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Crucial Financial Lessons to Teach Your Teenager

Parenting isn’t easy and it seems like there are endless lessons to teach your kids in order to fully prepare them for adulthood. Teaching your teenager about the importance of money management will have a lasting positive impact on their future. Here are five financial lessons you can implement into your parenting: 

Always Be Setting a Good Example 

It’s no secret that children learn by example and often take after their parents’ actions. One of the biggest impressions you can leave on your teenagers is to show them the right way to manage money. Be a good example for them by budgeting, identifying wants vs needs, contributing to your savings account and other smart financial choices. 

Avoid Impulse Buying at All Costs 

As your children enter their teenage years, it’s normal for them to want the latest technology or clothing to keep up with their peers. The worst thing you can do is buy them what they ask for on the spot, as this behavior encourages impulse buying. Instead, let them wait it out for a week or two then revisit the purchasing decision. 

Turn Their Free Time into a Part-Time Job 

While schoolwork, extra-curricular activities and social events can make high school a busy time of life, there’s a lot of extra free time than other stages of life. Between summer break, winter break and free weekends, part-time jobs are a great way to stay busy and make some extra cash. Encouraging your teenager to get a job will teach them life lessons like leadership, time management, responsibility, working with others and so much more. 

Help Them Open Their Own Bank Account 

Once your teenager is getting an income from their part-time job, they’ll need a place to put their money. Now’s the perfect time to help them open a bank account so they get used to having that responsibility. They can even begin contributing to a savings account down the line. 

Have Them Download a Budgeting App 

Teenagers love technology, so why not encourage financial education while they’re on their smartphone? There are tons of budgeting and money management apps out there. Once they are making an income from their part-time job, they’ll have to learn how to be smart with their spending. Apps like this can give them reminders, provide helpful tips and simplify their overall budgeting experience.  

The teenage years are packed full of important life lessons and including proper money management in those lessons is extremely important. For more information on all things finance or to learn about the services we offer, contact us today! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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How to Protect Your Social Media Accounts

Social media is growing and expanding each day, with nearly 3 billion people on Facebook and over 2 billion on YouTube. Platforms like these along with Instagram, Twitter, Snapchat and more require usernames and passwords, but there’s always the unfortunate chance that your account is compromised. We’re here to provide you with a few simple things you can do to protect your social media accounts. 

Two-Factor Authentication 

Adding an extra step to your login process is always a good way to protect your account from being hacked. Examples of two-factor authentication include having to enter a code sent to your phone, scanning your fingerprint or using face ID in order to confirm your identity. Most social media platforms offer this as an option in settings. 

Try Out a Password Manager 

Not only is it important to have a strong password, but you should also vary your passwords across your social media accounts. If you use the same password for every account and one gets hacked, then they’re all compromised. Be sure to include numbers, upper and lowercase letters and special characters to make each password unique. It’s also smart to update your passwords periodically. Keeping track of all of them may seem tricky, but an online password manager will take care of that for you. 

Double-Check Your Friends 

Now’s a good time to go through your Facebook friends and make sure you know them all. If you get a friend request but you don’t know the person who sent it, just decline it and stick to the people you’re familiar with. One common way hackers access your information easier is by making fake accounts and sending you a request so they can see more of your personal information. 

Don’t Overshare 

Even if all of your friends or followers are people you know, you still want to be careful what you’re sharing online. Don’t share personal information like your address, social security number, financial information or other things you wouldn’t want people knowing. Think of everything you share online as permanent for anyone to access, whether it’s shared in a private group or not.  

See What’s Provided in Your Profile 

To go along with the previous point, there are some things your friends can see without harm. For example, having your hometown in your private profile usually does no harm since the people you know most likely already know this information about you. The important part is to make sure those things are private and only accessible to your friends rather than on your public profile. 

With new and exciting technology comes the necessity to keep your information secure, private and protected. Following the above tips and guarding your social media accounts will help you avoid hackers who can compromise your personal information. Contact us for more cybersecurity information or to learn about the financial services we offer! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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5 Common Money Temptations & How to Avoid Them

We all make mistakes and experiencing financial hiccups is a normal part of life. With each month comes new financial temptations that can be difficult to turn from. The good news is you can learn from others’ mistakes to avoid making them yourself! Keep reading to learn some common money temptations most people run into as well as how you can avoid giving into them. 

Temptation #1: Spending Unexpected Cash 

Whether you received an unplanned bonus or just got your tax refund, it may be tempting to spend the extra money. Since it’s an addition to your normal income, technically spending it won’t hurt you, right? Think again – instead, deposit that extra cash into your savings account and put it towards your emergency fund.  

Temptation #2: Always Saying “Yes” 

FOMO is real and skipping a weekend out with your friends is a tough choice to make. While spending a budgeted amount on fun activities each month is completely allowed, it can be easy to get wrapped up into an outing every weekend. Be careful with what you say “yes” to, and maybe opt for a game night at home rather than an expensive restaurant or bar when you meet up with friends. 

Temptation #3: Leaning on Retail Therapy 

We all experience tough days, and a common form of therapy for many happens inside a store or online. Another name for this is emotional spending, as it can temporarily satisfy individuals or make them feel better, but this is a slippery slope. Some tips for avoiding emotional spending include: 

  • Using the 48-hour rule before making a purchase 
  • Understanding and knowing how to manage your triggers 
  • Factoring shopping into your budget and sticking to it 
  • Sticking to window shopping rather than making purchases 

Temptation #4: Falling for the Sale/Markdown Trap 

Coming across a never-before-seen deal is a great feeling, but realistically, there are deals going on all the time to entice customers into making unnecessary purchases. Think about it – if there’s a crazy good deal going on and you weren’t originally planning on making the purchase, odds are you don’t really need to buy that item. 

Temptation #5: Always Treating Others 

While being the one to cover the tab or buy your friend a nice gift is always a kind gesture, it can add up quickly. There’s nothing wrong with showing those you care about some love now and then, but make sure it’s factored into your budget and you’re not just spending to impress. 

Giving these temptations may provide you with momentary satisfaction but avoiding them altogether will be extremely beneficial long-term. The next time you’re faced with one of these temptations, think back to this blog and remember how thankful your future self will be if you saved the money! For more financial advice or to learn about the services we offer, contact us. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Money Management: Self-Employment Edition

With the flexibility and freedom of self-employment comes the tricky challenge of managing your finances properly. Whether you’re new to the freelancing field or already know your way around the ropes, a quick money refresher is always a good idea. Below are our top money management tips for the self-employed. 

Have a Plan 

Budgeting is just as important in your freelance business as it is in your personal life. This may be tricky with the inconsistencies in your income, but calculating an average monthly income and budgeting off that is helpful. Knowing how to budget will become easier the longer you are self-employed as it’s often easiest to learn from experience. 

Keep Records Organized 

Not only is it important for you to keep records of past paperwork, such as billing and sales history, but you should keep everything as orderly as possible. This will help you feel organized, plus when a previous customer has a question, you can easily refer back to their purchase. Keeping copies of receipts is also important for tax time. 

Set Goals for Yourself 

Being your own boss means not always having someone watching your progress and analyzing your work like most 9-5 jobs. In order for your business to grow financially, you need to set some short-term and long-term goals for yourself. Whether that’s selling a certain amount of your product or service, expanding on your product or service line or simply reaching more customers, create a SMART goal and do what you can to achieve it. 

Build on Your Emergency Fund 

Self-employment often means a varying monthly income. Because of this, having a solid emergency fund is crucial so you have a backup if things go south for a few months. Financial experts usually recommend having three-six months’ worth of living expenses saved up. Continue adding to your emergency fund each month for added peace of mind! 

Keep Personal and Business Finances Separate 

One of the keys to managing your money properly while being self-employed is having a separate business account. This will also help you keep a more detailed record of your finances for tax return purposes. 

Ask for Help 

The final, but one of the most important tips, is to accept help from others. One of the best ways to understand the ins and outs of self-employment is to reach out to an experienced individual in your shoes. If financial troubles progress, don’t hesitate to talk to a professional to see what your next steps should be. 

Self-employment, while it may pose its challenges, is ultimately a rewarding path to pursue for many. Having a financial plan and sticking to it is the key! We’re here to help you with all things finance, so if you have any questions feel free to contact us – we’re happy to help. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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New Year, New Financial Goals

If you haven’t decided on a New Year’s resolution, we have some ideas for you! Whether you’re saving up for a big purchase or have a pile of debt to work on, make 2021 the year you focus on your funds. Below are some ideas of financial goals you can set. 

Short-Term Goals 

When you set a short-term goal, you normally aim to accomplish it within 1-12 months. The following examples are goals you should aim to attain by next New Year’s Eve: 

  • Build an emergency fund 
  • Save for next year’s Christmas gifts 
  • Create a new budget 
  • Pick three bills to cut down on (cable, cell phone, etc.) 
  • Open an IRA 

Mid-Term Goals 

Mid-term financial goals can range in the time period in which you accomplish them, but typically they take about five years to achieve.  

  • Save for a down payment 
  • Build on your emergency fund 
  • Pay off credit card debt 
  • Save up for a vacation 
  • Improving your credit score 
  • Increasing your income 

Long-Term Goals 

Setting a long-term goal usually means you plan on accomplishing it withing 5-10 years. How many years you decide to give yourself depends on how much debt you have, how many kids you plan on and other factors unique to your situation. However long it may take you, here are some examples of long-term financial goals: 

  • Save up for retirement 
  • Start your own business 
  • Pay off your student loan debt 
  • Save for your child’s college, wedding, etc. 
  • Becoming debt-free 
  • Pay off your mortgage 
  • Establish financial security 

Now that you have some ideas, pick your favorite short-term, mid-term and long-term goals to accomplish and make it happen! After a long and unexpected 2020, let’s make 2021 the best financial year yet. Contact us to learn how we can help you take hold of your finances this year.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Why is Having an Emergency Fund a Necessity?

With the recent events taking place causing widely experienced job loss, it’s been a clear reminder of how important an emergency fund is. When layoff or other unexpected circumstances take place, having a fund to use for the time being will be what keeps the rest of your financial life going in a positive direction. 

What’s an emergency fund? 

An emergency fund is money you’ve set aside for unexpected expenses. This stash of money allows you to be prepared for the circumstances life throws at you rather than hoping nothing happens. The average recommended amount to save is 3-6 months’ worth of your normal living expenses, but the more, the better. 

What circumstances would I need one? 

You might be wondering what kind of situations an emergency fund would come in handy. While the possibilities are endless and always unforeseen, here are some examples: 

  • Job loss 
  • Medical emergency 
  • Car issues or accident 
  • Major home repair 

What’s not considered an emergency? 

Don’t go through the process of saving for months just to spend it on non-emergent things. Here are a few examples of things you should budget for rather than spend your emergency fund on: 

  • Vacations 
  • Elective medical expenses (e.g. plastic surgery) 
  • Non-essential home upgrades 

How can I start building one? 

The first step to building an emergency fund is figuring out your goal amount. After finding out what your monthly expenses are, it’s time to develop a plan for your saving. Put your fund into a safe place, like a savings account, and stick to your plan, going beyond your goal once you reach it. 

The year is coming to an end and 2021 will be here before we know it. This year, make it a priority to be prepared for the unexpected with an emergency fund. To get started, open a savings account with us today! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Money Mistakes to Avoid Around the Holidays

The holidays are right around the corner which means it’s time to start crossing items off the gift list. Whether you’ve fallen victim to these mistakes before or are trying to avoid them this year, this list will tell you exactly what not to do when holiday shopping. 

Not saving in advance 

The holiday season has a way of sneaking up on customers, leading to lots of last minute shopping. We all are aware of when these gifts need to be bought, so why not set money aside to prepare? You can start this a few months in advance, or even better yet, save small amounts all year. Simply add a portion of your income to a savings account each month or set up automatic transfer so the funds are ready to go when it’s time to shop. 

Being enticed by all of the deals 

It’s no question that items on sale are automatically more appealing, even if the item is unnecessary. Making a list and knowing exactly what you need before you visit the store can help avoid the tempting discounted items. This is also tricky while online shopping since holiday ads pop up just about everywhere. Steer clear of the enticing deals and stick to what you really need. 

Avoiding a budget 

Having and sticking to a budget is simple with today’s technology. By downloading a budgeting app, you can figure out exactly how much you want to spend and keep track of your spending while you shop. Not setting a budget before holiday shopping often leads to overspending, buying unnecessary items and letting your finances get out of hand. 

Dipping into your savings account 

Whatever you do, do not rely on your emergency fund or any other type of savings besides what you’ve saved specifically for holiday shopping. This is another reason why saving separately for Christmas gifts is so beneficial – you won’t be as tempted to access your savings for the future if you already have money set aside. 

Procrastinating 

By the time the holidays come around, items have been picked through, the sales are over and what you need is out of stock. Getting your shopping done early will help you avoid those issues and save money while you’re at it. It may sound crazy, but the best deals are usually happening between Christmas and New Year’s, which means you can get a head start on next year while maximizing your savings! 

This is the year to have control over your finances and not let the holidays take a toll on your bank account. Rather than dreading the financial burden that often comes with holiday shopping, plan ahead and save yourself the stress. Enjoy this holiday season and avoid making these mistakes at all costs! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Stay Safe Online While Holiday Shopping

‘Tis the season for spending time with family, making hot chocolate, building snowmen and, of course, buying presents! With the wonderful power of technology, we can surround the Christmas tree with gifts in just a few clicks. Keep reading to learn all about cyber safety while you shop this holiday season. 

Watch out for enticing ads. 

It’s common to come across pop-up ads or tempting deals while you’re browsing. While they’re sometimes legitimate, it’s smarter to go to the website itself rather than clicking on the advertisement to avoid scams or viruses. 

Beware of public Wi-Fi. 

There’s nothing wrong with checking out your favorite store’s catalog while out in public, but making purchases is where it gets risky. Never enter your personal information to make a purchase while connected to a public Wi-Fi network – instead, use a VPN or your personal hotspot. 

Keep your device updated. 

If you haven’t already enabled auto-update on your device, now’s a great time to do so. Keeping your device and applications up to date will help you avoid malware infections or other cyber issues. 

Look for the “https.” 

Check for the lock symbol or the “https” in the address bar to make sure the website is secure. Secure websites make it safe for you to enter your information without the fear of the site storing it without your approval. 

Check in on your account post-purchase. 

Keep tabs on your account activity to make sure the transaction went through and there weren’t any mistakes. You can also set up alerts that automatically email or text you once your credit card was used. 

Always do your research. 

It’s a risky game to make a purchase from a site you’ve never heard of. Research the company you’re thinking of buying from and make sure they have a form of contact for you to use if a payment problem occurs. The smartest choice is to always avoid making online purchases from an unfamiliar website. 

Online shopping is a great way to get what you need without facing the cold, but there are always risks that come with making purchases on the Internet. Be smart, do your research and have a happy holiday season full of love! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Special, Yet Inexpensive Christmas Gift Ideas

As joyful and exciting as the holiday season is, getting memorable gifts for your loved ones can bring about some financial stress. It’s always good to remind yourself that the price doesn’t always determine the quality of the gift you give. Rather than spending a fortune on big gifts that your loved ones might not even use, try one of these special gifts which are cheap and meaningful at the same time. 

Memory Book 

Whether you decide to make a homemade scrap book or simply buy a photo album at the store, you can’t go wrong with a trip down memory lane. The holidays are the perfect time to reminisce on the past, and creating a book of old pictures, letters, collectables and other meaningful things will definitely warm the heart of any loved one. 

Meaningful CD or Playlist 

One great way to tell someone how much they mean to you is by telling them through music. Put music that reminds you of them or memorable songs you’ve listened to together on a CD or into a playlist. For an additional, heart-felt touch, you can write a letter to go with the CD explaining the meaning behind each song you chose. 

Flowers and Plants 

Giving your loved one flowers is a clear way to make them feel special and cherished. Purchase a few succulents, flowers or other plants along with a cute pot and some soil, pot the plants and you have yourself a special present that doesn’t break the bank! 

Pamper Package 

A fun gift idea for both the gift giver and the receiver is a care package filled with all of their favorite things. This can contain snacks, drinks, a movie, a book and other meaningful self-care items. 

Homemade Coupon Book 

This isn’t an average coupon book – this one contains acts of service you’ll do for your loved one when they decide to use their coupons. This one is especially great for someone to make for their significant other since you can add a romantic twist. Create cards that say if they redeem the coupon, they’ll receive things such as breakfast in bed, a surprise date night, a free back massage, etc. 

Nothing compares to gifts that are hand-made, meaningful and full of love. This holiday season, focus on giving memorable gifts that will leave your loved ones feeling special and will also keep your bank account in a good place. Happy holidays and happy gift-giving! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Don’t Make These Money Mistakes in Your 20s

Whether you’ve just entered your 20s or have been for a while, you’re probably aware of the many changes about to take place during this decade of your life. This is known to be the prime time to try new things, travel the world and live life to the fullest. But, it’s also the time where many individuals make huge money mistakes, fall quickly into debt and struggle getting out. Continue reading to make sure you don’t end up making these dangerous money mistakes in your 20s.

Procrastinating on Retirement Savings

While retirement probably seems too far away to consider in your 20s, it’s one of the biggest and most common money mistakes made. The earlier you start saving, the more compound interest will help you out. Set up automatic savings and don’t touch that money – retirement will be here faster than you think!

Buying a Brand New, Pricey Car

One of the easiest traps to fall into is buying a car that costs much more than is necessary. As a new full-time employee, it’s easy to be fooled by a paycheck that’s larger than what your college self was used to, but now is the time to be saving rather than spending. It’s normal to purchase a new car post-graduation, but stick to a used car or one that won’t leave you with an enormous car payment each month.

Living Beyond Your Means

The temptation to buy unnecessary items is everywhere, especially while you’re young. You might not have kids yet, which can make it even easier to spend money on yourself carelessly. Keep your spending in check and avoid going out to eat often, buying all of the new “in” clothing, getting drinks with friends, etc. There’s nothing wrong with treating yourself every so often, but being smart about how often and what you’re buying is what’s important.

Falling Into Credit Card Debt

This mistake is one that can lead to lifelong and life-changing consequences. Always pay your credit card bill on time and in full to avoid the daunting idea of being in serious debt down the line. Using your credit card wisely is important for building a good credit score, too!

Forgetting the Budget

Planning a budget and sticking to it might seem like a lot of work. In reality, there are lots of great money management applications available that make budgeting a breeze! Budgeting is the best way to have control over your money and make well thought-out financial decisions. Don’t worry – not all budgets are restrictive and difficult to follow. As long as you have some sort of plan set in place, you’re on the right path.

When it comes to your future with money, your 20s will either make it or break it. We’re happy to be here to provide you with the services to make your financial future a success. Contact Peoples Bank & Trust to open a savings account or to learn more about how we can help!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender