Families On The Go
Managing the financial responsibilities of family life
By the time you have a family of your own, there will be accompanying expenses such as fees for various activities and lessons for your children, family vacations, saving for college educations or buying a new home. Throughout this time, you should regularly evaluate your progress towards achieving the financial goals you set earlier in your life and adjust your spending, budgeting and saving to make sure you stay on track. With all the demands a family places on your income, it is still important to build your long-term investments.
Planning and discipline that determines what and how you spend contribute to your future financial success. Here are some tips The Community State Bank recommends for sound financial management during this demanding time of your life.
Look for a mortgage or consumer loan that fits your lifestyle
There are many types of mortgage products with varying terms including protection from rising interest rates and flexibility for change. Fixed rate mortgages may be best for families who expect to make no changes in their home for the entire life of their 30-year mortgage. However, very few families remain in the same home for 30 years without needing to refinance for home repairs, remodeling, room/garage additions, or major life changes such as financing college educations. You will want to consider all the costs involved in obtaining a mortgage including interest rates, up-front points or fees, down payment requirement, and private mortgage insurance purchase requirement.
With competitive rates, experienced lending professionals and local decision-making, you’ll be sure to find a loan at The Community State Bank that meets your needs. Contact Us.
Understand your credit report
Your financial behavior over the past seven years, including how much credit you have, how long you've had it and whether you pay your bills on time is information included in your credit report. Three credit reporting agencies — Equifax, TransUnion and Experian — maintain these reports, and lenders buy them to help them decide whether to offer you a prequalification. Your credit report also carries your credit score ranked between 300 and 850 that many lenders use to decide whether you are creditworthy and whether you will repay a loan. Your credit score can also influence the interest rate you pay. In many cases the higher your score, the lower your interest rate.
Each agency allows consumers one free credit report a year. It is a good idea to check your credit report three times a year using a different agency each time. If you have any questions, you may call and speak with someone in the loan department. Contact us
Start Saving for College
By starting early, when your child is in preschool or before, you can build a realistic fund through the power of compounding over many years. The earlier you start, the less you’ll have to save per month.
Through The Community State Bank you can access products designed to help you fund your child’s higher education. To learn more, or set up an educational account, click on the links below.
Certificates of Deposit – CDs start as low as $1,000.00 and terms range from 3 months to18 Months. Call a customer service representative for current rates and specials. Contact us
Save for Retirement
Many people underestimate the amount of money they’ll need in retirement. Be realistic about major expenditures, e.g., will your mortgage be paid off by retirement? If so, you may need less income than you do now. Do you plan to buy a vacation home or travel extensively? Will you have to pay for your own health insurance? These and other financial considerations all come into play.
Now is a good time to up your contributions to your retirement savings accounts. Talk with The Community State Bank IRA specialist to learn about the products we offer that can help you meet your retirement goals.
Traditional IRA – Tax deductible contributions to a traditional IRA can help you build long term wealth and help you reach your retirement goals. Call an IRA specialist, today for more information.* Contact us
Roth IRA – Contributions to this type of retirement account are not tax deductible, however, when you retire, distributions are tax free. For more details call an IRA specialist.* Contact us
*Consult a tax advisor
Rent a safe deposit box
This a convenient place to store important items that would be difficult or impossible to replace. The Community State Bank’s safe deposit boxes offer privacy and in most cases, greater security than keeping your valuables and important documents elsewhere. Additionally, some insurance companies charge lower insurance premiums on valuables kept in a bank's safe deposit box instead of at home.
For a list of available box sizes and prices, Click here.