Put Your Kids On The Road To Financial Literacy

Chances are you’re not going to find a book titled “The Basics of Financial Literacy” in your child’s backpack from school. But it certainly would be a helpful part of their curriculum.Boy and a Pile of Coins

If your child isn’t learning financial basics in the classroom, like how to save money, how to create a budget, or how to balance a bank account, that means the burden falls on you to teach them the financial ways of the world. Research has shown that kids who have sound money management skills, and who develop good money habits, have a greater chance of personal financial success in adulthood.

So when should you start laying this groundwork? Early on, according to experts. One of the first financial lessons you can teach your child revolves around that time-tested tool – the piggy bank. The simple act of having your child put coins in the bank on a regular basis can set the stage for learning how to save. You can even show them by example by having an “adult” piggy bank they can watch you put money into.

Once your child is a bit older, it’s time to introduce them to real-world situations where money is involved. A trip to the bank is a good place to start. Your child can watch you deposit money into a savings account, and you can explain to them that you’re putting that money aside, just like they do with their piggy bank. You can drive this point home even more by helping them to open a savings account of their very own.

Another great way to teach your child about money is to take them with you on a shopping trip. Even just heading to the grocery store is a great start. Your child can help you make a list of what you need at the store, and you can even have them add an item or two that they want. Once at the store, try to pay with cash so they can see that money is being used to purchase the items – the same kind of money that they have in their piggy bank.

If they have money of their own saved up, you can even let them bring it with them to the store. This can be a good opportunity to explain “needs” versus “wants” with your child. And, by letting them make a decision about whether to spend their money on a toy or a candy bar, or save up their money to purchase a “big ticket item” down the road, they’ll be able to start thinking about the financial choices available to them on a daily basis.

As they enter their teenage years, kids are old enough to understand the importance of creating and sticking to a budget. Again, showing by example is a good way to convey this knowledge. Let them sit with you while you pay the bills and explain what you’re doing. By showing them the importance of knowing how much money is coming in and going out of the household each month, you’ll be driving home a valuable lesson that will help them to manage their own money.

You might also consider helping your teen to open their own checking account. Since you’ll be acting as a co-owner on the account (children under the age of 18 need a parent or guardian to open a bank account with them), you’ll have a chance to oversee your child’s spending and money management habits, and step in when you see they need some guidance. By allowing them firsthand experience managing their own money, they’ll be a lot more financially savvy by the time they head out into the “real world”.

Once your teen proves to be responsible with their checking account, you can introduce them to the world of credit. Explain the basics of establishing credit and what it means to carry a balance on a credit card and pay interest on that balance. You can even walk your child through the process of applying for a credit card if you think they’re ready. And don’t forget to stress the importance of making credit card payments on time and paying at least the minimum required. A later lesson would be to show how maintaining good credit is important when it comes to taking out a car loan or applying for a mortgage.

Let’s be honest; what parent doesn’t want a bright financial future for their child? By introducing your child to the skills and knowledge they’ll need to manage their own money, you’ll be helping them to build a strong financial foundation they can take with them into adulthood.

Teach Good Money Habits with a Children’s Savings Account

As a parent, don’t you want your child to have a strong financial future? If so, the earlier you can start teaching them about money, the better. Research has shown that children start to understand the concepts of saving and spending as early as three years old, and some experts believe that money habits are formed by age seven. One way to get your child on the right track financially, is to give them a savings account of their very own.Young boy putting money in piggy bank

A children’s savings account can help lay a solid financial foundation. From teaching the benefits of putting money aside, to allowing children to discover what interest is all about, a savings account can be a great educational tool.

Some of the specific benefits of opening a children’s savings account include:

  • It gets children in the savings habit. By regularly depositing the contents of their piggy bank into a savings account, your child will foster good savings habits they can take with them into adulthood. By the time they head off to college or out into the “real world”, they’ll already be used to routinely putting money aside. As they say – “old habits die hard” – and saving money is a habit you won’t want them to break!
  • They can watch their money grow over time. One valuable lesson is that you don’t have to spend it just because you have it. Kids tend to get excited when they find themselves with a few bucks, but instead of blowing their money on candy or cheap toys, placing it in a savings account can allow them to save up for something special. It can be a satisfying experience for them to watch their money grow with each deposit they make. And, a savings account that pays interest shows a child firsthand how their money can make more money.
  • It puts them on the road to financial freedom. Using a savings account to save for something special can be a great way for your child to learn about financial independence. Rather than rely on Mom and Dad to buy them a new tablet or skateboard, they can use their own funds to make the purchase. Not only does this provide them with a sense of achievement, but it helps to teach them the value of a dollar. They won’t be as inclined to waste money down the road once they know how much effort goes into saving up for a treasured item.
  • It can serve as a stepping stone to other financial products and services. By managing their funds in a savings account, kids can learn about interest and the difference between deposits and withdrawals. If their account comes with an ATM card, they’ll also learn how ATM transactions work, and what the consequences can be if they overdraw their account. All of these lessons will come in handy down the road when they open a checking account, or try out different savings vehicles like certificates of deposit (CDs), or Money Market accounts.

