What to Do With Your Tax Refund

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Did you recently receive your tax refund, but don’t know what to do with the extra money? While there are many options for spending your tax return, some may be better than others based on your circumstances. Sure, you might be tempted to use it on a shopping spree or extravagant vacation, but spending the money strategically will be more beneficial in the long run. Here are some useful ways to spend your tax refund that you might not have thought of.

Put it into your savings

No matter what your financial and personal goals are, having a savings account* is essential. If you’re already transferring a certain amount of money per paycheck to your savings, adding in your full tax refund can provide an extra boost to what you’ve already built. However, if you don’t already have a savings account, you can always use your tax return as a reason to start saving and investing in your future goals.

Start an emergency fund

Anything can happen and having an emergency fund can be a lifesaver when the unexpected occurs. Whether it’s an expensive vet bill, hospital stay, or a car repair – emergencies add up. The only way to truly be prepared is by saving money. And while you may already have savings, a separate emergency fund can prevent you from having to take from a different account meant for another expense.

Pay off your debt

Don’t let debt loom over you. Use your tax refund to pay down the money owed on your credit card or student loans. Paying off a large chunk of debt at once, can help lower your monthly credit card payment while also paying it down faster. While your full refund may not be enough to pay back everything, you can use it as an opportunity to start building a realistic repayment plan that works within your budget.

Make home improvements

Living in a home means there is usually maintenance, various fixes, and lots of upgrades to budget for. On the plus side, keeping up with these improvements can help lower energy bills and increase the value of your home over time. Replacing old windows, for example – can improve the efficiency of your air conditioning, thus reducing your electric bill during the hot summer months. Remodeling your kitchen or bathroom with new plumbing, appliances, or decor can help potentially also increase the value of your home and make it look more appealing when you’re ready to sell. While these projects can get pricey, using your tax refund – combined with a home improvement loan from us, can help make funding your project more realistic.**

Start your dream business

Maybe you’ve been dreaming of honing your artistic abilities by starting a photography business. Or perhaps you’re hoping to use your love of woodworking to begin crafting and selling furniture. Either way, your tax refund can provide a bit of capital to help get you started. While you don’t have to quit your current job to start profiting off your side business, it’s always recommended you speak with a financial expert (like us!) who can help advise you on which loan products and account offerings you’ll need to kick off your dreams.

Put it back into your community

Is there a cause or charity you’ve been wanting to support? Rather than donating money from your checking account without a plan, use what you’ve received from your tax return. Not only does your charitable donation benefit those in need, but it may also pose potential donation deductions for next year’s taxes. Not to mention it’s a financial decision you can feel good about!

Whether you need financial advice, or you’re looking to open a savings account, or get a loan – we are here to help. Stop in your local branch to speak with a representative today!

*A $5 deposit in a base savings account is required for credit union membership before opening any other account/loan. 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.

 **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 of 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. Lien position and appraisal valuation may affect the maximum loan amount. Not all applicants will qualify for maximum Loan to Value (LTV) ratio. It will be based off of creditworthiness, property type, occupancy, lien position, and loan amount. Rates will be affected by LTV or combined LTV if there is another lien on the property. Loan amounts over $7,500.00 will be required to give First Financial FCU a security interest in their property. Rates will vary based off of lien position and whether the loan is mortgage secured or unsecured. For mortgage secured Home Improvement loans First Financial FCU (FFFCU) will waive closing costs at inception of loan. If loan is terminated within the first 2 years of opening, closing cost waiver is revoked and are required to be paid back by member to FFFCU.

How to Avoid Banking Scams and Stay Safe Online

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Banking scams are more common than you think, especially lately. In 2020, the Federal Trade Commission received more than 2.1 million fraud reports. Criminals use these types of scams to trick people into giving up their bank account information.

Don’t panic just yet. There are many ways to protect yourself against banking scams and online fraud, and we’re here to help.

What are banking scams?

Banking scams are when fraudsters attempt to access your bank account to take your money or private information. The most common banking scams include:

  • Overpayment scams: When someone sends you a check, asks you to deposit it into your account, and wire part of the money back to them. The check is likely fake, so you’ll end up having to pay your bank the amount of the check, plus what you wired.
  • Unsolicited check fraud: When a scammer sends you an unexpected check, you cash it, and then you’re suddenly authorized for purchases or a loan you didn’t ask for.
  • Automatic withdrawals: When a fraudulent company sets up automatic withdrawals from your account to qualify for a free trial or prize.
  • Phishing: When you receive an email or text asking you to verify your bank account or card number.

How to protect yourself from banking scams

Now that we know what kinds of banking scams are out there, let’s talk about how to prevent them from happening to you. Here are our top tips to follow:

  • Be careful who you cash checks for. Never write a check for someone in exchange for cash, unless you know the person well.
  • Trust your instincts. If something feels off or is too good to be true, it likely is. Always read the fine print with any email or text you receive.
  • Don’t share your personal information. Scammers can easily hack into your account with the right information. Therefore, it’s important to avoid sharing account, Social Security, and credit card information with anyone – unless you know for certain it’s a legitimate request that you initiated with your financial institution.
  • Question unnecessary fees. If you’re sent a prize or job offer that requires an upfront fee, it’s a scam. The same goes for offers from unverified sources that require bank account information to redeem or claim them.
  • Be careful where you send money. This may seem obvious, but do not wire or send money to people or companies you don’t know.

What to do if you’re a victim of a bank scam

If you believe you’re a victim of a scam, contact your bank immediately to stop any unauthorized purchases or withdrawals from your account. You’ll need to report the scam to the proper authorities as well. Your financial institution should most likely offer a way you can file a complaint directly, or be able to provide you with the necessary steps to take. If you received any phishing emails, forward them to the Federal Trade Commission at spam@uce.gov.

At First Financial, we are here 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.

 

Tips for Improving Your Financial Literacy

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April is Financial Literacy Month, so we’re sharing our top tips for improving your financial wellness. Whether you’re new to managing a budget or are looking to save for a big future purchase, these tips will help you achieve your goals while maintaining a reasonable financial balance.

What is financial literacy?

Financial literacy refers to the knowledge and use of financial management skills, including budgeting, investing, saving, etc. By having an understanding of finances, you’ll be able to make better financial decisions. Achieving financial literacy is a lifelong process that requires continuous learning and management, and we’re here to help!

Here are our best tips for improving your financial literacy.

Learn how to budget

Don’t let the idea of creating a budget scare you. If anything, successfully building and maintaining a budget can be empowering. Start by creating a list of essential expenses including housing costs, food, transportation, clothing, internet, cell phone, insurance, and more. Then, write down how much you spend on each. From there, you’ll need to add up your monthly income and deduct your expenses. The amount leftover should be used toward building your savings and/or for any less essential purchases.

Improve your credit score

Maintaining a good credit score is an important part of your financial future. Without a good score, you’ll have difficulty securing a loan or mortgage down the line. Here’s what you can do over time to better your credit:

  • Pay your bills on time
  • Pay off or pay down your credit cards
  • Don’t close any open credit cards, but slow down opening new credit card accounts
  • Contact a financial expert – like us!

Open a savings account

Whether you need an emergency fund, money for retirement, or to pay a large expense – having a savings account is essential. You can start by dedicating a certain amount of your paycheck toward your savings. While it’s recommended to keep 20% of your income for savings and debt repayment, you’ll need to evaluate what works within your budget and when you’ll need the funds. Even if you’re starting small, you’ll be surprised how quickly the account can grow!

Want to open a savings account?* We’re here for you! Contact us or stop into your local branch to speak with a representative today.

