Author Archives: Marketing Coordinator Nicole

6 Bad Money Habits Not to Pass on to Your Kids

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Whether your bills are paid in full at the end of every month or you have to do some strategic budgeting, there’s a good chance you have some less-than-perfect money habits. As a parent, they don’t begin and end with you; they affect your children too, and for a lot longer than you may realize.

Most young adults are entering the world without the basics of financial literacy. Many are taking on massive debt in the form of student loans and doing so without understanding the principles of interest, or saving for emergencies and the future. Though schools have worked to increase financial education among the young, the evidence suggests these classes alone are largely ineffective and must be supported by good financial practices at home too.

Thus, a hard look at your own financial habits, paired with transparency and good communication, could give your kids the financial lessons they’ll need long into adulthood. So what are common habits to avoid and how can you ensure your children don’t adopt them as their own?

1. Overestimating your financial acumen.

First, admit your mistakes and be willing to learn. If you don’t know the best practices for using credit or how to make a budget, learn with your child.

2. Overspending.

Whether you misuse credit cards or prioritize wants over needs, spending more than you have is a sure recipe for insurmountable debt and poor lessons for the kids. Set a budget and make them part of it. Be willing to admit when you make mistakes with your money, and talk with them about what you could do better.

3. Not saving.

Not everyone can afford to save and you may not have an emergency fund. But even if you set up a savings account to pull $50 from your pay every month, you can teach children an important lesson. They need to learn to set aside money for a rainy day and retirement too.

4. Ignoring bills.

Got debt? Join the club. But even if you can’t afford to pay outstanding bills, ignoring them isn’t the answer. Involve your children in a discussion about how you got to this point and about handling responsibilities. Then call the creditors and try to make payment arrangements or get more time to pay. Children should know that sometimes we just have to face the music when it comes to cleaning up financial mistakes, even when that initial call can be gut-wrenching.

5. Fighting about money.

Family fights about money are some of the most harmful. When these arguments go on in front of the children, the damage is multiplied. Both parents should learn to talk calmly about money issues, and show the children the benefits of cooperative problem solving. If you can’t tackle this bad money habit as a couple or alone, don’t be afraid to seek professional help.

6. Living paycheck to paycheck.

Sometimes bad financial habits are born out of necessity. But this doesn’t mean you don’t have important lessons to teach. Use struggles as lessons for your kids rather than staying mum, so they’re more likely to make better choices in the future.

As parents, there’s probably nothing you want more than for your children to do better than you have in life. Helping them learn from your mistakes is part of the process.

To help your children learn the value of a dollar and to get them to start saving at a young age, open a First Step Kids Savings Account right here at First Financial!* There’s just a $5 minimum to open the account and no fees, PLUS they’ll earn dividends on balances over $100. Stop by any branch location and we’ll help you get started!

*As of 7/2/2020, the First Step Kids Account has an annual percentage yield of 0.03% on balances of $100.00 and more. The dividend rate may change after the account is opened. Parent or guardian must bring both the child’s birth certificate and social security card when opening a First Step Kids Account at any branch location. Parent or guardian will be a joint owner and must also bring their identification. A First Financial Membership is open to anyone who lives, works, worships or attends school in Monmouth or Ocean Counties.

Article source courtesy of Elizabeth Renter of USA Today.

 

5 Ways to Save Money When You’re Broke

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save-moneyIt can be hard to save money at any time, but it is particularly difficult when you feel like you are broke. If you can barely afford your bills and you are living paycheck to paycheck, saving money is probably one of the last things on your mind. However, you can still save money when you’re broke. In fact saving money, even if it is a little, is a key step to stop being broke.

As long as you are making some money, you should be saving some. Especially if you routinely have insufficient funds, it’s important to make a habit of saving money. Despite the fact that you have little extra funds, there are ways to save. Cutting costs, sticking to a budget, and saving a little at a time are all ways that you can save money, but there are other ways as well. Here are five ideas to consider.

1. Cut out the extras. An easy way to save money when you’re broke is to cut costs. You may think there is nothing you can cut out at first, but think a little harder. If you are truly “broke” then you need to let some things go. Do you really need such an expensive cell phone plan? What about cable television? Can you use the internet at the library or use WiFi instead of paying a monthly fee?

There are many things that we consider necessities that are really just extras, and cutting some of those will quickly free up more money. Take a look at your monthly bills, and decide what is really necessary. If you want to stop being broke, you may have to cut out some of the extras for a while.

2. Eat at home. Grabbing lunch on the go is so much easier and more convenient than bringing a lunch to work, but doing this regularly will really eat away at your income. According to Living on A Dime, eating out is a common way people get into personal debt. It’s easy to rationalize eating out because you are too busy to cook, or you are a bad cook. However, making food at home will truly save you money, and if you want to save money, you need to make the time and the effort to cook at home. You can save time by making several meals over the weekend and freezing them to use during the work week. If you simply don’t know how to cook, buy a cookbook for beginners.

3. Make a budget. If you don’t have a budget, your first step should be to make one. Perhaps you already have a budget, but there are several reasons a budget can fail. If you recently lost your job, or your income somehow changed but you are using the same budget, you will need to make a new one. You also may need to look at your budget and see if it is really reasonable and if you need to adjust anything.

According to Lifehacker, if you are broke and budgeting, there are several steps that can help. Start by assessing your financial situation, cut back on expenses (as mentioned in point one), and be frugal. There are other steps you can also take, including paying down your debt.

4. Save a little at a time. If you’re completely broke, the idea of saving anything probably seems unreasonable. However, you have to get into the habit of saving if you are going to save more in the long run. It’s important to think about the future: write down your financial goals, even if they seem completely out of reach. Then, start saving. If you are saving nothing right now, then any savings is an improvement. Once you cut your extras and start following a budget, you can use some of the discretionary money to save for your future.

Another idea is to get a second job. Even if you only work a few extra hours each week, but you put all the money in a savings account, you will quickly see a change in your financial situation.

5. Avoid common mistakes. You can make plenty of good decisions about your finances, but if you make a few poor decisions, you will still have a hard time saving. Some of the worst things to do when you are broke include splurging when you get money, prioritizing convenience, taking on too much debt or making poor decisions about debt, living beyond your means, and having no savings at all.

It’s really easy to live above your means, but this is one of the easiest ways to get into debt. If you have a hard time controlling your spending, try setting a budget and then doing envelope budgeting (you can modernize this practice with a few steps). Also, be careful about the debt that you incur. You need to avoid the worst financial mistakes if you really want to save.

Saving money isn’t easy, but if you take the time to put these five steps into practice, you will be off to a good start!

Maximize Your Most Valuable Resource: Time

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“You can get more money, but you cannot get more time.” – Jim Rohn

By now, you’ve been enjoying the perks of longer days: better weather, a happier mood and a little more time to get things done! You may have heard the phrase “time is more valuable than money,” but no matter how long the sun lingers in the sky, most of us sti1-free-timell find ourselves wishing for one more hour in the day. We’re a busy society, and the demands on our time often pull us in many directions at once.

Are you feeling like the clock runs out too soon on your daily plans? Check out these tips for maximizing your time and extracting more value out of those extra daylight hours.

Planning Your Time = A Smart Use of Time

Reserve 15 minutes each morning to plan how you would like to spend the time in your day. Start with free-form lists for family, work, and yourself and then prioritize. If you prefer using your phone to organize tasks, there are plenty of amazing apps to help master your daily to-do list.

Don’t measure your success based on finishing an entire list: get to your most important items, then use 15 minutes at night to review your progress and begin thinking about the next day. By instituting these “bookends” on your day, you’ll relieve the stress of feeling like you’re not in control of your time and go to bed feeling a real sense of accomplishment.

Supercharge Your Time Effectiveness

You already consider the cost-effectiveness of your purchases. How about considering the time-effectiveness of your actions? Before taking on a task, consider if you’re using your time well: Are you adding too many steps? Could you delegate or ask for assistance? Is this task contributing to your priorities?

