Winter 2025 Newsletter

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We hope you’re enjoying the home stretch of these frigid winter months!

In a continued effort to go green, we’re publishing our quarterly member newsletter electronically – it can also be found on our website and social media sites. Paper copies will be available in our branches.

The Winter First Edition Member Newsletter features the following articles:

To view a copy of the newsletter, click here.

We hope that the first quarter of the new year has been a great one!

How Cash Stuffing Can Change Your Budgeting Journey

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Although the financial goals you are saving for and the amounts you “should” have saved to reach them can look different depending on what life stage you are in, one thing is certain — making a plan to save is one thing, and sticking to it is another. Despite the challenges that come with saving, personal finance experts agree that you should have sufficient emergency savings (often referred to as an emergency fund) to cover three to six months’ worth of living expenses in the case of an unforeseen emergency. However, saving for long-term financial goals or life’s unexpected twists and turns is often put on the backburner in the face of monthly, or unexpected bills and expenses. Oftentimes, many feel discouraged to save by not having a clear idea of where their money is spent. There are various budgeting techniques that can help rein in spending and identify room to save – one of which is called Cash Stuffing.

What is Cash Stuffing?

Cash Stuffing, also known as the envelope system – is a budgeting method in which you convert your spending money into cash and stuff it into envelopes earmarked for different categories where you expect to spend during a specific timeframe. You would typically withdraw this cash when you receive your paycheck in an effort to budget where it will be going until your next paycheck. By setting cash aside in envelopes designated for specific purposes, you are encouraged to commit to spending only what you’ve allocated for a particular category.

How Do I Get Started?

1. Determine Your Typical Monthly Spending Categories

The success of cash stuffing lies in your ability to realistically project what you will be spending on. Determining the categories you typically spend money on can be done through brainstorming or going through your bank statements for the previous few months. There is no limit to the types or number of categories you can choose, but some common categories include:

  • Rent and bills
  • Groceries
  • Gas
  • Dining/takeout
  • Entertainment
  • Clothing

If you would like to take your cash stuffing one step further, you can create a category for saving. Unlike your spending categories, your saving category should remain untouched during the timeframe you choose, and can later be put into your savings or retirement accounts.

2. Set Spending Limits for Each Category

Decide how much you would like to spend on each category for the timeframe you choose. It is important to be realistic — for example, you can’t skimp out on paying your fixed expenses, such as rent and bills. Even if you don’t fill up those envelopes, those bills are still due. However, this step offers an opportunity to identify categories where you could potentially rein in your spending. If you notice you don’t typically use all of your groceries, or you impulsively buy coffee out multiple times a week, try setting your spending limit lower for those categories than it has been in previous months.

3. Decide How You Will “Cash Stuff”

While tried-and-true cash stuffing is done by stashing white envelopes in a box, the method has gotten much more creative in recent years. You can decorate the envelopes or color-code labels, or even purchase “budget binders” that can hold all of your cash envelopes.

Cash Stuffing Can Be Done Digitally: Cash stuffing digitally can eliminate worries about having your funds lost or stolen. In this case, you would create a spreadsheet and save it on your computer or tablet, still track your categories and spending limits, as well as how much you have spent and what’s still remaining. If creating a spreadsheet is not your forte, there are also phone apps and websites that can help create and manage digital envelopes to visualize your spending.

4. Withdraw Your Cash and Stuff Your Envelopes

Once you have determined how much money you would like to allocate to each category, add up your spending limits and withdraw that amount in cash. Then as the name suggests, “stuff” the cash into your envelopes.

5. Spend with Your Envelopes

Here is where self-discipline comes into play. Whether the cash contained in the envelopes is meant to last you for two weeks or a month, cash stuffing is designed to work if you only spend what you have set aside in each envelope. When you go to use your debit or credit card, remember that you are going over the budget you set for yourself.

The first time you attempt this budgeting method, you might notice that you have allocated too much or too little to certain categories. That’s okay — don’t go into cash stuffing with the expectation that your budget will be perfect the first time. You can tweak your categories, spending limits, or both – to fit your typical spending habits.

6. Save Any Excess Cash

If you notice that you have a surplus in one of your categories, try to avoid moving it to another category where you may find yourself wanting to spend more. You also don’t want to save it to spend the following month. Having excess cash affords you the opportunity to make extra payments towards debt, or to build up your savings account.

As far as budgeting methods go, cash stuffing is customizable to your financial needs and goals. Whether you are embarking on the cash stuffing journey to control your spending, pay off debt, or build your savings — First Financial is here to help you along the way. Check out our financial calculators that are available on our website, as well as our budgeting guide and fillable PDF worksheet. Stop in and see us in any of our branches if you still have questions, or call us at 732-312-1500 to set-up a financial review appointment.

Common Tax Errors to Avoid

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Navigating the U.S. tax system can be challenging. How you will file depends on your income and filing status, as well as which tax deductions and credits you can claim. Your taxes are your responsibility, even if someone assists you in filing them.1 As you prepare your taxes, here are some common filing issues that you may be able to manage with a bit of preparation.

Keep in mind that this article is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your strategy. Remember, tax rules are constantly changing, and there is no guarantee that the treatment of certain existing rules will remain the same.

Error 1: Overlooked Side Income

Taxpayers must claim any income they’ve received in a tax year. One area that some taxpayers overlook is claiming side money that is in addition to their normal salaries. If you receive income from efforts outside your regular wages or self-employment, then you are obligated to report what you receive.

This money usually isn’t reported on a 1099 or W-2 and can include income from the following sources (and more): 2

  • Hobbies that yield a profit
  • Bartering for services or property
  • Forgone interest from below-market loans
  • Canceled debt, including discounts on mortgage loans
  • Social Security benefits to spouses and dependents (subject to filing status and income)
  • Unemployment compensation

Error 2: Unrealized Tax Breaks

Tax breaks can help you manage the taxes you owe or change your liability, resulting in greater benefits for you. While deductions are one form of a tax break, others include tax credits, exemptions, and certain tools designed to help you manage your tax burden. 3

Error 3: Wrong Filing Status

Your filing status can greatly impact your taxes because it defines your standard deduction and tax brackets. A common reason people choose an incorrect status is that their status has changed during the tax year. Before filing your taxes, be sure that you’ve updated your tax paperwork to reflect any changes to your filing status.

The five tax filing statuses are:

  • Single: Taxpayers who aren’t married, are divorced, or are legally separated (as state law dictates).
  • Married Filing Jointly: Taxpayers who are married and will file a combined joint return. Widow(er)s can typically file a joint return within the first tax year of losing their spouse.
  • Married Filing Separately: Taxpayers who are married and choose to file separate tax returns, which may or may not decrease their tax liabilities.
  • Head of Household: Taxpayers who are typically single and pay at least half of all home expenses for themselves and a qualified person.
  • Qualifying Widow(er) with a Dependent Child: Taxpayers whose spouse has died within the past two years and who have a dependent child, assuming other qualifications are met.4

Error 4: Incorrectly Claimed Dependents

Taxpayers can claim dependents for whom they are financially responsible during a tax year. The IRS defines a dependent as a “qualifying child” or “qualifying relative.” Taxpayers can no longer claim personal exemptions for each dependent, and they can miss out on other tax benefits by incorrectly claiming or forgetting a dependent. Be aware that if you have a blended family in which you share children with another taxpayer, you could end up accidentally claiming children when only one parent would be able to do so.5,6

Error 5: Not Having Proof of Purchases

Your paperwork is crucial for filing taxes correctly and includes everything from your pay slips to receipts. Beyond helping you file taxes, your documents also serve as proof of the claims you make on your return. Should the IRS find any errors or choose to audit you, you’ll need these records to back up the numbers.

A partial list of items to have on hand for verifying your financial records includes receipts, mileage, documents on life events, and medical and expense records for home improvements.7

Error 6: Not Accounting for Income

Your or your family’s income is the key determinant of how much you’ll pay in federal taxes. The IRS will tax you at a rate depending on the total you report.

In Conclusion

Filing your taxes can be a complex responsibility, and accidental errors can be easy to make. By being diligent, carefully strategizing, and keeping tight records, you can improve your ability to file taxes in a timely fashion while attempting to follow all of the federal and state guidelines. Even if you’re choosing to work with a tax professional, you are responsible for making sure you correctly file your financial details.

Remember, if you have any questions about your financial life, we’re here to help you navigate this complicated landscape. We always welcome collaborating with your tax professionals to align the strategies you take across your financial priorities. You can call or email the financial professionals in the First Financial Investment & Retirement Center at 732-312-1534, mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

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

Securities and insurance offered through LPL or its affiliates are:

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results. Consult your financial professional before making any investment decision. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial professional for further information. These are the views of FMG Suite, LLC, and not necessarily those of

the named representative, broker/dealer, or investment advisor and should not be construed as investment advice. Neither the named representative nor the named broker/dealer nor the investment advisor gives tax or legal advice.

Sources: 1-7 IRS.gov, 2024

Love is Blind: Online Dating Scams

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Don’t get your heart broken in an online dating scam or by losing the funds in your bank account this Valentine’s Day. The idioms “love is blind” and “looking through rose-colored glasses” might sound cliché, but call attention to an important phenomenon – feelings of love can cause you to throw caution to the wind and overlook flaws in a romantic interest that you might typically not ignore. It’s harder to ignore red flags that are staring right at you, like when your romantic interest is sitting directly across from you. However, in an age where it’s increasingly common to meet your partner on any number of dating apps or websites, you might have to look for those red flags before the first date even happens. Repeatedly ignoring invitations to video chat or meet in person, or asking for money before you’ve done so, might seem like obvious red flags. Nonetheless, those rose-colored glasses can help you make an excuse for anything. Make sure you aren’t blinded by love and can determine if those “red flags” are actually a romance scam.

What is a Romance Scam?

A romance scam begins like many romantic pursuits ordinarily do in the twenty first century—you match with someone on a dating app or website, or you have a new connection waiting for you on social media. In almost all instances, they reach out to you first and express their interest in getting to know you. It’s not long before you find yourself texting them at all hours of the night or longing to hear their voice over the phone. That’s because, somehow, this person checks off every box on your list. You like a certain musician? They like that musician too. You’ve been dreaming of visiting a remote island? They are too. You start wondering where they have been all your life. Eventually, meeting them in person seems like a natural next step. Then, the excuses start to flow. They say they want to meet you, but “living on an off-shore oil rig” or “working at a military base” is getting in the way. They reassure you that they will meet you one day, but want to keep pursuing a romantic relationship online in the meantime. However, this person has no intention of building a relationship with you and is interested in one thing—your money. If they get it, they will likely disappear with your money and hopes of a relationship without a trace.

What are the Favorite Lies of Romance Scammers?

The lies a romance scammer will tell to get your money are endless. A lie might sound outrageous, but the romance scammer is a trained professional. They typically cultivate a relationship with you over weeks, months, or even years before they ask for any funds. The FTC compiled a list of romance scammers’ favorite lies to watch out for to protect your heart and money. Popular reasons to avoid meeting in real life or needing money can sound like this:

  • “I or someone close to me is sick, hurt, or in jail.”
  • “I’m in the military far away.”
  • “We’ve never met, but let’s talk about marriage.”
  • “I’m on an oil rig or ship.”
  • “I can’t afford to visit you or meet you without it.”

The FTC warns that many romance scammers might even flip it on you, offering to do you a favor. This might sound like an offer to teach you how to invest in cryptocurrency or to send you a valuable package. In both scenarios, the money you give to the romance scammer to “invest for you” or to “ship the valuable package” ends up right in their pockets.

What are Other Red Flags?

While lies are an important piece of the romance scam puzzle, the ways they would like to receive the funds complete it. If your love interest is requesting payment through uncommon methods, it is most likely a scam. The scammer will usually ask you to send cryptocurrency, gift card codes, or wire money. This is because these transactions are hard to track and do not have protections for buyers or senders in place. Another red flag is if your family and friends express concern over your new love interest. Your loved ones want nothing but the best for you, so it should sound the alarm if they express apprehension when you tell them about your online love interest and their request for funds.

How Can You Protect Yourself from Romance Scammers?

  • Never send money to your online love interest. Nobody legitimate will claim that sending cryptocurrency, gift card codes, or wiring money are the only ways you can help them. On the flip side, never trust someone who insists they can teach you how to invest or send you a valuable package to improve your financial situation. They are only looking to improve theirs.
  • Reverse image search pictures. Another cliché that applies to romance scams is, “If there’s a will, there’s a way.” Your online love interest should, at the very least – find a way to video chat if they can’t meet you in person. However, the reason they can’t video chat or meet in person is because romance scammers often use fake identities. You can reverse search profile pictures or other images they send you to see if the details they tell you about themselves are adding up.

Most importantly, the FTC encourages everyone to do their part. You can help stop romance scammers by reporting suspicious profiles or messages to the platform where you saw them. You can also report your experience directly to the FTC at reportfraud.ftc.gov. Lastly, pass information regarding romance scams along to a friend. You may not have fallen victim to a romance scam, but someone you know can.

First Financial wants to help protect your personal and financial information and your heart, during the season of love. If you have any concerns or have reason to suspect that your information has fallen into the hands of a scammer, don’t hesitate to contact us at 732.312.1500 or visit us at your local branch.

6 Ways to Celebrate Valentine’s Day on a Budget

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Valentine’s Day is about celebrating love — not emptying your wallet. Whether you’re looking to make new traditions, get creative, or simply rethink how you celebrate – there are plenty of ways to make the day special without overspending. Here are six affordable and meaningful ways to show your love this Valentine’s Day.

1. Start a Meaningful Tradition

Instead of opting for the usual romantic dinner out, create a tradition you and your partner can look forward to each year. The key is finding something meaningful and cost-effective. Have a game night with your favorite board games, visit a museum together, or spend the day volunteering for a cause you both care about. Traditions you both look forward to create lasting memories without the price tag.

2. Give the Gift of Time

A thoughtful gesture often means more than any store bought present. Instead of chocolate or flowers, take something off your partner’s to-do list. Has your significant other been stressing over a task they keep putting off? Surprise them by getting it done. Whether it’s cleaning the house, tackling a home project they’ve been asking for, or taking over dinner duty, these small acts of love can make a big impact — and best of all, they don’t cost a thing.

3. Boost Your Savings Together

Rather than spending money on gifts that won’t last, consider putting that money into a savings account for something meaningful. Whether you’re dreaming of a vacation, a new home, or another major milestone, redirecting your Valentine’s Day spending into a shared savings goal can be a powerful way to invest in your future together. It’s a lasting way to celebrate love while staying financially smart.

4. Make Your Date a Gift

Turn your date into something memorable and useful. Sign up for a pottery class and make something your partner will actually use — a mug for their morning coffee, a dish for their jewelry, or a keepsake that holds sentimental value. Not only do you get to enjoy quality time together, but you’ll also leave with a personalized gift that lasts longer than roses or candy.

5. Redeem Your Credit Card Rewards

If you have unused credit card rewards, now is the perfect time to cash them in. Many people accumulate rewards but forget to use them. Whether it’s for dining, experiences, or gifts – using your points now ensures you’re getting the most value and not allowing those rewards to expire. Holding onto your rewards might seem like a good idea, but their value will remain the same while the cost of goods and services will continue to rise. Spending your rewards sooner rather than later ensures you maximize their benefit.

6. Skip It or Take a Rain Check

One of the easiest ways to save money? Agree to skip Valentine’s Day altogether. But before making that decision, talk with your partner to ensure you’re on the same page. If Valentine’s Day isn’t important to either of you, why not focus on celebrating your anniversary instead? Love should be celebrated every day, not just once a year.

If skipping isn’t an option, consider postponing the celebration. February 15th — when Valentine’s Day chocolate and gifts go on sale, might be the perfect day to celebrate. Delaying the holiday just one day can save you money while still keeping the romance alive.

