Personal Finance Tips for the New Year

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A new year just started – be sure to review the following to make sure you are financially set up for the next twelve months!

Review Your Beneficiaries

Make any needed updates to the beneficiary portion of your bank and retirement accounts, life insurance policies, IRA accounts, and so on. Choosing a beneficiary for your life insurance policy is important because your beneficiary will be the person(s) your accounts and policies will be payable to upon your death. Have you gotten married or had a child within the last year? This is also something to keep in mind when selecting a beneficiary and deciding if you need to make any changes this year.

It’s also a good idea to name a secondary beneficiary in case your primary beneficiary passes away. Review beneficiaries for all of your accounts annually. January is the perfect month to do so.

Check Your Tax Withholdings

It’s a good idea to review your W-4 form each year. If you remember from last year, it was the first year tax filers did their tax returns under the country’s new legislation. Was your tax return last year smaller than what you were used to in the past? Did you owe money on your taxes? If so, be sure to consult with your tax professional, put some money aside in savings, and review your withholding amount to see if anything should be adjusted.

Go Over Your Insurance Policies

You should also review your insurance policies on an annual basis: health insurance, life insurance, homeowners insurance, and auto insurance. You will want to review each policy to ensure you aren’t paying too much and that you have the right coverage. In looking at your homeowner’s insurance – do you have any newer bigger ticket items over the last twelve months that were not included in the previous year’s policy? If so, be sure to include them as you are reviewing for the new year ahead.

Look at Your Emergency Savings

Hopefully you have an emergency savings account with at least 3-6 months’ worth of savings in it that you don’t touch. If not, make it your new year’s resolution to start one ASAP! An unexpected accident or emergency can really set you back financially, so even if you are only contributing a small amount per paycheck – it’s important to have that back up bank account should you ever need it.

Contribute to a College Savings Fund

If you have children, are you contributing to a college savings fund to prepare for their future? A college education is not inexpensive these days, but there are some tax-advantaged products you can look into that will help you save over time.

Be sure to speak to your financial advisor, or if you are local to Monmouth and Ocean Counties in NJ – make an appointment with one of ours located within our Investment & Retirement Center. Our financial advisors would be happy to discuss 529 plan options with you at any time.*

Financially Plan for the New Year

It’s a brand new year with lots of blank pages – be sure to get a family savings plan in place, think about if you can afford to travel this year in January, or if your family will be celebrating any upcoming milestones this year. If so, think about opening a special savings account and automatically transferring funds from your paychecks into that account to save up for the year ahead.

Get started with a special savings account at First Financial, we are happy to help our members achieve their financial goals and dreams – and get off on the right foot in the new year!**

Article Source: Securian.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 The Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using The 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 The Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

**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. 

3 Ways to Recover From a Blown Holiday Budget

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Now that the holiday season has come to a close, you are probably looking at your bank statements and credit card bills with wide eyes.

So, what can you do to get yourself back on track financially after the holidays? Here are three helpful tips to set your budget straight.

Sell, Sell, and Keep Selling

Declutter your house and see what you can sell. It’s one of the easiest ways to get rid of extra things you no longer use, plus make some cash after spending during the holiday season.

  1. First, find out which big items you can sell and then list those on sites like Craigslist, Facebook Marketplace, or various selling apps (Let go, etc.)
  2. Next, look through your closets for brand name clothing that can be sold on eBay, or apps like Poshmark and Mercari. This can really add up. As you go through your closet, snap pictures of the items you are planning to sell on your smartphone and upload them to the above mentioned apps. See how you do – if your items don’t sell in a few weeks, then put them aside to sell at your yearly yard sale in the warmer weather or make a local clothing bin donation.
  3. Lastly, request a bag from Thredup.com or Kindermint.com and pack them with clothes that your family doesn’t need. Most of the items that don’t sell in steps 1 and 2, will be hand-me-downs or 50-cent-finds, so after awhile if nothing is selling and you only get a couple dollars for your items – you are still coming out ahead.

Don’t Spend Money in January

Have you ever tried a month without spending money? The idea is that you cut unnecessary spending (eating out, home décor buys, clothes, and so on), and eat out of your pantry, fridge, and freezer for the entire month.

You are permitted to give yourself $20-40 a week to spend on milk, eggs, bread, and fruit/vegetables at the grocery store – but that’s it!

This is a great time to use up any food items that you may have around but forgot about. Plus, an extra $300 or more would be nice to put toward any credit card debt, or replenish your savings account – right?

Earn Additional Income

Does your job allow you to add overtime or do freelance work? If so, take advantage in January and February to help you pay down those holiday bills.

Be creative. Perhaps you can ask your employer for overtime opportunities, or take on a small baby/pet-sitting position. Even renting out your home or car, can produce extra income if you have the means to do so and live/commute another way.

Recovering from high spending like the holiday season can be tough, but with these steps you can overcome that blown budget relatively quickly and start off the new year on a better financial path.

Article Source:  Ashley Eneriz for Moneyning.com

Is a Rewards Credit Card Right for You?

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Believe it or not, there isn’t a “one size fits all” credit card rewards program. For every card on the market, it seems like there are hundreds of different ways to earn rewards.

With all the options, the research can be overwhelming and you might not know where to start. Have no fear, because we’ve come up with a few ways you can choose the right credit card rewards program for you!

Is a rewards card right for you?

That’s the first question you need to ask yourself. A rewards card isn’t right for everyone. Here’s a handy checklist to help you decide whether or not a rewards credit card is a good fit for you:

  • You have a good credit score. Most card issuers are looking for consumers who have a FICO score of at least 670. Of course, a higher credit score will help you get a lower interest rate, but a that mid-600 range will get your foot in the door. FYI, the higher your credit score, the more lucrative rewards programs you’ll most likely have access to.
  • You can pay off your balance every month. Rewards cards sometimes have a higher-than-average interest rate. When you carry your balance over each month, you could end up paying more in interest charges than you earn in rewards.
  • You can maximize the value of your rewards. A rewards card can cost you money if you don’t maximize your reward-earning potential. If you don’t earn enough points, you can actually lose money if your card has an annual fee.

Now that you’ve determined if you could benefit from a rewards card, let’s talk about choosing the card with the program that best suits your lifestyle and spending habits.

Choosing the right card.

There are three main things to consider when choosing a card: your spending habits, personal preferences, and your credit score. If you don’t look at your spending habits and personal preferences, you could end up spending a lot of money and racking up rewards that aren’t right for you.

Let’s say you have a large family and your primary expenses are groceries and gas. It would make sense for you to have a credit card that offers bonus rewards on those types of purchases. But, if you’re single, have a small grocery budget or don’t have a car, those rewards wouldn’t make sense for you.

Use your cards for everything.

The more you use your card, the more rewards points you’ll earn. But, don’t let that be an invitation to start spending money on things you don’t need. Instead, use your credit card in place of cash or your debit card whenever possible.

Start looking for everyday situations where you can use your credit card instead of another payment method – gas, groceries, food, etc. But, always make sure you only spend what you can pay off every month.

What if a rewards card isn’t for you?

Rewards cards aren’t for everyone, and there’s nothing wrong with that. Maybe your credit score isn’t in the right range for a rewards card at the present time, or maybe you’re not interested in using your card to gain rewards. Maybe you’re just looking for a credit card for emergencies only.

Let us help you find the right card for you! Check out our website, stop by and talk to us or give us a call so we can answer any questions you may have. Or if you like what you see, you can apply online 24/7!

 *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.

First Financial Foundation Awards Classroom Grant to Woehr Elementary School

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Press Release

(L to R: First Financial’s VP of Marketing and Business Development, Assistant VP of Business Development, Grant Recipient Theresa Eagan, and Principal Walter Therien).

FREEHOLD, N.J. – New Egypt’s Dr. Gerald H. Woehr Elementary School third grade teacher, Theresa Eagan, was recently surprised by members of the First Financial Foundation with a $159.96 Erma Dorrer classroom grant for the 2019-2020 school year.

Eagan submitted a grant application to purchase educational tools to teach her third grade classes about financial education and banking, as part of the school district’s economics curriculum within the social studies department.

“Our third grade classes learn how banking works in terms of savings, deposits, and withdrawals,” said Eagan. “I would like to have a hands-on ATM toy machine that would enable the children to see how ATMs operate. It would be beneficial for the students to be able to create a PIN, use an ATM card, and see how banking transactions take place. It would also be educational for our students to see how savings is important.”

Since First Financial began with a group of Asbury Park schoolteachers back in 1936, the credit union has not forgotten its educational roots. That is why its Foundation offered current Monmouth and Ocean County educators seven (7) classroom grants to use at their schools for the 2019-2020 school year.

“Education has and always will be a pivotal piece of our organization, and we’re delighted to be able to help our local educators enhance their classroom experience,” said First Financial President & CEO, Issa Stephan.

Stephan also noted that the Foundation committee had a tough job of choosing just seven winning teachers out of the numerous applications received this year. “We received double the amount of classroom grant entries this year, which included heartwarming essays and videos from educators hoping to use the grant money to implement or maintain a variety of creative programs within their schools,” said Stephan. “We wish we were able to reward each and every one of our participants, and after extremely careful consideration we selected the seven initiatives in which we felt the grant money would have the largest impact.”

First Financial Foundation Awards Classroom Grant to Manchester Middle School

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Press Release

(Pictured Above: First Financial’s Assistant VP of Business Development, VP of Marketing and Business Development, and Grant Recipient Susan Holland with some of her students.)

FREEHOLD, N.J. – Manchester Township Middle School special education teacher, Susan Holland, was recently surprised by members of the First Financial Foundation with a $93.50 Erma Dorrer classroom grant for the 2019-2020 school year.

Holland submitted a grant application to purchase a set of books called The Egypt Game for her seventh grade social studies class, which includes students with multiple disabilities.

“My class will be studying ancient Egypt this year and I would like to include a cross-curricular component by reading this novel together as a class,” said Holland. “My students will identify with the characters as well as the content of the book. It would be a great opportunity for the students to strengthen their reading stamina and comprehension skills. I will continue to use these books in years to come.”

Since First Financial began with a group of Asbury Park schoolteachers back in 1936, the credit union has not forgotten its educational roots. That is why its Foundation offered current Monmouth and Ocean County educators seven (7) classroom grants to use at their schools for the 2019-2020 school year.

(Pictured Above: First Financial’s Assistant Vice President of Business Development with Grant Recipient Susan Holland.)

“Education has and always will be a pivotal piece of our organization, and we’re delighted to be able to help our local educators enhance their classroom experience,” said First Financial President & CEO, Issa Stephan.

Stephan also noted that the Foundation committee had a tough job of choosing just seven winning teachers out of the numerous applications received this year. “We received double the amount of classroom grant entries this year, which included heartwarming essays and videos from educators hoping to use the grant money to implement or maintain a variety of creative programs within their schools,” said Stephan. “We wish we were able to reward each and every one of our participants, and after extremely careful consideration we selected the seven initiatives in which we felt the grant money would have the largest impact.”

Last Minute and Small Gifts that Can Make a Big Impact this Holiday Season

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The holiday season is arguably one of the best times of the year. However, who wants to spend the first half of the new year paying off gift purchases from the previous year? Big ticket items are often at the top of most people’s lists, but bigger doesn’t always mean better. You can give meaningful gifts without breaking the bank.

Here are some smaller gifts that will still make a big impact this year, or some ideas for those of you who are known to be last minute shoppers!

1. Gift Certificates

Gift cards may seem boring or even cliché, but they make a great gift – as long as you buy them with the recipient in mind. Don’t just grab any gift card just to get a gift card. Choose one your recipient will love, but would probably never buy for themselves. The dollar amount doesn’t need to be huge either, it just needs to be from somewhere your recipient will love or a place you know they go to frequently.

2. An Item that Represents a Happy Memory

Maybe it’s a memento from your first date or an early encounter with your significant other, which could be a photo of the two of you in a nice frame, or even a coupon for a home cooked meal of a favorite shared dish. The idea here is to recreate an already happy memory the two of you shared together and to be as thoughtful as possible.

3. Ornaments

One of the best things about ornaments is that they get hung on the family tree, year after year. Ornaments are a gift that will keep giving, and reintroducing your present into memory with every passing holiday season. A gifted ornament can be store bought and sentimental or, even better – homemade. Do you have a niece or nephew who plays a certain sport? If so, an ornament for the sport they play is a great gift idea. Some shops will even personalize them for you with the recipient’s name, the current year, and a jersey number. Ornaments are generally inexpensive, and always thoughtful.

4. Books

There are few store bought presents that are as personal as a well-selected book. You most likely won’t be buying the same books for everyone on your list. To be really meaningful, each book must be tailored to the specific reader. Stop into your local book store or log into Amazon and go through your gift list. You could probably choose a great book for everyone on your list and spend an average of $10. If your recipient has a Kindle, you can even download an eBook instantly and send it to their Kindle electronically. eBooks are even less money than a paperback or hardcover book would be, and the possibilities are endless!

5. Games

If you have children on your gift list – sons, daughters, nieces, or nephews, then you can’t go wrong with a great game. Choose a classic board game that will help the child develop life skills while also using their imagination. Board games can be a fun and inexpensive gift, which also create happy memories of playing them among family and friends.

6. Movies

A good movie is something that can be enjoyed over and over. Like books, you’ll need to tailor your film selection to the individuals on your gift list. Movies too can be purchased at low prices, from family favorites to the new releases, and even giving electronically or via gift card (think Netflix) to your recipient.

The idea is to keep the holiday season a fun and festive time, and rather than blowing your budget and going into debt – give a small but meaningful gift that also creates a happy memory.

Article Source: Tracy for Moneyning.com