Family Finances | blog.firstffcu.com

If you have a growing family, you’re probably used to making big decisions – some of which might be related to family finances. The financial institution you choose to bank with might not always be top of mind, but it is an important aspect of your family’s financial well-being. Ultimately, where you choose to bank is the place you’ll trust with handling both day-to-day financial needs and future milestones. Consider the following criteria when choosing a financial institution that will grow with and support your family both now and in the future.

Your Short, Medium, and Long-Term Needs & Goals

Financial institutions are not one-size-fits-all. Similarly, your financial needs and goals aren’t either. Your co-worker might swear by a particular online-only bank, but you might prefer a local bank or credit union with a nearby branch. It’s important to consider the day-to-day ways your family currently uses money, as well as how they plan to use money in the future when deciding if a financial institution is a good fit. Identify some of your family’s financial needs and goals so you can consider them as you read through this article.

Here are some financial goals that first-time parents or those with changing family dynamics might consider:

Purchasing a family vehicle.
Saving for a down payment on a home, or preparing to purchase a home.
Establishing or adjusting an emergency fund and budget.
Introducing children to saving from a young age.

Product and Service Offerings

Your needs might be limited to certain accounts or services now, but they may change as your family evolves.

Let’s say you need a checking and savings account now, but you and your partner would like to become homeowners in the next 5 years. Does your financial institution have a special offer for first-time homebuyers? Would you like a dedicated representative who can assist you through the mortgage process from application to closing? Or, let’s say you would like to introduce your child to saving at a young age. Does your financial institution have accounts for children? If so, do the accounts have the capabilities and protections you would like in place?

Determining now if a particular financial institution has the offerings needed to support your financial goals, can save you time and effort down the road and also help you develop a long-term relationship with your institution.

Convenience and Accessibility

Convenience and accessibility look different for everyone based on preferences, but make sure your financial institution meets your definition of the two. Your financial institution should make your money management easier, not more stressful. Is your family busy managing hectic schedules, making it difficult to make trips to a branch? Would you prefer a financial institution with local branches to make transactions in person? Would you like a financial institution that has easy-to-use online and mobile banking? Can you view and manage all your accounts online or in the mobile app? Consider what convenience and accessibility mean for you and your family.

The Differences Between Financial Institutions

There are a few broad types of financial institutions you can pick from, and figuring out which might be best for you and your family can help narrow down your search.

National Banks: Typically offer a broad range of financial products and services suited for various life stages. They may have many branches and ATMs, offering more accessibility, but potentially less personalized customer service. At a bank there are typically higher account fees and borrowing rates, and lower interest rates on deposits.
Community or Regional Banks: Typically have a higher-level of personalized service and local expertise due to their presence in the community in which they operate. They might however, have limited financial products and services, branches, and ATMs compared to larger, national banks.
Credit Unions: Not-for-profit financial cooperatives that cater to specific members, such as those in certain counties or states, or who work for certain employers. Since they are member-owned, credit unions typically have lower service fees and loan rates, and higher interest rates on deposits compared to other institutions. Depending on the size, a credit union might have fewer branch locations, but typically will participate in an ATM network so their members can access services in various locations. Credit unions are known for delivering personalized service due to their presence in the community in which they operate.
Online-Only Banks: These banks operate exclusively through digital platforms such as online and mobile banking, without any physical branches. Without brick and mortar locations, these banks can typically minimize costs and remain competitive with traditional banks – offering the same products and services with comparable or better loan and savings rates, and fees.

If the search for a financial institution for you and your family leads you to First Financial – visit a local branch, call 732.312.1500, or check out our website to find out how you can become a member today.*

*A First Financial membership is available 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. Other terms & conditions may apply, see credit union for details.

If you’re expecting your first child, congratulations! You’re about to embark on the most rewarding and fulfilling experience of your life.

As you already know, there’s a long list of responsibilities associated with your new title — parent. And financial responsibility takes a backseat to none of those. Raising a child is expensive, after all. The USDA estimates the total expenses for a child’s first 18 years at more than $200,000. So, as you begin planning for your first child, consider these key areas and their associated expenses.

First, there’s healthcare. If you’re covered by an employer’s plan, check to make sure of the options for adding a child. Additionally, if you do have an employer-sponsored plan, consider a medical reimbursement account (MRA) or health savings account (HSA), if either is available. These can pay for items such as deductibles, co-payments, and orthodontics.

If you’re paying for healthcare directly, you can choose a managed care plan, such as an HMO, which offers lower upfront costs than a traditional plan, which may require you to pay at least 20 percent of care costs. However, a PPO plan may provide you with more options as to which providers you can see and whether you need a referral to see a specialist. Whatever route you go – deductibles, co-insurance amounts, co-payments and monthly premiums vary greatly; review the options available to you carefully before making your selection.

Next, there’s childcare. Depending on your adjusted gross income, or AGI, you may be eligible to receive tax benefits as a parent. The Child Tax Credit provides a credit of up to $2,000 for children ages five and under – or $3,000 for children ages six through 17 years old. To qualify, your child must have a Social Security Number before you file your tax return.

Then, insurance. Purchasing disability and life insurance can provide income for your child if your earning capacity is compromised. A financial professional may be able to provide guidance as to the recommended amounts of coverage for each. Check to see if your employer offers these policies, they are often less expensive than those that you purchase independently.

Finally, consider drawing up a will that designates a legal guardian for your child, in the event that you and your spouse die together, or if you’re a single parent and you should die. If you and your spouse die intestate — that is, without a will — and you die together, a court will decide whom to appoint as your child’s guardian. Make sure that the will is written so that it applies to your new baby as well as your future children. By carefully budgeting for your baby, you can help secure the financial futures of both you and your child.

Questions about this topic? Contact First Financial’s Investment & Retirement Center by calling 732.312.1534. You can also email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

This material was prepared by LPL Financial, LLC

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