Once you’ve determined your time-effectiveness, consider using the “one-touch rule.” Popular among productivity experts, the one-touch rule means you must finish a task completely once you start it. No switching to a new task or giving in to distractions. If your task is on your computer, try Freedom, software that disconnects your computer from the Internet to keep you from browsing the web. The one-touch rule allows you to complete, say, three big tasks by the end of the day instead of having ten incomplete projects on your hands. Try it out – and don’t be hard on yourself if life sometimes gets in the way!

Take Advantage of Wait Times

A not-so-fun irony: the busier we get, the more downtime we face waiting! Whether it’s at the doctor’s office, in the grocery store line or waiting for the train, small wait times can add up to considerable hours wasted. Always keep a notebook or tablet on hand to brainstorm for a project that needs your attention, catch up on emails or check in on your household budget. Your phone is great, too. Sometimes you’re the most productive when you have no other options competing for your attention!

Respect Your Energy

You can certainly fill every available second of your day with tasks, but if you don’t have the energy to complete them, what’s the point? Respect your finite amount of energy and try to find times throughout the day for fun, rest and re-charging – whether it’s a walk around the block, some extra quality time with your children or even five minutes of quiet time on the couch. And always give yourself downtime between tasks! You’ll be more focused, present and diligent when you take the time for self-care.

Here at First Financial, we respect your time and strive to provide convenient banking solutions everyday. Click on the links below to learn more about a few services we offer to help make your life a little easier:

  • Online applications: Apply for a loan right online, no need to come into a branch.
  • Online Banking: View all of your accounts online, make transfers, pay bills, view your account statements, plus so much more all in one spot.
  • Free mobile app: Available for iPhone and Android/Samsung users. 
  • AutoSmart: Free online car buying and research tool.
  • First Scoop Blog: Free business and consumer financial education.
  • Financial Calculators: Easy-to-use online calculators to help you solve some common financial problems.

10 Signs You Might Be a Victim of Identity Theft

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download (1)Identity theft is the fastest growing crime in the country, with almost 10 million incidents a year. In fact, every minute, 19 people become victims, and the average cost to the victim is about $500 and 30 hours. ​

Those are some scary stats. The good news is that you can protect yourself by catching potential problems early and enlisting the support of your financial institution. Here are some tips for keeping your identity out of thieves’ hands:

  1. If you lose your credit card, let your card issuer know right away. Not only will the issuer cancel the card and get a new one with new numbers right away, but the customer service representative will let you know if any erroneous charges have already been made on the card and can ​prevent any new ones from going through.
  2. Avoid using ATMs in obscure locations because it’s easier for thieves to install “skimming” devices on them that steal your information when you swipe your card. According to Shaun Murphy​, founder of PrivateGiant, a company that seeks to protect personal information online, consumers should also avoid using their card on websites that do not have the “lock” icon in the browser, because they aren’t as secure as sites that have the icon.
  3. Check your account statements for errors. This is likely the first warning sign you’ll encounter. When checking your statement, you might see an unexplained or inaccurate entry – such as a withdrawal, a check, an electronic transaction or a purchase that you don’t recognize.
  4. Look for mistakes on your credit report. You can request a free copy of your credit report through annualcreditreport.com and review it for any inaccurate information. The most common indicators of identity theft include a credit inquiry you don’t recognize or a new account you didn’t open. That could suggest someone else is impersonating you. Let the credit bureaus know about any errors so the false information can be removed.
  5. Respond to calls from your financial institution. Financial institutions are constantly on the lookout for strange charges on your account; in fact, they might notice a problem before you do. If you receive a notice about a potential problem, be sure to call them back to sort it out. If the message comes in the form of an email, make sure it’s not a phishing email (where a fraudster masquerades as a trusted entity to try to acquire your personal information).
  6. Follow up on odd bills you receive. If you start getting calls from debt collectors related to accounts that don’t belong to you, or you receive bills for medical treatments you’ve never had, then someone else could be using your identity and your health insurance information. Follow up with the provider and your insurance company to protect your account.
  7. Stay on top of missing mail. If you don’t receive your bank statement by mail and you usually do, there could be a problem. The perpetrator may have changed your address with the financial institution. If other pieces of mail are missing, it may mean the perpetrator is collecting information about you to develop a profile. Similarly, if you don’t receive your email statement, someone may have conquered your online account and altered the settings to lock you out. Follow up directly with your financial institution or the biller to get the problem fixed ASAP.
  8. You receive unexpected mail. You might get a notice from the post office that your mail is being forwarded to another address when you haven’t requested an address change. Or you receive a letter concerning an account you never opened. Other mailings that could be a sign of identity theft: You receive a credit card in the mail that you never applied for or the IRS notifies you about unreported wage income you didn’t earn. If you find yourself in any of these situations, then it’s time to follow up with the institution sending the mail to clarify the issue.
  9. Look out for errors on your Social Security statement. If the earnings reported on your statement are greater than your actual earnings, someone might have stolen your Social Security Number and is using it for wage reporting services. It’s another red flag that there could be a problem that needs your attention.
  10. Investigate if you’re denied an application based on your credit. If you have good credit but are denied an application for a new credit card or a loan, that may indicate that your identity has been stolen. It’s time to pull your credit report and do a full review of all your accounts to get to the bottom of the problem.

