Category Archives: Financial Advice

Financial Tips That Stuck: Advice from First Financial Staff

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April is National Financial Literacy Month, an initiative aimed at instilling individuals and families with the foundation needed to make sound financial decisions. No matter where you are in your financial journey, this month offers the perfect chance to pick up some new financial tips – or reflect on money lessons that have made a life-long impact on you. It is often said that experience can be the best teacher, so we asked our staff: “What is a financial tip that has really stuck with you?” From maximizing the power of credit card rewards to simple budgeting techniques, here are some financial tips that our team swears by – and for good reason.

  1. “Avoid Lifestyle Inflation. When your income increases, resist the urge to upgrade your lifestyle immediately. Instead, direct that extra money toward savings, investments, and especially paying off revolving debt! Having too much revolving debt lowers your credit score considerably.” – Julianne Brandt-Olivier, Director of Lending
  2. “Treat your credit card like a debit card. If you have a rewards credit card, this tip can help you avoid interest charges and overspending while racking up your points or cash back. When you have a debit card, you can only spend what is in your checking account. By self-imposing this same limit on your credit card, you will not only avoid spending more than what you can afford – but you will also reap the benefits of charging purchases you can pay off immediately, to your rewards credit card. This helps your credit card work for you!” – Samantha Colella, Business Development Representative
  3. “Pay the balance on your credit card every week – not just once a month. I have an alarm set for Saturday morning that reminds me to pay off whatever I’ve spent during the week. Making a payment to my credit card weekly keeps me honest as to how much I’m really spending.” –Michelle Comitini, Training Manager
  4. “Live within your means. Don’t spend more than you can afford.” – Nancy Culp, Chief Lending Officer
  5. “Pay yourself first. Think of yourself as a monthly bill. By paying that “monthly bill,” or yourself first – you will always have money tucked away for the future.” – Doreen Cutrona, Assistant Vice President of Member Operations
  6. “Create a budget. Don’t spend it, if you don’t have it. Also, start investing early.” – Sanjiv Dave, Director of Member Services
  7. “If you have debt (and we all do), list the debt in the order of highest interest rate to the lowest. Pay the debt with the highest interest rate off first so that you pay less interest in the long run. This also helps prioritize and keep you on track. It keeps things in perspective and helps you tackle the debt in a methodical and systematic way. When the largest interest rate debt is paid, you can check it off and go right on down the line and feel a sense of accomplishment.” – Eun Sook Kang, Compliance and Risk Specialist
  8. “Work toward eliminating revolving debt. Try to allocate extra funds in addition to your minimum required monthly payment. Apply this extra money to the debt with the highest interest rate. When that balance is paid off, continue to add to the next debt with the second highest interest rate and so on. In this way, you’re attacking the debt that accrues the highest monthly finance charges first, to pay off remaining debt faster.” – Michael Walker, Assistant Vice President of Information Technology
  9. “It might be a bit old school in today’s digital world, but each time I get paid I go over and reconfigure my budget for the upcoming 2 weeks. By writing out the money I have available on paper, my upcoming expenses, and how much I am going to put toward any bills – it helps me keep track of my spending more so than just looking at my account on my phone or in online banking. I still do both of those as well and monitor all my transactions, but actually writing out where my money is going helps me stay on track.” – Jessica Tortorice, Vice President of Marketing and Business Development

At First Financial, our top priority is supporting our members in achieving their financial goals – and we believe in the power of financial education to help achieve them. Subscribe to our First Scoop Blog to receive financial resources and tips right in your inbox.

What is a finacial tip that has stuck with you? Let us know in the comments!

What to Do Financially if You’re Laid Off

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Losing your job can be overwhelming, emotionally and financially. Whether you were given notice or it was completely unexpected, a layoff can leave you scrambling to cover your bills and figure out your next steps. While it’s a stressful time, there are some key moves you can make to regain stability and protect your financial future.

1. File for Unemployment Immediately

Don’t wait — apply for unemployment benefits as soon as possible. While unemployment likely won’t replace your full paycheck, it can help keep you afloat while you search for your next opportunity.

Every state has different requirements and processes, so head to dol.gov to find the correct resources for your location. If you qualify, consider having taxes withheld from your unemployment checks to avoid an unexpected tax bill later.

2. Evaluate and Adjust Your Budget

Now is the time to review your spending and cut any unnecessary expenses. If you haven’t been using a budget, create one now and prioritize essentials like housing, food, and utilities. Try to avoid relying on credit cards to cover the gap, as debt can add up quickly.

Use First Financial’s Home Budget Calculator to help map out a clear spending plan based on your new financial situation.

3. Review Health Insurance Options

If your health insurance is still active through your former employer, schedule any overdue doctor or dental appointments as soon as possible – as health coverage typically ends shortly after a layoff. Begin researching health insurance options through COBRA, your state’s healthcare marketplace, or look into temporary health coverage plans to avoid going uninsured.

4. Consolidation Debt

If you have high-interest credit card debt, it can quickly spiral out of control without a steady income. Look into consolidation loans to combine debt and reduce your monthly payments.

Our Consolidation Loans offer fixed payments, flexible terms, and no pre-payment penalties, making it easier to manage your obligations during a difficult time.* Once you consolidate, stop using credit cards, stick to your updated budget, and only buy what you have the money to pay for or that is an absolute necessity.

5. Pause Discretionary Spending

While it’s important to maintain some normalcy, this isn’t the time for splurging. Cut back on non-essentials like subscription services, dining out, buying new apparel, and entertainment. Instead, try home-cooked meals and budget-friendly activities to keep your costs low. Not knowing how long a layoff will last, means your safest bet is to cut expenses wherever possible until you have stable income again.

6. Save Your Severance Package

If you receive severance pay, try to deposit as much as possible into a high-yield savings account and use it only for essential bills. It may be tempting to use the money for comfort purchases or to maintain your old lifestyle, but it’s smarter to stretch it out as long as you can. Your severance package may also include extended health benefits, outplacement services, or payment for unused vacation or sick days.

Navigating a Layoff with First Financial

While losing a job is never easy, having a plan in place can help you regain control of your finances. At First Financial, we’re here to support you during life’s unpredictable moments. Call us at 732.312.1500, visit your local branch, or explore our financial wellness resources online.

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Personal Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. Loan payment example: A $2,000 Personal or Consolidation Loan financed at 10.24% APR for 24 months, would have a monthly payment amount of $92.51. A First Financial Federal Credit Union membership is required to obtain a Personal Loan or Line of Credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.

How Cash Stuffing Can Change Your Budgeting Journey

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Although the financial goals you are saving for and the amounts you “should” have saved to reach them can look different depending on what life stage you are in, one thing is certain — making a plan to save is one thing, and sticking to it is another. Despite the challenges that come with saving, personal finance experts agree that you should have sufficient emergency savings (often referred to as an emergency fund) to cover three to six months’ worth of living expenses in the case of an unforeseen emergency. However, saving for long-term financial goals or life’s unexpected twists and turns is often put on the backburner in the face of monthly, or unexpected bills and expenses. Oftentimes, many feel discouraged to save by not having a clear idea of where their money is spent. There are various budgeting techniques that can help rein in spending and identify room to save – one of which is called Cash Stuffing.

What is Cash Stuffing?

Cash Stuffing, also known as the envelope system – is a budgeting method in which you convert your spending money into cash and stuff it into envelopes earmarked for different categories where you expect to spend during a specific timeframe. You would typically withdraw this cash when you receive your paycheck in an effort to budget where it will be going until your next paycheck. By setting cash aside in envelopes designated for specific purposes, you are encouraged to commit to spending only what you’ve allocated for a particular category.

How Do I Get Started?

1. Determine Your Typical Monthly Spending Categories

The success of cash stuffing lies in your ability to realistically project what you will be spending on. Determining the categories you typically spend money on can be done through brainstorming or going through your bank statements for the previous few months. There is no limit to the types or number of categories you can choose, but some common categories include:

  • Rent and bills
  • Groceries
  • Gas
  • Dining/takeout
  • Entertainment
  • Clothing

If you would like to take your cash stuffing one step further, you can create a category for saving. Unlike your spending categories, your saving category should remain untouched during the timeframe you choose, and can later be put into your savings or retirement accounts.

2. Set Spending Limits for Each Category

Decide how much you would like to spend on each category for the timeframe you choose. It is important to be realistic — for example, you can’t skimp out on paying your fixed expenses, such as rent and bills. Even if you don’t fill up those envelopes, those bills are still due. However, this step offers an opportunity to identify categories where you could potentially rein in your spending. If you notice you don’t typically use all of your groceries, or you impulsively buy coffee out multiple times a week, try setting your spending limit lower for those categories than it has been in previous months.

3. Decide How You Will “Cash Stuff”

While tried-and-true cash stuffing is done by stashing white envelopes in a box, the method has gotten much more creative in recent years. You can decorate the envelopes or color-code labels, or even purchase “budget binders” that can hold all of your cash envelopes.

Cash Stuffing Can Be Done Digitally: Cash stuffing digitally can eliminate worries about having your funds lost or stolen. In this case, you would create a spreadsheet and save it on your computer or tablet, still track your categories and spending limits, as well as how much you have spent and what’s still remaining. If creating a spreadsheet is not your forte, there are also phone apps and websites that can help create and manage digital envelopes to visualize your spending.

4. Withdraw Your Cash and Stuff Your Envelopes

Once you have determined how much money you would like to allocate to each category, add up your spending limits and withdraw that amount in cash. Then as the name suggests, “stuff” the cash into your envelopes.

5. Spend with Your Envelopes

Here is where self-discipline comes into play. Whether the cash contained in the envelopes is meant to last you for two weeks or a month, cash stuffing is designed to work if you only spend what you have set aside in each envelope. When you go to use your debit or credit card, remember that you are going over the budget you set for yourself.

The first time you attempt this budgeting method, you might notice that you have allocated too much or too little to certain categories. That’s okay — don’t go into cash stuffing with the expectation that your budget will be perfect the first time. You can tweak your categories, spending limits, or both – to fit your typical spending habits.

6. Save Any Excess Cash

If you notice that you have a surplus in one of your categories, try to avoid moving it to another category where you may find yourself wanting to spend more. You also don’t want to save it to spend the following month. Having excess cash affords you the opportunity to make extra payments towards debt, or to build up your savings account.

As far as budgeting methods go, cash stuffing is customizable to your financial needs and goals. Whether you are embarking on the cash stuffing journey to control your spending, pay off debt, or build your savings — First Financial is here to help you along the way. Check out our financial calculators that are available on our website, as well as our budgeting guide and fillable PDF worksheet. Stop in and see us in any of our branches if you still have questions, or call us at 732-312-1500 to set-up a financial review appointment.

Financial Resolutions You Can Stick to in the New Year

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The New Year is a time for fresh starts, and what better way to begin 2025 than with resolutions that set you up for financial success? Whether you’re looking to pay down debt, grow your savings, or gain better control over your finances, these actionable resolutions can help you stay on track.

1. Create a Budget You Can Stick to

A well-crafted budget is the foundation of financial health. It helps you track your spending, identify areas for adjustment, and stay focused on your goals – whether you’re saving for a big purchase or paying down debt. Keep your budget realistic – instead of attempting drastic cuts, look for small ways to save, like switching to a less expensive grocery store or canceling unused subscriptions. Use First Financial’s Home Budget Calculator to identify where your money is going and where changes can make the biggest impact.

2. Review Your Credit Report Regularly

Your credit report is a vital tool for understanding your financial health. It details your credit history, including payment records and account balances, and can help you spot errors or signs of identity theft. Take advantage of the free annual credit report available from each of the three major bureaus (Equifax, Experian, and TransUnion) via AnnualCreditReport.com. Keeping an eye on your credit report ensures you’re prepared for any financial goals in the year ahead, like buying a home or securing a loan.

3. Build an Emergency Fund

An emergency fund is your safety net for unexpected expenses, like medical bills or emergency repairs. Aim to save 3-6 months’ worth of living expenses in a separate account from other savings. Start small and contribute regularly to grow your fund over time. A dedicated rainy day fund reduces financial stress, keeps you on track with your money goals, and ensures you won’t have to dip into your savings or investment accounts.

4. Maximize Employer Offered Benefits

Many employers offer financial wellness benefits that go beyond your paycheck. From retirement plans to student loan assistance, these perks can help you build wealth and reduce financial stress. Take full advantage of your compensation package by participating in employer matched retirement contributions, exploring wellness stipends, or accessing provided financial advisors. Every employer is different, but ask around and do some research on what is available to you. A dollar saved today can help secure your financial future.

