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Financial Planning 101

Nerdwallet states, “A financial plan is a comprehensive picture of your current finances, your financial goals and any strategies you’ve set to achieve those goals. Good financial planning should include details about your cash flow, savings, debt, investments, insurance and any other elements of your financial life.” But where do you start? We’re here to help give you the basics of financial planning so you can begin improving your financial future. 

What are your goals? 

Where do you want to be 5, 10, 20 years from now? Think about how many kids you plan on having, where you’ll be living, the job you’ll be at and so on to realize where your financials should be. How much money would you like to have in your savings account, retirement fund and emergency fund. If you plan on paying for your kid’s college or daughter’s wedding is also a goal to mark down because that’s another area you’ll need to save for. Get really specific so you are able to identity and prioritize all goals you have. 

Where are you currently at? 

Now it’s time to take a close look at your monthly budget, current debt and savings along with thinking about how that will change in the future. Make a list of all your assets – things like bank and investment accounts, real estate and valuable personal property. Now make a list of all your debts: mortgage, credit cards, student loans and so on. You’ll be able to see where the money is at and where you need to work on things. Be sure to really nail down your budget as well, because you want to make sure you’re not overspending each month. 

What does your insurance and estate plan look like? 

You will want to make sure you are covered correctly to protect yourself in the future. Life/health, car, business and personal insurance are all things you’ll need to go over. Make sure you ask around to get the best deals without sacrificing the quality of coverage you will receive. You will also want to create an estate plan if you haven’t already. This helps lay out who makes financial and healthcare decisions for you if you can’t make them yourself. Make sure beneficiaries on your bank and retirement accounts are updated, so your family can have easy access if something were to happen. 

How will you reach those goals? 

This is where you’ll need to stick to your finalized budget, pay everything on time and start saving for all of your goals. Work on paying off your smallest debt first and once that’s done, pay off the next smallest debt – all while making minimum payments on your other debts. This will help you lessen your monthly costs over time to help allow for that money to now go into a retirement or college fund. Working with a financial advisor to help you along the way is a good idea. Think about bigger ways to save – for example, with home rates so low, you could also think about refinancing your home as that could help save on your monthly costs as well. 

If you’ve enjoyed these first steps to financial planning, feel free to contact us with more questions or speak to a financial planner to learn more about how to get where you want to be. We wish you luck on your future endeavors!  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Cyber Safety Tips for Kids

While so much is online today, even school, it’s important to have conversations about the dangers of being online with your kiddos. Cyber safety is extremely important to protect your family, so it’s crucial to continue these conversations over time and educate your children more than once (because we all know kids forget what mom or dad told them). Today, we will give our favorite cyber safety tips for kids! 

Protect Your Identity 

It’s important to teach your children that their identity is important. People could use their name, birthday, phone number, address and so on to do some bad things. Tell them it’s important not to post this information or share it with anyone when they are on social media or playing games online. 

Stay Away from Strangers 

Many kids will get friend requests or messages from strangers on social media, online platforms or video games. Tell them that stranger danger is just as important online as it is in person. If someone is being nice online, it doesn’t mean they should trust them or engage in conversation. 

Monitor Use 

Make sure you keep track of the social media platforms your children are on, what video games they are playing as well as who they are talking to on those games, and any other online activity. You don’t need to go overboard with looking deep into each piece but just do a quick look and have a conversation about being safe. 

Secure Social Media 

Know what platforms your children are using and show them how to set their security settings high on each platform. Make sure they aren’t sharing personal information and what they are posting is appropriate. You should also remind them to never meet in person with someone they met online and tell an adult if a stranger is messaging them. 

Be Aware of Downloads 

Teach your children not to download anything without your permission. Explain that anything that is downloaded or clicked on could hurt their computer or phone. Be sure to download and run security software on the computer as well as make continuous updates to the phone and apps. 

We hope these tips help you keep your children a little safer when online. The danger is out there, so monthly reminders are important to instill good practices in your children. Check out our blog for more cybersecurity tips. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Spring Clean Your Finances

Its Spring! With the new season comes a new energy and attitude which we want to take full advantage of! Over the last year and this winter, it’s been easy to get into a financial rut or overspend on subscriptions which is why it’s time to purge your finances. Keep reading to see our top tips to help you spring clean your finances! 

Sweep Away Subscriptions 

You’ve heard this before, but it becomes easy for subscriptions to build up over time. Maybe you’ve accumulated multiple streaming services but now things are picking up, so you don’t need them all. You could have been offered a free trial that has turned into an actual subscription now or you may have signed up for a monthly plan that charges you for something you could buy yourself for cheaper at the store – all of these are good to cancel and help lessen your monthly expenditures.  

Buff Your Budget 

After the holidays and last year, your budget may have taken a backseat. It’s time to dust off that budget and take a look at your expenses each month. See what it looks like after canceling a few subscriptions and get back into the routine of following it. There are apps that can help you track what you spend to allow you an easier way to stay on top of things. 

Deep Clean Debt 

Now is the time to look at your different debts such as credit cards, mortgage, student loans, etc. See what seems the most practical to work on paying off first. Your credit card may be the best place to start – while still making minimum payments on other debts, pay a little extra if you can afford it to your smallest debt. Once that’s paid off, continue doing the same for the next debt. 

Declutter Old Accounts 

You or a significant other may have an old 401k or HSA from a past job. Be sure to get everything transferred into a new account, so you are actually being proactive with that money. You may also have an old savings account from a different bank that you need to switch over. All of these items are important to keep track of and get moved and closed. 

Restore Your Retirement 

Even though retirement is far away, it’s important to save for that now. Open a retirement account such as a 401k with your company as well as a CD or IRA with your bank. Just think about not working once you’re older and all the expenses you’ll still need to pay for – that money you start saving now will come in handy then. 

Tidy Up the Emergency Fund 

You may have dipped into your emergency fund over the past year, so be sure to work on building that back up. Open a savings account with us to store your money so it’s ready when you need it most. When you are creating your budget, you’ll see how much money you can afford to put away in your emergency fund each month. 

We hope these tips give you a few things to focus on this season, so you can get back on track with your finances. If you need a safe place to store your money, build retirement or take out a loan, Peoples Bank & Trust is here to help! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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5 Cybersecurity Basics You Need to Know

With so many people being online now, it’s even more important to be safe with what you do and add an extra layer of security to your actions. Any time you are on your phone, tablet or computer, there is a chance you could be targeted. Protect yourself and your information by keeping up to date with these five cybersecurity basics you need to know. 

1. Update Your Software 

Not all software updates automatically. Be sure to check your app store to update any apps who have a pending update. Restart your computer to allow for updates and be on top of when updates come out, so you don’t keep clicking ‘Later’ and forget to install the new update. Updating your software improves any bugs in the apps or overall system to improve security. 

2. Require Passwords 

Any and everything needs a password. Your phone, computer and so forth should all require one – even though it’s a little extra work for you. In case your device would ever end up in the wrong hands, this adds one extra layer of security. 

3. Use Multi-Factor Authentication 

Many apps are now asking or requiring that you use multi-factor authentication. This requires you to add a second email or phone number to your account for an extra layer of security when logging in. Another type of multi-factor authentication is using an app to get a code that you have to enter when logging into a program or device. 

4. Secure Your Router 

Be sure to change your router’s preset password to something difficult – don’t do your household’s last name with a 1! behind it and think that’s good either. Be tricky so someone can’t jump onto your Wi-Fi and get your information.  

5. Have Difficult and Different Passwords 

We’ve said it once and we’ll say it again – do NOT have the same password for all your accounts. We understand you could have logins for 50+ sites, but it’s important to try to switch it up so that a hacker can’t get into everything. If they have your email and password that gets them into your email, chances are they’ll try that combination on all the other popular platforms you’ll probably have. 

We hope these five cybersecurity basics refreshed you on the importance of being extra cautious with your devices. We want you and your information to be as safe as can be! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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5 Challenges to Test Your Money Management

We may all think we know a thing or two about finances, but do we really know it all? There’s always more you can learn to better yourself and that includes money management skills. Today, we’ll give you five challenges to test your money management in order to whip your finances into shape! 

1. No Spend Challenge 

We know this sounds scary, but you can still buy groceries and pay your recurring bills. Try not spending money on any unnecessary items for one week or one month. Yes, we know that coffee may feel necessary, but make your coffee at home instead of buying it. You’ll be surprised at how much you save when you don’t buy an extra item here and there. 

2. Change Challenge 

Any change you accumulate, save. This could be a fun game to play with your kids as well. You and your significant other can give any change from the day and have your children count it and put it in a jar. Do this for one month or a full year to see how much you accumulate!  

3. No Online Shopping Challenge 

We know that more shopping is being done online now than ever before, which makes it seem easier and easier to spend more money since you aren’t giving physical cash away. Try not buying anything online for a whole month – besides your groceries and essentials if you now purchase those online. 

4. 52-Week Money Challenge 

This is a fun one! This occurs weekly for a whole year, so it will really hold you accountable. Start with saving $1 for week 1, $2 for week 2, and so on. By week 52, you’ll be putting away $52. The 52-week challenge adds up to saving a total of $1,378! You can choose what you’ll spend that money on if you make it all the way. Will it be for a vacation, child’s college fund or emergency fund? It’ll be up to you. 

5. No Eating Out Challenge 

Since people are staying home more, this is a little easier than before. But this also includes take out and drive-throughs as well – not just sit-down restaurants. We know supporting small businesses is important, so we’re not saying don’t eat out forever. Just try it for one month to see how much potential savings you earn. 

Pick one or a couple of these challenges to test your money management skills. You won’t regret it! Then, store your new savings in a savings account with us. We’ll be happy to keep your hard-earned money safe and sound in an account. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Financial Literacy 101: Teen Edition

If you have a teenager who doesn’t quite understand how important good financial habits are, it’s time to teach them! Giving your child the building blocks on saving, budgeting and understanding debt will help make them into responsible adults. Here’s some financial literacy 101 for your teenager. 

Bank Accounts 

Explaining the different types of bank accounts to your child is crucial. Start by opening a savings account with them so they can understand the importance of saving. When they have a job, you could also work with them to open a checking account. This will help teach them the process of saving, spending money, using a debit card and writing checks. 

Credit Cards 

Even though your teen won’t have a credit card at that age, it’s important to teach them about credit cards and how they work. Explain the limits that are set, paying your minimum each month and how that will affect their credit score. This will help them be prepared for when they do get their first card. 

Debt 

Teach your teen that debt is no joke. There will be car payments, groceries, entertainment purchases, credit card bills, student loans and so on. Making sure they know not to bite off more than they can afford is extremely important. This will help them understand all of the bills they will have to afford in the future. 

Credit Score 

Start explaining what a credit score is and how that will help them get lower interest rates in the future. This can also tie into the credit card conversation. Understanding the basics of a credit score now will help keep them out of trouble in the future. 

Budget 

Understanding needs vs wants is a great life lesson. Start your teen off with budgeting by having them help with the grocery list. Tell them the rough prices of what things cost, have them make a list and keep it under a certain amount. This will help teach them how to budget, so they can apply it to other things in their life down the road. 

These basic items are critical for teens to understand. Looking back, you may realize you didn’t quite know all of these things when you were a teen. This is why we wanted to share this information, as we believe it’s a good thing to get ahead in the financial world with your child, so they are prepared. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Financial Advice for Big Families

When it comes to big families, there is extra love and enjoyment to go around. There also comes more money that needs to be spent. Managing finances with a larger family can be stressful and difficult depending on the expenses you have. We’re here to offer some helpful financial advice for big families, so you don’t have to feel tight on cash! 

Own Less Vehicles 

Reduce transportation costs as much as possible by limiting the number of vehicles you own. Gas, upkeep, repairs and car payments add up quickly for each vehicle. Work on scheduling carpools and staying home when possible to limit your driving. Having multiple kids in school and activities can have you driving all around, so come up with a plan that makes the most sense, so you aren’t wasting time and gas. 

Eat Out Less  

Each mouth you need to feed adds up, especially if you have multiple growing boys who seem like they never get full. Eating out and going to restaurants means you’re paying for drinks as well as the main meal and sides. Coming up with a meal plan for home, budget and grocery list to stick to will help you spend less and have a plan for food every day so there’s no need to eat out! 

Buy or Borrow Secondhand 

We’re sure you have plenty of friends and family who have toys or clothes they no longer need for their children. Don’t be afraid to ask to buy or borrow their items for a discounted price. The clothes and toys are just as good as if they were new. Plus, small children grow so fast, so you may not always want to buy something new that they may not fit a few months from now! 

Buy in Bulk 

When you do need to buy items, consider couponing and buying bulk items. Larger cans and extra boxes of non-perishable food won’t hurt anyone! You’ll go through that food before it’d expire anyways. Large stores, like Costco, will have sales on bulk items. This means you will spend a little more originally, but you’ll have extra items on hand, and it’ll be for less than what you’d spend on that amount if it wasn’t bought in bulk. 

We hope this financial advice will help you save a little extra money. Put that savings into a savings or checking account with us! We’re happy to safely store your hard-earned money. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Identity Theft: How to Protect Yourself

According to IdentityForce.com, about 1 in 15 people were victims of identity fraud in 2019. As technology continues to grow, the risk will only get higher. That’s why protecting yourself from this kind of crime is more important now than ever! 

Rundown of Identity Theft 

The first step in prevention is recognizing what identity theft is and why it’s dangerous. A simple description of identity theft is a crime in which an individual’s personal and/or financial information is illegally obtained, most commonly for financial gain. With your information, that criminal could then: 

  • Withdraw money from your bank account 
  • Steal your tax refund 
  • Sell your information to others 
  • Apply for loans, credit cards, etc. in your name 

Recognizing Identity Theft 

Now it’s time to understand what the signs of identity theft are so you’re prepared if you were ever put in this situation. If you start noticing any of these things, identity theft may be the problem at hand: 

  • You notice unusual or unrecognizable withdrawals from your bank account 
  • Your tax return received a rejection notice 
  • You are turned down for a loan for bad credit when you have good credit 
  • You notice an absence in your household bills coming through the mail 

Preventing Identity Theft 

The good news is there are lots of things you can do to protect yourself from crimes like this. To make it not so easy for criminals to steal your information, follow these important steps: 

  • Never give out personal information such as your Social Security number or bank information 
  • Destroy private records with a paper shredder before throwing it in the trash 
  • Check your bank account and credit reports regularly for suspicious activity 
  • Create strong passwords and use different passwords for each account you own 
  • Don’t click on unknown links and don’t enter any login credentials on an unfamiliar login screen 
  • Never carry your Social Security card on you, but instead keep it in a safe and secure place in your house unless you need to access it 

When it comes to protecting yourself from identity theft, the more precautions you take, the better! Make 2021 the year you decide to up your security game and take proper action. To learn more about cybersecurity or to discuss the financial services we offer, visit our website. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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How to Separate Your Financial Wants VS Needs

Creating a basic monthly budget is simple, but breaking it down into categories and deciding what you should and shouldn’t spend money on can get tricky. That’s where the idea of wants vs needs comes into play, and it’s one of the most important steps in budgeting. Struggling to figure out what the difference is? We’ll explain! 

The Overall Difference Between Wants VS Needs 

Financial needs include purchases that are required or absolutely necessary. Financial wants, on the other hand, are things we desire or wish for but technically don’t need for well-being or survival. These are difficult to separate because they’re often different for each person.  

Examples of Needs 

We all have things we need to purchase in order to survive and continue working. These payments often take up a large portion of your paycheck and are recurring. This includes: 

  • Food 
  • Gas/Transportation 
  • Insurance 
  • Work uniform 
  • Housing 
  • Medication 
  • Utilities 
  • Healthcare 

Examples of Wants 

Along with the necessities come desirable things that allow you to live a more comfortable life. While you can live without them, the following things can bring you fun and joy: 

  • Entertainment 
  • Coffee shop visits 
  • Gym membership 
  • New clothes 
  • Dining at a restaurant  
  • Travel 
  • Home décor  

Budgeting Your Wants & Needs 

One well-known budgeting system to follow is called the 50/30/20 rule. 50% of your income is spent on needs, 30% is spent on wants and 20% is put into your savings or paying off debt. This is a great system to go by because it allows you to satisfy your financial wants in modesty. Restricting yourself completely from your wants is unrealistic, so setting a concrete value to each of your budget categories keeps you from overspending. 

Just like most things in life, over time you will learn from mistakes and adjust your budget. Maybe you have a new want, like a gym membership, that you can swap out for an old want, such as TV subscriptions you don’t use very often. And while you make adjustments to your budget, our financial services are here to assist you along the way! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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5 Reasons You Should Utilize Online & Mobile Banking

Besides the obvious positive of having constant access to your bank account on your very own device, online and mobile banking brings various benefits to the table. If you haven’t downloaded our mobile app yet, keep reading to find out why you should. 

1. Deposit Checks Anywhere 

Save yourself a trip by making it possible to deposit checks from the comfort of your home. It’s an easy process, too! All you do is endorse the check with “PBTC Mobile Deposit”, take a picture of each side and enter basic information. Your check will be processed in seconds – it’s as simple as that!  

2. 24/7 Access 

Say goodbye to working around the bank’s hours to do simple tasks like checking your balance, viewing your transaction history, transferring money, depositing checks or printing bank statements. With online and mobile banking, you have access to these services and information 24/7, even outside of bank hours. 

3. Quick and Easy Transfer 

There may be instances when you quickly need to transfer money from your savings account to your checking account or vice versa. This process is simple, too, and in just a few steps your transfer will be processed. Mobile banking is also helpful in situations where account balances get too low and you have automatic payments. You can set up notifications to make sure you transfer money before dropping below a certain amount and overdrawing. 

4. Never Miss a Bill with Autopay  

Autopay is easy to set up and allows you to pay your bills without having to lift a finger. By filling out a few quick forms online, money will automatically be sent out or transferred each month to pay your bills in a timely manner. Not only is this convenient for you, but it allows you to completely avoid the risk of paying a late fee. 

5. Print or Download Statements 

Save yourself another trip to the bank with access to E-Statements anytime. If you’re wanting to print or download statements for tax purposes or personal records, you simply login to your online account and print off what you want. This makes organizing your personal records easy, too, whether you want to do so on paper or safely and securely on your computer. 

Now that you know why online and mobile banking is so great, it’s time to get started! Click here to learn more about our services, ask us questions and to find out what your next online banking steps are. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender