Advance Fee Scams: Warning Signs and How to Protect Yourself

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An advance fee scam typically involves a promise of a loan, credit card or cash advance in exchange for an upfront payment. Once the fee is paid, the promised funds never arrive.

According to data from the Federal Trade Commission (FTC), consumers lose billions of dollars to fraud each year. As scammers become increasingly sophisticated, understanding common warning signs can help protect your finances and personal information. Understanding how these scams work can help you protect your finances and avoid becoming a victim.

What is an Advance Fee Scam?

An advance fee scam occurs when a person or company claims they can provide a loan, credit card or financial service, but requires payment before delivering the promised funds.

The fees may be described as:

  • Loan processing fees
  • Insurance fees
  • Application fees
  • Security deposits
  • Administrative costs

In many cases, scammers claim the payment is required to guarantee approval, even if you have poor credit or limited borrowing history. Once the fee is paid, the promised money never arrives.

What are Some Warning Signs of an Advance Fee Scam?

Recognizing these common red flags can help you avoid fraudulent offers.

Guaranteed Loan Approval: Be cautious of any “lender” that guarantees approval without reviewing your financial information. Legitimate financial institutions evaluate several factors such as income, credit history, and repayment ability before making lending decisions.

Requests for Upfront Payment: One of the most common indicators of an advance fee scam is a request for payment before receiving loan proceeds. Remember this simple rule: Never pay money to receive money.

Pressure to Act Quickly: Scammers often create a sense of urgency by claiming an offer is available for a limited time or that immediate action is required. Pressure tactics are designed to prevent consumers from researching the offer or asking questions.

Unsolicited Loan Offers: Unexpected emails, text messages, social media messages or phone calls offering guaranteed loans should be treated with caution.

Requests for Unusual Payment Methods

Be wary if someone asks you to pay using:

  • Gift cards
  • Wire transfers
  • Cryptocurrency
  • Peer-to-peer payment apps

These payment methods can make it difficult to recover lost funds.

How Can You Protect Yourself from Loan Scams?

Before applying for any loan or cash advance, take these precautions:

Verify the Lender: Research the company online and confirm that it has a legitimate website, physical address and customer service contact information.

Read Reviews and Check Credentials: Look for independent reviews and verify that the lender operates legally in your state.

Protect Personal Information: Do not provide sensitive personal or financial information to unsolicited callers, emails or text messages.

Review Loan Terms Carefully: Take time to understand the loan terms, fees, and repayment requirements before signing any agreements.

What Should You Do if You Suspect a Scam?

If you believe you’ve encountered a loan scam:

  1. Stop communicating with the individual or company.
  2. Do not send additional money or information.
  3. Monitor your financial accounts for suspicious activity.
  4. Change passwords if personal information may have been compromised.
  5. Report the incident to the appropriate consumer protection authorities, such as the FTC.

Taking action quickly can help limit financial losses and protect your personal information.

Frequently Asked Questions

Are Upfront Loan Fees Legal? Some legitimate loans may include fees that are disclosed within the loan agreement. However, lenders generally do not require consumers to send money before receiving loan funds.

Can Scammers Use Fake Lender Websites? Yes. Fraudsters often create professional-looking websites, emails, and advertisements that mimic legitimate financial institutions. Always verify a lender’s contact information and reputation before sharing personal information or applying for a loan.

What is the Biggest Warning Sign of an Advance Fee Scam? A request for payment before receiving a loan is one of the most common warning signs. If a lender asks for money upfront, take time to verify the legitimacy of the offer before proceeding.

How Can I Verify a Lender is Legitimate? Before applying for a loan, research the lender’s website, verify contact information, read customer reviews and confirm that the company is authorized to operate within your state. Legitimate lenders are transparent about their products, fees, and lending requirements.

Protecting Your Financial Future

Financial scams continue to evolve, making awareness one of the most effective tools for protecting yourself.

Before accepting any loan offer, take time to verify the lender, review the terms, and ask questions. If an offer seems too good to be true, it may be worth taking a closer look.

At First Financial, we’re committed to helping our members make informed financial decisions and protect themselves from fraud through education, trusted financial guidance, and responsible banking practices.

Remember: Legitimate financial institutions will clearly explain their products, disclose applicable fees, and give you time to review your options before making a decision.

To continue learning about financial wellness and protecting yourself from fraud, visit our Tools & Publications page or explore related articles on our First Scoop Blog, including resources on financial security, identity theft protection, and smart money management. If you have questions about our financial products, account security, or potential scams, our team is here to help – contact us today.

Tips from Wedding Planners: How to Stick to Your Wedding Budget

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Whether you’re in the thick of wedding planning or just starting to save inspiration to a Pinterest board – you probably know the big day can come with an equally as big bill. According to a recent survey from Zola, the average cost of a wedding jumped to over $36,000 in 2025 – with 74% of couples saying they went over their original budget. It’s easy to lose sight of the bottom line when planning for one of the happiest days of your life, but setting a budget and priorities can keep you grounded as you prepare to tie the knot. Check out these tips from wedding planners on how to actually stick to your wedding budget.

1. Discuss Priorities with Your Partner

Emily Forrest from Zola, an online wedding planning company, says that discussing your priorities early on can be the difference between staying within and going over your budget. It’s not hard to feel the pressure of spending whatever it takes to make your wedding “perfect,” but it’s important to leave expectations at the door and focus on what matters most to you and your partner. Lauren Kay from The Knot, another online wedding planning company, suggests finding two or three things you are aligned on as a couple and budget for those things first. Do you prefer to keep your ceremony and celebration small and intimate rather than having a big guest list? Would you rather a DJ over a live band? It’s important to know what you’re both willing to splurge on and where you might want to cut back – rather than having competing priorities that add to the bill. Aside from budgeting, discussions about priorities will be key to keeping sight of the meaningful parts of the day that matter most to you as a couple.

2. Determine Your Maximum Spend

What can you and your partner afford to spend on your wedding without compromising on other financial goals? Consider what you will each contribute and what your families might contribute, if they’ve offered to help pay. The amount you arrive at should be your maximum wedding spend, or the total you and your partner plan to spend on your special day. After determining this figure, you can assign dollar amounts to the line items within your wedding budget. This approach will help you balance the cost of a wedding with your individual and joint financial goals.

3. Expect the Unexpected – Include Wiggle Room

Once you know the amount you can spend on your wedding, set a portion of that aside so you have some wiggle room. A general rule of thumb is reserving 5 to 10 percent of your overall wedding budget for common culprits of overspending – unexpected last-minute expenses or potential vendor changes. That means if your wedding budget is $10,000, plan to spend around $9,000 (or 90% of the overall budget) so you have $1,000 (or 10%) for any unexpected expenses that may arise.

4. Think of Your Budget as a Wedding Blueprint

Kisha Barner, CEO and Founder of K. Barner Events and author of a wedding budget eBook, recommends treating your wedding budget like a blueprint. Much like a blueprint for a house shows a plan for how rooms will be allocated within the space, a blueprint for a wedding shows a plan for how much will be spent in each category. By estimating how much you can spend in each wedding category, you can limit any impulse purchases that tend to make couples go over budget. This will also help you prioritize what’s most important to you and your significant other, as well as track and refine your budget as you go. Common categories include venue, catering, photography/videography, and flowers.

5. Track Spending Along the Way

Tracking expenses as they arise will help you stay true to your budget, make informed decisions, and avoid costly surprises. By tracking expenses, you can monitor if your spending is aligned with your intentions and make changes in real time as needed. You can also make other refinements if there is an opportunity to save or reallocate funds. For example, if you spent less than anticipated on florals – you can decide to reallocate that extra money toward another aspect of the wedding, or save it.

If you need a little extra help with your wedding budget, consider our Financial Helper Loan. With low rates, fixed monthly payments, and personalized service – you can say “I do” with less worry. For more information, contact First Financial’s Loan Department at 732.312.1500, Option 4 or visit a local branch.

With open communication and a strong commitment to your budget, you can keep financial stress out of mind so you can focus on what matters most on your wedding day and to begin your forever with the right financial footing. Congratulations to those of you tying the knot soon!

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Personal Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. Loan payment example: A $2,000 Personal Loan financed at 10.24% APR for 24 months, would have a monthly payment amount of $92.51. A First Financial Federal Credit Union membership is required to obtain a Personal Loan or Line of Credit, and is open 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 for credit union membership prior to opening any other account/loan. 

Things That Surprisingly Don’t Hurt Your Credit Score

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When it comes to credit scores, there’s a lot of misinformation floating around. It’s common to worry that one wrong financial move will instantly damage your credit, but the reality is that not every action affects your score the way you might think.

Understanding what does and does not impact your credit score can help you make more informed financial decisions and avoid unnecessary stress. Here are some things that surprisingly do not hurt your credit score.

Checking Your Own Credit Score

One of the biggest credit myths is that checking your own score will lower it. Fortunately, that is not true. When you check your own credit, it’s considered a soft inquiry – which does not affect your score. In fact, regularly monitoring your credit can be a smart financial habit because it allows you to catch potential errors or signs of identity theft early.

You can access your free annual credit report at AnnualCreditReport.com.

Paying a Bill a Few Days Late

Life gets busy, and occasionally paying a bill a few days late may not hurt your credit score as much as people fear. In most cases, lenders do not report late payments to credit bureaus until they are at least 30 days past due.

That said, even if your credit score is not immediately affected – you could still face late fees or penalties depending on the lender. Setting up automatic payments or payment reminders can help you stay on track and avoid both fees and potential credit damage in the future.

Getting Denied for a Loan or Credit Card

Being denied for a loan or credit card can feel discouraging, but the denial itself does not hurt your credit score. In reality, lenders do not report denied applications as negative marks on your credit report. What may cause a small temporary dip is the hard inquiry that occurs when a lender reviews your credit application. However, a single hard inquiry usually has only a minor impact on most consumers.

If you are denied, it may simply mean the lender’s requirements did not align with your current financial situation. Reviewing the reason for the denial can actually help you better understand your finances and identify areas to improve before applying again in the future. Check out our recent article on this topic to learn more.

Paying Off a Loan

Paying off a loan is generally a positive financial accomplishment, even if your credit score temporarily changes afterward. In some cases, you may notice a small dip in your score after fully paying off a car or personal loan. This usually happens because your credit mix or average account age changes, and does not mean paying off debt is bad for your credit. Over time, responsible borrowing and on-time payments continue to support strong credit health.

Having Student Loans

Simply having student loans does not automatically hurt your credit score. In fact, installment loans such as student loans can help diversify your credit mix. The key factor is how the loans are managed. Making payments on time and keeping accounts in good standing can positively impact your credit over time. Missed payments, however, may negatively affect your score.

Closing a Checking or Savings Account

Closing a checking or savings account generally does not affect your credit score because deposit accounts are not typically included in standard credit reports. However, if an account is closed with unpaid fees or a negative balance, that situation could potentially impact your credit. Before closing any account, make sure all transactions and balances are fully resolved.

Shopping Around for Certain Loans

Many people avoid comparing lenders because they worry that multiple applications will damage their credit score. Fortunately, credit scoring models often recognize that consumers shop around for major loans such as mortgages, auto and student loans.

Multiple inquiries for the same type of loan within a short period are often grouped together and treated as a single inquiry for scoring purposes. This allows consumers to compare rates without significant long-term credit damage.

