Tag Archives: saving

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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

Savings Resolutions For The New Year

resolutions

Now that we’ve welcomed a new year, we must also begin welcoming new saving habits. Setting reasonable resolutions isn’t always the easiest, which is why we wanted to offer some simple ideas to start. Begin promoting your financial positivity by picking one or two of these savings resolutions to implement for the rest of the year!

Make extra mortgage payments

Making your minimum payments on what you owe is completely fine. However, try stepping up your game by increasing the amount you pay towards your mortgage. We understand you can’t make extra payments each month, but when you can, put your cash towards that. You can even utilize a financial calculator to help!

Open a new savings account

We offer savings accounts that match your needs. Opening a new account will help you allocate money to a specific purpose. For example, one savings account could hold your normal funds while another is specifically for emergencies. Figure out what will work for you best and divide your money accordingly.

Save more for retirement

Until retirement hits, many people don’t think about putting plenty of funds towards it in their 20s and 30s. However, if you wait to save until you’re older, you won’t be able to have enough funds. Start thinking about how much you will actually need when the time comes to retire. A good rule of thumb for your 20s is to save 10% of your pre-tax income. When you come to your 30s and begin saving, you’ll need to save 15-20%. If you start saving in your 40s, 30% will be the number to save.

Track your spending

Many don’t realize the positives of tracking how much is spent each month. Knowing how much money you make and where it goes every month will help you budget better. This will help you realize where you are spending too much and find ways to save!

Build an emergency fund

If you don’t have an emergency fund, this should be your first item on your resolutions list. The unexpected happens, well, unexpectedly. Don’t get caught off guard without the money to fix your problem. A new HVAC system or car can be needed out of the blue, and you’ll want to be sure you’re prepared for random expenses. If you already have an emergency fund, great! But, you’ll want to work on growing it. That 500-1,000 dollars you have saved for emergencies won’t be enough to buy that used car you need when yours quits.

Only pick one or two of the above items to implement this year. Once you’ve locked down your resolution, begin thinking which one you’ll pick for the next year. With these ideas in mind, you’ll be able to get closer to your financial goals sooner than expected! If you need help growing your funds, contact us – we’d be happy to provide a solution for you.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Ways You Can Teach Your Kindergartner About Finances

finances

Finding ways to make money fun can be difficult when working with your little one. However, starting money management off right when they’re small is a must! Use these tips and tricks to teach your kid to be a successful money master.

Utilize Clear Jars

Use a clear jar to allow your child to see their money grow. Just talking about how their dollar from yesterday is two dollars today doesn’t click for them. Let them put money into a place where they can continuously see it grow larger and it will maintain their interest in the saving lesson. Show excitement when they add to it because if mommy or daddy is enthusiastic, they will be too!

Start an Allowance

Help your child learn that time is money. Unloading the dishwasher could be worth a dollar while folding all the laundry could be worth two. If one job takes longer than the other, show that with the amount they obtain. Increasing the amount as they age can also show them how you grow with the jobs you get because of your new level of education. Help them see that money is earned, not just given.

Make It Visual

Your youngster will not understand the concept of saving by simply discussing it. Their short attention span calls for some innovation. Make a chart for chores to help them stay on task by coloring in a square next to the chore when it is complete. Different colors can help classify the item as more money or higher importance.

Teach Them to Give

Generosity is also an important lesson to teach at an early age. Have your child pick a cause they are excited about – pet shelters, for example, are a great choice! Your child can see where and what their money is going to. Helping others is a great quality to establish for the future. If they don’t know where to donate to, give them options such as the donation plate at church or a local food shelter. You can also find a place to volunteer their time if money isn’t an option.

Introduce a Side Job

If your kid wants a LEGO set, and they want it now, show them additional chores to do as a side job. Giving them extra ways they can make money here and there can teach them to have a high work ethic. Sometimes you need to work a little more to get the money you need. Setting up a “For Hire” board can help your kindergartner pick up some extra cash by sorting dirty laundry, emptying trash cans or picking up their toys before mom or dad mows the lawn.

These ideas will help aid you in teaching your kids that money doesn’t grow on trees. If you’re looking for other financial lessons and ways your child can learn about saving, stop on in. We’d love to set up a savings account for your youngster!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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!

  1. Books. Instead of purchasing those $300+ textbooks, utilize your university’s library and study using the same materials without any of the cost!
  2. 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!
  3. 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.
  4. 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!
  5. 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.
  6. 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.
  7. 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.
  8. 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!
  9. 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.
  10. 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

Start Your Retirement Plan with a Roth IRA

Roth IRA

Roth IRAs

There are many different options when it comes to planning for your retirement. Here at Peoples Bank & Trust we offer a large variety of plans to fit your individual needs. One of our most versatile plans is the Roth IRA. Learn how this account can benefit you and your loved ones when you retire.

6 Benefits to Starting a Roth IRA

Tax Free Income

With a Roth IRA you pay income tax on your contributions, and there are no additional taxes on withdrawals. There are also no taxes on earnings when you remove them from the account, simply pay tax on your income and then place the funds in your Roth IRA. As the finances grow, you never have to pay another penny of taxes on them.

You can continue to contribute funds after age 70

With the traditional IRA users must discontinue contributions at age 70 ½ and are then required to take distributions from the account. These distributions come with an associated tax for each withdrawal. The Roth IRA however, can gain contributions no matter your age, there is no age or limit to when, or if, you decide to take distributions. If you’re still earning an income and want to continue to save until you’re 100, the Roth IRA says go for it!

A Roth IRA can change as you need it

Roth IRA contributions can be withdrawn at any time penalty-free. In order to remove an amount more than what has been contributed, the investor must be over 59 ½ years old, with an active account for five years or more. There are some exceptions such as first-time home buying, disability, back taxes, or death.

The funds may be inherited

In planning your estate, a Roth IRA offers a tax-free opportunity for your beneficiaries to receive income that can extend throughout their life.  Yes, you pay taxes on the contributions now, but when you or your heirs need the funds to use, no additional taxes are levied upon withdrawal.

High income families are still eligible

Typically larger income families are ineligible for a Roth IRA, and instead are only allowed to use the traditional IRA. There is a loophole however, since 2010 new regulations have stated that anyone who builds their funds through a traditional IRA is eligible to convert those funds to a Roth IRA. Since this process does take some maneuvering it is best to speak with your tax professional if you would like to switch from a traditional IRA.

Roth IRAs are an ideal option

By facing the taxes now, users are able to avoid paying them in the future when things may have changed. Adding the safety of a Roth IRA enables investors to plan for the future without the risk of any other expenses down the road. In fact, after compounding, and letting time continue to grow the funds, any earned interest becomes tax-free additional finances to use on top of the built contributions.

Peoples Bank & Trust, offers both Traditional and Roth IRAs in addition to other retirement options. Stop by your local branch today to get your retirement plans in motion.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender