Tag Archives: money

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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-bank

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

money

Money Management for College Students

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

1. Create a Budget

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

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

2. Buy Used, Not New

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

3. Be Smart With Your Credit

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

4. Take Advantage of Free Entertainment

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

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

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

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

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

The Argument for a Monthly Money Meeting

Personal Finance

Whether you’re recently married, or you’re approaching your 30th anniversary, you know that money can be a topic of controversy among couples and families. Even in the most perfect relationships hardships happen, and decisions have to be made. At Peoples Bank & Trust, we think there is a helpful and long-term tool that can help you have less conflict and more compromises while contemplating both goals and solutions. The answer is relatively simple, talk it out, however, the complicated part is how.

The first thing you need for a successful money discussion is an agreement between all persons to refrain from defensiveness and accusation. With this mindset, you can openly consider both positives and negatives of past and future financial decisions. Each month set a time where you and your spouse or family can get together and determine your current financial landscape. Discuss the highs as well as the lows, and gain perspective from each individual on where they feel the money is best spent or saved. Once the past month is discussed, start making a list of any suggested changes for the upcoming month.

The list should detail any adjustments that are going to be made, and the desired outcome they hope to generate. The meeting participants can then choose which, if any, changes are warranted and should be enacted.

This meeting not only keeps a continuous dialogue with you and your spouse or family but also allows you to have a fresh look at your finances every month, ensuring all bills and saving initiatives have been completed before the meeting takes place.

Other great tips we suggest to continue improving your money management:

  • Calculate your net worth every six months. This will help you with the large scale view of your family’s financial well-being and see where you can find additional ways to continue to grow.
  • Set new goals when you surpass the old ones. The worst thing you can do for your finances is to do nothing. If you knock your latest goal out of the park, Peoples Bank & Trust challenges you to make an even more challenging goal and find a way to make it happen.
  • For spouses, have joint and individual accounts. By structuring your finances together and apart you can ensure your joint account holds all the necessary funds for any household expenses, while each person’s private account can be used at their own discretion.
  • Designate a bill payer. Determine who in your house will be in charge of paying the monthly invoices and balancing the checking account throughout. By allowing one person to be responsible for this task you can ensure bill are not able to be missed due to misinterpreted communication.