Subscribe to financial newsletters

Stopping at the library and picking up some financial literature might not be everyone’s cup of tea. So, starting with digestible, yet informative articles is ideal. That’s why we recommend subscribing to newsletters (like ours!) with timely resources that cover a wide range of financial topics. The First Financial monthly e-newsletter delivers helpful tools and financial advice right to your inbox, so you can focus on achieving your monetary goals. You can sign up at the bottom of our website homepage, by entering your name and email address.

Talk to a financial professional

If anything, it’s always helpful to speak directly with a financial expert who can give you advice based on your individual situation. Contact us to get started or stop into your local branch to speak with a representative today!

 

*A $5 deposit in a base savings account is required for credit union membership before opening any other account/loan. 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.

Car Maintenance Tips to Save You Money

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It’s safe to say owning a vehicle can be expensive. Between gas, oil changes, tires, maintenance, and insurance, you can expect to have a good portion of your budget go toward car upkeep. In fact, AAA says the average cost of car ownership is about $10,000 per year. There are ways, however, to cut back on costs with proper vehicle maintenance and savvy budgeting. Here are our top car maintenance tips that will help save you money down the road.

Get your car washed and buy touch-up paint

This is not just a vanity suggestion – regularly cleaning and waxing your car protects your paint by preventing rust and residue that can damage the finish to your vehicle. This is especially important during harsh winters and if you park your car outside. Touch-up paint can seal chips and cracks before they become a bigger problem as well.

Don’t ignore your tires

Under-inflated tires will wear them down more quickly and negatively impact your gas mileage. Plus, low pressure tires can affect braking and make steering less responsive. This is not only dangerous for your car, but also for you. Thankfully, most gas stations have free or low cost air pumps you can use.

Shop around for mechanics

Sure, finding a mechanic is easy – but finding one with honest prices can be a challenge. Don’t just go for the convenient option, read reviews and ask friends and neighbors for recommendations. When you do find the right mechanic, research rates ahead of the appointment. Websites like RepairPal can give you an idea of what you should expect to pay for a particular repair, and connect you to certified mechanics in your local area.

Order parts online

Need to replace a part of your vehicle but the estimated price from the repair shop is too high for your liking? Your best bet would be to look online for parts. You’ll likely find better deals that way, even with shipping fees.

Consider repairing what you can at home

Many repairs and maintenance tasks can be done right in your driveway. Even if you’re not an experienced mechanic, you can likely change out spark plugs, oil, filters, and more with a quick Google search or YouTube video. You can also try tapping into your network to see if you have a friend or family member who can help. This way you can save on expensive labor fees!

Looking for a new or pre-owned vehicle? Our auto loans have great low rates, so you can have a new ride AND lower monthly payments! Visit a First Financial branch or contact the Loan Department to speak with a representative today!

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. Current loans financed with First Financial FCU are not eligible for review or refinance. A First Financial membership is required to obtain an Auto Loan and 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.

 

 

Steps to Improving Your Credit Score

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Maintaining a good credit score is an important part of building your financial future. Not only does your credit score help lenders determine your credit risk, but it also affects the interest rates and fees you pay. Without a good credit score, you’ll have difficulty securing a loan or mortgage down the line. But don’t stress! If you take action to improve your credit score now, it will start increasing in no time.

What makes up your credit score?

Understanding your credit score is a crucial piece of planning your financial success. The bulk of your credit score is made up of your payment history (such as on time or late payments) and the amount owed. Additional factors include the length of credit, new credit (or the accumulation of debt in the last 12-18 months), and the type of credit.

What will hurt your credit score?

Maintaining a good credit score means being cautious with how your handle your money. Your credit score can be negatively impacted by:

  • Missing or late payments
  • Maxing out credit cards and shopping for credit excessively
  • Opening up numerous loans and credit cards in a short time frame
  • Closing credit cards out (as this could lower your available capacity)
  • Borrowing from finance companies

How to improve your credit score

Poor credit won’t haunt you forever, and it’s still completely possible to turn your credit score around! While there is no quick fix, there are long-term improvements you can make to help boost your score over time.

