Author Archives: Heartland Banks Blogger

Money Management for College Students

If you’re fortunate, your parents may have taught you how to save your allowance or a certain percentage of each paycheck. If not, we are here to help you at the beginning of your financial journey as an adult! Stay tuned for some simple tips you can start doing now to strengthen your current and future financial habits.

Create a Budget

Most adults who have been managing their money for years have yet to figure out how to stick to a budget. You have the opportunity to stay ahead of the curve by building the right habits now. This will help you to control your spending and saving.

You first need to decide what amount you want to put into savings every month. Next, determine how much money you need to spend on rent, food and other bills. You can make as many categories as you like. Don’t forget to include a category for fun. Use it as you please, but when it is gone, it’s gone. You are making a promise to yourself that your financial security is more important than a splurge.

Buy Used, Not New

Unfortunately, the cost of new textbooks is astronomical. As a college student, it is most often going to be wiser to buy used than new. With a used textbook, you will pay significantly less and may even be lucky to see the former owner’s notes. Think about what other purchases you need to make and if it would be better to buy them used. The answer will most often be yes.

Be Smart With Your Credit

It is a great idea to start building up your credit history. However, if you aren’t paying off what is due at the end of every month, a credit card may not be the right choice for you. Deep credit card debt burdens many because they made purchases that they could simply not afford. Be sure to use the card for needed items and not sudden splurges.

Take Advantage of Free Entertainment

One great part of being a college student is all of the free activities that your campus has to offer! There’s no reason you need to spend money going to a big movie theater when most college campuses have their own movie showings free for students every weekend. Check out your campus Student Activities Board to see what free fun you can get in on!

Use Cash

This is a great rule for anyone, not only college students. However, we believe it is a helpful habit to start now. If you have a problem with impulse purchases, we recommend using the “fun money” portion of your budget as cash only.

If you go out to have fun with friends for the night, you know the exact amount of money you have to spend. No more, no less. For some reason, it is much harder to spend cash than it is to make a purchase on a card. This will help you to control your spending when you’re having fun.

We have plenty of savings options available for college students looking to grow their funds! Take a look to see what option best fits your needs.

Creative Ways to Save While on a Budget

We’ve all heard the tips about not eating out, cutting cable and canceling that gym membership you never use. However, that leaves us wondering what other crafty ways can we think of to save? Heartland Bank offers a few creative ideas on how you can keep money in your wallet while on a budget.

Switch Up Beauty Brands

Small expenses can add up in a hurry. Luckily, there are simple fixes for that problem. Try switching from your beloved expensive shampoo to a more generic brand. Instead of buying that department store eye shadow pallet, try out a drugstore option. By moving to more cost-friendly options with your beauty products, your bank account will thank you – and, you’ll still get the same end result after using your generic products.

Thrift It

Many people only think of online shopping and name brand stores when looking for a new outfit. However, there are plenty of options out there for your next stylish endeavor that won’t cost you an arm and a leg. Going to thrift stores is a great way to find pieces that aren’t going to be a part of everyone else’s wardrobe and you’ll save a large amount of money!

Host a Potluck

Being on a budget shouldn’t mean you don’t get to socialize anymore; in fact, you may have friends who are trying to save, too. Help yourselves out by hosting a potluck party. By having everyone come over to one of your homes and bring their own dish, you won’t have to worry about spending money on an entire spread.

Skip Bottled Water

Invest in a water bottle and fill up! Spending money at vending machines, gas stations and grocery stores on something you’re already paying for at home is not the best financial move. Look at other items that may be in the same category and cut those expenses out of your life too such as buying coffee every morning instead of making your own.

Make a Meal Plan

Mapping out what your meal will be for a week or two can take a little time, but it will be well worth it financially. Going into the store with a set plan of what you will buy will help you avoid adding extra items to your cart while walking through the aisles. This will decrease the amount of unplanned expenses you have each month! You will also get the chance when meal planning to find healthier options for your days and make lunches, not just supper. Being able to pack lunch each day for you and your family gives you the chance to cut down on what you spend every day for lunch.

Try out a few of these unique ways to save and your bank account will thank you. Stop in or feel free to give us a call if you’re looking for more ways to save!

FAQs about IRAs

An IRA is an individual retirement account that is used as a tool for people to earn and earmark funds for retirement savings. Retirement may seem far away, but the earlier you start to save, the better off you’ll be! These accounts can hold more money than any other type of retirement account. You have flexibility when choosing investments and minimizing taxes, which means an IRA can play a huge role in how prepared you are for retirement. With that said, many people don’t fully understand how IRAs work; they can be confusing. As a result, there are many questions that arise when talking about IRAs.

Here are a few:

What does an IRA earn? – In simple terms an IRA is just a trust that is established with certain tax rules. More specifically, it’s a security blanket for your money. CD accounts, money market accounts, saving accounts and brokerage accounts can be IRAs.
Who can open an IRA? – Anyone under the age of 70 who earns a taxable income can contribute to a traditional IRA. Roth IRAs, however, have additional income restrictions. And for those who are under the age of 18, many banks, credit unions, and other financial institutions will allow an adult to set up a guardian IRA. However, the guardian will have control of those assets until the child is 18-21. To clarify, children who have a part time job can contribute to their IRA if they have earned income from a job. They just cannot contribute more than that income!
How do I open an IRA? – You can choose where to open an IRA, if you don’t already have an employer-sponsored retirement plan. Often you can go to banks, credit unions, brokerage firms and mutual fund companies. It never hurts to do more research and ask questions!
Am I able to contribute to someone else’s IRA? – Yes, but only if it is your spouse and if you file a joint tax return.
How do I invest into my fund? – Fortunately, the IRA gives you the option on how you want to invest your money. That includes stocks, bonds, and mutual funds. Furthermore, you can invest how you want or you can have your IRA managed for you by a financial professional.

IRAs can be a tricky subject, but hopefully with the answers to these frequently asked questions we were able to help you with some beginner’s knowledge. If you have more questions or are wanting to set up an IRA, we would be happy to help. Contacts us today!

Holiday Hacks for Saving Money

Shopping for the holiday season can get pretty expensive – especially with gifts for the whole family and hosting traditional holiday parties. Luckily, this holiday season we are offering you 3 top-notch money saving hacks so you save more than you spend!

Be a Thrift Store Champ – When you shop at thrift stores, you can find inexpensive gifts and decorations for the holiday season. This is the perfect spot to find your ugly Christmas sweater and a wonderful resource for one-of-a-kind gifts. The items you can find here will most likely be under $10. What a bargain!
Utilize Your Dollar Store – At the dollar store you can find decorations, wrapping paper, and even holiday ornaments! You can also buy serving platters, dinnerware and extra kitchen utensils to make your holiday party extravagant for your guests without putting a big dent in your bank account.
Participate in Secret Santa – Try something different this holiday season. Instead of buying gifts for everyone in your family, suggest the Secret Santa method! This is an easy and enjoyable gift exchange for everyone to participate in. A few weeks before Christmas, put the names of every member of the family in a hat or bucket, and have each person draw a name. They will then only have to buy a gift for that person. Not only will this help relieve some financial stress, it also serves the purpose of talking about the importance of service and giving during the holidays!

It is so easy to get all wrapped up into the spending cycle during the holidays, but hopefully with these hacks you will be able to find simple treasures and save money! If you’re looking for an extra special gift to give this holiday season, consider opening a savings account with us for your child – we’d love to be a part of the holiday spirit!

Holiday Savings Plan

The holidays are among us, but have you put together a savings plan? With all of the expenses hitting you at once, it’s important to have a plan of action. With the below tips and tricks, we believe you can keep your holiday shopping merry and bright.

Make a List

Create an entire list of every single expense you will have over the holidays. This can include presents, envelopes, stamps, cards, wrapping paper, bows, name tags, food, a tree, decorations and so forth. Once you create that list, see if there are any items you can take off or substitute with cheaper options. Many dollar stores offer all different types of wrapping paper for a quarter of the cost you may pay at a department store.

