Author Archives: VP of Marketing and Business Development Jessica

Avoiding Costly Shopping Mistakes This Holiday Season

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It’s the holiday season, and we know the excitement of gift giving is often coupled with the challenge of keeping your finances in check. Online shopping, while offering convenience – can lead to overspending and financial stress. At First Financial, we understand these challenges and are here to guide you through the holiday season with essential tips to avoid costly shopping mistakes.

The Art of Creating a Holiday Budget

The first step to smart holiday spending is establishing a budget. This isn’t just about setting limits; it’s about foreseeing and planning for all the expenses the season brings. From gifts to holiday cards, parties, and travel – every potential cost should be considered. By listing these expenses and calculating a total budget, you set a clear financial boundary for yourself. The most critical aspect however, is adhering to this budget. Discipline in spending is key to avoiding post-holiday financial regret come January.

Navigating Credit Card Use

The holiday season often brings with it the temptation to rely heavily on credit cards. While credit cards can be useful tools for managing expenses, they can also encourage overspending. People tend to spend more when they’re not parting with physical cash. To counter this, we recommend using a rewards credit card wisely. While this type of card usually offers benefits like cash back or merchant gift cards, be cautious of high interest rates that can accumulate. Additionally, it’s important to resist impulsive sign-ups for store credit cards at checkout. These quick decisions might offer short-term savings, but can have long-term impacts on your credit score.

Thoughtful Gift Giving

When it comes to gift giving, remember it’s the thought that counts. Extravagant gifts don’t necessarily mean more to the recipient. In fact, studies show that many people don’t remember most of their gifts by the next holiday season. Hence, choosing meaningful gifts over expensive ones not only saves money – but also adds a personal touch to your present.

The Strategy of Shopping

Effective shopping strategies go a long way in saving money. Making a list of people you’re buying gifts for and what you plan to get them can prevent the common mistake of forgetting someone. Additionally, comparing prices online before heading to the stores can help you find the best deals. Keep an eye out for price-matching opportunities and consider store pick-up options to save on shipping costs. Making your purchases online if you can get free shipping, is another strategy that can be of convenience during this busy time of year.

Timing Your Shopping

The timing of your shopping can significantly impact your budget. Last-minute purchases often lead to rushed decisions and overspending on gifts. Conversely, starting too early can lead to a prolonged shopping period, resulting in buying more than necessary. Balance is key – start early enough to monitor prices, but not so early that it leads to unnecessary purchases.

Year-Round Financial Planning

An effective way to ease the financial burden of holiday spending is to plan throughout the year. Setting aside a small amount each month in a holiday savings account like our Holiday Club Account can make a big difference when the season arrives.* This approach spreads out the expenses, reducing the financial strain during the holidays.

Leveraging Online Tools for Savings

Finally, don’t overlook the power of online sites like Honey and Rakuten. These tools can provide significant savings through promo codes and cash back offers. Integrating these into your online shopping routine can lead to considerable cost savings.

By following these guidelines, you can enjoy a festive holiday season without the stress of financial fallout. Remember, First Financial is always here to assist you in managing your finances effectively. If you have questions or concerns, contact us today or stop into one of our branches.

Happy Holidays, and happy shopping!

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.

Budget Your Way Through the Holiday Season

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The holiday season, while filled with joy and celebration – can also be a time of financial stress. On average, Americans spend around $1,500 between November and December holidays every year. Effective holiday budgeting is essential to navigating this festive period without causing long-term financial stress.

The Importance of Budgeting for the Holidays

Creating a holiday budget is the best way to control spending and avoid financial blues come January. It helps in prioritizing expenses, planning savings, and reducing credit card strain. A well-planned budget can provide peace of mind and keep holiday spending within manageable limits.

Crafting Your Holiday Budget

Select and utilize tools that suit your lifestyle – such as spreadsheets, budgeting apps, or the traditional pen and paper method. This helps in adhering to your spending limits and avoiding impulse purchases. Start by examining your current debt, especially credit card balances. If you’re unable to pay off these balances, it might be wiser to focus on paying down debt rather than indulging in extensive holiday shopping. Handmade gifts are an affordable alternative that your loved ones will surely appreciate.

Estimating and Allocating Your Budget

Begin by estimating your total income for the holiday season. This includes regular paychecks and any additional earnings from side gigs. You can also use last year’s data or a three-month average to help you plan. Next, list all your expenses and deduct regular costs from your projected income to determine your holiday budget. Remember to include any annual payments that fall during the holiday season.

Once you have a clear idea of your available budget, allocate funds to different categories of holiday spending. This could include travel, decorations, hosting holiday meals or bringing food items to various events, and gifts. Prioritize categories according to your needs and preferences.

Smart Shopping and Spending

Creating a detailed shopping list with names, budgeted amounts, and gift ideas can prevent overspending. Use price tracking tools and browser extensions to find the best deals. Maintaining discipline is key to avoiding financial regret later on.

Start Early and Track Your Spending

Don’t leave your shopping until the last minute. That way, you can take advantage of early deals – especially for travel and events. Set a goal for holiday savings and identify potential areas in your monthly budget where you can cut back, such as entertainment expenses. Consider the areas where you can cut back, and allocate those funds to your holiday spending budget or your savings account for post-holiday bills.

Using credit cards can be beneficial – but only when used wisely and repaid promptly. Rewards cards in particular (like our Visa Signature Cash Plus Card), can offer cash back or savings in other areas of everyday spending.* It’s also important to track your spending diligently, using dedicated credit cards or bank accounts and methods like budgeting apps or ledgers.

Post-Holiday Reflection

After the holiday season, take time to review your spending. This post-holiday evaluation will help you identify areas where you might have overspent and can plan more effectively for the next year.

Navigating the holiday season doesn’t have to be stressful. By adopting holiday budgeting strategies, you can enjoy the festivities without worrying about your finances. A little planning, discipline, and smart spending can go a long way in ensuring a joyful and savvy holiday season.

For additional budgeting help or questions, stop into your local branch or contact us today.

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

 

Easy Money or Money Mule?

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A money mule acts as a layer of distance between a scammer and their victims by handling stolen funds on behalf of someone else, either knowingly or unknowingly. Money mules make a scam harder to trace and the money harder to find.

Beware of offers that promise quick cash or a commission in exchange for receiving money and then sending it to someone else. This may take the form of a fake job opportunity, investment scheme, or prize award.

As an example, the scammer may approach an unsuspecting victim online or by phone with the promise of a financial windfall. In some cases, they may send the person a lump sum, ask them to transfer a portion of it to another account, and keep the rest for themselves. It sounds like easy money, but acting as a money mule is illegal – even if the person is unaware they are committing a crime.

Another tactic is for a scammer to say that they’re unable to receive funds through a particular payment method and need someone else to help by accepting a payment into their bank account. In reality, they are scamming someone out of funds and using another person as a middleman to help cover their tracks. After the money transfers are completed, the money mule could be held criminally responsible for their participation – whether they knew it was a scam or not.

Protecting Yourself from Money Mule Scams

It’s important to only send and receive money with those you know and trust. If a stranger requests that you handle money for them, stop communicating with them immediately. If you find that an unexpected deposit has been made in your account and someone you don’t know calls and claims it belongs to them, hang up and contact your financial institution.

Follow These Tips to Avoid Becoming a Money Mule

  • Don’t agree to send or receive money or packages for people you don’t know or haven’t met in person.
  • Do not take a job that promises easy money – especially if it involves sending or receiving money or packages.
  • It’s not a good idea to open a bank account or cryptocurrency account at someone else’s direction.
  • Refuse to send money to an online love interest, even if they send you money first.
  • You should never pay to collect a “prize” or send someone money out of your “winnings.”

At First Financial, our goal is to help protect our members from scams and identity theft. If you have any concerns or questions about any of your First Financial accounts, please call member services at 732.312.1500 or visit one of our branches.

To learn more about scams and ways to protect yourself, visit zellepay.com/pay-it-safe.

Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

Holiday Preparation Tips for Small Business Success

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The holiday season is a crucial time for small businesses, offering immense potential for growth and customer engagement. Effective preparation is key to harnessing this opportunity. Here are some holiday business preparation tips to ensure your small business stands out and flourishes during this bustling season.

Strategic Planning for the Holidays

Strategic planning sits at the heart of successful holiday business preparation. It’s essential to analyze your market, understand competitor strategies, and find unique ways to distinguish your business. This could involve special promotions, events, or exclusive offers designed to draw customers to your location. Selecting the right sales strategies – such as discounts or holiday bundles, can significantly impact your seasonal success.

Enhancing Your Digital Presence

It’s no secret that these days, your online presence can make or break your holiday success. Ensuring your website is user-friendly and ready for increased holiday traffic is vital. Equally important is leveraging the power of social media. Regular posts and engagement on platforms like Instagram or Facebook can drive brand awareness, help with new customer discovery, and boost sales.

Inventory and Supply Chain Management

Effective inventory management is a crucial aspect of holiday business preparation. Review past sales data or industry trends to estimate the amount of stock you’ll need. This approach isn’t just about product quantity; it also involves ensuring you have all the necessary supplies to maintain smooth operations during the holiday rush.

Creating a Festive Shopping Experience

The holidays are synonymous with festivity, and creating a holiday-themed environment can attract more customers. If you have a storefront, consider decorating it and adding seasonal touches to enhance the holiday shopping experience. Collaborating with other local businesses for broader community decorations can also create a more immersive holiday atmosphere.

Preparing for Staffing Needs

Anticipate potential labor shortages typical of the holiday season. Planning ahead might mean hiring seasonal employees to ensure you have enough hands on deck. Training seasonal staff in various roles not only provides operational flexibility, but also ensures a high-quality customer service experience.

Financial Planning for the Holiday Season

Financial preparedness is a critical component of holiday business preparation. Exploring financial solutions like small business loans can help manage cash flow and cover expenses. Being financially equipped is crucial for a seamless holiday operation.

The holiday season presents a fantastic opportunity for small businesses to showcase their unique offerings and attract a wider customer base. Remember, it’s about creating an unforgettable shopping experience and quality products or services that keep customers coming back. First Financial is here to support your business every step of the way during this busy period. To learn more about business banking with First Financial, email business@firstffcu.com, call 732-312-1500 or visit one of our branches.

Don’t forget this upcoming Saturday, November 25th is Small Business Saturday. Be sure to support small business in your community and shop local!

Signs You’ve Been a Victim of Identity Theft

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In today’s digital world, where personal information is frequently shared online, the threat of identity theft looms large. First Financial is committed to helping you recognize the warning signs of identity theft and take appropriate action. Understanding these signs is crucial for protecting your financial well-being and ensuring peace of mind.

Spotting the Warning Signs

Recognizing identity theft requires vigilance and an understanding of several key indicators. Unrecognized transactions on your bank or credit card statements are often the first hint of identity theft. These transactions might be small at first, but they can quickly escalate. Equally important is keeping an eye on your credit report for any inquiries that you don’t recall initiating. This could indicate someone attempting to open accounts in your name. You can check your credit report for free once a year at annualcreditreport.com.

Another sign to be wary of is receiving unfamiliar bills or statements, or conversely – not receiving the bills or statements you are expecting. This can suggest that someone has gained access to your account information and is redirecting your mail. A sudden, unexplained drop in your credit score is another red flag. It can indicate that fraudulent activities are negatively impacting your credit history.

Unexpected denials of credit or loan applications can also signal identity theft. If your applications are being denied and you don’t know why it could be due to a compromised credit history. Additionally, receiving calls from debt collectors about debt that you don’t recognize is a classic symptom of identity theft. Lastly, unusual activity on your Social Security account – such as unfamiliar earnings reports, should also raise concern.

Confirming and Responding to Identity Theft

If you suspect you’ve been a victim of identity theft, there are several steps you should take to confirm and address the issue. Begin by thoroughly reviewing all of your financial statements and accounts for any unauthorized transactions. This includes checking your credit report from the major bureaus for any unfamiliar activities or discrepancies.

If you find evidence of identity theft, it’s important to report it immediately. Contact your financial institution, credit card companies, and the credit bureaus to inform them of the suspected theft. You should also file a report with the Federal Trade Commission (FTC), which will provide you with a recovery plan.

Taking preventative measures like placing a fraud alert or a credit freeze on your accounts can help prevent further damage. This restricts access to your credit report, making it more difficult for identity thieves to open new accounts in your name. Finally, updating the security of your accounts – such as changing passwords and PINs, is crucial in safeguarding your financial information.

At First Financial, we understand the importance of protecting your personal and financial information. Being aware of the signs of identity theft and knowing how to effectively respond is essential in safeguarding yourself against these risks. By recognizing the signs early and taking prompt action, you can significantly mitigate the effects of identity theft. Stay informed and protected, talk to a representative at 732.312.1500 or visit any of our branches today.

Common Reasons for Drops in Your Credit Score

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When it comes to personal finance, one of the most pivotal benchmarks is your credit score. This three-digit number is the barometer lenders use to gauge your creditworthiness. It’s a quantified assessment of your ability to repay debts, and it can fluctuate for a variety of reasons. Understanding these fluctuations, especially what causes a drop in credit score – is essential for financial stability and agility.

Late or Missed Payments

One of the most significant contributors to a drop in credit score is late or missed payments on your credit card. Your payment history carries considerable weight in credit score calculations, and even a single missed payment can negatively affect your score. It’s imperative to stay on top of your payments. If you’ve missed a payment, don’t panic. Instead, set up automatic payments to prevent future lapses and regularly review your credit report to ensure all payment information is accurate and up to date.

High Credit Utilization

Another reason for a drop in your credit score can be high credit utilization. Experts recommend keeping your credit utilization—the percentage of your credit limit that you use, below 30%. High utilization can signal to creditors that you’re over-reliant on credit, and reducing your balances can help mitigate the impact on your score. Remember, the goal is to demonstrate that you can manage credit responsibly.

Decreased Credit Limits

Sometimes, a drop in credit score is due to a lower credit limit. This can unexpectedly increase your credit utilization ratio. If you find your limit reduced, contact your credit issuer to discuss why it happened and whether it can be restored – especially if you haven’t changed your spending habits.

New Credit Applications

Applying for new credit can also result in a drop in your credit score due to inquiries from lenders. While one application might not cause a significant change, multiple applications within a short timeframe can be problematic. Be strategic about when and how often you apply for new credit to minimize the impact on your score.

Closing Credit Accounts

Closing credit accounts might seem like a positive step, but it can actually lead to a drop in your credit score. This can shorten your average credit history and potentially increase your credit utilization ratio. Sometimes the long-term benefits of closing an account outweigh the short-term impact on your score. Ultimately, you’ll need to decide which is right for your particular financial scenario. It’s often best to pay off these credit accounts, and just stop using them – rather than closing them out completely.

Major Financial Events

Major negative financial events such as bankruptcy or foreclosure, have profound effects on your credit score. These incidents can stay on your credit report for years, so it’s important to manage debt wisely and seek assistance before such events occur.

Inaccurate Information

At times, a drop in credit score could be due to errors on your credit report. Regular checks of your credit report can help you spot and address inaccuracies quickly. Whether it’s a misreported payment or incorrect personal information, it’s within your rights to dispute these errors and have them corrected.

Identity Theft

Lastly, identity theft can cause a significant and unexpected drop in your credit score. Monitoring your credit can alert you to potential fraud, and if you suspect identity theft – immediately placing a fraud alert or credit freeze can prevent further damage to your score. Brush up on what to do in this situation ahead of time so you’re prepared if this ever happens to you.

Maintaining a robust credit score is an ongoing process. By understanding the common causes that can trigger a drop in credit score, you’ll be better prepared to protect and improve your credit standing. Always remember that each aspect of your credit history is a piece of a larger financial puzzle.

For more information on managing your credit and to set-up an appointment at one of our branches, contact us at 732-312-1500. Stay on top of your financial health by subscribing to First Financial’s monthly newsletter or check out our handy guide on credit management.