Monthly Archives: January 2017

The Cost of Kids: How to Plan for Your Growing Family

Family Budgeting

At Timberwood Bank, we understand that adding to your family may not only be an emotional decision but a financial one as well. With the growing costs of childcare alone, it’s important to have a well-rounded plan for covering the expenses of your expanding household. In order to plan most effectively, we recommend structuring your budgeting into these three stages:

Beginning or Before Pregnancy: Examine your current health insurance to determine an estimate of cost for both prenatal care and delivery expenses. While many insurers offer prenatal care at no or little additional cost, the price for delivery can be complex. Study your monthly premium, annual deductible, and out-of-pocket limits for the calendar year to help establish these cost before the baby is delivered.

After Birth: Once the baby is born, there will be traditional costs such as health care, food, diapers, clothing, and more. However, many new parents also spend more on take-out meals to help lessen their time cooking. These expenses, along with a decrease in income for parents on maternity leave, can cause many parents to slide into debt. To help alleviate the burden of these growing figures, we recommend creating a monthly budget to designate every dollar to a purpose. By allocating a specific dollar amount to each area of your spending, you can ensure that all of your costs are covered while also planning for the future.

During the First Year: As your child continues to grow, the costs for new clothes and equipment will continue to grow with them. Many expectant parents can spend upwards of $16,000 during the first year of their child’s life, and variables such as location, number of children, and other factors can contribute to the overall costs as well. When possible we recommend saving for each step in your child’s growth. From birth to three month’s they’ll need many one-time purchases, but during the later stages, you may have adequate time to save for each time period’s necessities.

Continue to grow your finances as you grow your family using Timberwood Bank’s trusted deposit services. We’ll help you organize your funds, and make the most of your savings.

The Best Deal for Your Drive

Consumer Lending

Purchasing a new vehicle is an exciting milestone in your personal finances. Filled with countless decisions, finding the perfect price can at times feel like an uphill battle. Luckily Timberwood Bank is here to help you find the ideal drive while staying between the lines of your budget.

If you’re looking for a used vehicle:

There are four things to take into account when purchasing a car or truck that has been previously owned. In most instances, you can request a full history report on the car to help answer the following prompts.

  • Miles v. Year
    • While purchasing a car that is over four years old can be economical, it can often times come with high mileage as well. For the best return on investment, we recommend finding a car with a comfortable number of miles that is still equipped with the functionalities and safety features you desire from newer models.
  • History of Repairs
    • A full report of a used vehicle is a must! This important document will cover the car’s history and allow you to identify potential warning signs. If reported collisions appear frequently it may result in additional monthly maintenance fees. However, if the previous owner had a consistent service history, your vehicle should last you well into the future.
  • Budget Friendly
    • Used cars will typically have a lower price point than many new makes and models. This can be a valuable money-saver, however, it’s still paramount to find a cost-effective vehicle to fit your needs. We suggest working with dealers to find an option that meets your basic criteria and comes in under budget. By having some cushion with the cost, you can ensure there are funds still available, in the event of possible maintenance or repairs.

If you’re looking for a new vehicle:

There’s nothing like that new car smell. Purchasing a vehicle with no prior owners has its benefits. From new industry updates, upgraded entertainment options, and advanced safety options, there are a variety of things to focus on when selecting your new ride. However, we recommend taking the following points into account:

  • Safety and Technology Features
    • Things like a rearview camera and four-wheel drive can make a big impact on your personal safety. In addition to the ever-changing technological features, these advancements can help make you and your family feel more secure. We recommend making a list of the vehicle features that are important to you. Be sure to bring it along whenever you browse for potential matches.
  • Room to Grow
    • New vehicles have the potential for a long lifespan. When purchasing your next ride, be sure to plan for future milestones along the way. If you plan on growing your family or venturing across the states, keep those goals in mind when choosing the best vehicle for you.
  • Affordable Payment Options
    • Many dealers work with trusted local lenders, like Timberwood Bank to help their customers secure the financing they need for both new and used vehicles. When purchasing a car or truck, remember to select payment options that fit into your monthly budget, while still allowing room for flexible spending.

Whether you’re searching for a new pickup or a used hybrid, Timberwood Bank is excited to help make your car buying dreams a reality. Stop by today to speak with one of our experienced consumer lenders, and see what type of vehicle can fit into your monthly budget.

