Author Archives: VP of Marketing and Business Development Jessica

Managing Small Business Finances: A Comprehensive Guide

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In honor of May being National Small Business Month, First Financial is proud to present a guide aimed at empowering small business owners with effective financial management strategies. Managing finances is pivotal for the growth and sustainability of your business. Here are some tips to help you lay a strong financial foundation for your business with (of course!) support from us.

1. Separate Your Finances

Mixing personal and business finances can complicate your financial landscape. Opening a bank account specifically for your business is crucial for clear financial tracking and taking advantage of tax deductions. First Financial’s Business Accounts offer the convenience and clarity you need, ensuring your transactions are organized and easily accessible through our online banking system 24/7.

2. Pay Yourself

It’s vital to recognize your role in your business by paying yourself a salary. This not only aids in personal financial stability, but also sets a precedent for financial discipline within your business operations. How you pay yourself might vary, so consider consulting with a financial professional for guidance.

3. Master Financial Documents

Understanding your balance sheet, profit and loss statement, and cash flow is essential for gauging your business’ health. These documents offer insights into your operational capability and financial resilience, guiding informed decision-making.

4. Build Strong Business Credit

A robust business credit score unlocks doors to better financing options and business opportunities. First Financial’s VISA Business Cash Plus Credit Card can serve as a tool to meet your financial needs and build and maintain a strong credit history. With unlimited 1% cash back, no annual fee, and a robust rewards program – the benefits exceed just building your business’ credit.

5. Smart Use of Loans

Speaking of credit – loans can be a strategic tool for growth, allowing for investments in equipment, technology, or expansion efforts without straining your cash reserves. First Financial offers a variety of Business Loan options designed to match your unique business needs, providing a financial boost when it’s most needed.

6. Tax Planning

Stay proactive with your tax obligations to avoid last-minute scrambles. Regularly setting aside a portion of your earnings can help manage quarterly tax payments smoothly, ensuring financial peace of mind. Be sure to save all important documentation throughout the year and compile it in one place so that when tax time rolls around, you’re in good shape to file your return.

7. Reinvest in Your Business

The temptation to pocket all your profits can be strong, but reinvesting in your business is crucial for sustained growth and innovation. Allocating funds for future projects and improvements demonstrates a commitment to your business’ longevity and success.

Managing a small business comes with challenges, but with the right strategies and support from First Financial, you can navigate your business toward a prosperous future. Our Business Accounts, Loans, and VISA Business Cash Plus Credit Card are tailored to support the unique needs of small businesses – offering the reliability, flexibility, and security you deserve.

To learn more about business banking with First Financial, email business@firstffcu.com, call 732-312-1500 or visit one of our branches.

Beware of ATM Skimming and Shimming

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Recent incidents of sophisticated financial fraud include the uptick in unauthorized capture of consumer card and PIN information through skimming and newer shimming devices, placed inside ATMs or payment terminals. Keep reading to learn how to protect your finances from these fraudulent devices and signs to look out for when using an ATM or other payment terminal.

What are Skimming and Shimming?

Skimming occurs when illegal card readers are attached to payment terminals including at the store, on gas pumps, vending machines, parking meters or on ATMs. These card readers grab data off a credit or debit card’s magnetic stripe without your knowledge. Criminals can then sell the stolen data or use it to buy items online. You can learn more about skimming devices and what to look out for by watching our YouTube video.

Shimming has evolved more recently, as card microchips (EMV chips) started being used on newer cards to curb skimming efforts. Shimmers are thin pieces of metal inserted into an ATM or a machine at a point of payment, used to capture information in the microchip. They are small and almost impossible to detect when looking at a machine from the outside. Shimming devices allow fraudsters to steal data from your EMV chip cards in the same way that skimmers capture the data from a magnetic strip.

How Does Shimming Work?

When a shimming device is installed on an ATM or point-of-sale terminal, a crook can steal the data contained on your card’s chip. They can then use the data to create a fake card and make fraudulent purchases. You most likely won’t be aware that a shimming device is inside an ATM or payment terminal. The device is typically positioned inside the machine’s card reader slot, and is designed to be undetectable. Once the device has shimmed data from unsuspecting cardholders, the crook will pull the device out of the machine to retrieve the stolen data.

Protect Yourself

There are several ways you can protect yourself from shimming, including:

  • Use contactless payment methods such as Apple Pay, Google Pay and Samsung Pay, like we have available here for our First Financial members.
  • Use a financial institution owned ATM. ATMs owned by a bank or credit union are more secure than one you might find at a convenience store.
  • Choose a safe ATM. Skimming and shimming devices are more likely to be installed in poorly lit areas and in less public places, where even if there are cameras – they most likely won’t be able to pick anything up. Read more about ATM safety in our previous blog post.
  • Always check the card slot. Be aware of how easily your card fits into a card reader slot. If it’s difficult to slide your card in, be suspicious. This might mean there’s a shimming device inside the card reader.

What Should You Do if You’re a Skimming or Shimming Fraud Victim?

  • Contact your financial institution or card issuer. Once you know your card has been compromised, reach out to your card issuer to lock the card and issue you a new one right away.
  • Setup account & fraud alerts and monitor your account. You can request that the credit bureaus place an alert on your credit profile, which will ask any creditors to verify your identity before issuing any new credit in your name. You’ll also want to carefully review your bank and credit card statements and online account for any unusual activity.
  • File a report with the FTC. You can visit the FTC’s website to submit a report about suspected shimming.

At First Financial, your financial well-being is our top priority. Our tools and resources such as our Fraud & ID Theft Protection Guides can equip you with the knowledge necessary to protect yourself from scams. By staying informed and vigilant, you can safeguard your finances and enjoy peace of mind in an ever-evolving digital world.

For more personalized financial assistance with your First Financial accounts, call us at 732.312.1500 or visit a branch today.

A Guide to Green Finances in Honor of Earth Day

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In celebration of Earth Day next week, First Financial is thrilled to share some principles of environmental stewardship with smart financial management. Adopting a green lifestyle doesn’t just contribute to the planet’s health — it can also bolster your financial well-being. Here’s how making eco-friendly choices can lead to savings and a more sustainable future.

Embrace Green Banking

As part of your journey to green finances, consider digital banking options. Online statements, mobile banking, and electronic bill pay reduce the need for paper, helping to conserve resources. First Financial offers a range of online banking services designed to make managing your finances convenient and environmentally friendly.

Merge Eco-Friendly Living with Savvy Spending

The path to a greener planet and a thicker wallet starts with small, daily decisions. Contrary to the myth that eco-friendly living is costly, embracing sustainability can actually cut your expenses. Simple acts like drinking from a reusable water bottle or cooking meals at home – not only saves you money, but also reduces your environmental footprint. By aligning your financial decisions with your green values, every dollar you spend (or save) supports a healthier planet.

Energy Efficiency: The Bright Idea

Switching to energy-efficient appliances like LED bulbs can slash your energy bills and carbon footprint simultaneously. ENERGY STAR-labeled appliances in particular, meet high energy efficiency standards. Remember, conserving energy isn’t just about upgrading your gadgets – it’s also about everyday habits. Turning off lights when you leave the room, unplugging idle electronics, and fixing leaks can make a big difference in your utility bills and resource conservation.

Rethink Your Ride

Eco-friendly transportation methods like carpooling, public transit, and electric vehicles reduce emissions and save money on fuel. For short distances, consider biking or walking — not only are these options cost-free, but they also offer health benefits. If your job allows remote work, see if you can work from home a portion of the week to cut down on commuting costs and decrease your environmental impact.

Waste Not, Want Not

Minimizing waste goes hand in hand with maximizing savings. Ditch single-use plastics for reusable alternatives, buy in bulk to reduce packaging waste, and embrace recycling and composting. Before tossing something out – think about whether it can be repaired, repurposed, or donated. These practices not only lessen your environmental impact but can also inspire a more mindful and economical lifestyle.

Earth Day Every Day

Making eco-friendly choices in your finances and lifestyle doesn’t just celebrate Earth Day — it honors our planet every day. By integrating these green practices into your life – you’ll not only contribute to a healthier planet, but also discover new ways to save.

For more personalized financial advice, call 732.312.1500 or visit your local branch today. Don’t miss out on more financial tips – be sure to subscribe to our monthly e-newsletters.

5 Points for 5 Years Before You Retire

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Retirement is an exciting prospect for many and choosing how to spend your retirement could likely be based on the planning you do today. For example, have you considered your plans for housing, healthcare, and travel expenses? If you are wondering how to get started, here are five points to consider within five years of your retirement.

  • Estimate your monthly income and allowances. The monthly amount could decline based on a lesser need for extras, but it could also quickly change based on your health or family circumstances, so estimating on the higher side could help. Also, consider readjusting or reallocating your portfolio and evaluating other income-producing and growth investments. And lastly, don’t forget to include any Social Security or Required Minimum Distributions.
  • Where will you live? Have you considered relocating to a state that doesn’t require as many taxes? Many retirees consider downsizing to lower expenses, or plan to move closer to family to help care for grandchildren or loved ones. Overall, there can be many benefits to living closer to family as you age.
  • Consider your debt and taxes. Retiring to a lower income tax bracket is possible. Considering a one-time tax hit, moving from a traditional IRA to a Roth IRA could eventually produce a source of tax-free retirement income. But before you make any decisions, talk with a qualified tax professional to see if this move is right for you. Income and age restrictions may apply.
  • Healthcare costs. Will you apply and be eligible for Medicare and will this cover your present and future needs? It is possible you or a loved one may need long-term care at some point during retirement and this could affect your overall bottom line.
  • What will you do? How do you dream of spending your days? Will you take time to travel and see the world, or would you prefer to keep closer to home and pick up a new hobby? However you see your retirement, it’s important to make sure your finances can support your overall goals.

Planning for retirement involves setting goals and a defined strategy toward those goals. Whatever your plans are, make sure you have made all of the arrangements beforehand so you can live your retirement years as confidently as possible.

Questions about this topic? Contact First Financial’s Investment & Retirement Center by calling 732.312.1534.  You can also email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

This material was prepared by LPL Financial, LLC

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Protecting Your Finances: Beware of Double Zero Scams

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In today’s digital age, financial scams come in many forms and staying vigilant is crucial to safeguarding your hard-earned money. One such scam gaining traction is the Double Zero Scam, a cunning scheme that preys on unsuspecting individuals’ goodwill and trust. Let’s delve into exactly what this scam entails and how to protect yourself.

What is a Double Zero Scam?

Imagine receiving a call from someone claiming to represent a reputable company that you may have an account with or have purchased a product or service from in the past. The caller informs you that a $150 refund was issued to your bank account for unused services. However, due to a bank error – an additional two zeros were added to your account, making the refund amount $15,000. The caller is in distress and pleads for you to wire back the excess amount or to go to the bank and withdraw it in cash, to rectify the error so that they don’t lose their job.

How Does it Work?

The scammer relies on psychological manipulation, leveraging urgency and fear to coerce victims into compliance. By creating a sense of urgency and portraying themselves as reputable entities facing dire consequences, they aim to bypass your logical reasoning and exploit your desire to help.

Protect Yourself from Double Zero Scams

  • Verify the Caller: Always verify the identity of the caller, especially if they claim to represent a company or organization. Hang up and contact the company directly using a trusted phone number to confirm the legitimacy of the call.
  • Be Skeptical of Unsolicited Requests: Exercise caution when presented with unexpected refund offers or requests for financial transactions. Legitimate companies typically do not request immediate action or ask for sensitive information over the phone – much less a payment via a wire transfer, gift card, person-to-person payment (i.e. Venmo or Zelle), in cash, or with cryptocurrency.
  • Trust Your Instincts: If something feels off or too good to be true, trust your instincts. Scammers often rely on creating a sense of urgency to pressure victims into making hasty decisions. Take a moment and call your financial institution for a second opinion before making any financial transactions. A trusted company representative will not have an issue with further verification.
  • Educate Yourself: Stay informed about common scams and fraudulent tactics gaining traction in today’s digital landscape.

At First Financial, your financial well-being is our top priority. Our tools and resources such as our Fraud & ID Theft Protection Guide can equip you with the knowledge necessary to protect yourself from scams. By staying informed and vigilant, you can safeguard your finances and enjoy peace of mind in an ever-evolving digital world.

For more personalized financial assistance with your First Financial accounts, call us at 732.312.1500 or visit a branch today. Don’t miss out on more financial tips and advice, be sure to subscribe to our First Scoop blog.

Get in Touch with Your Finances During Financial Literacy Month

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April is Financial Literacy Month and First Financial is here to guide you on getting in touch with your finances with smooth sailing. While financial automation can be a great way to bring ease into managing regular expenses and savings, it also demands a vigilant approach to ensure your financial health remains robust. Here are some important things to keep in mind when automating your finances and areas of consideration when conducting necessary financial check-ups.

Catch Mistakes Early

Automation doesn’t guarantee perfection. Errors in billing amounts or unexpected charges can occur. Regularly reviewing your accounts allows you to spot these discrepancies early, preventing minor issues from escalating into financial headaches. At First Financial, we encourage members to utilize our mobile banking app and card management resources for effortless monitoring of finances.

Maintain Awareness of Spending

It’s easy to let automation lead to an out-of-sight, out-of-mind attitude toward your finances. However, this approach can cause you to lose track of where your money is going and lead to unnecessary spending – deviating from your financial goals. First Financial offers budgeting tools and resources that help you stay on top of your spending habits, ensuring you’re always aligned with your financial aspirations even when you’re not actively thinking about them.

Strategic Financial Planning

Automation should enhance, not hinder your ability to plan for the future. Regular check-ins with your personal financial plan and budget will allow you to adjust as needed, keeping you on track toward your long-term goals. Whether you’re saving for retirement, planning a major purchase, or building an emergency fund – our planning resources are designed to support your journey toward financial stability and success.

Conducting a Financial Check-Up

Don’t overlook the value of a comprehensive financial check-up. First Financial’s suite of online tools and personalized advice from our team can guide you through this process, ensuring your financial well-being is always at its peak.

Key Areas to Review:

  • Net Worth: Start by evaluating your current net worth to understand where you stand financially. Compare it with past assessments to gauge your progress or identify areas needing attention.
  • Financial Plan: Revisit your financial goals and the plan you’ve laid out to achieve them. Are you on track? Adjustments may be necessary to realign with your objectives.
  • Insurance Coverage: Review your insurance policies thoroughly. Ensure you have adequate coverage for your assets while also identifying opportunities to optimize premiums.
  • Investments: Examine your investment portfolio. Check if your asset allocation aligns with your risk tolerance and financial goals. Look for ways to reduce fees and improve returns.
  • Spending and Saving Habits: Assess your spending patterns and saving practices. Ensure they’re aligned with your financial priorities and adjust where necessary, to meet your goals.

By regularly performing these checks, you’ll maintain a strong pulse on your financial health and adapt more effectively to life’s changes. First Financial is here to support your financial check-ups and to help you navigate your financial journey with ease and confidence. Remember, your financial well-being is our top priority. Let’s make this Financial Literacy Month a milestone in your journey toward financial empowerment! For more personalized financial assistance call 732.312.1500 or visit a branch today.