Tag Archives: Money

Money Saving Tips for the Week

Posted on by
Reply

bigstock-Money-8204584We often associate certain days of the week with particular activities. For example, Monday is generally considered the start of the work week. Perhaps Wednesday is the night your favorite show airs on TV, while Friday — well, thank goodness it’s Friday.

When it comes to our personal finances, we should consider following the same trend of associating days with various activities. Each day of the week offers an opportunity to save money or improve our finances. They key is to be aware of how to save money by knowing what steps to take on which day.

Here are some tips to save money each day of the week.

Monday: Set the Tone for the Week.

On Monday, you can set the tone for the week, helping to determine if you stick to your spending plan for the remaining days, said Tom Corley, author of the bestselling book, “Rich Habits: The Daily Success Habits of Wealthy Individuals.” For example, if you promised yourself that you would drink coffee from home and pack lunches to save money, you need to make it a habit starting on the first day of the week.

“The way to turn this into a habit is to make your five brown bag lunches the night before,” Corley said. “Those brown bags will then act as a trigger, reminding you to make your own coffee.”

You could even take it a step further and make Monday a no-spending day to start your week off on the right financial foot. Mark the day on your calendar and set up an alert, so you’ll get an email or message on your smartphone every Monday reminding you not to spend any money that day.

Tuesday: Get a Deal on a Flight.

If you need to book a flight, it’s wise to do so on a Tuesday, when U.S. airlines typically release flight sales, said Jeff Klee, founder and CEO of CheapAir.com. Browse fares early to mid-Tuesday to find the best deals.

“The caveat is that there are limited seats available at the sale price, so you have to be super quick to book when a sale is launched,” he said, adding that Tuesdays and Wednesdays are also the cheapest days to fly. Because fewer people travel mid-week, it’s smart to arrange your plans so you leave and return early in the week as opposed to on weekends.

Tuesday is also a good day to get deals on dining and entertainment because establishments tend to do less business then. As a result, many restaurants — including T.G.I Friday’s, Chick-fil-A and Denny’s — host kids-eat-free days on Tuesdays, said Howard Schaffer, vice president of deal site Offers.com.

Additionally, many movie theaters offer discounted tickets and concessions on Tuesdays, said CouponSherpa.com shopping expert Kendal Perez. For example, Perez said she pays $5.50 per ticket on discount days versus the regular matinee price of $7.50 or evening price of $9.25. To get discounts on concessions, consider joining your favorite theater’s rewards club.

Wednesday: Save Money on Groceries.

Saturday is the busiest grocery shopping day of the week, according to an article from The Street. However, it’s not the best day to go to the market if you want to save money.

“To save money on groceries, shop on a Wednesday,” said Kyle Taylor, founder of personal finance blog ThePennyHoarder.com. “That’s when most stores release their weekly discounts, but they’re also likely to honor the previous week’s coupons [on this day].”

Check your supermarket’s local sales ad, which you can generally find online or at the store’s entrance. In many cases, you can locate “buy one, get one free” deals or discounts of up to 50 percent, said Taylor. To maximize savings, craft your menu and shopping list for the coming week based on what’s on sale.

Friday: Build Your Savings.

If you typically get paid on Friday, then it’s a good day to boost your savings. Rather than give in to the temptation to indulge yourself by spending your entire paycheck, Corley recommends having a percentage of your pay automatically deposited into a separate savings account — ideally one without a debit card linked to it. Doing this forces you to live below your means because you won’t have easy access to those additional funds.

“It is hard at first to pay yourself first this way, but over time it gets easier,” Corley said.

In his new book, “Change Your Habits, Change Your Life,” the author writes that individuals should set a goal of saving up to 20 percent of their income. For best results, allocate your savings among four buckets — with half going to a retirement savings account, 20 percent for major future expenses, 15 percent for unexpected expenses and 15 percent for cyclical expenses, such as holidays and birthdays.

Saturday: Get Deals on Apparel.

Wait until the weekend to buy clothing, as that’s when you can typically get the deepest discounts. Retailers such as Kohl’s and Macy’s often have sales on Saturdays that feature better markdowns than customers would find during the week, said FatWallet.com‘s online shopping expert Brent Shelton.

Additionally, consumers can score extra discounts by using their mobile devices, he said. Download retailers’ apps to get exclusive deals and take advantage of all the best ways to save money.

Finally, weekend shoppers can take advantage of coupon codes, which are released from apparel merchants in the highest volume on Fridays, said Slickdeals.net shopping pro Regina Conway. “In some cases, you can apply the code on top of weekend sale pricing to save even more,” she said.

Sunday: Review Your Spending.

“Although Sunday is usually a day to relax, it’s also the perfect time to make sure you’re on track with your weekly and monthly spending plan,” said Holly Johnson, a credit expert and creator of ClubThrifty.com.

Johnson and her husband sit down every Sunday to review their budget and see how much they’ve spent in each category — such as food, gas and entertainment — and how much they have left for the remainder of the month. “This helps us ‘reset’ our spending and make sure we’re on track with our monthly spending goals,” she said.

On Sunday, the Johnsons also pay off their credit cards, which they use for all of their regular purchases to create a paper trail and maximize credit card rewards. Even if you don’t pay off your credit card balance each week, it’s a good idea to check your account regularly to ensure there aren’t any unnecessary fees or unrecognizable charges that could be the result of fraud.

Reconcile your spending on Sunday to start the week off on the right financing footing come Monday!

*Original article source by Cameron Huddleston of GoBankingRates.com.

4 Times You Should Ignore Good Financial Advice

Posted on by
1

finances-e1303266500480It’s so great when someone gives you advice that helps you make a positive change in your life. Sometimes, we can truly learn from the experience and the tips that others provide. However, there are other times when we need to learn to ignore the advice given to us by other people. While it’s often well-meaning, sometimes the advice that other people give can lead us down the wrong path entirely.

Especially when it comes to financial tips and advice, sometimes people become set in a certain way of thinking, or they believe a financial myth because it has been told to them by someone else. It’s important to make your own financial decisions. There are certain financial tips that are either out-dated or conditional. Some tips are just wrong all together.

Here are four financial tips that you definitely should ignore, and how to spot poor financial advice.

1. Avoid credit cards. Credit cards can be dangerous. According to Lifehacker, they make it easy to spend money, we can easily feel peer pressure to use them because so many other people do, and of course, the interest can really add up.

However, credit cards are not all bad, as long as you use them responsibly. If you can afford to pay the balance off immediately, there is no harm in using a credit card. There are actually several positive aspects of credit cards, including the fact that most credit card companies protect you against fraudulent charges (whereas if someone steals $200 in cash, you probably are not getting it back). Also, many credit cards come with excellent rewards.

Did you know First Financial has a lower rate VISA Platinum Credit Card, great rewards, no annual fee, and no balance transfer fees? Apply today!*

2. Save first. It is absolutely essential to set savings aside each month toward future purchases, an emergency fund, and your retirement. If you don’t save now, you risk not having enough saved later. However, as important as prioritizing savings is, it isn’t always the right decision for each person. If you are drowning in debt, but you are setting aside hundreds of dollars each month toward savings (while your bills lay unpaid), you are probably making the wrong choice. There’s no use having savings if you are in a bad financial situation, and it’s getting worse because interest and late fees are piling up while you focus on your savings.

We offer a number of Savings Account options, click here to learn about our various accounts and to find one that fits your needs.**

3. Stick to your budget. Many Americans have a hard time sticking to their budgets (and many don’t even have one), and in general, you should try to stick to your budget. However, you actually need to be flexible when things change. If you go from a two-income household to a one-income household, and you are still living on a budget that was designed when you had a lot more money available, you could set yourself up for a lot of debt.

At the same time, when you get a raise, it’s appropriate to change your budget (even if you are just adding the extra income directly into savings or your retirement fund). Circumstances change, and inflation causes prices to go up, so it isn’t fair to yourself, or even responsible, to expect to have the same budget all the time. While in general you should try to stick to your budget each month, sometimes you need to reevaluate it.

