Category Archives: Financial Advice

Financial Preparation Tips for Hurricane Season

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As hurricane season is underway (June 1st to November 30th), it’s essential to prioritize not only your physical safety but also your financial well-being. Natural disasters like hurricanes and tropical storms can have a devastating impact on your financial stability if you’re unprepared. However, with careful planning and the right strategies, you can mitigate potential risks and protect your financial future. Don’t wait until it’s too late – start preparing today to weather the storm with confidence.

Review Your Insurance Policies

Before a storm strikes, take the time to review your insurance policies. Check if your home, health, or other insurance coverage provides financial assistance for temporary shelter, replacement of belongings, or other essentials in case of extreme weather. Our partners at TruStage Insurance offer a comprehensive range of insurance products, including accidental death & dismemberment insurance, auto, life, and property coverage.** These products can help cover the cost of property or injury in the event of a natural disaster. Having a clear understanding of your coverage will give you peace of mind and help you make informed decisions during challenging times.

Conduct a Household Inventory

Creating a comprehensive household inventory is crucial for assessing potential losses and expediting insurance claims. Make a detailed list of your physical possessions, accompanied by photographs or videos. Include important information such as serial numbers, purchase receipts, and appraisals. Additionally, gather vital documents like Social Security and health insurance cards, prescription lists, and copies of essential financial and family records (deeds, titles, wills, birth and marriage certificates).

Keep Your Documents Safe and Accessible

Organizing and safeguarding your important documents is key to ensuring quick and easy access when needed. Invest in a lockable fireproof file box to store your documents securely. Keep it in a readily accessible place within your home, allowing you to grab it quickly in case of an evacuation or emergency. Remember to include some cash, as ATMs and banks may be inaccessible during emergencies and power outages. To find a First Financial or Co-Op surcharge free ATM location near you, click here. Store an extra set of house and car keys, as well as the key to any safe deposit box you may have.

Leverage Technology

Harness the power of technology to enhance your financial preparedness. At First Financial, we offer a user-friendly mobile app and online banking, which both allow you to access and reference your financial documents from anywhere.* By digitizing your important files and uploading them to a secure platform, you can ensure that even if physical copies are lost or damaged, you can still retrieve them quickly and efficiently.

Stay Informed and Aware

Knowledge is a vital asset when facing the aftermath of a hurricane. Bookmark helpful resources such as your local weather or the FTC, which provides valuable advice on recovery, your rights, and how to identify, avoid, and report scams in times of natural disaster. Staying informed will empower you to make smart decisions and protect yourself and your finances from potential fraud or exploitation.

Preparing for hurricane season goes beyond securing physical safety. Taking steps to ensure your financial readiness is equally crucial. By following these tips, you’ll be well-equipped to face hurricane season with confidence, knowing that your financial future is protected. Stay safe, stay prepared, and remember that we are here to support you every step of the way. For more financial advice, read our First Scoop blog!

*You must have an account at First Financial Federal Credit Union (serving Monmouth and Ocean Counties in NJ), and be enrolled in online banking, to use our mobile application. Standard data rates and charges may apply. 

 **TruStage insurance products and programs are made available through TruStage Insurance Agency, LLC. Life insurance and AD&D insurance are issued by CMFG Life Insurance Company. Auto and home insurance are issued by leading insurance companies. The insurance offered is not a deposit, and is not federally insured, sold, or guaranteed by your credit union.

Debunking Common Financial Myths

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In the world of personal finance, there are myths and misconceptions that can hinder our ability to make informed decisions and achieve our financial goals. By debunking these myths, we can gain clarity and navigate the complexities of personal finance more effectively. Keep reading as we explore common financial myths and the truth behind them!

Myth 1: Credit unions are just like banks.

Reality: Credit unions are member-owned, not-for-profit financial institutions. Credit unions prioritize the best interests of their members rather than generating profits for shareholders. At First Financial, for example – you can benefit from lower loan rates, personalized customer service, and access to a wide range of financial products tailored to meet your unique needs.*

Myth 2: Paying the minimum on your credit card statement is fine.

Reality: Paying the minimum balance on your statement actually costs you more in the long run. You’ll end up having to spend more on interest this way, which could double the cost of the items you purchased. Paying your credit card statement on time and in full every month can help improve your credit score and save money on interest too. See our handy guide on credit card mistakes to avoid to learn more.

Myth 3: Saving money is solely about setting cash aside.

Reality: While saving money is essential, there are various strategies to make your savings work harder for you. Exploring different savings products, such as high-yield savings accounts, certificates of deposit (CDs), or individual retirement accounts (IRAs) – can help you grow your savings over time and work towards your financial goals.

Myth 4: Loans are only for emergencies or significant purchases.

Reality: Loans can serve multiple purposes beyond emergencies or large purchases. They can be valuable tools to seize opportunities, consolidate debt, or invest in personal or business ventures. Understanding the different loan options available and their terms, can help you make informed decisions that align with your financial objectives.

Myth 5: Retirement planning is only for the wealthy.

Reality: Retirement planning is crucial for individuals at all income levels. Regardless of your current financial situation, developing a retirement strategy early on can help you secure a comfortable future. Here at our credit union, we offer the First Financial Investment & Retirement Center to help support your future through investments and insurance.**

By debunking these common financial myths, you can gain a better understanding of personal finance and make more informed decisions to achieve your financial goals. Whether it’s exploring savings and loan options, or planning for retirement – taking a proactive approach to your financial well-being is key.

Remember, knowledge is power – and First Financial is here to provide you with all the tools for your financial success. For more insights and tips on personal finance, check out our First Scoop Blog!

*$5 in a base savings account is your membership deposit and is required to remain in your base savings account at all times to be a member in good standing. All credit unions require a membership deposit. 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.

 **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:

When to Use Cash, Credit, or Debit

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Not every payment method is the same. At First Financial, we believe that understanding the tools you have at your disposal – including cash, credit, and debit – is vital to achieving financial wellness. By using the right payment method for the right situation, you can enhance your financial security, budget more effectively, and make your money work for you.

Cash: The Tangible Transaction

Even in this digital age, there are certain situations where cash remains king. These include:

  1. Small, Everyday Purchases: For small, incidental expenses like a cup of coffee or a quick snack, cash is a handy option. It helps keep track of your spending in a tangible way that digital forms of payment often can’t match.
  2. Budgeting Tool: Cash can be a powerful visual aid in budgeting. Physically dividing your cash into envelopes or jars for different expense categories can give a clearer picture of where your money is going. Plus, when it’s gone – it’s gone.
  3. In Case of Emergencies: Having some cash on hand for emergencies, such as power outages where digital payment systems may not work, can be a lifesaver.

Remember, while cash offers a direct, tangible way to control spending, it doesn’t provide any kind of record of your transactions or protection against theft.

Debit: A Bridge Between Cash and Credit

A debit card offers the convenience of a credit card, but works like cash because the funds are directly withdrawn from your checking account. It’s a useful tool when:

  1. Avoiding Debt: If you are concerned about overspending or accumulating debt, using a debit card can keep you within your means – because you can only spend what you have in your account.
  2. Digital Convenience: Debit cards offer the same ease and convenience as credit cards for online shopping and bill payments.
  3. ATM Withdrawals: Need cash in a hurry? Your debit card lets you access your money at ATMs.

While debit cards provide more record-keeping than cash and less risk of overspending than credit cards, they may not offer the same level of protection against fraudulent transactions as credit cards do. That’s why it’s essential to have both. At First Financial, you’ll be instantly issued a debit card when opening a checking account.* Our debit card offers great features like no annual fees and more!

Credit: The Power of Borrowing

Credit cards allow you to borrow money up to a certain limit in order to purchase items. They can be a powerful tool in your financial toolkit when used responsibly:

  1. Building Credit: Regular and responsible use of a credit card can help you build a positive credit history, potentially leading to lower loan interest rates and better terms in the future.
  2. Rewards and Perks: Many credit cards offer rewards such as cash back, travel points, or other perks based on your spending.
  3. Protection: Credit cards generally offer more robust protection against fraudulent transactions compared to debit cards.

The convenience of credit cards, however, can often lead to overspending and other common mistakes to avoid. It’s crucial to pay off your balance in full each month to avoid interest charges and potential debt accumulation.

Once you learn the tips and tricks to using a credit card, you’ll get to enjoy the benefits of having one. Whether you’re looking for a card with extra perks or are working on building your credit, we offer four different credit card options that will suit your needs. With our Visa® Cash Plus Credit Card, you can earn cash back on eligible purchases.**

Navigating Your Payment Options

Every payment method comes with its own strengths and weaknesses, and the best choice often depends on the situation. At First Financial, we’re here to help you navigate these decisions and make the most of your financial resources. Whether you’re choosing between cash, debit, or credit – our team is ready to support you with expert advice tailored to your individual financial circumstances and goals. Visit a local branch or call 732.312.1500 to get started.

As always, we encourage our members to spend wisely, budget regularly, and make informed decisions about their financial health. Stay tuned for more insights and tips on personal finance from us by subscribing to our First Scoop Blog!

*Debit Card must be linked to a First Financial Checking Account. Debit Cards are available for First Financial members with Checking Accounts only. A First Financial membership is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties. 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.

 **Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter. APR varies up to 18%, when you open your account based on your credit worthiness. This APR is for purchases and 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 Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; 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, volunteers, or attends school in Monmouth or Ocean Counties.

Costly Impulse Purchases and How to Avoid Them

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We’ve all been there—caught up in the excitement of a flashy advertisement or the promise of an improved life, only to regret our impulsive purchase later. These purchases can wreak havoc on our finances and majorly set back progress toward achieving financial goals. However, with a little mindfulness and strategic planning, we can resist the allure of impulse buying and make smarter financial choices. Let’s explore some common examples of impulse purchases and provide practical tips to help you avoid them.

Common Impulse Purchases to Look Out For

  • Food and Dining: Buying takeout or eating out frequently instead of cooking at home can drain your budget quickly. Impulse purchases of snacks, drinks, or expensive meals can add up over time, and throw off your budget in a major way.
  • Subscription Services: Signing up for various subscription services without thoroughly assessing their value or necessity, can result in accumulating monthly expenses. Subscriptions for streaming platforms, beauty boxes, gym memberships, or online courses should be carefully considered to avoid unnecessary spending. Try using apps that help you cancel unwanted subscriptions so you can lower your monthly bills.
  • Cosmetics and Beauty Products: Impulse purchases of makeup, skincare, or beauty products can be tempting, especially when influenced by online trends. Buying products without considering your actual needs or the expiration dates of existing items can lead to wasteful spending.
  • Hobby-Related Purchases: Engaging in new hobbies can be enjoyable, but impulsive purchases of equipment, instruments, or materials related to these hobbies should be carefully considered. Take the time to research and assess your commitment to the hobby before spending a substantial amount on supplies.
  • Trendy Clothing and Accessories: Impulse buying of trendy clothing or accessories can quickly eat into your budget. Purchasing items solely based on current fashion trends may result in regret once those trends fade. Focus on timeless pieces that align with your style and can be worn for years to come.

How to Avoid Impulse Spending

  • Recognize Your Triggers: Identify the emotional triggers that lead to impulse buying, such as stress, boredom, or the desire for instant gratification. By understanding your triggers, you can develop strategies to counteract them, such as finding alternative stress-relief methods or engaging in free activities to combat boredom.
  • Create a Detailed Budget: Establish a comprehensive budget that outlines your income, expenses, and savings goals. Allocating a specific amount for discretionary spending and adhering to it will help you resist the urge to make impulsive purchases that exceed your financial means.
  • Make a Shopping List and Stick to It: Before shopping, create a list of items you genuinely need and stick to it. This practice will help you stay focused and avoid getting swayed by temptations. Prioritize essential items and resist the urge to buy outside of your list unless necessary.
  • Practice Waiting Periods: Adopt the 24-hour rule or the “sleep on it” approach. When you have the urge to buy something, wait for a predetermined period before making the purchase. This cooling-off period allows you to reflect on whether the item is truly necessary or just a passing desire, helping you make more informed decisions.
  • Distinguish Wants from Needs: Clearly understand what it means to want something vs. needing something. Wants are items you desire but can live without, while needs are essential for your well-being and daily functioning. Evaluate each potential purchase against this criterion to prioritize spending and avoid unnecessary expenses.

