Tag Archives: Save Money

Your Child’s First Savings Account – What to Know

Your Child’s First Savings Account – What to Know  

Saving is a skill that will serve you well at any point in your life. It is extremely important to introduce the concept of saving and budgeting to your children early on in life. Opening a savings account will not only help with teaching them this concept but will begin their savings journey. Keep reading to learn about what you need to know when opening your child’s first savings account. 

At What Age Can My Child Have a Savings Account? 

A child can generally have a savings account at any age. Yes, your child as a baby can have their own savings account. As their parent or guardian, you are able to open and manage their account until your child is old enough to manage their savings account on their own. 

What Should I Know When Opening a Savings Account for My Child? 

Opening a savings account is really no different than if you were to open a savings account for yourself. As you would for your own account, you’ll need identifying information as well as basic information for both you and your child as you will essentially be in control of their account.

How Can a Savings Account Teach My Child Good Savings Habits? 

Prioritizing savings early on will only serve your child well as they grow. Opening a savings account early on allows you to add to it for them as they earn money to begin saving. When your child is old enough to understand the account is their own, they will be able to see how the account has grown and begin being a part of depositing to their savings account. When your child begins learning the concept of saving and budgeting, allow them the opportunity to add money to their account. This is a great time to introduce savings goals with them and potentially set rewards, such as getting to make a purchase for a set amount or you choosing to match their contributions. 

Should My Child Be Using Mobile Banking? 

If your child is at the age of using their accounts to make regular purchases, it is a good idea to introduce mobile or online banking as a tool for them to check their financial standing. This is also a good tool to begin and practice budgeting. Giving your child the opportunity to manage and track their spending will allow them to have more at stake and feel more involved in their finances. 

Does My Child Need a Debit Card? 

If your child is at the age to be able to operate a debit card, it is a great option to practice their saving and spending while tracking everything with their mobile app. If your child chooses to open an account or get a debit card, as a parent you will have control of these and need to be involved in the opening process, as well as set spending limits and such. 

What Savings Account Should I Open For My Child? 

At FSSB, we are happy to help you and your child begin your savings process. Please stop in to discuss options or visit our website to browse our savings account options available to children. 

Prioritizing savings over spending is such a valuable lesson, get your child started with their savings account at FSSB today!

Have You had a Financial Checkup?

Have You had a Financial Checkup? 

A regular checkup with your doctor or dentist is a time to make sure your health is on track, there are no big concerns, and things are functioning normally. You are making your health and well-being a priority, which is great because you want your body to function properly and effectively for many years to come. When it comes to your personal finances, how often are you doing a checkup? You need a banker just like you need your doctor or dentist. Keep reading to learn what a financial checkup is and how often you need one!  

What is a Financial Checkup? 

A financial checkup or review, as it’s more commonly called, is an examination of your overall finances to include your goals, budget, current debt, upcoming planned expenses, retirement needs, and more. A financial checkup can be done yourself or with a financial expert at FSSB. The benefit of working with a financial expert is the assistance they provide in working through your finances to build a plan to meet your financial goals. They can offer ideas and can help you explore alternative options that you may not have considered, or even be aware of.  

Benefits of a Financial Checkup 

It’s never too late or too early to schedule a financial checkup. Consult your banker to help assess your financial situation. Establishing a good relationship with your banker will not only be beneficial to your finances but to you for years down the road. A financial checkup will set you up for success in the short and long term as you piece through your goals and how best to reach them.  

When You Need A Financial Checkup?  

Now that we know what a financial checkup is, the big question is do you need one? The answer is ABSOLUTELY! Everyone, no matter where you are in your financial journey should set aside time for a financial checkup just as you do for your health. As the saying goes “your health is your wealth.” Regularly reviewing your finances, money habits, and goals will indeed provide you with more financial stability in the long run.  

How Often Should You Get a Financial Checkup?  

Experts recommend scheduling a financial checkup annually, but you may want to have check-ups more frequently to review your financial standing and goals. Along with an annual financial checkup, there are instances when you should include an additional check-in. You should always have a checkup when big life changes occur. This includes marriage, buying a house, having children, divorce, kids going to college, a large unplanned expense, retirement, starting a business—really anything that could drastically change your financial plan.   

At FSSB, we are here to guide you in the right direction and help you reach your financial goals, possibly including establishing an emergency fund, saving for a big purchase, borrowing to realize a lifelong dream such as a house or business, and much more. Schedule a meeting with your banker today to make sure your finances are on track and your money is working effectively for you for many years to come! 

Don’t Overspend This Holiday Season: Steps to a Better Budget

Don’t Overspend This Holiday Season: Steps to a Better Budget  

Summer has flown by and that means the holidays will be here before we know it. Setting a budget is crucial for not overspending during a very expensive time of year. Start saving and setting your budget now so that when the holidays arrive you aren’t scrounging to stay within your budget. Here are the top steps for creating a budget for the holidays, as well as some savings tips. 

Step 1: List Out Your Known Holiday Expenses 

Your best strategy to avoid overspending is to set and stick to a holiday budget. It is very important to list out early your known holiday expenses and remember the spending doesn’t stop with gifts. Plan for hosting, food, entertainment, holiday activities, decorations, travel, donations, cards, wrappings, stocking stuffers, work Christmas parties, or anything you typically spend money on during your holiday season. 

The process of creating your holiday budget is similar to your household budget – list all expenses and add them up. Seeing this total, you can evaluate if it is within reach or if you need to tighten up your budget. As you shop this is a list to refer to and decipher how much to spend on each item as you check off your list. 

Step 2: Set Your Spending Limit

The most important step is to identify how much you can afford to spend and set your spending limit. This amount should come out of cash or savings to avoid relying on debt. Look at your list of holiday expenses and remove items, if at all possible, and compare what you’ve totaled up to the money you have set aside for holiday spending. If your total is within reach, this is a time to be creative with how to save a little extra over the next few months to continuously set aside money for your holiday budget. Here are some ways to save extra:

  • Buy gifts early and on-sale
  • Shop Black Friday
  • Sell some things
  • Pick up a side hustle
  • Cut back on buying wants 
  • Reduce social spending
  • Tighten your budget up and send additional savings to your holiday fund
  • Take a holiday job

Step 3: Number Your Priorities

The holidays can be overwhelming if you don’t plan in advance, set your spending limits, and save, save, SAVE! To relieve some holiday anxiety, set your priorities and do not feel bad doing so. If your expense list seems to be long, it’s ok if you can’t afford every single item, that’s where your priorities come in. Go through your list and assign each item a number based on its importance. Rework your list, putting your high-priority items at the top. Your high-priority items should be the first you save for and purchase. 

For example, suppose you decide that purchasing gifts is your top priority, while new holiday clothes for yourself are a low priority. As you work out your budget, you would allot more items to your gift fund than your clothing fund, possibly even waiting to purchase clothing until gifts are all purchased, and you have room in your budget. 

Step 4: Re-Work Your Budget; Allocate Funds

Allocating your funds is figuring out how much money to put towards each item on your list. Examine your list to roughly estimate how much each item costs and how much you plan to spend. Keeping this list realistic and projecting costs to be higher will keep you within your spending limit. If you have 20 gifts to buy, budget for each of these gifts at a doable cost. 

Step 5: Check in On Your Holiday Savings and Budget

When you have added up the amounts you’ve allotted for your items, be sure this equals the total you set as your spending limit. If it doesn’t match up, this is the time to rework your savings plan or lower the budget for one of your priorities. Consider scaling back on activities or even how elaborate your holiday party may cost. This is where you can reference your numbered priorities list and see what can be rearranged to keep you within your budget. 

As you begin to shop and plans change, KEEP TRACK. Keep notes of expenses and receipts to know where you stand on purchases and stay within your desired spending limit. Don’t risk blowing through your budget by simply being unorganized or overspending. If it makes it easier, open an account specific to holiday spending to help you keep track of how much you’ve spent and to reference the cost of items as you shop. You also could create cash envelopes to keep priorities separate. 

There are several ways you can get ahead on holiday spending this year! The best thing you can do is start planning and saving now – you’ll thank yourself for a great financial start in the new year!

How to Save When Eating Out

How to Save When Eating Out

Eating out is sometimes more than just giving our body the nutrients it needs, it can be fun, different than the norm, and can be a social outing. We all need to eat to live, but for those who live to eat out, here are some tips to lower your bill but still enjoy that meal out here and there. 

Change Your Drink Order

As much as we all love a good fountain soda here and there the extra money spent on coffees, tea, and soda adds up. Most of the time, water is free so if your goal is to save extra try out water instead. A tip is to carry a water enhancer with you to add flavor or to order your water with a lemon for a citrus flavor. We all love a good cup of coffee or tea but remember you are there for the food. Specialty coffees over time add up to be just as much as a light meal. 

Lunch Over Supper 

This is probably a given, but we all know restaurants that have both a lunch and supper menu, supper tends to be a much larger and more pricy meal. Lunch tends to be a lot cheaper, and you also tend to get some extras like soup or a salad to fill you up. 

Opt for an Appetizer and Share 

If you are ordering off the main menu scratch the appetizer for additional savings. If you are looking to save, sometimes splitting one or two appetizers with your lunch date can be more cost-effective than the main dish. Also peek at the side options, if you are looking for something light opt for a few sides for a low bill. 

Go Out During the Week Over the Weekend

Restaurants tend to have some deals or specials they run during the week rather than on the weekend when more people tend to eat out. Earlier in the week may be your best bet for a steal as most places are looking to fill their booths. Some even have nights where the kids eat free. 

Go During Happy Hour

Happy hour is a lot of fun and can be the best time to catch a bite or meet up with a friend and get the biggest bang for your buck. Many restaurants will have their happy hour menu set on their website. Whether you eat some appetizers (a great option for a large group) during happy hour to get your fix or start with something light to hold you over, try out a happy hour instead of going during mealtime. 

Prioritize Your Meal Plans

If you are someone who enjoys eating out, it can be very hard to avoid it at all costs. Most people tend to really enjoy it here and there. The better you can make plans in advance and do your research, the more you will save on those one-off meals out when you are truly in a rush. 

Summer is right around the corner, and we tend to get busier and busier with activities and often take the easy way out for meals. Save a little extra this summer and put some thought into your eating-out routine. Try out these seven tips and tricks to avoid blowing your budget on food this summer!

How to Buy a Car – and Actually Save Money

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Is your current car on the fritz or have you been eyeing that shiny new Jeep you see parked at a dealership on your way to work every morning? If you’ve been hesitant to buy a new vehicle because you’re worried about it costing too much, here are some ways that you can get the car you’ve had your eye on while still saving money.

Get Pre-Approved

Before starting your search, you should get pre-approved for a loan. It’s important to know what limit you can qualify for and match that up with your monthly budget. It has been estimated that your total auto expenses should not exceed more than 10 percent of your yearly income. This includes the loan, insurance, maintenance and interest. When you know your limit, you can stop yourself from gazing at cars out of your price range that you may have otherwise talked yourself into buying.

Sell Your Current Car

Many times the dealerships will ask for you to trade in your vehicle in order to get a “better” deal on the new car. However, you can typically get more for the auto if you sell it privately. This may cost you some additional time to fix anything major with the car, as well as listing it in the local classifieds. The dealership will turn around and sell the car for a profit anyway – shouldn’t that extra money be yours to put towards your new wheels?

Shop Around

You are your best advocate when it comes to finding and buying your new car. Don’t make any decisions right away. A smart way to start looking is searching at the average value of the car you are wanting. Look at reputable sellers online to see what the cars are typically going for, so you don’t find yourself getting swindled by a dealership transaction.

New to You Is Often More Valuable

The minute a car is driven off the lot, it loses a significant amount of value. Often, the newer cars aren’t necessarily any different than ones a from few years prior in terms of features. Consider buying Certified Pre-Owned vehicles to save yourself hundreds or thousands of dollars.

Be Wary of Extended Warranties

Many dealerships will push heavily for you to have an extended warranty because this is how they make a large portion of their money. It is of course your choice on whether or not it is worth the risk of not accepting the warranty. However, many times these extended warranties are mute in comparison with the manufacturer warranty. They are usually very expensive and may not be worth it in the long run.

Allow us to help you with a big purchase like this – we’d be happy to speak with you about our options.

7 Items Worth the Splurge

splurge

When you make your savings plan, you often don’t think about the things you should spend extra money on. While scrimping on other items such as groceries or kids clothes could help you in the long run, there are some expenditures that could cost you in the future if you don’t pony up for the better option. At First Security State Bank we suggest taking a second look at these seven products, and see if you need to upgrade the next time you buy:

Toilet Paper: You may not think it’s necessary, but let’s be honest; when you’re staying at a hotel that doesn’t have the good stuff, you notice. Household items such as toilet paper or garbage bags are bought to complete a task, and if they don’t complete it well or comfortably then it’s time to reconsider your options. We believe this product is worth the extra couple bucks, but we do recommend saving by buying in bulk!

Office Chair: If you’re like many Americans, you may spend a majority of your day sitting down. To avoid chronic back pain, and a slew of other ailments, we recommend investing in a comfortable and reliable office chair. If your employer is willing to pay for all or a portion of the chair, be sure to offer your measurements to be sure their options fit your height and weight specifications.

Mattress: Did you know you spend 33 percent of your life sleeping? For such a large portion of your time, you’ll want to be sure you’re getting the best sleep possible. Avoid those box store less costly options, and test out a few of the higher end options available in your budget. Not only can you sleep better, but you may find yourself spending less on coffee or energy drinks as well.

Pillows & Bed Sheets: While the mattress will make the biggest impact on the quality of your sleep, upgrading your thread count and purchasing the proper pillows can make a world of difference as well. Something as simple as changing the firmness of your pillow could help you sleep through the night more soundly.

Work Clothes: Sweats, shorts, and other home attire may not require the added expense, but the clothing that you wear to portray yourself at work should come across as professional while also remaining intact over time. We suggest finding one or two brands that fit both your budget and your style, and selecting key basic pieces to compile a wardrobe of endless combinations.

Garbage Bags: Do you enjoy it when you go to take the trash out in the early morning and just as you reach the bin, the bag breaks across your feet? No, neither do we. We agree that it is more than worth the extra dollar or two for the name brand bags that won’t break. Afterall, if the bag breaks, that means you’ll need to take a shower too!

Data Plan: Every cell phone provider seems to come out with a brand new plan option as soon as a new phone is released. While the choice of phone is completely up to you, we think that the data plan should cover not only what you think you’ll use, but some buffer room too. Instead of paying the expensive overage fees every time to go over your data limit, we recommend purchasing a more comprehensive plan to ensure you have a little extra space when you need it.

These seven things will prove their worth in the long run, and many items only require a one-time investment. If you have any other items you think we should add to our list, let us know on our Facebook page. We’d love to hear from you!

The Latte Factor 101

Financial Education

Making your way through the drive through every morning before 7:30 may give you a refreshing start to your day, but at what cost? The ideology that coffee shops and other retailers capitalize on is the notion that these small expenditures add a little excitement to your day without a hefty bill. However, when you enjoy perks like these on a daily basis, they add up, and quick!

Financial author, David Bach, is the mastermind behind the Latte Factor. This helpful calculator enables shoppers to see not only the cost of an individual purchase but the lost value it could cause for further investment as well.

For example:

If you purchase a $4.45 grande latte from Starbucks every weekday for the next thirty years, the total cost of your daily coffee is $34,786.29. However, if you had put that weekly $22.25 expenditure into an investment with an average earnings rate of eight percent or more, you could have made $109,225.02 in earned interest during that time. This showcases the true cost of a daily latte as the overall product expense ($34,786.29) + the lost interest ($109,225.02) = ($144,011.30)

While less than $5.00 a day may seem like chump change, compounding these expenses on a long-term level can showcase helpful savings opportunities to maximize your retirement savings efforts and limit unnecessary spending.

This equation doesn’t work just for coffee either! If you find yourself splurging for a fast-food lunch break, buying extra sodas at work, or even paying for a magazine you hardly read, you’ll soon find that all of those little expenses can make a big impact.

To help break some common splurging habits First Security State Bank recommends the following:

  • Before making a purchase, ask yourself, “Should I spend these funds or should I invest them?”
  • Use free services like our Online Banking or Mint to visualize your spending and see areas where you can cut excess.
  • Remember the rule of 7. On average, invested funds will double every seven years, without any added contributions.
  • Utilize accounts like IRA, HSA, and 401(k) to maximize the dollars you invest and save.

If you have any questions on how to get started, or want to learn more about how to make your money work for you, our trusted personal lenders are here to help. Just stop by or drop us a line to set-up an appointment today.

Which Subscription Service is Worth Your Money?

Savings

The concept of subscription packages aren’t going away anytime soon! Offering the convenience of shipping, and the added surprise of finding out what’s inside, these clever subscription services keep you wanting more. With so many to choose from, how do you know which box is a worthwhile spend for your family? At First Security State Bank, we’re excited to share our favorite options, and how they can help improve your budget:

Blue Apron: Out of all the make your own meal plans, this one by far stands apart! With plans as low as $8.74 per serving, these step-by-step culinary creations can not only help you eat better, but spend better as well! Reduce wasted money and food with their pre-portioned delivery system – and shipping is always free!