5. Use a Rewards Credit Card Wisely

Credit cards offer valuable rewards and protections when used responsibly. Opt for a cash back or points-based card and use it for everyday purchases, but try to pay off the balance in full each month to avoid interest charges. First Financial’s Visa Cash Plus Credit Cards provide cash back and uChoose Rewards, which can be redeemed for travel, merchandise, gift cards, and more.* Credit cards can also be a safer choice than debit cards since they aren’t directly connected to a checking account. It can be much easier to recover funds used for fraudulent purchases than if a thief had gained access to your checking or savings account.

6. Consolidate High Interest Debt

High interest debt – such as credit card balances, can hold you back financially. Consider consolidating or refinancing this debt into a personal loan with a fixed interest rate and predictable monthly payments. First Financial offers competitive rates and flexible terms with personal loan options to help you simplify your repayment strategy.** By consolidating your debt, you can save money on interest and focus on paying off balances faster.

7. Reassess Your Insurance Policies

The start of a new year is an excellent time to review your insurance coverage. Changes in your lifestyle, financial goals, or your home’s value may require policy adjustments. From homeowners to auto and life insurance, ensure your coverage meets your current needs. First Financial can help you find options that protect your assets while supporting your overall financial plan.

8. Align Financial Goals with Your Partner

Money management as a couple requires teamwork. Sit down with your partner to discuss individual goals and create a shared financial plan. Regularly review your progress together to ensure your plan adapts to life changes and priorities. Open communication about finances strengthens relationships and ensures you work toward a shared vision for the future.

Make 2025 Your Best Financial Year Yet

Sticking to financial resolutions doesn’t have to be difficult. By setting realistic goals and using the right tools, you can make meaningful progress toward financial stability and success. For more tips or to explore our products and services, call 732.312.1500 or visit a branch today. Don’t forget to subscribe to our First Scoop blog for ongoing insights to help you reach your goals in 2025 and beyond.

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties. Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter.

**APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Personal Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. Loan payment example: A $2,000 Personal Loan financed at 10.24% APR for 24 months, would have a monthly payment amount of $92.51. A First Financial Federal Credit Union membership is required to obtain a Personal Loan or Line of Credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.

6 Ways You’re Overspending Without Realizing It

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Overspending can sneak up on even the most budget-conscious individuals. Often, it’s not the big ticket items that derail our finances – but the small or recurring expenses that we overlook. By identifying your hidden expenses, you can save more and spend smarter moving forward into the new year. Here are six ways you might be overspending without realizing it — and how to take control.

1. Forgotten Memberships and Subscriptions

Gym memberships, streaming services, or monthly subscription boxes can easily become budget drainers if you’re not fully utilizing them. Many companies rely on automated payments to keep you locked in without noticing. Take time to review your bank or credit card statements for recurring charges and cancel any memberships or subscriptions that no longer add value to your life. With a few clicks, you could save hundreds of dollars a year.

2. Neglecting Utility Efficiency

Utility bills can quickly add up, especially if you’re not mindful of your energy usage. Simple changes like turning off lights when leaving a room, sealing drafty windows, or upgrading to energy efficient appliances can make a big difference. Consider installing a programmable thermostat to save on heating and cooling costs or switching to LED light bulbs for long-term energy savings. A few small adjustments can significantly reduce your monthly expenses.

3. Dining Out Too Often

Eating out might be convenient, but it’s one of the easiest ways to overspend. Instead, try meal prepping or cooking at home. Planning your meals for the week and buying ingredients in bulk can save both time and money. Packing lunches for work or school is another easy way to cut out unnecessary spending. You’ll save money while having more control over the quality of your meals.

4. Not Using Your Credit Card to Your Advantage

If you’re using a credit card, make sure you’re maximizing its rewards. Different cards offer perks like cash back, travel points, or discounts at certain retailers. Take note of where your card offers the highest rewards and use it strategically for those purchases. Be sure to redeem your rewards before they expire. The right credit card can turn everyday spending into meaningful savings. First Financial’s VISA credit cards offer cash back and our Cash Plus Cards offer uChoose Rewards redeemable on travel, merchandise, gift cards, and more!* With three options to choose from, you can easily find the perfect fit for your lifestyle.