Set a Budget

It is okay to be a Grinch during the holidays when it comes to your budget. Saying no will help you keep your funds on track instead of having a dry bank account in January. Be realistic when creating your budget – don’t leave any little expenses out or your whole budget will be thrown off. From different ads to online shopping that offers free shipping and other holiday deals, do your research and create a plan of attack with your budget to help your money work harder for you.

Utilize Free Shipping

Free shipping is your best friend over the holidays. Some companies take part in Free Shipping Day in the middle of December, so it could be well worth your while. You can also sign up for a free trial on Amazon Prime. This can get you your items quicker and offers free shipping as well!

Download Apps

Many store apps offer discounts you may not be able to find online. Look at your favorite stores and download their apps onto your phone. Be sure to sign up for emails during the holidays as well. This will help tell you if a new 24-hour deal is taking place – then just unsubscribe once the holidays are over.

Mail Postcards

Instead of paying for special paper, a printed family picture, ink, envelopes and so on, find a deal online to purchase postcards. You can get all the information you wanted along with having the company ship it for you! Or create your card yourself for FREE with a design site such as Canva.com.

DIY It

Get creative with gifts by making them on your own. The Web holds unlimited amounts of ideas for homemade presents of any genre. Simply pull up Google and search away! Make fun little gift baskets for a great bonding activity to do with your kids and provide a special present for a loved one.

Have you been saving for the holidays? Ramp up your plan by putting into action a few of these easy ideas. These tips will help you slow down and enjoy the holidays for what they’re meant to be – a special time with friends and family. Avoid holiday hassle by banking with us, as we offer the flexibility you need to help keep all of your finances in order – during the holidays and the rest of the year!

How To Protect Yourself From Identity Theft

The first step in protecting yourself from identity theft is understanding what identity theft actually is. It’s defined as “the illegal use of someone else’s personal information usually in order to obtain money or credit.”

Do you have a credit card? If so, in a study by Experian, 81% of people said they rely on their banks and credit card companies to protect them from fraud. We don’t want you to fall in that 81%, so we offer these 5 ways you can protect yourself.

Freeze your credit – This will restrict access to all of your records so that any new credit files cannot be opened, unless you unfreeze it. There may be an additional fee to do this, but it will vary depending on the state.
Create stronger passwords – Many people love to use the same password for a variety of different sites. In the end you may think this is a good idea, however it’s not. Mixing up your passwords in addition to making them more difficult will decrease your risk of your identity being stolen. If it helps, write your passwords down for your specific sites but be sure to keep that information in a safe place. Random combinations of letters, numbers and special characters work best.
Limit your personal information – Are your full name, birthdate and family members listed on your social media sites? If that information is out there, it’s likely that anyone can see it. Limit the amount of personal information you put on the internet and check your privacy settings. Fraudsters may also pose as a bank/credit card company over the phone asking for your information. But, no real company will call asking for your personal information. Therefore, don’t give anything away!
Check your credit/financial reports – You are allowed a free credit report from each of the credit bureaus every 12 months on AnnualCreditReport.com. Credit reports will include any leery activity on your accounts, so check your credit reports frequently for any incorrect information.
Use a shredder – Don’t have a shredder? We recommend you buy one, especially if you’re throwing away any credit card or bank statements. Documents like those should not be placed in the garbage unless they are shredded to pieces. If they’re placed in the garbage, anyone has the ability to find it and steal your information.

There’s no doubt that identity thieves are out there, so it’s up to you to take extra caution. With these helpful tips, we hope you can become extra successful at protecting yourself from identity theft.

Retirement Savings Made Easy

When you are in the early stage of your career, there’s usually lots of bills that add up. Things such as rent, student loans or car insurance can truly wipe out your bank account. We want to make sure you avoid excess financial stress, which is why we’re offering four simple strategies on how to start saving early for retirement.

