Monthly Archives: January 2016

Teaching Your Children to Save

Children Saving

Sharing the value of money with your children can be an insightful learning opportunity. By encouraging them to grow in their fiscal responsibility they can begin to comprehend how to properly use and save money. Try these simple lessons to begin teaching your littles ones the importance of finances.

  1. See the value of savings: Before they understand the concept of retirement, help them see the advantage of long term savings. Just as companies offer to match their employee’s savings plan contributions, offer to match your child’s investment in a purchase. If they save for half the amount, you’ll contribute the other half.
  2. Create a goal chart: Saving for a car, a college degree, or a home takes years of planning. Let your child see the value of long term savings by helping them visually track progress in their own investment. Choose a purchase such as a new tech device or a day trip to an amusement park. Based on their allowance and other sources of income, draw a column of boxes to represent the number of weeks of savings it will require, then draw an X or place a sticker in each box once they save the weekly amount.
  3. Open a savings account: An interest-bearing savings account can help your child track their money as it expands through simple deposits and compound interest. Open an account for your child early on to educate them on the concept of finances, and have them deposit a percentage of their allowance each month to see their own wealth grow.
  4. Demonstrate checking: When your child is comfortable with complex addition and subtraction, have them assist you as you track your deposits and purchases while balancing your checkbook. Show them a bank statement and explain the different components, identifying which numbers help you balance your checking account. Take this opportunity to explain the relationship between savings and checking accounts and give examples of why and when you would use each.
  5. Set an example: Your children look to you to set a precedent, so if you save, they save, and if you spend, they spend. Set up a savings jar at home for extra change and designate these additional funds to fun family events such as ice cream trips, movie nights, and more. Show them the power of savings one coin at a time!

Timberwood Bank wants to see you and your little ones succeed. Stop in today to learn about our children’s savings account options!

 

eStatements and Online Banking

online banking

Timberwood Bank provides safe, speedy, and current access to your finances in-and-out of the office. Did you know that you can receive the same quality service on your digital device? Take a look at the benefits of our Online Banking and eStatements options.

Check your balance: When having a conversation about a trip, gift, or medical expense, don’t let the talk derail because of uncertainty surrounding your funds. View your balance and account history in a flash.

Transfer Funds: Savings, checking… your multiple accounts shouldn’t be a headache to manage. Transfer funds from one account to another with just a couple of clicks.

Automatic payments: Shelling out for your mortgage and car payment each month gets redundant. With the automatic payment system, we’ll remove the monotony of monthly payments. Select a reoccurring expense, and set the amount due by a certain date each month. When the date rolls around, a payment will be made automatically.

Set reminders: If you prefer to pay bills on a month-to-month basis, Online Bill Pay allows you to set e-mail reminders so you can receive notifications and avoid late fees.

Go green & stay safe: Digital payments cut down on the need for paper bills, allowing you to opt for an eco-friendly alternative. Plus, it reduces the risk of identity theft and fraud.

Keep a record: Don’t waste time worrying about whether or not you paid your bill. Access a history of your payments with a couple of clicks to put your mind at ease.

For information on extra features or assistance setting up your online account, call Timberwood Bank at (608) 372-0216 today!

Home Buying in a Winter Wonderland

home

Begin the journey of purchasing your new home with Timberwood Bank! We’ll help guide you through the process of securing a new residence for you and your family. Stick with these easy do’s and don’ts and you’ll be on the path to success.

Do:

  • Secure a loan before a home: While the hunt for the first house is exciting, your final decision will depend on the mortgage you can secure. Your first step in the home buying search should take place with a loan officer who can assess whether you qualify for a mortgage, and if so, at what price. This provides a framework guiding the search so you don’t expend time and money on houses outside your means.
  • Take your time: The average homeowner occupies their house for nine years before relocating, so additional time spent thoroughly searching for homes can reap a decade of benefit. Track trends in the housing market to buy during the most cost-effective season. Weigh personal, important factors beyond price listing, such as neighborhood quality, length of commute, and potential for expansion and home improvement.
  • Consult the professionals: The listing agent represents the interests of the seller, not the buyer. As a first-time home buyer, you’ll need as much trusted, unbiased advice as you can garner. Ask friends and family to recommend their real estate agents so you receive counsel from a professional with a track-record of success.