Here’s what you can do to better your credit:

  • Pay your bills on time – You may have to set a reminder on your phone so you don’t forget, but this is very important!
  • Pay off or pay down your credit cards. Come up with a payment plan that focuses on paying down the highest interest cards first, even if that means maintaining minimum payments on your other accounts in the meantime. The goal is to keep credit card balances low and pay them off when possible.
  • Don’t close credit cards – This may decrease your capacity, thus negatively impacting your score.
  • Slow down on opening new accounts as this approach could backfire and actually lower your credit score.
  • Contact a financial advisor or creditor if you’re having trouble making ends meet. They will help you better manage your credit and pay on time.

Don’t let your credit score stop you from bettering your financial future! Use our guide to managing your credit and getting out of debt for additional tips and resources, or stop into your local branch to speak with a representative!

How to Send Money with Zelle Safely

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Zelle® is a fast, safe and easy way to send and receive money with people you trust, like your babysitter, your fellow PTA mom, your son’s soccer coach, or your co-worker. Whether you just enrolled with Zelle® or have been an active user for a while, there are a few tips you should always keep in mind to ensure you are being safe when sending money.

Only send money to people you know and trust.

Money moves fast with Zelle®, directly from your checking account to the recipient’s checking account – within minutes.* So, it’s important you know and trust the people you’re sending money to.

Why? Because you can’t cancel a payment once it’s been sent, if the recipient is already enrolled with Zelle®. And if you send money to someone you don’t know for a product or service you might not receive (like paying for something in advance), you may not get your money back. Keep in mind that sending money with Zelle® is similar to handing someone cash.

Beware of payment scams.

One example of a payment scam is buying event tickets at a price that seems too good to be true – from a stranger, and never receiving them. If the seller asks you to use Zelle® to purchase the tickets, you should refuse unless the seller is a person you personally know.

Also, keep in mind that no one from First Financial will ever ask you to send them money with Zelle® as a test, or to send money to avoid a fraud event.

Neither First Financial nor Zelle® offers a protection program for authorized payments made with Zelle®. So, if you aren’t sure you will get what you paid for, you should instead use another payment method with purchase protection, such as a credit card.

Treat Zelle® like cash.

Did your friend change phone numbers recently? It’s easy for people to change their phone number or email address. When in doubt, contact your friend to verify the email or U.S. mobile number they used to enroll with Zelle® before you hit “Send.” Another good check point for ensuring you’re paying the right person, is to confirm the first name that is displayed for Zelle® enrolled emails and U.S. mobile numbers.

If a person has already enrolled a U.S. mobile number or email address with Zelle®, you can’t cancel the transaction – so it’s important you get it right the first time.

If you’d like more information on safely using person-to-person (P2P) payments, check out these articles from the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB).

Helpful Tips for Using Mobile Payments Services and Avoiding Risky Mistakes

Tips on Using Peer-to-Peer Payment Systems and Apps

How to Keep Your Personal Information Secure Online

Some final reminders:

  • Always use caution when sending or receiving money from someone you don’t know. Scammers can trick people into sending money through a person-to-person payment app without upholding their end of the deal. And once the money leaves your account and is transferred to the scammer, there is little you can do to get it back.
  • Double check before pressing send. Be sure you are sending your payment to the correct person by double checking their user name, phone number, or email address before you hit the send payment button.
  • Setup your P2P payment app to require a password before making a payment. Setting up a password, PIN, or fingerprint before making a payment with a person-to-person payment app is a great way to ensure authentication first. This also prevents a fraudster from gaining easy access to your mobile phone payment methods and making payments from your account.
  • Contact your financial institution right away if you suspect any errors. If you notice any fraudulent transactions within your P2P payment app, contact your bank or credit union right away to report it.

*U.S. checking or savings account required to use Zelle®. Transactions between enrolled users typically occur in minutes.

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