What Actually Impacts Your Credit

While the previously mentioned financial actions may not hurt your credit score, there are still several poor money management habits that can negatively affect your credit health over time, including:

  • Missing payments
  • Maxing out credit cards
  • Defaulting on loans
  • Frequently opening multiple new credit accounts
  • Ignoring accounts sent to collections

At First Financial, we believe financial education is an important part of long-term financial wellness. Whether you’re working on building credit, improving your budget, or planning for future financial goals – our team is here to help support you along the way.

If you have questions about credit management, lending, or financial planning, contact us today or schedule an appointment at your local branch.

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 for credit union membership prior to opening any other account. Contact the Credit Union for more information.

How to Save Money as a Wedding Guest

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Nothing is more exciting than celebrating love and marriage — until the expenses start adding up. One invitation may not seem like a big deal, but when you add in travel, gifts, new outfits, hotel stays, bridal showers, and bachelor or bachelorette celebrations, the costs can add up quickly.

If you’re attending one or multiple weddings this year, you’re not alone in wondering how to celebrate your friends and family without straining your budget. The good news is that with a little planning, it’s possible to enjoy wedding season while keeping your finances on track.

Cue the wedding bells! Here are some practical ways to save money as a wedding guest.

Set a Budget Before Wedding Season Starts

If you know you’ll be attending several weddings this year, it helps to plan ahead. Create a wedding guest budget that includes potential costs such as travel and lodging, gifts, attire, bachelor or bachelorette events, meals, and transportation. Having a general budget in place can help you avoid surprise expenses and reduce the temptation to rely on credit cards to cover costs.

We have a helpful budgeting guide and financial resources to get you started.

Book Travel Early

Travel is often one of the biggest wedding-related expenses, especially for destination weddings or out-of-town events. If possible, book flights and hotel accommodations early to take advantage of lower prices.

You can also look for additional ways to save by:

  • Sharing hotel rooms with friends or family
  • Booking early enough to utilize the hotel block
  • Using travel rewards points
  • Comparing airfare and hotel prices across multiple sites
  • Carpooling if the wedding is within driving distance

Even small savings on travel can make a big difference when attending multiple events throughout the year.

Be Strategic About Wedding Attire

Between photo ops and social media posts, there’s often a lot of pressure to buy a new outfit for every event. Unfortunately, that can add up quickly if you’re not careful. Rewearing the same outfit for every event may not be everyone’s cup of tea – so instead, consider borrowing wedding-appropriate clothes from friends or family.

If you still want the shopping experience, you can also try thrifting for secondhand clothing. This is a great way to find something truly one-of-a-kind without sacrificing style. Renting formalwear is another option, depending on your budget.

Stick to a Comfortable Gift Budget

Wedding gifts are meant to celebrate the couple, not create financial stress. It’s okay to choose a gift that fits comfortably within your budget. If you’re trying to save money, consider shopping directly from the couple’s registry for items within your price range or splitting a larger gift with a group of friends. Remember, most couples appreciate your presence and support more than the price tag of a gift.

Be Honest About What You Can Afford

Weddings often include additional celebrations beyond the ceremony itself, such as engagement parties, bridal showers, bachelor or bachelorette trips, and post-wedding brunches. Attending every event may not always be financially realistic.

It’s okay to politely decline activities that don’t fit your budget. You do not need to overexplain your financial situation. A simple and honest response such as, “I’d love to celebrate with you, but I can’t make this event work financially right now,” can go a long way. If you still want to show support – consider sending a thoughtful card, contributing to a group gift, or making plans to celebrate with the couple another time.

Avoid Last-Minute Spending

The biggest no-no is last-minute spending. Rush shipping fees, expensive convenience purchases, and impulse spending often happen when plans are made too late. Creating a simple checklist ahead of time can help you stay organized and avoid unnecessary expenses. Planning early also gives you more time to compare prices and find better deals.

Use Credit Carefully

It can be tempting to put wedding expenses on a credit card, especially during a busy wedding season. However, carrying balances from multiple events can lead to long-term debt and interest charges that last far beyond the celebrations.

Whenever possible, try to pay for wedding-related expenses with money already built into your budget. If you do use a credit card and have accumulated some debt, utilize smart strategies to help get it under control.

Celebrate Without Overspending

Being part of someone’s special day does not have to mean overspending or taking on debt. With thoughtful planning, realistic budgeting, and smart spending choices, you can enjoy wedding season while keeping your financial goals on track.

If you have questions about managing your budget, building savings, or planning for major life events, First Financial is here to help you every step of the way. Contact us today or make an appointment at your local branch to further discuss the options that may be available to you.

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 for credit union membership prior to opening any other account. Contact the Credit Union for more information.

Things to Do on a Budget in Monmouth & Ocean Counties this June 2026

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Summer is more than just a season at the Jersey Shore; it’s a feeling – and one you can experience without shattering your budget. Check out these affordable family-friendly activities to welcome summer in Monmouth and Ocean Counties this June.

June 4

Bayshore Greek Fest (Holmdel) – Bayshore Greek Fest is back from Thursday, June 4th through Sunday, June 7th during various times at 20 Hillcrest Road (Kimisis Tis Theotokou Greek Orthodox Church). You ‘feta’ not miss out on the authentic eats (be sure to come with an appetite), traditional music and dance performances, and cultural items at the flea market and vendor booths. There will also be tours of the church, games and rides, and other fun family activities. Admission is $2 per person or $5 per family, and there will be additional items available for purchase. Check out how you can Greek out!

June 5

Boat Tours of the Manasquan Reservoir (Howell) – Set sail on the Manasquan Reservoir at 6pm and 7pm from the Visitor Center (311 Windeler Road). These 45-minute tours are narrated and include chances to see the unique wildlife that call the reservoir home. Tickets are $6 per adult and $4 per child ages 12 and under. Children must be 2 years or older and able to sit independently during the entire tour to attend. Tickets can be purchased on the day of the tour only. Click and scroll to the ‘Boat Tours Offered: Weather permitting’ section for more information.

Toms River Book Show – Are you looking for your next page-turner? Come meet two dozen authors who might be selling your next favorite read, from 6pm-9pm in the Toms River Artist Community Gallery. There is no entry fee to attend, but books will be available for purchase. Learn more.

June 6

Summerfest ’26 (Point Pleasant) – Start summer off right (albeit a couple of weeks early) in Point Pleasant Community Park from 11am-7pm. There will be live music, a kids’ inflatables and activity area, craft vendors, food trucks, and a Wine & Beer Garden (for those 21+). There is no entry fee to attend, but a Kids Activity Wristband is $10 and there will be items available for purchase. Find out more.

June 7

Juneteenth Celebration (Freehold) – Head over to Main Street in Downtown Freehold between 12pm-5pm for a Juneteenth Celebration. You can enjoy tasty bites, shop items from local vendors, and listen to live entertainment. There is no entry fee to attend. Click for more information.

June 12

AsburyFest (Asbury Park) – Head over to the park across from Convention Hall to enjoy all things Asbury Park from Friday, June 12th through Sunday, June 14th at various times. There will be food, drinks, and crafts available for purchase from local vendors – as well as live music to enjoy as you explore. Admission is $5 per person on Saturday and Sunday, and children ages 6 and under are free. Learn more.

Feel Good Fest (Toms River) – You’ll leave feeling better than you came at Brew Grounds Café, with “feel good” vibes going from 4pm-8pm. From a car show and farmer’s market chockful of fresh produce, to food trucks, yoga and wellness stations – there is truly something for everyone. There is no entry fee to attend, though there will be items available for purchase. Learn more.

June 13

Baby Animal Fest (Lacey) – Enjoy adorable encounters with the baby animals of Argos Farm on weekends, through June 28th. There will also be live music, family activities like an obstacle course and giant Connect Four game, yummy treats, summer photo opportunities, and blueberry picking (while supplies last). View available pricing. Click for more information about this event.

June 20

Brick Convention LEGO® Fan Event (Freehold) – The greatest LEGO® fan event on Earth is coming to Warehouse 110 on June 20th and June 21st (a perfect Father’s Day activity if any of the dads in your life are LEGO® enthusiasts)! There is lots to do and see including largescale displays, meet and greets with LEGO® Masters, traders selling loose bricks, new and retired sets, a dedicated construction zone, and more. Tickets can be purchased for $14.99 online or $20.00 at the door for those ages 3 and up, and there is no cost for children ages 2 and under. Click to learn more.

Middletown Arts Center Annual Arts & Crafts Festival is back from 10am-4pm! Over 75 local artisans will be displaying their handmade creations – such as paintings, photographs, jewelry, home décor, clothing, and candles. There will be an emerging young artisan’s area for local youth in grades 6-12 to display their work, too! Plus, enjoy free activities for your kiddos, live music, food trucks, and more. There is no entry fee to attend, but there will be items available for purchase. Click to find out more.

June 21

Father’s Day at the Track (Oceanport) – Father’s Day is off to the races at Monmouth Park from 12pm-5pm. Enjoy a day of family-fun activities like thrilling live horse races beginning at 12:50pm, games, and various dining options and concession stands. There is no cost for gentlemen to enter, and they will also get a chance to win Lynyrd Skynyrd concert tickets at PNC Bank Arts Center. General admission is $7 for the rest of the family, and there is no cost for children under 12. Learn more.

Rods, Reels, and Wrenches (Cream Ridge) – Head over to the New Egypt Flea Market Village with the dads in your life for a day of things they love, from 8am-4pm. Whether Dad likes fishing, fixing things, or family time – there is bound to be something for them to enjoy! There will be great finds, awesome attractions, tasty treats & drinks, and more. There is no entry fee to attend, but there will be items available for purchase. Discover more.

June 22

Saint Mary’s Great Fair (Middletown) – Mark your calendars for six nights of family-friendly fun at Saint Mary’s Church, through June 27th at 6pm-10pm each night. There will be activities for the whole family to enjoy, such as classic carnival rides, boardwalk-style games, a wide array of tasty bites, a beer garden (for those 21+), and more. Ride tickets can be purchased for $35 in advance through the parish office, or for $40 at the door. Learn more.

June 23

Movies on the Beach (Point Pleasant Beach) – Enjoy weekly installments of Movies on the Beach right in the sand in front of Jenkinson’s Aquarium, beginning at sundown every Tuesday through August 11th. Each week will bring a different family-friendly movie that’s sure to put a smile on everyone’s face. The first movie showing is Lilo and Stitch (2025). All you need to enjoy the movie is a blanket or beach chair (or both), and some snacks. Learn more and view the summer movie lineup.

June 28

America’s Big Birthday Parade (Middletown) – You won’t want to miss America’s Big Birthday Parade – beginning at 12:30pm at the Middletown Train Station. After the parade, the celebrations continue with a Family Festival at Mater Dei Park. Enjoy live entertainment, rides and attractions for all ages, food trucks, and more. There is no entry fee to attend the events, though food items will be available to purchase. Find out more information and view the parade route.

How to Budget for Your Baby’s First Year

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If you’re preparing to welcome a new baby, you’re probably already expecting sleepless nights and plenty of new expenses – as well as unforgettable milestones along the way. While you likely know your expenses are about to change, it can be difficult to pin down exactly how much these changes may cost. Which baby items are must-haves, and which can you afford to skip?  Which items are one-time purchases, and which will become ongoing costs? Calculating what you’ll spend in the first year isn’t an exact science, but having a plan can reduce financial stress so you can focus on what matters most. Here are the first-year expenses you can expect and how to plan for them.

