sometimes be a blessing for the traveling business person, it can also pose a dangerous opportunity for nearby cyber criminals. Unless you gain the wifi password from an employee of the business, never assume signage or non-password protected portals are safe connections.

 

At Peoples Bank & Trust we hope you and your information stay safe. If you ever want to enhance your cyber security or identity theft protection, stop in and speak to one of our personal bankers. We offer services such as safety deposit boxes to help keep your important documents secure, and our team is always available to help if you find yourself facing fraudulent activity online.

How to Tell if a Call is a Scam

Cyber Security

Often times, phishing calls can come off as friendly or even helpful, however, in many instances the caller is malicious and intends to compromise your personal information. Peoples Bank & Trust wants to help you avoid situations like these, and offers the following key prompts to help you identify a fraudulent caller. Keep these five points at the top of your mind the next time you’re wary of an unknown caller:

The matter is deemed extremely urgent by the caller. The biggest and clearest red flag is when the individual calling claims that you HAVE to update or adjust something ASAP. The caller will then indicate that they are from an institution you may know, and they need to know your personal information ASAP. DO NOT give out this information. If you think a company you work with may truly need to update an account, call them at the number you have listed and inquire about the presentation the prior caller shared. Nine times out of ten the company will not be aware of any need to update the information and will take note of the fraudulent call being conducted to its customers.

The offer or promotion seems too good to be true. When someone calls claiming that you have won a foreign lottery, been chosen for an all-inclusive cruise, or received some other once-in-a-lifetime opportunity, chances are it’s a scam. On numerous occasions, fraudsters have used this ruse to illicit payment or personal information to “process your winnings.”  Unless you specifically remember entering into a sweepstakes for the prize you are being called about, this call is a scam.

The person calling is asking for personal information.  Not every time will the caller claim you have won a prize. Sometimes it may be as simple as a person posing as a business contact you work with, asking to verify some information. Whether it’s an insurance company, financial institution, or other entity, always ask if you can call the person back, and call them at the number you have in your records. If this number is different from the one which just called, you may have just avoided a scam.

Reverse lookup the phone number. Sometimes there is just something about a call that gives you a gut feeling that it’s not right. In cases like these, we recommend looking up the number on whitepages.com with their reverse lookup feature. This will not only tell you where the call is coming from, but can also alert you if the number has been flagged as a scam.

With these four tactics, Peoples Bank & Trust hopes you and your personal information can stay safe and secure. If you’re looking for more cyber security tips and tricks, be sure to check our blog. We share a new identity theft related topic each and every month.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

The Most Common Money Problems Americans Face

Savings Tips

For most Americans, the development of personal money management is a lifetime learning process. Faced with firsthand lessons and ongoing expenses, it can be difficult to master the appropriate practices for many common financial obstacles. At Peoples Bank & Trust we want to help you obtain the best financial education possible, and offer these time-tested solutions to get you started.

 

  1. Creating a Budget

There are countless varieties of budgets, with different structures for all types of lifestyles. The real obstacle is finding the option that works best for you, and sticking to it! Nearly any budget format you choose can help you allocate and manage your money, however, it only works when it is consistent. Be sure that you check your balances at least twice a week to be safe. This will guarantee that you adhere to the amounts specified, keeping your expenses in line with what you’ve planned.

 

  1. Managing a Credit Score

The largest aspect of successfully managing your credit score is grasping the reins on where your number currently is. Sites such as annualcreditreport.com offer a federally authorized FREE report once per year from each of the three reporting bureaus. This gives you an all-encompassing view of your current credit standing, showcasing some key places for improvement. Many credit card companies now offer additional credit monitoring tools to help you keep an eye on your score month-to-month. We recommend checking it at least once every three months, to be sure you catch any errors or inquiries that may occur.

 

  1. Saving for Retirement

Due to the longevity of this venture, many people postpone the start of this savings process. However, in this situation, time is of the essence! An extra decade of saving could effectively double your money if you have an appropriate compounding interest rate.  We recommend starting your savings as early as possible, through either a company 401(k) or an independent IRA. The sooner you start, the longer you have for your funds to grow while you continue contributing to their ongoing prosperity.

 

  1. Paying off Student Loans

Debt is never something we want to hold onto. However, with over 44 million Americans borrowing funds to cover their continued education, the issue of student debt has become increasingly relevant. While we do suggest paying your loans off as quickly as possible, it is also important to ensure you take advantage of your time when starting to save for retirement. Every situation varies, and there is no blanket statement for every scenario. However, as a general rule of thumb, we recommend approaching your student loans with the snowball method, paying them off in order of least amount owed to greatest, while making the minimum contributions to your retirement savings.

 

Whether you’re ready to set-up a new savings account or create a new budget to better manage your debt, our team of professionals is here to help! Stop by your nearest branch, and speak with a qualified personal banker today.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender