Category Archives: Financial Advice

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.

When a Home Equity Line of Credit Might Make Sense

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For many homeowners, a home is more than just a place to live – it’s also one of their biggest financial assets. As you pay down your mortgage and your home value grows, you will build equity that may be available to borrow against when needed.

One option homeowners often consider is a Home Equity Line of Credit, commonly called a HELOC. But when does using one actually make sense? Here’s a closer look at how HELOCs work, common ways people use them, and the pros and cons to consider before applying.

What is a HELOC?

A HELOC is a revolving line of credit that allows homeowners to borrow against the equity they’ve built in their home. Unlike a traditional loan that gives you a lump sum upfront, a HELOC works more like a credit card – you can borrow what you need when you need it, up to your approved limit. Many HELOCs have variable interest rates, meaning rates can change over time. Some lenders may offer fixed-rate options for added payment predictability.

When a HELOC Might Make Sense

A HELOC can be a flexible financial tool when used strategically. Some common uses are listed below.

Home Improvements and Renovations

One of the most popular reasons homeowners use a HELOC is for home improvement projects. Whether you’re remodeling a kitchen, updating a bathroom, or replacing a roof – a HELOC can help fund upgrades that may also increase your home’s value over time. Since you can withdraw funds as needed, a HELOC can work especially well for projects completed in phases.

Emergency Expenses

Unexpected expenses happen. Some homeowners use a HELOC as a financial safety net for major emergencies such as medical bills, large home repairs, or temporary income disruptions.  Having access to available funds can provide peace of mind without needing to rely solely on high-interest credit cards.

Debt Consolidation

If you’re carrying high-interest debt, such as credit card balances – a HELOC may offer a lower interest rate than other borrowing options. However, it’s important to approach this carefully. Unlike credit card debt, a HELOC is secured by your home. That means failing to make payments could put your home at risk.

Education or Major Life Expenses

Some homeowners use a HELOC to help cover tuition costs, wedding expenses, or other large purchases. The flexibility to borrow only what you need, can make it appealing for expenses that happen over time rather than all at once.

Pros of a HELOC

Flexibility

One of the biggest advantages of a HELOC is flexibility. You can borrow, repay, and borrow again during the draw period without needing to reapply for a new loan.

Potentially Lower Interest Rates

Because a HELOC is secured by your home, interest rates are often lower than unsecured borrowing options like credit cards or personal loans.

Borrow Only What You Need

Unlike a lump-sum loan, you only pay interest on the amount you actually use.

Possible Tax Benefits

In some situations, HELOC interest may be tax deductible when funds are used for qualifying home improvements. Homeowners should consult a tax advisor regarding their specific situation.

Cons of a HELOC

Your Home is Collateral

A HELOC is secured by your home. If you cannot make payments, there is a risk of foreclosure.

Variable Interest Rates

Most HELOCs have variable rates, meaning payments can rise if interest rates increase.

Easy Access Can Lead to Overspending

Because funds are readily available, it can be tempting to borrow more than necessary. It’s important to have a repayment plan in place before using a HELOC.

Fees and Terms May Vary

Some HELOCs may include fees, minimum draw requirements, or early closure penalties depending on the lender and the loan terms. Be sure to review all terms and conditions up front before applying.

Is a HELOC Right for You?

A HELOC can be a smart financial tool for homeowners who need flexible access to funds and have a solid plan for repayment. The key is using it strategically, not as a way to fund unnecessary spending.

Before applying, consider:

  • How much equity you have in your home.
  • Your current income and budget.
  • Whether you’re comfortable with variable interest rates.
  • Your long-term repayment plan.

Explore HELOC Options with First Financial

At First Financial, we’re committed to helping homeowners make informed financial decisions. Whether you’re planning renovations, consolidating debt, or preparing for future expenses – our team can help you explore whether a Home Equity Line of Credit fits your goals. Learn more about our HELOC options and connect with our Loan Department today.*

*LTV= Loan to Value Ratio. Rates will vary with the market based on Prime Rate and may change quarterly. Subject to credit approval. Available on primary or secondary homes only. A First Financial membership is required to obtain a home equity loan or line of credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. Subject to underwriting guidelines. See credit union for details. Federally insured by NCUA. Equal Housing Lender.

Spring Clean Your Spending in 30 Minutes

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Spring cleaning usually means refreshing your home, but your finances deserve a spring refresh too! If your spending has felt a little unorganized lately, the good news is it only takes 30 minutes to get back on track and feel more in control of your finances. Here’s how to spring clean your spending – fast.

Minutes 1-5: Review Your Budget

The foundation of a successful spending refresh often starts with your budget. Review your income, expenses, and what you had left (or how much you went over budget) last month. If your income was higher than your expenses, there’s a good chance you’ll have money left to save each month. If your expenses were higher than your income, this is a great opportunity to see where your money is going and which expenses you can cut.

Don’t have a budget? Now would be a good time to create one before you continue with the rest of this guide. Check out our fillable PDF Budget Worksheet to quickly see how your income and expenses stacked up this month.

Minutes 5-10: Get a Clear Snapshot of Your Spending

Now we’ll take a deeper dive into the expenses part of your budget. You probably don’t need to spend as much time reviewing essential expenses like your rent/mortgage or car loan, since those are likely fixed month-to-month. What we really want to look at is your discretionary spending, or spending on non-essential items that can be adjusted or postponed. Examples of this spending include any daily coffee purchased on the way to work, takeout on nights you don’t feel like cooking dinner, or subscription services.

Start by opening your recent bank statements and credit card transaction history. Quickly scan your transactions and take note of what you’ve been spending money on over the last month. As you look through, ask yourself the following questions:

  • Is there anything non-essential you’re buying almost daily or weekly? If so, do those purchases feel small in the moment but look like they’re starting to add up?
  • Are there any recurring charges for subscriptions, and do you use the subscriptions?
  • What spending feels valuable vs. wasteful?

It’s important to remember that spending is personal. That daily coffee might be a non-negotiable to you, but it might fall lower on the list of spending priorities to someone else – and that’s okay. The point of this exercise is to increase your awareness as to where your money is going, whether you end up being content with what you see or identify areas for improvement.

Minutes 10-20: Cut Out the Clutter

There’s a reason you asked yourself the questions in the previous section – your answers are the very places you can probably declutter your spending. These “clutter” items are non-essential purchases you are spending money on that are slowly adding up, taking money away from your other financial goals.

Start by cutting:

  • Any unused subscriptions that took you by surprise (“I’m still subscribed to that?”), and possibly even all subscriptions for the time being – if you are continually exceeding the amount of money you bring in each month. A subscription service is a nice-to-have, it’s not a necessity – and should be one of the first things you can slash from your spending.
  • Purchases that feel wasteful to you.
  • Duplicate services (multiple music platforms or streaming services).

Even if you only have one monthly charge to cut, you’d be surprised at the difference it can make. Saving $20 a month for a whole year is an extra $240 in your account.

Minutes 20-25: Refresh Your Spending Habits

Did you notice patterns in your spending that you want to change? For example, were there impulsive online purchases you wish you hadn’t made, or items you bought and didn’t end up using? Were there nights you had groceries in the fridge and didn’t really need to order takeout? Below are examples of small swaps you can make:

  • Try making a meal out of what you already have at home instead of ordering takeout.
  • Return items you ordered and haven’t used instead of saving them “just in case.”

The key is intention – by noticing patterns you would like to change and intentionally changing them, you’ll feel more confident and in control over where your money is going.

Minutes 25-30: Set Goals

Now that you know where your money is going, you’re in a better position to set financial goals. Keep your goals specific, achievable, and realistic – you’re more likely to achieve them that way. For example, if you determined that you can realistically cut $30 in takeout spending each month – consider redirecting that $30 to your emergency savings. This is a specific, achievable, and realistic goal because you have the $30 and the means to redirect it each month. It’s important to remember that progress isn’t always linear – you might hit a setback from time to time, and that’s okay. Try to pick up where you left off in the following month.

If you’re looking for an in-depth guide to budgeting, check out our Budgeting 101 Guidebook. If you live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties and want to discuss your financial goals further – visit one of our local branches or call to make an appointment at 732.312.1500.

Risky Places to Use Your Debit Card (and What to Use Instead)

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Your debit card is convenient, easy to use, and connected directly to your checking account. But that convenience can also mean direct access to your money is on the line if something goes wrong. Unlike credit cards, debit cards pull funds directly from your bank account. If fraud occurs, the money may disappear immediately and can take time to recover while the financial institution investigates.

That’s why it’s important to know where using a debit card may put you at greater risk and when a different payment method might be a safer option. Below are some of the most common places where debit card fraud can occur and what you can do to protect yourself.

Gas Station Pumps

Paying at the pump is one of the most common places criminals target. Gas pumps can be vulnerable to card skimming devices, which secretly capture card information when you insert or swipe your card. These devices can be difficult to detect and may transmit your data to thieves instantly.

Safer options:

  • Use a credit card (or cash), instead of a debit card when at a gas station.
  • When traveling outside of NJ, pay inside instead of directly at the pump.

Outdoor ATMs

ATMs located outside convenience stores, gas stations, or other high-traffic areas can present a risk. As these ATMs may be less monitored, criminals sometimes attach skimming devices or hidden cameras to capture card numbers and PINs here too.

Safer options:

  • Use ATMs directly inside a financial institution or in well-lit locations.
  • Shield your PIN when entering it.
  • Regularly monitor your account for any suspicious activity.

Online Shopping

This method of shopping is convenient, but entering your debit card information online can expose your bank account if the retailer experiences a breach or if the site is fraudulent. With debit cards, fraudulent transactions may immediately withdraw the funds from your account – even while the investigation is underway.

Safer options:

  • Use a credit card for online purchases.
  • Shop only on secure websites (look for “https” at the beginning of the URL).
  • Consider using digital wallets (PayPal, Apple Pay, Google Pay, etc.) or virtual card numbers when available.

Bars, Restaurants, and Busy Retail Environments

Any situation where your card leaves your sight, even briefly – can increase the risk of unauthorized use. In busy environments like bars or restaurants, it can be easier for card information to be copied or mishandled.

Safer options:

  • Use a credit card.
  • Use contactless or mobile payments when available.
  • Review your receipts and account transactions regularly.

Why Credit Cards Often Offer More Protection

Both debit and credit cards have fraud protections, but they work differently. If fraud occurs on a credit card, the funds are not tied to your checking account – and you can dispute transactions without immediately losing funds. With debit cards, the money comes directly from your bank account and may take time to be restored. This is why many financial experts recommend using credit cards for certain transactions – especially online purchases, travel, and higher-risk environments.

Smart Habits to Protect Your Cards

No matter where you use your card (or which kind of card), a few simple habits can help protect your finances:

  • Set up transaction alerts.
  • Review your account regularly for unfamiliar charges.
  • Report lost cards or suspicious activity immediately.
  • Use contactless payments or digital wallets when possible.

Learn More: When to Use Credit vs. Debit

Both debit and credit cards have a place within your financial toolkit. Understanding when to use each can help you protect your money and manage your spending more effectively.

Learn more in our guide: Credit vs. Debit: Which Should You Use?

How to Make Financial Goals Part of Your Daily Routine

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New Year’s resolutions can be easy to make, but hard to keep – especially without a plan in place. If your resolutions include financial goals, integrating simple habits into your daily routine to achieve them might be easier than you think. Here are steps you can take to make financial goals part of your daily routine, and why those steps matter.

Why Daily Habits Matter for Financial Success

Adding a new routine activity, no matter how big or small – into your already busy day might seem daunting. However, completing simple, achievable daily steps is one of the key actions you can take to reach your goals. This consistency will build discipline and confidence, and you will eventually consider these habits a “non-negotiable” part of your day. Furthermore, breaking a large goal into “bite-size” pieces can make that goal feel more attainable – as well as provide frequent checkpoints for tracking your progress.

Step 1: Clearly Define Your Goals and the Motivation Behind Them

An achievable goal is one that is clearly defined. A common framework for goalsetting is called SMART goals – which can help you create specific, measurable, achievable, relevant, and time-bound goals. Many goals fail because they are ambiguous, making it difficult to monitor progress and leaving you uncertain in how to achieve them. Additionally, goals can fail if they are clearly out of reach or you don’t have the means to achieve them given your current lifestyle. For example, if your goal is to save $1,000 a month but you only have $500 left after paying your monthly expenses – you might become discouraged from saving at all. SMART goals take uncertainty away to help ensure you cross the finish line.

If your goal is to pay off debt, you are more likely to have a successful outcome if it is structured as follows: “I will pay off $5,000 of credit card debt by December 31, 2026 by making a $208 payment plus interest every payday from the first payday of the year.” This goal is specific by mentioning the amount and type of debt, measurable every payday, and time-bound by setting a target payoff date. Click here to learn more about using SMART goals to achieve positive outcomes.

Another important part of setting goals is considering your why. Do you want to become debt free so you can purchase a home? Do you want to curb your impulse purchases to put more money toward your emergency fund? Your why will help you focus on the bigger picture.

Step 2: Personalize Your Routine with Daily, Weekly, and Monthly Habits

Personalizing your routine by creating daily, weekly, and monthly habits will make you more likely to reach your goals. Taking small actions in different frequencies will help make your goals feel attainable and easier for your current routine to accommodate new habits.

Let’s return to the financial goal of paying off $5,000 of credit card debt. A daily habit can be setting aside 5 minutes every morning to review your spending to ensure you’re on track to make your credit card payment. A weekly habit can be reviewing your budget to see if you have any upcoming expenses to plan for that could impact your debt repayment plan. A monthly habit can be reviewing your progress toward paying off the credit card – which gives you a chance to celebrate the progress you’ve made and stay motivated.

Step 3: Use Tools That Work for You

There are many tools out there claiming they will help you track your goals and create better money habits. While that may be true, the best tools to help you reach your goals are the ones you will actually use. If the thought of tracking your spending with a spreadsheet doesn’t excite you, deciding to use one might do more harm than good. Your success won’t necessarily come from a fancy budgeting app – it will come from the tools you use that make it easy to show up and work toward your goals every day.