7 Financial Goals to Make 2017 a Success

Personal Finances

Timberwood Bank challenges you to make 2017 the year of financial prosperity. Complete with an emergency fund, sound credit, and a monthly budget, you can conquer any fiscal goal so long as you keep moving towards it. To optimize your money management potential, we recommend these seven goals:

  1. Check Your Credit Score. There are many websites available which allow you to view your current credit score across the three reporting bureaus. However, the only federally authorized FREE site is com. This site gives users one free report from Equifax, TransUnion and Experian every year. By keeping regular track of your score, you can ensure that no fraudulent inquiries have been made, and no outstanding debts are currently being held against you. After all, a higher credit score could mean potential savings elsewhere.
  2. Make a Monthly Budget. This tool is invaluable when building your personal financial success. By creating a plan for each dollar you earn you are no longer reacting to your spending, but proactively telling your money where it should go. Adding this transparency to your spending can often showcase areas where you may be spending more than desired. After adjusting your monthly allocations you can then reassign some of those dollars to help build your personal savings and other areas of improvement.
  3. Automate Your Savings. “Out of sight, out of mind,” or so the saying goes. Adding processes to your budget, such as automated savings, can help you to accumulate money before you miss it. Before you start planning your spending for the month, determine how much you want to save. So long as your fixed monthly expenses are covered, you can then create an automatic monthly transfer from your checking to your savings. By doing this the same day you are paid, the funds will be gone before you even know to miss them. You can then budget the rest of your spending to cover flexible categories like groceries, entertainment, and more.
  4. Start an Emergency Fund. In order to safeguard your savings, you’ll need to create an emergency fund. This particular account offers protection against unexpected expenses or dilemmas that could otherwise infringe upon your diligent accrual of funds. It is often recommended to begin by saving $1,000, and then gradually work up to three or six months worth of income. By adding this cushion to your personal finances, you ensure that you are financially stable enough to weather storms both big and small.
  5. Submit Your Taxes Early. Tax fraud is an increasingly relevant issue, posing many problems for both the IRS and tax paying citizens. To help avoid potential criminals from using your information to their benefit, we suggest completing your tax return as soon as possible. Additionally, if you have a potential tax refund, the earlier you file your return, the sooner you are able to receive it.
  6. Maximize Your 401(k). To make the most of your diligent savings, we recommend revisiting your HR materials, to find out the specifics of your company’s 401(k) plan. If they will match up to ten percent, and you’re only contributing six, you could be missing out on free funds! Additionally, if you want to retire by a certain age, you may need to adjust your contributions to maximize the years you still have during your employment.
  7. Pay Down Your Credit Cards. Interest rates on credit cards are infamous for being consistently high. If you have multiple credit cards which carry a balance, we recommend paying down the account that has the least amount on it. By continuing to pay the minimum installment on each card, you can then assign any additional funds to the card with the lowest value, to help pay it off sooner. Once the first card is no longer carrying a balance, you can then utilize the monthly installment and the additional funds to put toward the next card and continue through the accounts.

Can You Really Save on Travel: True or False?

Save Money

Checking numerous sites for the best deal can be labor-intensive, and potentially counterproductive. With many American travelers turning to vacation book sites and apps, Timberwood Bank is curious if they really save you money. After thorough research, we’ve discovered these four truths to successfully budgeting your next getaway:

TRUE: Travel sites offer money-saving opportunities.

FALSE: The lowest value is found on the hotel’s or airline’s website.

Many travel booking sites offer discounted airfare and accommodation, boasting the same services, only at a fraction of the cost. However, many times these sites merely display the cost an airline or hotel already has on their own site at no additional reduction. Select providers have begun to reduce participation in these travel search engines, and strive to instead offer their continued customers the best value straight from their own corporation.

TRUE: Credit cards are the most secure and affordable payment option while abroad.

FALSE: Airport currency exchange is worth the convenience.  

While there are many different options to exchange currency before your next trip, the safest method of payment during your getaway will still be your credit card. With many options now offering no currency exchange fees, you’re sure to avoid unwanted conversions costs while still protecting your finances. According to both Visa and Mastercard, credit card users are held liable for zero percent of any fraudulent charges. This means that should your credit card information become compromised during your stay, you won’t lose any funds because of it.

TRUE: Traveling outside of the peak seasons offers great savings.

FALSE: The skiing in Colorado is great in June.

While it is true that avoiding the crowds can save you and your family some extra dollars, it may not be worth it if it means decreasing the activities of your trip completely. Instead of limiting your travel timeline, we recommend looking for alternative accommodations such as VRBO, along with creative dining options, to maximize your destination’s budget. These additional savings can help to bring your overall cost down, while still making your dream vacation a reality.

TRUE: You can save a lot of money by using airline miles.

FALSE: Airline credit cards are worth the annual fee for a yearly vacation.

Unless you plan to fly every month, an airline credit card is hardly worth the cost. While these cards offer tempting miles for flights, increasing numbers of travel options are blacked out throughout the year. The annual credit card fee for United, American, and Delta costs approximately $95.00 after your first year of use. While boarding in group one can be a well-enjoyed perk, it doesn’t boast much ROI for fliers who are simply looking to reach their annual destination.

As you begin to plan your next vacation, Timberwood Bank looks forward to helping you save the funds to make it happen. Stop in today and learn how to open a designated savings account today!