Bark Box: For all your furry friends, this box will have them waiting for the mailman every month! At $20 a month for a year long subscription, these fun-filled packages are stocked with nutritious treats and toys for your pup to enjoy. Check out their BarkShop page too, and see if your dog is a fit perfect for their Destroyer’s Club!

Dollar Shave Club: This popular grooming subscription is the perfect fit for men and women seeking a smooth shave. With options starting as low as $3 a month, this offer makes it simple to always have a fresh blade when you need one. If you do choose to upgrade, your product ships for free! Give it a try for a month, and adjust your shipments as needed, depending on how quickly you use the razors.

Birchbox: A traveling beauty bar for both men and women, this monthly subscription provides samples straight to your door for $10-20 each month. Complete with added membership pricing, and special offers, these little boxes pack a punch! If you discover products you simply cannot live without, simply go to their website, and select the full size version to purchase.

Raw Spice Bar: Eager cooks unite behind this affordable and delicious small batch spice subscription. Each month, they send professional and home cooks alike a mix of three regional spice blends. See how much you can grow your palette for only $8 a month!

Graze: Staying healthy can sometimes feel like a chore, especially while you’re working. Take the struggle out of hunting down those nutritious nibbles, and let graze do the shopping for you. For the low cost of $11.99 a month, you will receive 8 pre chosen snacks delivered straight to your home or office, and shipping is already included!

Gamefly: Video game addicts rejoice! Finally, there is a monthly subscription that allows you to play video games and rent movies at a low monthly cost! Starting at $15.95 you can rent one game each month with the option to return it at any time for a new game to rent. There are no late fees, and you can cancel at any time! Or for only $10 a month, you can live stream games straight to your home, 24/7!

Texture: No more magazine racks to clutter up your home, get the newest and latest news straight on your device with Texture’s digital monthly subscription. Offering the hottest magazines in every industry, this convenient service allows you to read the latest issue without the clutter of pages.

LootCrate: Allow your inner geek to celebrate for these gamer and movie centric crates! At a bargain of only $13.95 a month plus shipping and handling, these bountiful boxes offer one wearable item, a t-shirt, vinyl figure, comic book, household item, and utility item in every shipment! What are you waiting for? Sign up today.

Tasting Room: Nothing says relaxation like a satisfying glass of wine. Enjoy a bottle of your favorite flavors each month, through this interactive monthly tasting subscription. After the initial $9.95 tasting assessment of six personal-sized bottles, users are able to order wines to fit their personal tastes for approximately $15 a bottle.

Whichever box has begun to peak your interest, be sure to evaluate your family’s monthly budget to determine if it’s the perfect match for you.

10 Tips to Save $10 a Day

Week4Post1

It can be difficult to stick to a budget, but changing just a few of your daily habits can help you to save big. First Security State Bank has rounded up 10 things you can do to save $10 a day this year.

  1. Choose a different ride – Use public transportation, walk, bike, or carpool to the office instead of driving.
  2. Brown bag it – Packing a lunch is not only easier on your wallet, but your health as well!
  3. Eat leftovers – If you have food left on your plate when you eat out, ask your server for a box. Take the time to store extra food in containers after cooking. You can easily stretch each meal into two or more.
  4. DIY snack time – Pass on Starbucks and brew your own coffee at home. This saves both cash and calories! Avoid the vending machine at work by buying your own snacks in bulk and storing them in a desk drawer.
  5. Listen for free – If you listen to a variety of music throughout the day, use free or subscription music sites like Pandora or Spotify instead of purchasing individual songs.
  6. Drink water – If possible, take the free route and drink tap water. Carry a reusable bottle with you so you can refill it throughout the day.
  7. Make a matinee date – Make plans with friends to catch an afternoon show and take advantage of cheaper ticket prices.
  8. Skip dry cleaning – If you learn more about your clothing, you can find out which fabrics can be hand-washed at home and take the time to do it yourself.
  9. Avoid alcohol – Alcoholic drinks add major charges to your bill. Check for happy hour deals before you go out!
  10. Be wise about organic products – Organic foods with peels, like melons and bananas, are not any safer than the non-organic. The peel will protect the fruit from any pesticides.

Cutting back by just $10 a day turns into an extra $3,600 at the end of the year. That is $3,600 you can put towards a long term goal or other investment. Isn’t that worth cutting back on some small luxuries each day? For money-saving tips and tricks, talk to First Security State Bank. We are ready to answer your questions!