Don’t:

  • Look at homes well over your budget: You set a budget for a reason. Stick to it! Paying more than you designated for a home can financially limit you to update and repair as needed. By spending within your originally determined limit, you’ll avoid heftier mortgages and continue to withhold extra funds for any household incidentals.
  • Empty savings into a down payment: Securing your mortgage requires a down payment. Putting down less than 20% requires you to buy mortgage insurance. To avoid this added expense, some home buyers drain their savings to cover the down payment upfront. Liquidating your account, however, leaves you without a safety net in the event of job loss or medical emergency. The expense of mortgage insurance is worth the financial cushion you can leave in your account, and you can always eliminate the insurance once you’ve paid off 20% and opt to refinance your mortgage.
  • Speed through the closing: The end is in sight, but don’t let the glow of the finish line obscure your view of the paperwork. Review documents with a fine-tooth comb, double check that nothing has been altered in your agreement, and ensure that it describes your understanding of the transaction to a “T”. A day or two of extra analyzing can save you years of headaches!

At Timberwood Bank, we offer a number of mortgage options to make securing your home as feasible as possible. To schedule your first meeting with one of our knowledgeable mortgage bankers, give us a call at (603) 372-2265.

The Journey of Coffee from Plant to Pour

Coffee

Whether it’s iced, pressed, decaffeinated, or steamed, coffee in the United States is a staple in the daily routine of over 50% of the population. For energy, for social gatherings, or for the sake of routine, consumption of caffeinated brews create an $18 billion industry in the U.S. each year. However, after the average cup of joe in 2015 rang in at $3.28 – higher than mugs in 2013 and 2014 – consumers may wonder what they’re actually investing in. Take a look at the journey your java travels from bean to latte!

  1. Planting: After a bean is dried, roasted, ground, and brewed, its coffee! When left in its natural state, it’s a seed that grows into a thriving coffee tree. Planted in shaded nurseries away from bright sunlight, coffee seeds are repotted in special soil after sprouting.
  2. Harvesting: It takes almost four years for a new tree to produce bright red coffee beans, commonly referred to as cherries. These cherries are picked by both hand and machine, eventually arriving at a processing plant.
  3. Processing: To prevent spoiling, harvested beans must be processed as soon as possible. Companies using a dry method spread the beans in the sun, turning them each day to even the drying. This process may take several weeks to complete. Alternatively, a wet method separates pulp from its skin, allowing the beans to ferment and leaves only the bean’s meat.
  4. Drying: An additional step in the wet version of processing, drying is a crucial step in the bean’s journey. Spreading them in the sun or passing them through a tumbler, the beans become dry and are ready for the next step.
  5. Milling: Dried husks are removed from the cherries, followed by sorting beans by size and weight. Additionally, they’re graded on a scale of 1-5, with Grade 1 beans exhibiting the highest quality taste, acidity, and aroma and Grade 5 beans revealing defects in more than 86% of the sample batch.
  6. Exporting: Now considered green, finished beans are loaded in bulk and sent worldwide.
  7. Tasting: During this step commonly known as cupping, professional tasters sample the brewed product and rate it on factors like visual appearance, scent of grounds, and variant flavors in each sip of a blend.
  8. Roasting: Placed into roasting machines approximately 550 °F, beans are heated until they turn brown, releasing caffeol, the natural oil responsible for coffee’s iconic aroma. They are then quickly cooled by air or water, completing the roasting process. This step is performed just before sale to consumers, preserving freshness and flavor of the coffee beans.
  9. Grinding: The different variations of coffee beverages are the result of overall choices on the coarseness of the grounds and length of time spent brewing. An espresso, for example, uses finely ground beans in a fast prep process, whereas a traditional coffee pot relies on coarser grounds in a longer brew.
  10. Brewing: Machine, water quality, coffee-to-water ratio, temperature, additives, and brew time all alter the effect of the final cup of coffee. The brew is the final step to achieving the end result of a delicious cup of coffee. With so many variables and potential additives, the list of coffee beverages is seemingly endless!

With such a long journey, that $3.28 doesn’t seem so unreasonable now, does it?

Shelling out a couple bucks for a latte here and there won’t break the bank. Making it a daily routine, however, could. Our helpful lenders at Timberwood Bank can help you budget personal expenses so you can have your coffee and drink it, too. Stop by and share a cup with us today!