Tying the Knot? Consider these Wedding Saving Tips!

The cost of a wedding keeps spiraling higher and higher. According to a survey by popular wedding website TheKnot.comAs 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!, the average cost of a wedding in the United States was $33,391 in 2017.wedding-saving-tips

If you’re serious about keeping a financial lid on your wedding celebration, there are dozens of ideas that can help make it more affordable. Taking some time to plan ahead can have a significant impact on the cost of your special day.

Here are some wedding saving tips to consider:

Start saving early. Create a special savings account for your wedding and routinely place money in it. Even if it’s only $50 or $100 per paycheck, your balance will add up over time. Relying on credit cards to carry you through could leave you with a hefty bill for years to come.

Get a good return on those wedding dollars. If you’re planning on having a relatively long engagement, you could benefit from placing your wedding funds in an add-on CD, rather than a savings account. For starters, interest rates on CDs (also known as “certificates of deposit”) are usually higher than that of traditional savings accounts, and an add-on CD allows you to add funds to your account at any time, so you can continue stashing money away on a regular basis. This is in contrast to traditional CDs, which don’t usually allow you to add funds after your initial opening deposit. But remember, if you do decide to go the “CD route”, be sure to choose your term-length wisely! You’ll typically be slapped with an early-withdrawal penalty for taking your money out of a CD before it matures, so before you commit, make sure you can afford to leave the funds in your CD until the maturity date.

Skip the wedding planner. It would be nice to have someone else handle all the details surrounding your big day, but is it a necessity? Probably not. Rather than shell out the big bucks for a professional, recruit a friend or two to help you pull the big day together.

Give yourself enough time to plan. The more time you have, the more research you can do to make the event more manageable money-wise. You’ll have a better chance of finding money-saving deals, and you’ll be able to avoid rush-delivery fees.

Tie the knot during the off-season. June and October have become the most popular months to get hitched, mainly because it’s usually neither too hot nor too cold during those months in most areas of the United States. Wedding dates around Christmas, New Year’s, and Valentine’s Day are also popular choices. But keep in mind the concept of “supply and demand”. Holding your wedding during a coveted time period is going to be more expensive than other dates. But by picking a date during the off-peak season, you can save yourself some big money – not just on a venue, but on everything from flowers to photographers and food!

Choose flowers that are in-season. You may have been dreaming about having a specific flower in your wedding bouquet since you were a little girl, but if that floral favorite isn’t blooming during the season you’re marrying, you’ll likely end up paying a premium for it. Visit a florist to get a sense of what flowers will be in-season during the time of your wedding, and pick from that selection to ensure you don’t break the budget. Chances are you’ll have plenty of beautiful options to choose from.

Stay away from Saturday. It probably doesn’t come as a surprise that Saturday is the most popular day of the week to hold a wedding. But just because it’s the most popular choice, doesn’t mean it needs to be your choice. If you’re serious about being smart with your wedding budget, you should at least consider an alternative day of the week. You could possibly save hundreds, if not thousands, of dollars by selecting a day other than Saturday. Speak with your preferred venue and other vendors before committing to a date, to get a sense of just how much money you could save.

Pick a venue that allows you to choose your own vendors. This wedding saving tip alone can make a huge difference in your budget. If you go with a wedding venue that is tied to (and mandates) specific vendors, it’s usually a given that those vendors are going to cost a lot more than if you shopped around yourself. Between the DJ, caterer, florist, and photographer, you could save a pretty penny in the end by hand-selecting each of your vendors.

Avoid the sit-down dinner. Needless to say, per-person plate costs can really whack you in the wallet, depending on what you’re serving. Why not opt for a buffet instead? Another option is to have a cocktail reception and serve only hors d’oeuvres.

Do you really need a wedding cake? Considering the price tag tied to a formal tiered or fondant cake, you could come up with a less expensive alternative that’s just as enjoyable. Consider trying a cupcake spread instead. Or, if your weakness is ice cream, set up a “sundae shop” with all the fixings. And, if your heart’s set on a traditional treat, another option is to order a “dummy cake”As 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! with a small layer you can cut into, and then have your venue serve a less expensive sheet cakes to guests. They’ll never know the difference!

Tap into your crafty and creative side for table decorations. There’s no rule that you have to have flowers at each table, let alone flowers that are professionally arranged. Go online and see what ideas are floating about. If you’re having a fall wedding, a small pumpkin, a few gourds and some colorful autumn leaves can add a special seasonal touch. Photo albums can also make unique, conversational centerpieces.

Sometimes, it pays to think “outside of the box”. With careful planning and an eye on your budget you can have a memorable wedding celebration that you’ll cherish for the rest of your life, but won’t break the bank!

 

 

P2P Payments = The Quick & Easy Way To Pay!

It’s a lot easier to send money to people these days thanks to peer-to-peer payments, commonly referred to as “P2P payments”. Using money transfer systems like Popmoney®, Venmo, and PayPal, you can easily send cash to friends and family over the internet – a lot more convenient than writing a check and sending it through the postal mail!p2p-payments-the-quick-easy-way-to-pay

So how does this technological marvel work?

In the case of Popmoney, which Bank5 Connect uses to power its “Pay People” feature, funds are moved directly from one bank to another bank using the Automated Clearing House (ACH) network. This is in contrast to other P2P payment platforms like Venmo and PayPal, where an account is created and holds a balance.

P2P payment systems are steadily growing in popularity. According to one reportAs 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!, there were more than 63 million adult mobile phone peer-to-peer payment users in the United States in 2017, up 40% from 2016. But with the rise in usage, just how safe are P2P payments?

All of the major P2P systems use encryption technology to protect customers’ financial information. Many platforms also use fraud monitoring and offer support services to deal with questions and issues, and to address unauthorized transactions. It’s best to familiarize yourself with the provider’s security policy, as well as your financial institution’s policy, before signing up for a P2P payment service.

Another way to protect yourself when using a peer-to-peer payment platform, is to sign up for, or opt-into, transaction notifications and alerts. Doing so will allow you to get a text message or email every time money is moved from your account. This can help you to spot any fraudulent transactions as soon as they occur, so you can alert your financial institution or P2P provider.

Other security tips to keep in mind include:

  • Only send and receive money from people you know.
  • The Federal Deposit Insurance Corporation (FDIC) recommends linking a credit or debit card, or a bank account, when using P2P payment services. By following this advice, if your money is misdirected, you can have the matter resolved by federal law. Keep in mind that if you keep funds in a P2P account, rather than a bank account, you are subject to the P2P provider’s policies and state laws, which can vary.
  • Always double-check the phone number, name, and email address of those you’re conducting transactions with to avoid making a mistake and sending money to the wrong person.
  • If you use a provider that requires you to set up an account with them, check the account activity on a regular basis and immediately report any suspicious activity to the provider.

While P2P payments are typically a lot more convenient than writing and sending paper checks, understand that they’re not instant. While transactions and notifications are sent and received almost instantaneously, it may take two to three business days for the transactions to actually be completed and posted to your account. The amount of time these transactions will take to post will vary depending on the P2P service or bank used.

It’s also a good idea to read all of the fine print before signing up for and using a P2P payment service. While Bank5 Connect’s “Pay People” service (powered by Popmoney) allows users to send and receive money using standard processing times, expedited payments may result in a fee. Other services may have fees associated with their services as well, so it’s best to do your homework before choosing the service that’s right for you!

 

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.

Starting the Financial Aid Process with the FAFSA Application

Going to college is expensive, and it seems to get more expensive every year. That’s why parents and students turn to the FAFSA application to explore their chances of obtaining financial help for college expenses.AdobeStock_78887285

FAFSA stands for Free Application for Federal Student Aid. Administered by the U.S. Department of Education, the FAFSA determines a student’s eligibility for financial aid, which can take the form of grants, loans, and work-study funds.

Every year, billions of dollars are handed out to eligible students who submit a FAFSA application. But those funds aren’t available to you if you don’t apply. Believe it or not, it’s recommended that every student considering college fill out the FAFSA form. Some students think they won’t qualify for financial aid because their parents earn too much money, or they already have a college savings plan. However, what a lot of students and parents don’t realize is that the majority of students who submit a FAFSA are eligibleAs 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! for at least some form of funding. In fact, according to the National Center for Education Statistics, during the 2014-2015 school year, 86% of first-time, full-time undergrads received some type of financial aid.

One important thing to note is that the FAFSA should be submitted every year you’re attending college. The deadline for submitting a FAFSA application varies depending on which state you live in and what school year the aid is for. To determine which deadline applies to you, visit https://fafsa.ed.gov/deadlines.htmAs 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!. Regardless of when your FAFSA deadline is, you should keep in mind that some schools award financial aid on a “first-come, first-served” basis, so it’s best to apply as soon as possible. You can submit your application as early as October 1st each year.

Before you jump into your application, you should first determine whether you qualify as a “dependent” student, or an “independent” student. This distinction is very important, as a dependent student must enter both their own financial information, and their parents’ financial information on the form, while an independent student only needs to enter their own information. To help determine which type of student you are, visit https://studentaid.ed.gov/sa/fafsa/filling-out/dependencyAs 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!.

It’s also important to gather some specific information and items before starting the application process, such as:

You can easily complete and submit your application online, just be sure to do so via the official FAFSA website: https://fafsa.ed.gov/As 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!. Keep in mind that FAFSA will never charge you to submit an application, so if you see any mention of fees, or are prompted to enter your credit card information, it should serve as a warning that you’re on site that is not affiliated or endorsed by the U.S. Department of Education.

If you submit your application on the FAFSA website, it will be processed faster than if you sent in your application by postal mail, and it’s likely to be more accurate because the FAFSA website is designed to automatically catch common errors. With an online application, you can also save and continue your FAFSA form at any time using an FSA IDAs 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!. An FSA ID consists of a username and password that can be used to log into the FAFSA website.

It’s important to go into the FAFSA application process with a clear head, and be careful not to rush through the form. Providing the wrong information on a FAFSA application could delay processing and impact your chances of getting financial assistance. Here are some common errors to watch out for when completing your form:

  • Entering the wrong permanent address;
  • Leaving fields empty. Blank fields can cause miscalculations and ultimately lead to a rejected application. To avoid this, enter a “0” or “not applicable” instead of leaving a field blank, if it doesn’t apply to you;
  • Listing an incorrect Social Security number or driver’s license number. Double and triple-check these numbers to ensure they are entered accurately;
  • Forgetting to sign and date the application;
  • Using commas or decimal points in numeric fields. Numbers should always be rounded to the nearest dollar;
  • Listing student or parent marital statuses incorrectly;
  • Entering the wrong amount of federal income tax paid. You should obtain this amount from your income tax return, NOT your W-2 form;
  • Listing your “Adjusted Gross Income” as equal to your “Total Income”. These figures are different; generally, Adjusted Gross Income is larger than Total Income;
  • Forgetting to list the college(s) the student is applying to, or planning on attending.

Although there’s a lot involved with submitting a FAFSA application, it can greatly pay off in the end. There’s a good chance you could receive the funding necessary to make your college dreams a reality, but you’ll never know unless you take the time to apply. 

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.