Getting Social with Your Community Bank

Get Social with your Community BankWe’re constantly amazed at the openness with which some of our customers communicate with us via email and social media. On the one hand, we’re grateful to have engendered such trust and confidence, but on the other hand, we’re scared to death that such information might be abused by criminals who are very good at intercepting such data. Here’s some useful tips that will keep the convenience of online communication safe.

Watching the Twitter feed to see which bank office is unaffected by a snow storm is one thing. Sending the branch manager your online banking password to see if your account is locked out is quite another. Messages posted on Facebook, Twitter, LinkedIn and even most emails are NOT confidential. In fact, you are better off assuming they are publicly accessible. Therefore, when communicating with your bank, keep in mind that some information should never be explicitly communicated online via social media or email:

  • Your online banking user id or password
  • Your bank account number or balance
  • Your social security number
  • Your driver’s license number
  • Your credit card number, expiration date or security number
  • Your mother’s maiden name

Some banks, including Peoples Bank, have a secure web site that can be used to send and retrieve messages. Learn about how to communicate with Peoples Bank online, including our secure message form, on our Customer Service web page.

We at Peoples Bank strongly believe, as do most financial institutions, that alternative means of communication like blogs, Twitter and Facebook are of great value to customers and their bankers alike. If you need a quick response or have a question that requires a speedy and short response, let the banker know via social media if you like, but be aware that some things are simply too confidential to sacrifice for the sake of simple efficiency. (See our Social Media Policy for an idea of the ways banks restrict their use of social media communication.)

Please, don’t send us your online banking password in an email or as a “private” Facebook message!

Tips for making your business budget work

Tips for making your business budget workOne of the most important keys to running a successful business is to have a well planned budget that tracks spending. Make sure to consider these easily overlooked tips when creating your budget.

  1. Feel Free to Make Adjustments. As volatile as the market has been in recent years, it is incredibly important that your budget is flexible. Often your budget will have to be calculated and revised several times before it reaches a final version. While this process can be labor intensive, it will help you hone your budgeting skills.
  2. Don’t be Surprised. More often than not, you will under or over estimate certain costs in your budget. Once again it is important to be flexible about managing these surprises. One great way to adjust these costs is to move around money within the budget itself rather than redo the entire budget. For example, if your phone bill costs twenty five extra dollars than expected, use the twenty five extra dollars left over from office supplies or mail costs to cover the deficit.
  3. Plan for Emergencies. No matter how carefully you budget, there will be times when your business is hit with hidden fees or a period of low revenue. These times can ruin your business if you are not ready for them, so make sure to always set aside a monthly amount of cash or parts of unexpected revenue into an emergency fund. By putting away a fund in an easy to access interest-earning account, you will be better prepared for hard times should they hit your business.
  4. Review Your Budget Monthly. One of the best ways to avoid surprises or emergencies is to stay on top of your budget by checking and rechecking it on a monthly basis. By correcting mistakes or faulty calculations early, you can nip the potential setbacks in the bud before they blossom into a crisis for your business.
  5. Keep a Positive Cash Flow. If your monthly reviews show a short fall in cash flow, take out funding to stay in the black. Make sure to carefully plan out how you will pay back this borrowed funding to avoid later strife.
  6. Don’t be a Scrooge. While budgeting is a terrific way to use your money frugally, don’t be too rigid about spending on new opportunities. Be it attending a conference to gain new contacts or investing in an updated piece of equipment, small splurges can pay off in the long run.
  7. Save Before You Spend. There are plenty of ways to save, be it bundling phone and internet services or buying refurbished computers. By saving in these small ways, you can use your money in places that will better help your business, such as advertising, research and new products.
  8. Keep it Simple Rather than documenting every rubber band and paper clip, try to categorize expenses into broader categories. This will avoid wasting your time micromanaging, and allow you to concentrate on running your business.
  9. Expect to Make Mistakes. Don’t beat yourself up if you miscalculate and over or under-estimating profits because it happens. Just make adjustments to get back on track and realize that you’re only human.
  10. Stay on Track A budget will only work effectively if it is managed on a continual basis. Make sure not to get cocky when things go well, and don’t give up on your budget if your business hits a rough spell. A budget is the most realistic window into your company’s financial abilities and is possibly your company”s most important planning tool.