Start small early on – The longer your money is invested, the more you can benefit from compounding. Compounding can turn small amounts of money into larger sums; it’s where you earn interest on the money you save and on the interest that money earns. It is best to start early, because the money you start to save will build up. Putting a small amount of money away can help establish a good savings habit — consistency is better than quantity early on!
Spend wisely – Create a budget for yourself so you can be better aware of your finances. At a younger age, you may think you have all of your spending under control, but seeing a breakdown on paper will make it much clearer — or if you’re tech savvy download a budgeting app! Seeing a breakdown of your finances can help you see what to cut back on and if your spending matches your priorities. Doing this can make it much easier to save for retirement.
Create a debt repayment plan – Student loans or car loans, whatever it may be, take control of your debt! That may seem easier said than done, but once you create a feasible plan you can be more in control of your finances. Now, paying off your debt does not mean holding off saving for retirement. Take a look at your monthly income and order your debts by priority. Once a plan is set in place, set a small amount of money aside for the future.
Your employer-sponsored plan is no joke – Whether it’s a 401(k), 403(b) or 457, it is a really good idea to look into the retirement plans your employer offers. You could establish automated contributions from your paycheck each month or max out company match programs, where employers will provide a percentage or retirement contribution up to a certain amount. This is an easy strategy to get started with – your Human Resource manager can help!

So is today the day you start to save? Whether you save 1%, 6%, or more, it does not matter. What matters is you finding a spot in your budget to save your money. In the end, you will thank yourself. With these four simple strategies, we hope you find success with your budget and saving for retirement!

Keep Your Data Safe & Secure

Did you know that an alarming 73 percent of all Americans have become victims to some type of cyber crime? We are constantly glued to our devices; whether we’re checking emails or browsing social media, we have so much to do with so little time. Are we really paying close attention to ensure our personal data is kept safe and secure? We can’t forget about the basics when it comes to protecting your information, so read these 5 tips on how to keep your data protected and unharmed.

Update With Security Software – If possible, regularly update your devices with security software. Security software will protect your data from any random attacks from viruses and hackers. Any older software won’t be able to protect your data from the latest viruses. Cyber attacks are increasing, so it is important to keep on top of the latest updates.
Be On Wi-Fi Watch – When you step into a different place that does not have secure Wi-Fi, you will want to be wary. Often times we think nothing about connecting to “Free Wi-Fi,” because it has become second nature. However, hackers are able to position themselves in an area where they can receive direct access to your data between you and the access point. So, if you are someone who regularly uses public Wi-Fi, be careful — you can be at serious risk!
Protect With A Password – There are passwords for everything nowadays, especially with accounts that use personal information. With that being said, the simpler the password you have, the easier it is for a hacker to gain information. Passwords may never be completely secure, but be sure to follow password tips. Some tips include: password length of at least eight characters, use upper and lowercase letters, combine symbols and numbers, and use different passwords for each of your accounts. Utilizing these tips can ensure an increase in protection of your personal data. Additional tips can be found
Don’t Click On Emails From Unknown Sources – Be sure to stay alert when filtering through your emails. Hackers are getting smarter every day, therefore it is imperative that you know exactly who your emails are from and if they are legitimate. If there are any emails that you may not recognize, don’t open the attachments or respond. If you are ever suspicious of the authenticity — report it!
Physical Data Is Still Out There – Yes, we are undoubtedly in a digital world. But, in the workplace there are still many instances where printed files and documents are needed. In order to make sure your data stays safe and secure, you will want to make sure you are the holder of all information that is important to you. Secondly, when you need to dispose of any data information, use a shredder so it all becomes completely distorted. It may also be helpful to use locked filing cabinets for any of your private information.

By taking these extra measures, you can help ensure your personal data is safe and secure. Pay closer attention to your surroundings, as greater awareness decreases the chance of cyber crime. If you have additional questions, contact us today!