Don’t forget to utilize our great financial calculators – they’re free and a great tool to help you get your finances on track.

4. Don’t take a risk. This is another piece of advice that is often well-meaning, but is given by people who usually are more interested in saving everything than taking risks. While it is important to save, unless you take risks, you probably won’t get very much interest back on your savings. People disagree about the best way to handle various financial decisions, but you have to determine what is right for you. You might lose a lot of money by taking a chance on a risky stock, or you might end up rich. Although diversifying your portfolio is often the smartest choice, it might not be the right choice for you. If you want to start your own business, but others advise you against it because of the risk of failure, you have to decide if the risk is worth it to you. There is very little financial advice that fits every single situation.

According to Fox Business, if you are trying to figure out if the advice you are receiving is bad, there are certain signs you should watch out for. If the person giving you the advice has a stake in your decision, they may not be presenting a fair picture. If you didn’t solicit the advice, that could be another sign to watch out for, and they might be trying to scam you. You should also avoid accepting advice that follows the one-size-fits all idea (like don’t take a risk).

Financial advice can be extremely helpful, whether it comes from a financial advisor or even a trusted friend or family member who really wants to help. Just make sure that the advice is really worth listening to. Also, remember to go with your gut. If someone suggests a financial move that you don’t feel good about, don’t do it. Whether the other person is intentionally leading you down the wrong path or not, your intuition might be trying to warn you.

Take advantage of the Investment & Retirement Center located at First Financial. If you have questions about retirement savings or investments, set up a no-cost consultation with our advisor to discuss your brokerage, investments, and/or savings goals. Call us at 732.312.1500 or stop in to see us!***

*APR varies when you open your account based on your credit worthiness. This APR is for purchases, balance transfers, and cash advances and will vary with the market based on the Prime Rate. Subject to credit approval. No Annual Fee. Other fees that apply: Cash advance fee of 1% of advance ($5 minimum and $25 maximum), Late Payment Fee of up to $25, Foreign Transaction Fee of 1% plus foreign exchange rate of transaction amount, $5 Card Replacement Fee, and Returned Payment Fee of up to $25. A First Financial membership is required to obtain a VISA Platinum Card and is available to anyone who lives, works, worships, 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. Click here to view full Rewards First program details. Accounts for children age 13 and under are excluded from this program.

***Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC , a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free 800-369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.

Original article source by Sienna Beard of Personal Finance Cheat Sheet.

4 Fun Ways to Teach Your Kids About Money

Posted on by
Reply

kids-money

Have you ever wished that someone taught you more about money as a child? The sad reality is that many students graduate from college with a degree but are unable to manage their money. Here are some tips to educate your children about money so they can better handle their finances in the future:

1. Talk isn’t cheap when it comes to money.

Dianne Caliman, creative director of The Centsables, an award-winning animated TV series on the Fox Business network, believes talking is key when it comes to money matters with children. She suggests including your children in the family’s money management activities such as looking through circulars and clipping coupons.

She points out that these types of activities are great jumping off points for discussions. Caliman explains that showing real life examples to children fosters understanding and meaningful connections to money management. “Show the kids your bills, and explain how purchases made earlier must be paid for now,” she says.

Caliman also reminds parents to be role models and to ask themselves the following: What messages do you send your children? Are you living beyond your means? Do you pull out the plastic for every purchase? Do you and your spouse worry or argue about money? She advises taking a look at your own money habits, and make any changes where you think necessary. “When you exercise good financial judgment, you are automatically teaching your children by example. That’s a win-win situation for all,” she adds.

2. Make a budget-based allowance.

Bill Dwight, founder of FamZoo.com, suggests giving children an allowance that is based on a very simple budget. “Make a list of the typical things you would expect your kids to buy for themselves over a period of time, plus how much you would expect them to save and give, and calculate an allowance amount to match those clear expectations,” he says. Dwight adds that as your kids mature, you can extend the budget to cover more areas of spending like clothing. This approach helps insure that an allowance is a personal finance teaching tool rather than an entitlement.