A children’s savings account can be a great way to lay the groundwork for sound financial habits. As for deciding where to open your child’s account, there are many options out there. You can go with an account specifically tailored to children, you can opt for an online-only account – which typically offer higher interest rates than traditional accounts – or you can open an account at your regular bank. Generally, you’ll want to look for an account that offers a competitive interest rate, and that doesn’t have a minimum balance requirement or monthly maintenance fee. And keep in mind that no matter what type of account you choose, any child under the age of 18 will need a parent or guardian listed on the account as well.

Tax Tips for a Safer Tax Season

Did you know that if you haven’t filed your tax return yet, a criminal could beat you to it? This type of crime is becoming more widespread every year. But luckily, there are some tax tips you can follow to help protect your return from these unscrupulous criminals.Tax form concept

Because the Internal Revenue Service only accepts one tax return per Social Security number, the sooner you file your return, the less likely you are to have a thief snatch up your rightful refund.

In additional to filing as early as possible, it’s important to do everything you can to shield your personal information from potential criminals. If they can’t get their hands on your Social Security number, they can’t file a return in your name. Here are some general recommendations to keep in mind:

  • Ensure that your computer and mobile devices have the latest web browsers, and security software installed. This is your best line of defense in protecting the contents of your device, and the information you share online.
  • Always use a secure internet connection when you submit or transfer sensitive information online. You can tell that a website is secure by checking for a URL that begins with “https://”, and a padlock symbol alongside the URL in the address bar of your internet browser.
  • Remember to shred paper documents that contain sensitive information, instead of just tossing them in the garbage. These types of documents could include drafts of your tax returns, copies of your W-2 forms, pay stubs, medical bills, or credit card and bank account statements.
  • Don’t give out your Social Security number unless absolutely necessary. And don’t carry your Social Security card in your wallet or store the number on your computer or cell phone.
  • Do your homework before hiring a tax preparer. Make sure you can trust them with your personal information. And ensure that they sign your return with their IRS Preparer Identification Number. The tax preparer identification system was developed as an added layer of protection against tax fraud.
  • Don’t use public wireless networks (such as those in coffee shops and restaurants) to work on your tax return or file it. Cyber crooks can intercept internet connections on these unsecure networks and gain access to your information.
  • Use strong, complex passwords for all of your online accounts, especially your online tax e-filing account, if you have one.
  • Consider using a USB memory stick or external hard drive to store sensitive tax data that you need to prepare your return. This will lessen the chance of cyber crooks stealing the information directly from your computer. The external drive or stick also serves as a backup should you encounter a crash or other problem with your computer.
  • Be aware that the IRS will never email or call you concerning tax issues or any back taxes you may owe. If the IRS needs to contact you regarding a tax matter, they will do so via regular postal mail. So, if you receive an email or phone call from someone who says they are from the IRS, odds are that they’re an imposter looking to steal your personal information. Never provide them with your bank account credentials, or your credit and debit card information, and never wire them money – you’ll never get it back.

It’s a shame that there are so many criminals out there looking to get their hands on your hard-earned tax refund, but armed with these tax tips, you should stand a much better chance of protecting yourself this tax season.

Sweetheart Scams to Watch Out for This Valentine’s Day

Valentine’s Day is on the way. Love is in the air and it’s easy to be swept away in those feelings of affection. But it’s important to remember that not everyone is who they claim to be. Valentine’s Day is a preferred time for many cyber crooks attempting to lure in unsuspecting victims who are looking for love.Liebe und Dating mit dem Smartphone

With the ever rising popularity of social media, it’s no wonder that many people turn to online dating sites and social media networks on their quest for romance. But while these types of websites can facilitate loving relationships, they can also be prime hunting grounds for scammers armed with fake profiles. According to the FBI, over $220 million was lost to online dating scams in 2016. To avoid these types of scams, it’s important to be on the lookout for them. If your online love interest is displaying any of these common warning signs, it’s probably best to walk away:

  • They prefer to speak with you through email, text, or online messaging, rather than talk to you on the phone. Oftentimes, a phone conversation can give an online scammer away. You may notice they have a strange accent, or that the number they’re calling from doesn’t match with the area they claim to be from.
  • They tell you they’re currently overseas traveling, or out of the country on business.
  • Their feelings for you seem to be growing extremely fast. If they’re already telling you they love you after a few conversations, you should be highly suspicious.
  • They always have an excuse for not meeting you face-to-face.
  • They tell you they need money for some type of emergency.

Even if you don’t notice anything suspicious about the person you’re getting to know online, it’s still a good idea to go into any new online friendship or relationship with your guard up. If anything seems off about the photos they’ve shared with you, you can run them through a reverse image searchAs a courtesy, you will be leaving blog.bank5connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of bank5connect.com. Come back soon! on Google to see if they were taken from another person or website. It’s also a good idea to talk with your family and friends about your new love interest. Sometimes feelings of affection can blind us to warning signs that others can easily see. And perhaps the most important thing to remember with any new online acquaintance – never give them money. No matter what kind of story they give you regarding why they need money, it’s important to remember that you’ll likely never see your funds again if you wire money, mail cash, or give your bank account information to someone you’ve just met online.

And online dating scams aren’t the only “love scams” making the rounds this Valentine’s Day. There are flower delivery scams out there as well. One version involves an email claiming to be from a flower delivery company asking the victim to verify their credit card details before their flowers can be delivered. There’s even an in-person scam where victims receive a delivery of flowers or a package at their home, and the deliveryman tells them that there is a small delivery fee. They also tell the victim that the delivery fee can only be paid via credit card. In both of these scams, the crooks are looking to get their hands on your credit card information.

No matter what type of scam a criminal decides to use, the best way to prevent yourself from becoming a victim is to be on high alert. If you think you may have already been targeted by a scammer, there are some immediate steps you should take:

No matter what your relationship status, it’s important not to let your emotions cloud your judgement. Being watchful and vigilant can help protect your heart (and your wallet) this Valentine’s Day.

Infographic-online-dating-scams

Reaching Multiple Financial Goals

With the start of a new year, now’s a good time to assess your financial goals. And if you don’t have any financial goals hammered out, now’s a good time to create some!

Your financial objectives will likely vary depending on what stage you’re at in life and what you hope to accomplish. They could range from buying a new car to saving for a luxury vacation.
Expenses and orther tags on savings money jar
No matter what your goals are, the first step in reaching them is to establish a budget. Having a structured financial plan that constantly tracks your income and expenses makes it easier to attain your objectives.

One of the most beneficial things about creating a budget is that it forces you to examine your “needs” and your “wants”. Your “needs” are those expenses that are critical and non-negotiable. Examples would be your rent or mortgage payment, car insurance, utility bills, child support payments, and medical bills. Your “wants” on the other hand are things that you could live without, such as cable, daily lattes, spa treatments, and restaurant meals.

Once you determine how much money you should stash away each month toward your various financial goals, you may find that you’ll need to tweak your monthly “wants” in order to do so. This could mean canceling your cable subscription in order to free up more of your budget, or it could mean cutting back on the number of times you eat out every month.

It’s also important to determine where you’re going to stash your savings. Many people find it’s easier to stay on track with each individual goal if they have a dedicated savings account for each one. But keep in mind that a traditional savings account may not necessarily be the right fit for each of your goals.

For example, if you’re saving toward a long-term goal, it might make sense to open a Money Market account, which typically has a higher interest rate than a traditional savings account. There are also some Certificate of Deposit (CD) accounts, like Bank5 Connect’s Investment CD, that allow you to make deposits whenever you’d like. But since most CDs do have penalties for withdrawing money before the CD matures, it’s important to choose a term length that coincides with your savings goals.

There are also some specific types of accounts that are useful for particular goals. For example, two of the most popular savings vehicles for retirement goals are 401K accounts and Individual Retirement Accounts (commonly referred to as IRAs). Likewise, 529 Savings Plans and Coverdell Education Savings Accounts are popular choices when saving for college expenses.