How to Save for A House Down Payment

If you’re looking to buy a house, having a larger down payment will offer you a lot less financial stress in the long run. However, in order to put a larger sum of money down, you will need to take the right steps to save. Follow these 5 steps and you will be on your way to being a first-time home owner!

Step 1: Figure out how much you will need to save – If possible, secure a number or range on the amount you can responsibly spend on a house. You can plan to sit down with a mortgage lender or use a home buying calculator to help figure out how much you can afford. With the use of a calculator, be sure to remember that it will not take in account every aspect of your financials.

Step 2: Find the best ways to save – After you know an estimated range of how much you need to save, the next step is to figure out what expenses you can cut down – maybe skip vacations for year. The money you would spend on vacation can make a huge contribution toward a down payment. Next, take a look at your monthly expenses and see what you can reduce or eliminate; put that extra money into a down payment savings account. Lastly, work more. This may be easier said than done, but when there is opportunity to work an extra shift or add on hours, do it. Working more will be worth it when you are able to find your dream home!

Step 3: Transfer a fixed amount into a savings account each month – In addition to saving that extra money, set up a savings account specific for your house down payment. Then, with each paycheck you receive, have a certain amount automatically taken out each time and deposited into that savings account. That way it will remove any temptation to spend the money on other purchases. Before you know it, you will have enough money for a down payment.

Step 4: Leave room for flexibility in your savings – With all of this saving, it is equally important to leave room for flexibility. There will be other demands on your finances such as: car repairs, uncovered medical expenses or even loss of a job. You will need to be ready when and if these happen to occur – it is also helpful to create an emergency fund!

Step 5: Reduce your high interest rate debt – If you have high interest rates on your credit cards, it can painfully limit your ability to save. For this last step, do yourself a favor and pay off those high interest credit cards. Begin with your highest card and once that is paid off, close it and proceed to the next card. Lastly, transfer your credit card balances to the card with the lowest interest rate.

The process of buying a house can be very long and probably will require a big hunk of your savings. However, creating a larger sum for your down payment will sure be rewarding when you become a first-time home owner! Follow these 5 steps, and we can ensure much less stress in the long run.

How Much Money Do You Need to Retire?

Asking yourself how much money you need in order to enjoy a comfortable retirement is difficult. Although it may be a challenge to figure out how much money you’ll need, a true monetary amount is different for everyone. It depends on factors such as where you’ll live, how healthy you are, and what you want to achieve in retirement. For example: travel or try exciting, new adventures. Ultimately, it depends on your lifestyle. But, here are some general guidelines to help you refine your answer.

Figure out your living expenses.

It is best advised to figure out how much you’re actually spending now. Create a budget, (if you haven’t already) to keep track of all your expenses. Doing this gives you the opportunity to see how much you’ll potentially need for your future.

Aim for 80 percent.

Financial experts suggest that you will need at least 80 percent of your income during retirement. For instance, if your salary was $75,000 per year, you may need $60,000 per year when you retire. That amount will vary depending on what you plan to do for retirement — whether you plan to take vacations or retire elsewhere, but 80 percent is a good start.

Use an online calculator.

If you’re having trouble trying to figure out estimates in your head, try an online calculator. Often times they will be able to offer estimates for how much you need to retire. It will also be in your best interest to try a few different calculators because each of them vary on the information it collects — see which one works best for you!

Have retirement checkpoints.

You will always want to make sure you’re on the right track with how much you’re saving. It’s important to know where you stand, and what could be done to further your success. Checkpoints allow you to see how you’re doing based on the progress you’ve been wanting to make.

Save Save Save.

The best thing you can do is save — start early and stay consistent. Amounts will differ based on income, but if you have extra income coming in be sure to deposit it right into your retirement savings account. By saving at a reasonable or consistent rate, you’ll be able to keep an open mind about your retirement and hopefully avoid any situations where you fall short of money.

Saving for retirement may come as a challenge, but with these general guidelines, we hope to help you figure out how much you need to save for a comfortable retirement. Save what you can and decide what you want for your retirement lifestyle. We’re happy to help with any financial questions you may have, so contact us today!