These tips should help you create a good foundation for budgeting and your business.

Saving Starts Early: What Your Child Can Learn About Money

Savings Starts Early: What your child can learn about moneyWhether it’s a new video game, a plush puppy, or an ice cream cone, children’s wants usually don’t take money into account. But while being young means not having to worry about mortgages and grocery costs, this doesn’t mean they don’t need to know some financial basics. By teaching them some simple and easy to understand lessons about money, you can help your children to have a strong foundation in understanding money.

Start Simple!
In order for your child to understand money, you don’t have to teach them how to read stocks or run an accounting firm. Start their lesson with the basic concept of what money is. Explain what you can buy with money, and show how different bills and coins have different values. You can even give short money math lessons with toy money or implement these lessons into playtime to strengthen your child’s ability to understand money. By starting simple and allowing your children to see how different items cost different amounts, they will better understand how simple financial matters can be.

Saving Up and Earning
Money burns the fastest in the pockets of kids, but this doesn’t mean they can’t learn the value of saving. By using an allowance to award children for doing chores, they can learn the value of working to earn money, and gives them the chance to pick and choose how to spend or save their own money. If your child is interested in a specific toy, set them down to talk about its price and help them plan out how they can save to buy it themselves. These steps teach your child about the limitability of money, the benefits of savings, and how hard work rewards with pay. By using an allowance instead of toys as payment, children can also understand how money can help them.

The Hard Truth About Money
One of the most heartbreaking things is spending money on something that was a waste of your money, and with all the toys, games, and kid-designed products on TV, it is likely your child will occasionally spend their allowance on an item that wasn’t what they hoped it would be. Despite how bummed your child may be, this is a good time to not only console, but to teach your child money can only be spent money once and then it’s gone. This can impress on children the importance of not rushing to buy every new toy advertised on TV, but picking and choosing what they want to buy carefully.

Money Is For Helping Too
Teaching your kids about the blessings of sharing and caring for others with their money is just as important as their learning to earn money and the benefits of savings to. Concepts like buying gifts and helping others with their money can start with the smallest of donations. Encourage your children to put a small part of their allowance towards charities or church donations. Give your kids a little extra spending money at Christmas so they can buy gifts for the family. Encourage them do some chores for favors to friends and neighbors to simply help them. But most importantly, teach by example by giving a dollar to your child to give the Salvation Army or Red Cross stations in public places. By gently encouraging your child to help others, they will not only learn about money, but about sharing and generosity as well.

Childhood is no time to burden kids with the worries and fears of finances, but is a terrific occasion to teach your child key concepts about money, savings, frugality, and even helping others.

Thinking about Mortgage? Know Your Rights

Know your mortgage rights.A mortgage is likely the largest loan you will take out over the course of your life, and before doing so, you should fully understand your legal rights in the process. By becoming familiar with your legal protection, you can best avoid fraudulent loans and making costly mistakes.

  1. You have the right to actively seek out the best loan for you and your family. Consult different lenders and brokers to examine varying mortgage costs and charges.
  2. You should always be informed from other parties about your total costs; these range from the mortgage’s interest rate, to other points and fees that will be assessed. In addition, you are allowed to ask to see the Good Faith Estimate of these charges. Anyone who is trying to pull the wool over your eyes on costs is denying you your borrower’s rights.
  3. If there are nonrefundable fees, you should be the first to know. Lenders are obligated to be transparent about all fees; brokers are regulated to explain to you every service they are providing, as well as how much they are getting paid for managing your account. If these firms ever fail to make their fees evident, they are denying you your rights and trying to confuse you.
  4. You always have the right to know why an application for a loan was not accepted. Under no circumstances are any lenders allowed to discriminate to whom they lend based on race, color, religion, national origin, marital status, age, or whether any amount of income is from public assistance.

Be sure to remember that you have plenty of rights you can exercise when buying a mortgage. To learn more about these legal rights visit the Housing and Urban Development (HUD) website.