Tag Archives: personal finance

The Cost of Kids: How to Plan for Your Growing Family

Budgeting

At Heartland Bank, we understand that adding to your family may not only be an emotional decision but a financial one as well. With the growing costs of childcare alone, it’s important to have a well-rounded plan for covering the expenses of your expanding household. In order to plan most effectively, we recommend structuring your budgeting into these three stages:

Beginning or Before Pregnancy: Examine your current health insurance to determine an estimate of cost for both prenatal care and delivery expenses. While many insurers offer prenatal care at no or little additional cost, the price for delivery can be complex. Study your monthly premium, annual deductible, and out-of-pocket limits for the calendar year to help establish these costs before the baby is delivered.

After Birth: Once the baby is born, there will be traditional costs such as health care, food, diapers, clothing, and more. However, many new parents also spend more on take-out meals to help lessen their time cooking. These expenses, along with a decrease in income for parents on maternity leave, can cause many parents to slide into debt. To help alleviate the burden of these growing figures, we recommend creating a monthly budget to designate every dollar to a purpose. By allocating a specific dollar amount to each area of your spending, you can ensure that all of your costs are covered while also planning for the future.

During the First Year: As your child continues to grow, the costs for new clothes and equipment will continue to grow with them. Many expectant parents can spend upwards of $16,000 during the first year of their child’s life, and variables such as location, number of children, and other factors can contribute to the overall costs as well. When possible we recommend saving for each step in your child’s growth. From birth to three month’s they’ll need many one-time purchases, but during the later stages, you may have adequate time to save for each time period’s necessities.

Continue to grow your finances as you grow your family using Heartland Bank’s trusted deposit services. We’ll help you organize your funds, and make the most of your savings.

Student Loan PSA: What Student Debt Really Looks Like

Student Debt

Obtaining your secondary education can be a landmark goal on your journey to success. By opening up opportunities, and enhancing your capabilities, the study of discipline gives you the skills you need to conquer your future ambitions. More often than not, student loans offer a helpful supplement when financing this experience. However, many students are able to obtain these financial aids without having to budget or offer a credit history, causing a higher likelihood of default among student borrowers. To help avoid this, Heartland Bank suggests answering the following questions before choosing how to pay for your collegiate participation:

What are you starting with?

The first question you should ask yourself is, ‘What money do I have to begin my education?’ If you have applied for and received scholarships, those should first count towards tuition and books. Additionally, if you have any financial support from relatives, these funds may be allocated best at the base of your budget during your college planning. By totaling the sum of these two amounts, you can determine the support outside your own savings that will be contributed towards your future learning efforts. Knowing whether or not this amount will be offered on a recurring basis can help you then decide what financial steps you need to take in order to save, earn, and/or borrow the remaining funds necessary.

How much and how often can you contribute?

After learning your total amount of support, it is now possible to create a plan of action to facilitate the rest. Depending on your length and type of education, your costs may vary drastically. When selecting both a field and institution of study, the factor of price is an important one to consider. By thinking of your education as an investment, you can ensure that you choose both a rewarding and promising career path to help you repay any debt you do incur during this time. To help decrease overall expenditures, many students take on a part-time job to supplement the costs of their education, along with the associated room and board. Utilizing this choice can decrease the overall amount of your anticipated loan, and help you avoid the additional expense of interest. Should the cost your education still be more than you can currently cover, the option of a student loan may be a viable solution.

What is student debt?

While obtaining an education has potential and opportunities, the accompanying debt can often be overbearing. In order to minimize this, we recommend borrowing only the minimum amount needed. By opting for a lesser sum, you are able to save your future-self hundreds or thousands of dollars on interest alone. For example, the average debt for a student is approximately $37,172. With borrowers averaging ten years for repayment, the potential cost of interest alone can add up to over $9,000.

Choosing the best option to finance your education can affect your life well past college. To help you make the most informed decisions, our team at Heartland Bank offers sound financial advice and information. To learn more, stop by one of our locations, we’d love to get to know you and your education aspirations.

7 Financial Goals to Make 2017 a Success

Personal Finances

Heartland Bank challenges you to make 2017 the year of financial prosperity. Complete with an emergency fund, sound credit, and a monthly budget, you can conquer any fiscal goal so long as you keep moving towards it. To optimize your money management potential, we recommend these seven goals:

Check Your Credit Score. There are many websites available which allow you to view your current credit score across the three reporting bureaus. However, the only federally authorized FREE site is com. This site gives users one free report from Equifax, TransUnion and Experian every year. By keeping regular track of your score, you can ensure that no fraudulent inquiries have been made, and no outstanding debts are currently being held against you. After all, a higher credit score could mean potential savings elsewhere.
Make a Monthly Budget. This tool is invaluable when building your personal financial success. By creating a plan for each dollar you earn you are no longer reacting to your spending, but proactively telling your money where it should go. Adding this transparency to your spending can often showcase areas where you may be spending more than desired. After adjusting your monthly allocations you can then reassign some of those dollars to help build your personal savings and other areas of improvement.
Automate Your Savings. “Out of sight, out of mind,” or so the saying goes. Adding processes to your budget, such as automated savings, can help you to accumulate money before you miss it. Before you start planning your spending for the month, determine how much you want to save. So long as your fixed monthly expenses are covered, you can then create an automatic monthly transfer from your checking to your savings. By doing this the same day you are paid, the funds will be gone before you even know to miss them. You can then budget the rest of your spending to cover flexible categories like groceries, entertainment, and more.
Start an Emergency Fund. In order to safeguard your savings, you’ll need to create an emergency fund. This particular account offers protection against unexpected expenses or dilemmas that could otherwise infringe upon your diligent accrual of funds. It is often recommended to begin by saving $1,000, and then gradually work up to three or six months worth of income. By adding this cushion to your personal finances, you ensure that you are financially stable enough to weather storms both big and small.
Submit Your Taxes Early. Tax fraud is an increasingly relevant issue, posing many problems for both the IRS and tax paying citizens. To help avoid potential criminals from using your information to their benefit, we suggest completing your tax return as soon as possible. Additionally, if you have a potential tax refund, the earlier you file your return, the sooner you are able to receive it.
Maximize Your 401(k). To make the most of your diligent savings, we recommend revisiting your HR materials, to find out the specifics of your company’s 401(k) plan. If they will match up to ten percent, and you’re only contributing six, you could be missing out on free funds! Additionally, if you want to retire by a certain age, you may need to adjust your contributions to maximize the years you still have during your employment.
Pay Down Your Credit Cards. Interest rates on credit cards are infamous for being consistently high. If you have multiple credit cards which carry a balance, we recommend paying down the account that has the least amount on it. By continuing to pay the minimum installment on each card, you can then assign any additional funds to the card with the lowest value, to help pay it off sooner. Once the first card is no longer carrying a balance, you can then utilize the monthly installment and the additional funds to put toward the next card and continue through the accounts.

Teaching Your Children the Meaning of Giving

Seasonal

The holiday season is all about giving. Whether it’s through time, labor, or funds, philanthropy is the spirit of the season. This December, help your little one’s understand the power of giving with these four lessons, courtesy of Heartland Bank:

Help Yourself by Helping Others

Did you know that every time you participate in “gift-giving behaviors,” your body releases positive chemicals in the brain? Referred to as a “Helper’s high,” these chemicals are released into the body while participating in perceived good deeds. The release of dopamine, serotonin, and oxytocin is the body’s way of physically boosting your spirits during these activities. While helping others has great benefits for the recipients, one of the most impactful things you can do to boost your mood, is to lend a hand!

The Gift of Time is the Most Precious

Throughout the winter months, try offering a gift more precious than presents, by helping a neighbor in need. Whether it’s shoveling the walkway or blowing snow from the driveway, these gestures can make a world of difference. If you know of a family struggling during the holidays, offer to bring home cooked meals to help them along the way. Sometimes we overlook the kindness in a small act, so this season, see what you can do instead of what you can give.

Financial Education is Key

To better understand how much to give, you first need to understand how much you have. If you give your child a weekly allowance, create three jars for them to store it in. One marked save, one marked spend, the last marked give. (You can practice this same exercise using envelopes for your monthly budget.) Each “payday,” you and your child can deposit the amount you would like in each. Be sure to let your little one know that the save and give categories allow them to continually accumulate funds for bigger items, but the spend category is specifically to use that week. At the end of a month see where you both stand. If there are funds for the save and give jars, help them choose a great organization or purchase to make it worthwhile.

Sharing the love of giving with your child is the perfect way to teach them about many life lessons, including finances! For everything from balancing a budget, to automating savings, there are many financial lessons that can prepare you to give more. If you’d like to grow your giving potential, stop in today and we’ll help you make it happen!

5 Ways to Save on Your Home Energy Bill

Seasonal

The cold months are here, and so is the increase in your home’s energy usage. Before the days get too chilly, put these key steps in motion to save some serious pocket change on your next utility bill.