Costly impulse purchases can feel like small, infrequent occurrences – but can disrupt your financial stability and hinder your progress toward financial goals. At First Financial, we put your financial wellness first by providing useful tools and publications designed to help you achieve your goals and avoid common money mistakes. We also offer our members* financial products, services, and benefits that help make their lives easier. Visit a local branch or call 732.312.1500 to get started!

For more money advice, subscribe to our First Scoop blog.

*$5 in a base savings account is your membership deposit and is required to remain in your base savings account at all times to be a member in good standing. All credit unions require a membership deposit. A First Financial membership is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties.

Financial Considerations When Becoming a Parent

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Becoming a parent is one of the most rewarding experiences in life. Amid the flurry of adorable baby clothes, nursery themes, and countless baby gadgets – it’s easy to overlook the financial considerations of this significant life event. The reality is, raising a child involves a substantial financial commitment.

The U.S. Department of Agriculture predicts middle-income families will spend $233,610 on average, raising a child from birth to age 17. That’s why we’re here to help alleviate some of the financial stress and make the transition to parenthood smoother. Here are some financial considerations to keep in mind when you’re preparing to welcome a new addition to your family.

Budgeting for a baby

The first step in preparing for a new baby is examining your current budget and anticipating new expenses such as diapers, formula, and childcare. At First Financial, we offer financial counseling and budgeting tools to help you navigate this critical planning phase.

Consider how you can adjust your lifestyle and cut unnecessary costs to make room for baby-related expenses. Paying down any existing debt will also be a big priority for soon-to-be parents. Our VISA First Step Credit Card is a useful tool in helping you build or re-establish your credit. Plus, it has no annual fees and a 10-day grace period.*

Healthcare costs

Healthcare is a significant expense during pregnancy and after the baby arrives. Ensure you understand what your health insurance covers, and remember to add your new baby to your health insurance policy after they’re born.

To help you set money aside for medical expenses, we offer a variety of savings accounts that can be used to save up for future expenses and other health-related costs.** Also, consider checking in with your employer or health insurance company to see if they offer a Health Savings Account (HSA).

Childcare

If both parents plan to return to work after the baby arrives, childcare will be a significant part of your budget. According to the Economic Policy Institute, annual infant care costs $12,988 in New Jersey. This is why financial planning is crucial. Start with putting a set amount of money into your savings account as soon as possible, so you are ready when the time comes.

Life insurance and estate planning

Becoming a parent is a pivotal moment to reassess your life insurance needs and start or revise your estate plan. The goal is to provide financial security for your child if something were to happen to you.

With our First Financial Investment & Retirement Center, we can assist you in the establishment of planning your financial future and provide advice on suitable life insurance policies available to you. It’s also never too early to start planning for your child’s education. Consider opening a 529 college savings plan, which provides tax advantages for future educational expenses. We can guide you through the process and provide you with options that align with your financial goals.+

Emergency savings

Unexpected expenses can arise at any moment, and with a child – these costs can multiply. Building an emergency savings fund provides a financial buffer. Our credit union offers Certificates of Deposit (CDs) that can help grow your emergency fund more quickly.**

Preparing for a child financially can seem overwhelming, but remember – you don’t have to navigate these waters alone. First Financial is here to help. Take advantage of the tools and resources we provide to ensure you’re as prepared as possible for the exciting journey of parenthood.

Reach out to us today to speak with a financial representative. We’re excited to help you prepare for this significant life milestone and ensure you’re in the best possible financial position to welcome your new family member.

Looking for more financial advice? Subscribe to our First Scoop blog!

*APR varies up to 18% when you open your account based on your credit worthiness. These APRs are for purchases and 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 Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; 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, volunteers, or attends school in Monmouth or Ocean Counties. See firstffcu.com for current rates.