3. Practice paying back loans before college.

One way to get practice at paying back a loan is to lend your kids money. Dwight suggests teaching your kids how to manage loan payments by arranging a parent-financed loan for a big ticket item like a laptop or a smartphone. “Direct a portion of their allowance, chore or job payments to paying off the loan each period. By making regular payments over an extended period of time, not only will your kids appreciate the cost of expensive items more, but they’ll take better care of them.”

4. Take on the tough lessons, too.

No one said teaching kids about money was easy. It may take work to get kids on board with the idea. Rod Griffin, director of public education for Experian knows this firsthand by getting a little pushback from his own granddaughter when it came to the topic. In her elementary school class, she has to “pay” for her school books and “rent” the desk she sits in with pretend money she earns through various activities, academic performance and good behavior. What she saves after expenses can be used to “buy” rewards.

Griffin points out that many parents feel ill-equipped to teach their kids money concepts, especially more advanced ones and don’t know what to do. He explains how there are many sources on the web that can help. Griffin recommends checking out Moonjar.com for younger children, because it explains the basics of saving, spending and giving. LifeSmarts.org is geared toward older kids and provides free lessons online via videos and other tools.

Griffin also suggests showing high school and college-aged kids an actual credit report. A sample one is provided on the Experian website to understand the different parts and what they mean. They can see how their financial decisions impact how prospective creditors view their credit history. They get to see how their financial behavior, such as paying bills on time or being late, is tracked and recorded much like a permanent record.

At some point, everyone has to manage their own finances. The more exposure and practice a child gets, the better equipped they will be in the future when they have to make financial decisions on their own. Consider teaching them age-appropriate lessons as they grow to help them develop the skills they need to successfully handle their money.

Here at First Financial, we have a few products and services just for kids so they can start saving for their future while having fun doing it!

  • First Step Kids Savings Account: First Financial’s unique First Step Kids Savings Account is specifically designed for young people, with a focus on education and fun.*
  • Dollars for A’s Program: For every “A” your child earns on their report card, First Financial will deposit $1 into your child’s First Step Kids Account!* It’s a great way to reward your child for doing his or her best in school. It also teaches the life long practice of saving for the future. To earn your dollars, visit a branch location.**
  • Summer Reading Contest: Every summer we have a reading contest where First Financial kids up to age 18 can earn rewards for the books they read, along with a great grand prize!***
  • Student Checking Account: A complete Checking Account for students ages 14-23. It comes equipped with an instant issued Debit Card, has no minimum balance requirements, and more!****

*As of 12/12/2012, the First Step Kids Account has an annual percentage yield of 0.05% on balances of $100.00 and more. The dividend rate may change after the account is opened. Parent or guardian must bring both the child’s birth certificate and social security card when opening a First Step Kids Account at any branch location.  Parent or guardian will be a joint owner and must also bring their identification. A First Financial Membership is open to anyone who lives, works, worships or attends school in Monmouth or Ocean Counties.

**Offer applies only to report cards for most recent school terms. Letter grade “A” or 90%+. No back rewards available for prior semesters or marking periods. Available for First Financial members between 1st and 12th grades. Qualifying report cards must be submitted within 45 days from the date of issue. Child must be present and a $5.00 deposit to a First Step Kids Account is required to receive the Dollars for A’s incentive.  Parent or guardian must bring both the child’s birth certificate and social security card when opening a First Step Kids Account at any branch location.  Parent or guardian will be a joint owner and must also bring their identification. A First Financial Membership is open to anyone who lives, works, worships or attends school in Monmouth or Ocean Counties.

***Credit Union membership and Savings Account is required to participate. Members up to age 18 are eligible to participate and must complete an entry form. Reader rewards must be deposited to a child’s First Financial Savings Account. Winning reader and 4 runners up will be drawn after the contest ends (September), and will be contacted by the First Financial Marketing Department. Forms will not be posted on the website before the contest entry period begins.

****A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Accounts for children age 13 and under are excluded from this program.

*Original article courtesy by Karen Cordaway of US News.