Celebrate Love Without Overspending

Valentine’s Day doesn’t have to come with a hefty price tag. With a little creativity and planning, you can make the day just as special without going over budget. Whether you start a new tradition, invest in your future, or simply spend quality time together – these budget-friendly ideas will help you celebrate love in a more meaningful way.

For more financial tips and money-saving strategies, call us at 732.312.1500 or visit a branch today. Don’t forget to subscribe to our First Scoop Blog for more insights to keep your finances on track year-round!

Celebrating 89 Years: Why Banking with a Credit Union is the Right Choice

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“We thank our valued members for their continued support, loyalty, and membership with us over the past 89 years. Our commitment to serving their financial needs is our top priority today and everyday.” -Issa Stephan, President/CEO (pictured above).

Today marks an exciting milestone for First Financial Federal Credit Union — we’re celebrating 89 years of service! Since we were founded back in 1936, we’ve remained committed to providing members with financial solutions that prioritize their needs. As we honor our history, we also recognize why credit unions like ours continue to be a great choice to help manage your financial future.

A Brief History of Credit Unions

The concept of credit unions dates back to 1849 when Friedrich Raiffeisen established the first cooperative lending institution in Germany, designed to provide financial access to underserved communities. By 1900, word had spread all the way to Quebec, Canada, where Alphonse Desjardins founded the first cooperative financial institution in North America. The concept was soon adopted by Pierre Jay, the Finance Commissioner of one of America’s great pioneer states – Massachusetts.

In the United States, credit unions gained traction in the early 20th century, leading to the passage of the Federal Credit Union Act in 1934, by President Franklin D. Roosevelt – which allowed for the creation of federally chartered credit unions nationwide. Over the years, credit unions have grown into trusted financial institutions that continue to put people over profits, offering their members a community-focused alternative to traditional banking.

The Story of First Financial

First Financial’s roots trace back to 1936 during the Great Depression, when a group of Asbury Park schoolteachers came together to form Monmouth County NJ Teachers Federal Credit Union. Under the leadership of Harold “Pop” Shannon, the credit union expanded to include employees of the Monmouth and Ocean County Boards of Education. Over time, our membership grew to include municipal employees, hospital workers, and small businesses – leading to several name changes to reflect our evolving community.

In 2003 we became a community credit union – serving anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. In 2006 we adopted our current name, First Financial Federal Credit Union – continuing our tradition of providing excellent financial services while keeping our members’ best interests at heart.

Why Bank with a Credit Union Instead of a Traditional Bank?

Credit unions are typically not-for-profit, member-owned financial institutions – which means they can offer higher interest rates on savings, lower fees on loans, and generally more personalized service compared to the shareholder profit of banks.

  • Fewer Fees & More Flexibility – Credit unions prioritize service over profit, meaning you’ll encounter fewer fees and more flexible account options.
  • Lower Loan Rates – Because credit unions are member-owned and not-for-profit, they return earnings to members in the form of lower interest rates on loans.
  • NCUA Insurance Protection – Just like banks are insured by the FDIC, federally insured credit unions are backed by the National Credit Union Administration (NCUA). Member deposits are protected up to $250,000, ensuring financial security and peace of mind.

Exclusive Member Benefits at First Financial

When you partner with First Financial, you gain access to exclusive member benefits that increase the more you bank with us. Our members enjoy:

  • Referral Programs
  • Savings on Tax Services
  • Sweepstakes Opportunities
  • Relationship Banking Discounts
  • Notary Services
  • Reduced Loan Rates
  • No-Cost Financial Consultations
  • And so much more that you won’t find at a traditional bank!

Join Us in Celebrating 89 Years of Member-Focused Banking

For 89 years, First Financial has been dedicated to serving our members and the local community. As we celebrate this milestone, we invite you to experience the credit union difference firsthand. If you’re not already a member, now is the perfect time to make the switch and enjoy the financial advantages of banking with a credit union. For more information on our services or to become a member, call us at 732.312.1500 or visit a branch today!

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