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By: William Blake      

If your son or daughter’s piggy bank is nearly overflowing, it may be time to consider opening up a bank account for them. An account helps teach children how to keep track of money easier. There are a few different types of savings accounts that you should consider for your child.

As soon as your child has money of their own, they can start a savings account. Find a day with free time and make a trip to your bank branch. Tell the bank associate there that you are interested in setting up a child’s savings account.

Together, you can open a statement savings account. Statement savings accounts give you a monthly report of all activity. You will be able to see all deposits that your child has made, and any withdrawals that you have made together as well.

You should look over each statement carefully with your child, and explain all aspects of it to them. Show them the amount they started with, interest they accrued, the final amount, and any other activity. If your statement shows the withdrawals without the description, you can write the details on the statement to help the child track how they are spending their money.

You might also be able to get a passbook savings account. Each account holder is given a small “passbook”, and the book is run through a machine which records all of your transactions. Your child can find out their balance right away, rather than waiting for a statement. Kids tend to like this, as they can look at their current transactions and balance whenever they want.

Banks are not the only institutions that issue savings accounts to children. Credit unions also have savings accounts available to the children of their members. There are special savings accounts that are designed for kids of various ages. When the account is opened, they receive an ATM card with their picture on it and other free gifts for starting the account.

An ATM/debit card can be used as cash by your child for their purchases. Parents can keep the receipts and teach children how to check them against their savings account statements each month. Allowance money can also be deposited in the savings account each month.

For children under eighteen, some states will offer what is called a “custodial savings account”. This type of account states the parent’s name as the account holder, with child’s name under it. When the child turns eighteen, ownership of the account can then be transferred to the child (now young adult).

Savings accounts are a great tool for teaching money management skills. Kids can keep track of their money easily and even use an ATM/debit card to make purchases or withdraw cash.

If you are planning to buy your first home or are moving to a new home we can help you navigate through the options available.

First ask yourself, “am I ready to buy?” As any financial advisor will tell you – look at your budget and determine what you can afford. Purchasing a home forces you to take analysis of your credit and can be one of the most important and impactful financial decisions you will make.

Use our mortgage calculators as a guide to planning.

Make sure you have a long-term financial plan that takes into account property taxes and homeowners insurance.

Also, work on establishing an emergency fund for the inevitable expense of home repairs. This can be as simple as setting up a savings account and socking a little bit of money away each month.

If you are a first time homebuyer we have options that can help make home ownership easier then you think.

Take action and get preapproved. We can give you a commitment, which will make your offer on a new home attractive to the seller.

Finally select the mortgage that is right for you. An adjustable-rate or balloon mortgage may be a better option if you expect to live in your home for a short time. A fixed-rate mortgage might be best if you want to insure your monthly principal and interest portion of your payment will remain the same through the life of your loan.

By: Howard Brule     

Most of the talk on financial blogs is pretty negative these days. Most people are discussing the economic slowdown, the stagnating housing market, the rising number of bankruptcies, and increased risk of having a serious recession.

The truth is, many of us need to go on a personal financial diet. Is it time to shed some of that extra weight? In good times we all tend to extend ourselves a bit more than we should. Then when the inevitable slow down hits we have no choice but to cut out the fat.

Like quitting smoking or dieting, it’s a psychological battle when it comes to keeping your finances under control. You will need to prepare a plan stating exactly how much you are going to spend, and how much you will save, by giving up certain things. Then, it is critical that you design techniques that will help you stick to the plan.

Convincing yourself to avoid binge spending is one of the most important commitments you can make to your plan. When we have extra money to spend, buying non essentials is a big part of the fun. But once you’ve decided on a slimmed down budget, it is important that you not see compulsive spending as an option. If it’s not in the budget, don’t buy it.

On the other hand, we are all human, and that means we all fall victim to temptation from time to time. Don’t get down on yourself when your will power slips and you buy something you swore you weren’t going to buy. Just put it behind you and get back to the plan.

In fact, you might consider bringing the fun right into your plan. It can often be beneficial to compensate yourself with small perks or indulgences on occasion, just to take the daily grind out of the “diet”. Just try to stay within your budget. That will give you the satisfaction of splurging and the sense of accomplishment that comes with meeting your goals.