Advice from Mom: 10 tips for financial success
Each year on the second Sunday in May we celebrate the important women in our lives. The ones who raised us and taught us right from wrong and the ones who brought our children into this world. On this mother’s day we asked our team what is the best financial advice that they’ve given their children, what advice they planned to give, and the best advice their mothers gave them? We got some great answers.
1) “Start saving NOW.”
Don’t wait until you feel like you have extra money, that feeling may never come. Even if you can only save a little bit, start there and keep going. You will thank yourself later!
Laura Melby, Personal Banker
2) Automate your contributions
As a graduation gift we offered our boys either $250 to start their Roth IRA or a lesser sum in cash to be spent on whatever they’d like. They both started their Roth IRA’s when they turned 18 with a portion of their start up from Mom and Dad. Now they both contribute $50 every other month and because it’s an automated process it is completely painless. They don’t yet realize the benefits this will have later in life.
Paula Boland, Customer Service Representative
3) “It’s not how much you make, it’s how much you save!”
My best move as a parent in regards to finance was simply opening up a dialogue with my kids so we could discuss finances openly. Having that level of comfort allowed them to ask questions without hesitation. That’s how you learn! The first thing we discussed is the importance of saving.
- Lynn Foster, Customer Service Representative
4) “No, you don’t need a motorcycle!”
Save that money instead and your mother will sleep better at night. A win win!
- Krista Handel, Loan Processing
5) Pay yourself first
My mother always said, “Save at least 10% of each paycheck.” If you can automate that, you will have no problem staying within your means.
- David Jones, Commercial & Ag Lender
6) Be prepared for anything
I told my kids when they left for college to have a backup credit card. The card has a low limit and is intended for emergencies or if they happen to lose their debit card and are in a pinch. It also helps establish their credit.
- JoDee Walker, Call Center
7) “Money doesn’t grow on trees.”
Don’t spend it frivolously!
- Debbie Pinchard, Customer Service Representative
8) Sleep on it
Never make a spontaneous decision about anything that costs more than $200. Think about it overnight, then decide.
- Candi Huebner, Personal Banker
9) Organization is key
My three daughters recently leased a duplex together. I advised them to open a joint checking account to make paying their bills a lot simpler. They plan to use online banking to transfer money in from their individual accounts, and they also plan to use the online budgeting tools available to help stay on track with their money.
- Laura Peterson, Customer Service Representative
10) Start saving for college now
The best advice I’ve given to my children was, “Open a College Saver CD for your kids as soon as possible.” It’s a great place to put birthday money while they are young. As they grow and start doing odd jobs or working, they can contribute to it as well. We have many students who have thousands of dollars in their College Saver CD when they graduate high school to use for tuition and room and board. It’s never too early to start saving for college!
- Joann Manteufel, Personal Banker