5. Falling for Fees

Hidden fees, such as processing charges on tickets or unexpected service fees at hotels, can inflate your spending without you even noticing. To avoid these, carefully review the terms before making a purchase or signing a contract. If a fee seems unreasonable, don’t hesitate to contact customer service to ask for clarification — or even request a waiver. Comparing options to avoid businesses known for high fees can also help you keep costs in check.

6. Paying Unnecessary Bank Fees

Bank fees like overdraft charges, account maintenance fees, or ATM surcharges are common, but they’re also avoidable. Start by reviewing your accounts for any hidden costs, then explore alternative accounts with lower or no fees. At First Financial, we offer checking and savings account options designed to help you keep more of your money where it belongs — in your pocket.** Explore our range of options today to find the account that best suits your needs.

Save Smarter with First Financial

By addressing these common overspending habits, you can take control of your budget and redirect those savings toward your financial goals. At First Financial, we’re here to help you make the most of your money with personalized advice and cost saving account options.

For more tips on saving and managing your finances, call us at 732.312.1500 or visit a branch today. Don’t forget to subscribe to the First Scoop blog for ongoing insights and strategies to keep your finances on track.

*Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter. APR varies up to 18%, when you open your account based on your credit worthiness. This APR is for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.

**$5 in a base savings account is your membership deposit and is required to remain in your base savings account at all times to be a member in good standing. All credit unions require a membership deposit. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.

How to Maximize Savings as Interest Rates Decrease

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The Federal Reserve announced a federal funds rate cut of half a percentage point at its September meeting, the first time it has lowered rates since the start of the pandemic in March 2020. There is also another Federal Reserve meeting scheduled to take place this week. Here are some key strategies to help you navigate a fluctuating interest rate environment and make the most of your hard-earned savings.

1. Consider High-Yield Savings Accounts

As interest rates fall, traditional savings accounts may offer minimal returns. However, many banks and credit unions offer high-yield savings accounts. These accounts generally provide better interest rates due to lower overhead costs, making them a smart option for those looking to grow their savings more efficiently.

To maximize your returns, compare rates regularly. Even a small increase in your savings account’s interest rate can make a noticeable difference, especially over time. First Financial’s Savings Accounts offer quarterly dividends.*

2. CDs are Another Option for Savings

If you’re concerned about declining interest rates, certificates of deposit (CDs) can offer a more stable option. By locking in a fixed rate, you ensure your savings will continue to grow regardless of future rate cuts. When your CD matures, you can decide whether to reinvest at a potentially better rate or keep the funds available for other financial needs. First Financial’s Savings Certificates offer terms ranging from 6 to 72 months.**

3. Focus On Your Emergency Fund

In any interest rate environment, your emergency fund is critical. Experts typically recommend keeping 3 to 6 months’ worth of living expenses in easily accessible savings. With rates dropping, now might be a good time to reassess that fund.

You should never move your emergency savings into riskier investments, but it’s smart to ensure that it’s earning the best rate possible. High-yield savings accounts or short-term CDs may offer the liquidity you need, while providing a modest return. Keep in mind that the goal of an emergency fund is security, not high returns – so focus on accessibility first.

4. Stay Informed and Be Flexible

Interest rates can fluctuate based on economic conditions, so stay informed and be flexible. Review your financial plan regularly and be willing to adjust your savings strategy as needed. What works in a high-interest environment likely won’t be effective when rates decline and vice versa, so be prepared to shift tactics if necessary. However, you shouldn’t continually make drastic changes just to keep pace with the market either. Consult with a financial professional and take time to conduct research.

You can also subscribe to financial newsletters or consult with a financial advisor to stay updated on changes in the rate environment and how they may impact your savings. By staying proactive, you can ensure your money is always working as hard as possible, regardless of the current economic conditions.

Make Your Savings Work Harder with First Financial

Navigating a changing interest rate environment can feel challenging, but with the right strategies, you can continue to grow your savings. For personalized financial guidance, call us at 732.312.1500 or visit a branch today. Don’t forget to subscribe to the First Scoop blog for more tips and insights on managing your finances.

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. View full Rewards First program details at firstffcu.com. Some restrictions apply, contact the Credit Union for more information. If balance falls below $5, a monthly service fee of $5 will be imposed.

 **A penalty may be imposed for Certificate withdrawals before maturity. See your Important Account Information for Our Members document for details. The Annual Percentage Yield is based on the assumption that dividends will remain in the account until maturity and the minimum balance is maintained.