Tag Archive for: save

Teaching Kids the Basics of Money

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Have you ever asked yourself, “When should I start teaching my kids about finances?”

 

While there’s no right answer to this question, a good place to start is whenever they have developed fundamental math skills. This is typically between the second and fourth grade.

 

The goal when beginning to teach your child about money is to help them understand the value of money and the importance of saving. You’ll want to use simple terms and relatable examples that you know your child will be able to grasp. One of the best ways to do this is to use your personal experience. Explain how you work a job to make money, and the money you make from said job allows you to buy things like groceries, clothes, vacations, etc.

 

If you want to take it a step further, you could set them up with a regular allowance or pay them for doing certain chores around the house. This will give them an applicable experience in understanding the most basic way money is earned. There are multiple ways to introduce money fundamentals to your child(ren), so do some research to find one that works best for you.

 

Once they understand how money is earned, you can segue into the basics of saving money. A great way to do this is by using a visual example such as a piggy bank or clear jar. This allows children to literally see the money they save and how it accumulates over time. When they are comfortable with the concept of saving, share how their savings can be used for something else in the future. Explain the different ways they could use their savings – to buy something they want for themselves or purchase something for someone else for a special occasion such as a birthday. If you haven’t already, this would also be a good place to open a savings account for your child.

 

When applying this to real-life, give them the opportunity to use their savings to purchase something they want. This will allow them to determine if they have enough money saved or not helping them comprehend if they need to save some more money or if they already have the amount they need. Once they have the amount needed, let them hand the money to the cashier so they get excited and experience the value of “this for that.”

 

Helping your child save money can bring up feelings of frustration due to having to wait to purchase something they want. This is a great opportunity to validate those feelings and explain that you, their parent, or guardian, also sometimes have to wait to purchase things you want. Set a regular time together where you sit down and count their money with them, so they know just how much they have saved. And don’t forget to encourage them on their saving journey.

 

Setting a good foundation for understanding money can help your children be more responsible with it as they get older. Even the smallest money tips can impact the way your children will think about and use money in the future. Visit our Personal Money IQ and scroll down to the “Kids and Money” section for more tips.

April is Financial Literacy Awareness Month

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Financial Literacy Awareness Month is observed nationwide by a variety of organizations. People all over the U.S. host educational events and activities throughout the month of April to promote the importance of financial literacy – especially to our nation’s youth.

 

In recognition of Financial Literacy Month, we would like to share some tips to help you better prepare for potential financial situations.

 

Safeguard Your Accounts with Multifactor Authentication

Multifactor authentication can increase the safe keeping of your financial accounts and information. The most widely used methods are challenge questions and one-time passcodes (sent via text, email, or phone call). This added layer of security does not allow anyone to fully log in to an account until after the username, password, and passcode/security answer are all entered correctly.

 

Avoid Late Fees with Online Bill Pay

Bills and payments can easily be lost or show up late in the mail. This can cause you to pay unnecessary late fees. To prevent this from happening, consider using online bill pay through your bank account or your mobile app. Bill Pay allows you to review your payments and make payments as quickly as the next day, so you no longer have to stress about a lost bill or payment. Start using today by logging into your UFB bank account or mobile app.

 

Save for Early Retirement

When entering the professional workforce, you’ll want to consider how you’ll fund your retirement. Most employers will offer retirement benefits like a 401k. However, IRA’s are also a good option to save. But how much are you supposed to save? First, determine what kind of retirement lifestyle you want. Then, just like budgeting, you’ll want to calculate the cost of that lifestyle and adjust your savings accordingly. Revisit your numbers annually to help you stay on track. If you need help, contact one of our local bankers for more information.

 

Saving vs. Investing as a Young Adult

Saving and investing can seem daunting when you first begin your career. However, the difference is simple… one is for short-term goals, the other is for long-term goals. For short-term savings goals – such as building an emergency fund, saving for vacation, or buying a car – you’ll want to keep your finances in an easily accessible location. This is normally a regular checking or savings account or can even be a certificate of deposit or high-yield savings account.

 

On the other hand, saving for long-term goals – like retirement – means investing money into a retirement account such as a 401k or an IRA. As a young adult, understanding where to put your money to start saving for your goals can set you up for a better financial future.

 

START SAVING NOW FOR THE HOLIDAYS, AND SKIP THE UNWANTED DEBT

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Do you wait until the last minute to start buying gifts?

Do you get carried away with spending during the holidays because you love seeing the joy on your loved ones faces when they open your gift?

Does your list of gifts for friends, family, and coworkers cause you to become overly stressed?

Do you tell yourself that you’ll just pay off the credit card in January (or later) so you can splurge on the perfect gift, extensive travel, or delicious 5-course meal?

 

If you answered yes to any of these questions, you are probably a holiday over spender.

 

The holiday season is a time filled with joy, happiness, and love while we create wonderful memories with those we’re closest with. However, for many, it can also be a time of financial strain if there is not a proper plan set in place. By choosing to save early, you can feel confident in your finances and enjoy all the holiday festivities without the burden of financial stress.

 

Here are five reasons to start saving now for the holiday season.

Avoid Last-Minute Debt

In 2023, Forbes did a study on holiday spending trends in America and found that approximately 58% of Americans used credit cards to pay for Thanksgiving expenses. In addition, the study shows 52% of Americans relied on credit cards to pay for their holiday gifts, and 33% utilized Buy Now, Pay Later services.

By choosing to start saving early, you can pay for your holiday gifts and avoid accumulating last-minute debt.

 

Establish a Budget

Look back at your statements to see how much you spent over the holidays last year. This is a good starting point to help you gain a better understanding of what holiday spending may look like for you. From there, you can start to establish a realistic budget that will help you to say out of debt during the holidays.

 

Prioritize your Holiday Expenses

Like any budget, you may have to cut non-essential expenses to reach your savings goal. Identify places in your lifestyle where you could temporarily cut back on spending to save more for holiday necessities.

In addition to identifying non-essential spending, this may also apply to gift giving. Make a list of the important people in your life that you are sure to be purchasing a gift for. Before adding people to that list, ask yourself if it is necessary to get them something. This can keep you from feeling the need to buy gifts for everyone in your life.

 

Create a Dedicated Savings Account

Our Holiday Club account is the perfect solution to helping you get a jump start on holiday savings. Opening a separate savings account for your holiday fund, will help you avoid using your savings for other purposes. To ensure your holiday savings account grows consistently, you can set up an automatic deposit for a portion of your paycheck to be distributed into the account.

 

Get Creative

There’s something special about a DIY (do-it-yourself) gift that everyone loves. For this upcoming holiday season, consider creating DIY, handmade, or personalized gifts that offer a unique touch and allows you to save a little bit of money. If you’re not a crafty person, try focusing on more personalized gifts such as experiences. These can be lower-cost and can be just as valuable as a physical gift due to getting to spend more time with loved ones.

 

This year don’t get swept up in the excitement of the holiday season that you forget to plan for your financial spending. Beginning to save now for the holidays is a smart financial strategy that can provide you a holiday season with less stress and more freedom.

 

Interested in getting your Holiday Club account set up? Contact one of our local bankers today and start planning for a worry-free, financially responsible holiday season!