1. Start with Common One-Time Expenses

Below are some items that expectant parents typically purchase before or just after birth to prepare for bringing their little one home:

  • Nursery furniture – such as a crib, mattress, changing table, and dresser.
  • Baby gear – such as a stroller, infant car seat, high chair, baby monitor, and a starter supply of diapers and wipes (don’t buy too many newborn diapers – your baby will likely quickly outgrow these).
  • Toiletries and medication – such as an infant thermometer, baby bath, and washcloths.
  • Newborn clothing.

2. Understand Ongoing Expenses

These are items that typically become a non-negotiables within your budget once you bring your child home:

  • Diapers and wipes.
  • Feeding – such as formula if you plan to use it, and baby food as your child grows.
  • Medical expenses – such as co-pays for doctor visits.
  • Toiletries and medication – such as baby wash, shampoo, and over-the-counter infant pain relievers and fever reducers.
  • Clothing, since your baby’s wardrobe will need to be replaced as they outgrow their newborn clothes.
  • Childcare – which tends to be the biggest potential variable expense and will differ based on each individual family’s situation.

3. Learn Where You Can Save

While there are certainly items that might be worth spending a little more on, there other areas in which you can save:

Clothing. Babies typically outgrow their clothing every 2-3 months and because of this – used clothing can also be like-new. If you prefer to buy new clothing, it might be worth skipping the full wardrobe and sticking to a handful of onesies and sleepers per size category.

Baby gear (such as strollers and highchairs). You can usually purchase these items second-hand at local thrift stores, garage sales, or online marketplaces for a fraction of the cost. An exception to the second-hand rule are car seats. It is recommended to always purchase new car seats, as they do expire and prior crash history may not be available.

Diapers. There are subscribe-and-save services to save on the price and shipping cost of diapers. You may also consider using cloth diapers. The upfront cost of cloth diapers is more, but this can cut the total spend since they are reusable. Lastly, consider going with store brand diapers – they will typically work just as well. The same may go for store brand formula, provided it meets the same FDA standards as name-brand formula. Research as much as you can in advance.

Toys and books. While not a necessity, you may also be able to find great deals on toys and books at your local thrift shop, a garage sale, or via online marketplace. If you have friends or family members who have slightly older children, you may even be able to take advantage of hand-me-downs.

4. Prepare Financially Before Baby Arrives

There are a few ways to baby-proof your finances before your little one arrives:

  • Save 3-6 Months of Expenses in an Emergency Fund. Personal finance experts always recommend having 3-6 months of expenses stored away for a rainy day, but this becomes even more important with a new addition to your family. A new baby paired with a sudden emergency (job loss, medical emergency, or major car repair) can lead you into relying on high interest debt to stay afloat. This can be avoided by having an emergency fund.
  • Consider a Baby Sinking Fund. Babies often come with unexpected expenses. It may be useful to have a baby sinking fund, or a separate savings account specifically for unforeseen baby-related expenses. This can help you avoid dipping into your general savings or emergency funds.
  • Work on Finalizing Childcare Plans. Depending on the parental leave policies available to you and/or your spouse, assistance from family, and your personal preferences – you may need to budget for extra childcare costs. While there are many childcare options out there, daycare centers may have waitlists and should be researched and toured early. Consider whether you prefer a daycare center or an at-home nanny. Many families even opt to have a back-up care plan in place after they finalize their primary childcare option.

It is common to see estimates for the cost of your baby’s first year in the ballpark of $15,000 to $20,000, which is an eye-opening figure for most. Keep in mind that this amount varies significantly between families based on multiple factors such as geographic location and childcare needs. Although financially preparing for your baby’s first year might be daunting, a little thoughtful planning can go a long way into being more prepared to welcome your newest addition.

If you have questions about expanding your budget for a new baby, managing your savings, or creating a financial plan for your expanding household – First Financial is here to help you every step of the way. Contact us today or make an appointment at your local branch to further discuss the options that may be available to you.

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 for credit union membership prior to opening any other account. Contact the Credit Union for more information.