There are also savings accounts out there with very competitive interest rates. These are typically called “high-yield” or “high-interest” savings accounts. Just be sure to read all of the fine print associated with the account before opening one, as many higher-interest accounts come with conditions such as minimum balance requirements or monthly maintenance fees. If you’re looking for a high-yield account without a lot of red tape, a Bank5 Connect High-Interest Savings Account could be good choice. This account only requires a minimum balance of $100 to earn interest, and has no monthly maintenance fee.

When choosing which account is right for your savings goals, just keep in mind that it’s always a good idea to consult a financial professional or tax advisor before making any major financial decisions.

No matter what your financial goals may be, establishing a solid game plan is the first step in achieving them. By putting together a budget and choosing the right type of account for your saving needs, you’ll be well on your way to accomplishing your multiple goals.

Don’t Be Drained By Holiday Financial Strain

The holidays are a joyful time of year, but unfortunately they can be very stressful for some people. The pressures of gift giving and keeping up with traditions can cause a lot of financial worry, but the good news is that there are steps you can take to minimize money woes this holiday.

Piggy bank with christmas hat isolated on white background

For starters, you should get a sense of how much money you can spend. This should be a realistic number based on your finances, not one that you pull out of thin air. And remember that just because you have a certain amount of money doesn’t mean you have to spend all of it. Sometimes, less is more. And don’t even think about spending money that you don’t have. Even though credit cards make it extremely easy to spend beyond your means, you’ll pay for it later if you do. No one wants to be facing a mountain of debt once the New Year rolls around.

Once you’ve determined how much money is in your holiday fund, you should identify all of your holiday-related expenses. You should include everything you plan to spend money on during the season – gifts, decorations, Christmas cards, you name it! Once you have your expenses accounted for, you can decide how much of your holiday money you’d like to spend on each.

So what happens if it looks like your holiday money will be stretched too thin? What if you won’t have enough to cover all of your holiday expenses? The answer is… get creative! You’d be surprised how a little resourceful thinking can help you save big. Here’s a list of some ideas to help you cut down your holiday costs this season:

In the end, it’s important to remember that the holiday season isn’t about money. Reflecting on what the holiday means to you can help you overcome the financial pressures that accompany it, and find more meaningful ways to experience it. Spending time with family and friends, listening to holiday music, going to a church service – these are all ways that you can enjoy the season without racking up debt and stress. Happy Holidays!

Earn Interest with a Checking Account

It pays to have a checking account with an online bank – literally.

While many traditional checking accounts at brick-and-mortar banks do not earn any interest, online banks are a different story. Because online-only banks don’t have physical branches, they have less overhead costs than their brick-and-mortar counterparts. This allows them to offer high-yield, interest-bearing checking accounts.
Man writing a check

Many interest checking accounts require you to maintain a minimum balance in order to earn interest, and some accounts have certain requirements that must be met – such as a minimum number of debit card transactions – in order for customers to qualify for the stated interest rate. It’s important to note that some banks also cap the balance you can earn interest on. At Bank5 Connect, we try to keep it simple by offering a high-interest checking account with a minimum balance of just $100 to earn interest. There are no balance caps, and no additional hoops to jump through. There are also no monthly maintenance fees associated with the account. Learn more about our High-Interest Checking account here: http://www.bank5connect.com/home/high-interest-checking.

It’s important to keep in mind that oftentimes, interest-bearing checking accounts require you to conduct all of your banking activities online. This will probably be expected if you’re opening an interest checking account at an online bank that doesn’t have any physical branches, but it may come as a surprise if you’re opening an interest checking account at a local bank down the street. Some brick-and-mortar banks do in fact offer interest checking accounts, but it’s not uncommon for them to charge those customers a fee for in-branch transactions. They typically do this as a trade-off to help the bank offset the interest the customer is earning.

So, before opening an interest-bearing checking account, be sure to read all of the fine print to understand how, where, and when you will have access to your money. With a Bank5 Connect High Interest Checking account, our customers have free access to thousands of ATMs nationwide through the SUM NetworkAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!. And, if they use an ATM outside of that network we still won’t charge them, and we will reimburse them for other banks’ surcharges up to $15 per statement cycle.

There are many high-yield, interest checking accounts out there to choose from, so be sure to review all of your options to find the account that’s right for you. Customer reviewsAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!, and websites like GoBankingRatesAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!, NerdwalletAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon! and The Simple DollarAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon! can help you compare what’s out there.