Step 4: Automate When Possible

Automating your habits can help you make progress toward your goals even on the busy days. Back to the credit card example – setting up an automatic, recurring payment to your credit card can help make sure you never miss a payment.

Step 5: Hold Yourself Accountable, but Realize Progress isn’t Always Linear

Accountability is another important component of integrating financial goals into your routine. By checking in with yourself or a trusted individual, you can identify potential shortcomings early, come up with a plan to get back on track, and avoid shying away from uncomfortable conversations. Progress isn’t always linear – you might make great strides one week but fall short the next, and that’s okay! Be sure to celebrate your successes, and don’t be too hard on yourself if you don’t quite meet the mark one week.

If you live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties and one of your financial goals in the new year is joining a credit union – get started in one of our local branches today, or give us a call at 732.312.1500.

The First Financial team wishes you continued success in the new year!

How to Rebuild Your Savings After the Holiday Season

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The holiday season is full of joy, connection, and extra spending. Between gifts, travel, hosting, and last-minute celebrations – it’s common to enter the new year feeling a little lighter in the savings department. If that sounds familiar, you’re not alone.

The good news? Rebuilding your savings after the holidays doesn’t require drastic changes or financial stress. With a few intentional steps and realistic goals, you can regain momentum and set yourself up for a stronger, more confident financial year ahead.

Here’s how to get started.

1. Start With a Clear Financial Check-in

Before you can rebuild, it’s important to understand where you stand. Take a moment to review your bank accounts, recent statements, and outstanding balances. This isn’t about judging past spending, it’s about creating clarity.

Ask yourself:

  • How much do I currently have in savings?
  • Did I dip into savings during the holidays?
  • Are there credit card balances I need to prioritize?

A clear picture helps you make informed decisions and sets a realistic foundation for next steps.

2. Reset Your Savings Goals for the New Year

If your savings took a hit, your previous goals may need adjusting and that’s okay. Instead of aiming for a large number right away, focus on rebuilding consistency.

Consider breaking savings into smaller, achievable goals, such as:

  • Rebuilding an emergency fund to at least one month of expenses.
  • Saving $500–$1,000 as a short-term cushion.
  • Setting aside money for upcoming expenses like spring travel or home projects.

Smaller wins add up quickly and help rebuild confidence along the way.

3. Make Saving Automatic

One of the most effective ways to rebuild savings is to remove the guesswork. Setting up automatic transfers from your checking account to your savings account ensures that saving happens consistently, even when life gets busy.

Start with an amount that feels manageable. Even $25 or $50 per paycheck can make a meaningful difference over time. Once it becomes routine, you can always increase the amount as your budget allows.

4. Adjust Your Budget Without Cutting All the Fun

Post-holiday budgeting doesn’t have to mean eliminating everything you enjoy. Instead, look for small adjustments that free up cash without feeling restrictive.

Try:

  • Reducing takeout or dining out (even by one meal per week, if you typically do this almost daily).
  • Pausing unused subscriptions.
  • Planning groceries and meals ahead of time.
  • Setting a short “reset period” for discretionary spending.

The goal isn’t perfection, it’s progress.

5. Rebuild Before You Spend Unexpected Money

Tax refunds, bonuses, or cash gifts can feel like an invitation to splurge. While it’s fine to enjoy a portion of any extra money, consider prioritizing savings first.

A simple approach:

  • Save a percentage (such as 50%).
  • Use the rest for debt reduction or planned spending.

This helps accelerate your recovery while still allowing room to enjoy the reward.

6. Keep Your Savings Accessible, but Separate

Keeping your savings in a dedicated account can reduce the temptation to dip into it for everyday expenses. Many people find it helpful to separate emergency savings from short-term or “fun” savings goals.

First Financial savings accounts offer easy access for our members, and peace of mind that your money is waiting there for you without unnecessary risk.*

7. Check-in Regularly (and Celebrate Progress)

Rebuilding savings is a journey, not a one-time fix. Schedule monthly check-ins to review progress, adjust goals, and recognize what’s working (or what’s not). Even small milestones like your first $100 saved again, or a full month of consistent deposits – are worth celebrating.

Start Fresh with Confidence

The holidays may have passed, but the opportunity for a fresh financial start is right in front of you. With intentional planning, consistent habits, and support from a trusted financial partner, rebuilding your savings is absolutely within reach. At First Financial, we’re here to help you every step of the way, because your financial well-being matters all year long.

Ready to take the next step? Our team is always available to help you explore savings options, budgeting tools, and strategies designed with your financial goals in mind. Contact us today or visit 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. 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. View full Rewards First program details at firstffcu.com. Some restrictions apply, contact the Credit Union for more information.