With these strategies in hand, you can help reduce your chances of becoming a victim of identity theft.

What To Do With Extra Cash

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Excited-Woman-Holding-CashFor the first time in a long time – thanks to a rebounding economy and an increased minimum wage in 23 states – salaries are on the rise. Great news, right? If you’re one of the fortunate recipients, what are you going to do with the extra cash? Step one is to make an actual plan to put it to use. Here are a few suggestions to get you started.

Flesh out your emergency fund.
A fully-funded emergency cushion should include enough cash to support 3-6 months of mandatory spending, but this doesn’t mean you have to cover all of your costs. Your emergency fund doesn’t need to include what you usually would spend in 3-6 months, but what you have to spend. This includes rent, bills, food, gas, and other necessities. This should also be enough to bail you out of a jam if your car breaks down or your plumbing gets backed up. If you dip into your emergency fund, you’ll want to spend the next few months replenishing it.

Pay down debt.
Here’s the deal on debt: The return on your money is equal to the interest rate you’re paying. So prepaying your mortgage – at 3% or 4% before the tax deduction – is less valuable to your bottom line than paying off a credit card at 15% or 19%.

Treat yourself.
This goes back to having a plan. When you get a raise, you have to avoid making impulsive decisions. The last thing you want is to look back years later and regret how you spent your extra cash. But the feeling that you deserve to celebrate is certainly common – and warranted. There is no one way to do this, but think about it long enough to try to spend money on something that makes you happy and that will last. The lasting impact doesn’t have to be material, either – a vacation can create memories that you’ll never forget!

Unfortunate Home Improvements

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Home-Improvement-ProjectHome improvement projects can be a lot of fun — and sometimes add value to your home — but are they worth the money they cost? If you have plans to one day move out of your home (or even if you don’t), you should consider how the project impacts the resale value. Below are some home improvement projects that are typically not worth the cash.

A new pool. We can’t blame you for wanting a pool. However, keep in mind that the cost of installing one and then maintaining it is quite high. Also, if you’re planning on selling down the road, remember that some buyers could be turned off by a pool, like parents with small children.

Extensive customization. While a lot of people might like a kitchen backsplash, the type of backsplash makes a big difference. You shouldn’t go overboard customizing (particularly if you’ve got unusual taste), because if you do, you could risk alienating buyers down the road.

Half measures. If you can add a bedroom, great. Those often are worth the money. However, don’t add square footage to your home in bits and pieces. Eventually the home will look disjointed, and buyers typically want a home that flows well.
Taking away a bedroom. Buyers will want a certain number of bedrooms, so try to avoid converting them when considering altering your space.

First Financial’s Home Improvement Loan is designed to help you create the home you’ve been imagining. It’s time to move your “wants” to the top of your to-do list.*

*Available on primary residence only. A First Financial membership is required to obtain a Home Improvement Loan and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. See credit union for details. Rate will vary based off of applicant’s credit rating. Not all applicants who apply will be approved, subject to underwriting guidelines and credit approval. Visit firstffcu.com for additional information.