Swap out your 40 watt bulbs for a more efficient LED bulb. While the lights themselves may be more costly, they will save you money in the long run. Begin with one room in the house and every couple months splurge for another room’s new light bulbs. Slowly, your home’s lighting will become more energy efficient, dropping your electricity usage.
Trade in those mesh curtains for an energy efficient alternative. Darkening shades can help to keep your house warm by trapping heat inside. As an added bonus, they also shield the sun, so sleeping in on the weekends has never been easier.
If you have a family of four, doing laundry can add up quick! Decrease your energy usage by switching to a coldwash detergent and only using hot water when deep cleaning whites. For additional savings, hang items to dry in the basement or garage, eliminating the energy needed for the dryer.
Fill your freezer. By keeping a full freezer, you make the appliance work less, once all the food is frozen. Each of the items inside of the freezer will help keep the space frozen, meaning less energy is needed to keep everything cold.
Pile on the layers this season. Once the cold comes, instead of running to the thermostat, make your way to the closet. Adding sweatshirts, jackets, and cardigans to your wardrobe can help you stay toasty on those chilly nights, without spiking your energy bill. If the evening is particularly cold, enjoy the night in front of a warm kindling in the fireplace, and remember to add a couple blankets to your bed!

Whatever tactics you choose to save, Heartland Bank is here to help! Give us a call or stop by today!

The Envelope System 1-2-3

Budgeting

This age old budgeting system still offers valuable insights to individuals and families across the country. Simplistic in form, this budgeting tool can help you manage your funds through direct accountability and a simple tracking function. Get started today, and Heartland Bank will help you along the way!

What is the envelope System?

The envelope system is a budgetary guide where each category of your budget is represented by a physical envelope, filled with the cash for that month’s spending. As you need to spend in a designated category, you only use the funds from its matching envelope. Once the envelope is empty, no more spending.

How does it work?

This budget hinges upon your accountability to yourself, and not overspending in areas where there is no cash remaining. Before setting the amounts for the month, examine your current spending and see which areas perhaps you could cut back, and other categories that may need a few more dollars. This will help ensure that your monthly budget is an achievable goal, that won’t leave you wanting at the end of the month.

Why should I try it?

Getting your finances together helps open opportunities that may not have been present before. By accurately and responsibly managing your finances you may have the potential to save for a vacation, pay off debt, or purchase that item you’ve been dying for. By trying this system you are creating a goal for you and your family to look forward to a debt-free and more financially secure future.

Getting started is as easy as 1-2-3. Stop in the bank today and we can work with you to withdraw the amounts needed for your individual spending categories, and we’ll even give you the envelopes to go with them. If you’re still curious on how to best set-up your monthly budget, we can help with that too – just drop us a line or stop by!

Save $3,500 this Year by Removing These 6 Things

Savings

Saving money is no easy task! Only after dedication and determination, can you look successfully into your account to see the difference saving can make. At Heartland Bank, we’re excited to help you achieve your financial goals, and we can’t wait to get started! If you’re looking to tuck some funds away for an emergency savings, or vacation fund, these six tips can help you accumulate $3,500 in savings over the course of the next year.

$720: Cut the cable – at $60+ each month this common expense eat up your budget in a hurry!
$1400: Brew your own java – instead of grabbing a latte on your way to work make your own cup of joe and save that extra $4/day.
$600: Plan Your Meals – instead of playing by ear each night for dinner, make a dedicated meal plan each week and stick to it. This will help cut costs on eating out and unused groceries. Remove one dining out meal each month and see the difference this can make!
$468: Workout at home – the average gym membership runs $39/month which over the course of the year can add up quick. Try online workout videos and create a routine which uses various household items.
$312: Pack your lunch – With most quick lunches running about $10/each, sneaking away for lunch could be costing you! Try packing a lunch from home to avoid these expensive dining options. Changing just three lunches each month could save you more than three-hundred dollars!

Learn how to open up your ideal savings account at Heartland Bank to get started on your savings dreams today!

The Little Things are the Big Things: 11 Random Acts of Kindness

Random Acts of Kindness

There are so many small and valuable things we can do to impact the life of another. While some of them are financially bound, others can be simple tasks, such as opening the door for someone. This year challenge yourself to more acts of kindness, random or not.

Pay for the person’s food or beverage behind you in line.
Write a letter to a soldier.
Donate new and used toys to daycares or children’s hospitals.
Cook a meal for a family who may be without.
Give a good server the largest tip you can afford.
Scoop snow or do other yard work for your neighbor.
Pick up trash at an area park.
Offer assistance to a charitable organization with your time and skills.
Bake treats for your area school’s teachers.
Visit a nursing home and spend time with the residents.
Next hunting season donate your deer to the Iowa HUSH program to help feed Iowa citizens in need.

In addition to being kinder in 2016 you may find yourself becoming happier as well! With so many opportunities to make a difference, this list will help you get started! Add your own acts of kindness and see what you can do to better the lives of others this year.

If you’d like to contribute to others in a financial avenue let us know, we’d love to help! Heartland Bank can assist you in remaining anonymous in donations, arrange monthly transfers, dispense cash for personal giving, and more!