 **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.

 +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:

Common Financial Mistakes We’re All Guilty Of

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Some financial mistakes are all too common. So common in fact, that you might not even realize you’re making one. Keep reading to find out what some of the most common financial slip-ups are, and how you can avoid or get yourself on the right path to correcting them.

1. The Problem: Using credit cards for everything. This financial mistake is very common (quite arguably the most common), and can get you in a lot of trouble if you aren’t careful. We know it’s very easy to swipe/insert your chip card and go, or pay with a credit card that’s already saved in your digital wallet or P2P payment app. However, living on credit cards comes with the potential to rack up a huge amount of high-interest debt if you aren’t paying your bill in full each month. Over time, this interest and debt will continue to increase if you keep using your credit card. This only leads to a vicious cycle of accruing debt.

The solution: Set a budget for yourself, pay only with cash or a debit card, and when that money is gone until your next paycheck – it’s gone. Try not to live above your means, or keep purchasing and adding on debt and interest with out of control credit card spending.

2. The Problem: Not checking your credit report. ID theft is all too common these days – most people have been a victim of some type of financial scam or a fraudulent purchase. If you don’t check your credit report from time or time (or at the very least once a year), you could be a victim of identity theft and not even know it.

The solution: All consumers are able to get at least one free credit report per year through annualcreditreport.com. Be sure to check yours at least once a year, and make sure any open financial accounts or loans are actually yours. If you find any mistakes or fraud on your credit report, you will need to file a dispute with one of the credit bureaus. Should there be fraud on your credit report, it’s also a good idea to add a security alert to your credit report.

3. The Problem: Looking to buy a home you can’t afford. Sure, owning a home is probably one of the biggest financial milestones in life – however, buying one you can’t afford is sure to become a nightmare. Financing a home you can’t afford will create enormous financial stress, and not leave you much room to pay for other necessities. In turn, you may end up reverting to problem #1 above – and finance other things you can’t afford on credit cards. This could all snowball into massive amounts of debt you might never be able to financially recover from, and lead to bankruptcy and/or foreclosure.

The solution: Set a realistic homebuying budget for yourself. Check out our handy homebuying guide and checklist to ensure you find the perfect home for you, without putting too much strain on your finances. Also keep in mind future expenses that come with homeownership – furniture, maintenance, and utility bills. Be sure you can afford the monthly mortgage payment along with these additional expenses comfortably before you put an offer in.

4. The Problem: Not planning ahead for your financial future. This common financial mistake is multifaceted. The first mistake consists of not having an emergency savings account. Throughout life, financial emergencies and unexpected expenses are going to pop up. Not having an emergency savings account to fall back on should your car break down or if your home gets a leaky roof, may lead you to again revert to problem #1 at the beginning of this post – charging on high-interest credit cards.

Another financial problem that stems from not planning ahead is having minimal or no retirement savings. Many of us put off the thought of retirement – thinking that it’s way off in the distant future, but the reality is that it takes years of working and saving to secure the funds you’ll most likely need once you’re retired.

The solution: Start putting money into an emergency savings account as soon as possible. This can be extra money not spent leftover from each paycheck, or you can even set up a direct deposit from your paycheck that goes into a special savings account automatically. Setting up an automated direct deposit will most likely allow you to save more and faster, because it takes the thinking out of it and your savings will continue to grow. It’s like that phrase, “set it and forget it.” This way, when you truly need the money in an emergency – it’s there.

As far as retirement is concerned, the sooner you start investing – the more money you’ll have in your retirement years. Many employers even offer matching retirement contributions, which you should definitely look into if this is something offered by the company you work for. If you don’t know where to begin with retirement planning, it’s best to talk to a local financial advisor to help set you on the right path.

At First Financial, we’re here to help our members achieve financial success and meet their goals. You can get in touch with our representatives at 732.312.1500 or by stopping into any of our local branches.

For more money advice, subscribe to our monthly email newsletter!

A First Financial membership is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a Base Savings Account is required to establish membership prior to opening any other account/loan.