Author: Chelsea Culp

April is National Financial Capability Month, when the Financial Literacy and Education Commission (FLEC) and the Ready Campaign encourage people to improve their financial futures and to be prepared when disaster strikes. Here are three actions you can take now to make sure you are ready for any financial disaster, big or small.

Have a Disaster Plan for Your Finances. Sure, you keep bottled water, canned goods, flashlights, and batteries close at hand, but you should also have a disaster plan in place for your finances. The first step is building and maintaining an emergency fund. Then you can make sure the rest of your finances are in order. The Federal Emergency Management Agency (FEMA) has a Financial First Aid Kit that is great for identifying all your important financial information and then helping you keep track of it.

Check Your Financial Well-Being.

Just like you should go see a doctor once a year for a check-up, so too should you assess your financial wellness. The Consumer Financial Protection Bureau (CFPB) has a nifty tool that lets you take a ten question quiz that not only evaluates your financial well-being, but also compares you to other Americans in your age group. Then it suggests ways to improve your score and where to find help.

Make Sure You’re Properly Insured.

Review your insurance coverage. Most homeowners and renters insurance policies do not cover flooding, so you may need to purchase a separate policy from the National Flood Insurance Program. An inch of water in your house can cause $25,000 of damage and 20 percent of flood claims come from areas outside of flood zones. Think because you’re a renter you don’t need insurance? If you don’t have renters insurance, and you lose your personal property to theft or disaster, you will have to replace everything out of pocket.

Let America Saves help you save money. It all starts when you make a commitment to yourself to save. Take the first step today and take the America Saves pledge to save money, reduce debt, and build wealth over time. And it doesn’t stop there. America Saves will keep you motivated with information, advice, tips, and reminders to help you reach your goal. Think of us as your own personal support system.

Savings is the foundation for investing. You cannot invest money if you have not saved it first. Like dieting, saving money is hard to start, even harder to maintain, and requires patience and discipline. When you achieve your financial goals, however, the results are so worth it. Below are 12 time-tested ways to save:

• Pay Yourself First – Treat savings like an important household bill (e.g., loan payment). Set aside a part of each paycheck, even if it is only a small amount, and leave it there. Save automatically where possible.

• Collect Coins – Put loose change into a can or jar. When the container is full, deposit the money into a savings account. Set aside $1 a day, plus loose change, and you should have about $50 a month, or $600 a year, saved. Save $2 a day, plus loose change, and you should have about $1,000.

• Complete a Savings Challenge – Pick a savings Challenge that matches your time frame and savings goal such as the 30 Day $100 Savings Challenge or the 50 Week $2,500 Savings Challenge. Savings challenges gradually ramp up savings deposits over time and provide motivation and structure.

• Continue to Pay a Loan or Bill – Make payments to savings or investment accounts with money that is freed up when loan payments end or an expense, such as childcare, ends. The rationale behind this savings method is that you are already accustomed to the payment so “redirecting” it will not pinch your cash flow.

• Break Costly Habits – Track your spending for a month or two and pick a few places where spending can be cut back or cut out to “find” money to save. For example, brown bagging lunch two or three days per week could save hundreds of dollars over the course of a year.

• Bank a Windfall – Save all or part of large, infrequent expected or unexpected sums of money. Examples of common financial windfalls include tax refunds, inheritances, settlements, awards and prizes, retroactive pay increases, and year-end bonuses at work.

• Crash Save – Decide that, for a month or two, you will buy only absolute necessities and save any money that remains after paying bills. At the end of the crash savings time period, treat yourself and buy the item(s) that you were saving for. Then resume your “normal” spending habits or set a new crash savings goal.

• Start a “Club” Savings Plan – Start a structured savings plan to save money over the course of a year for holiday or vacation expenses. Some banks and many credit unions still offer them. Unlike “coupon books” of years ago, weekly savings deposits are often transferred electronically from checking to savings.

• Save Your “Extra” Paychecks – Mark your paydays each year on a calendar. If you are paid bi-weekly, in two months of the year, you will receive three paychecks. If you are paid weekly, there will be four months with five paychecks. Anticipate these months in advance and plan to save part of the “extra” paycheck.

• Save Excess Expense Reimbursement Money – Review your employer’s reimbursement policy. If you get a fixed sum for business travel expenses, instead of having to collect receipts, and spend less than the per diem amount, save the difference. Ditto for mileage reimbursement for using a personal car for business.

• Reinvest Interest and Dividends Automatically – Arrange to have dividends and capital gains on mutual funds reinvested to purchase additional shares rather than receiving a check for a small amount and spending it. This is a painless way to increase investment account value over time.

• Participate in a Tax-Deferred Retirement Plan – Reduce your salary via payroll deduction to save for retirement and aim to take maximum advantage of employer matching. Money contributed to a 401(k), 403(b), or similar retirement savings plan and earnings on these funds grow tax-deferred until withdrawal.

For additional information about saving money, visit the America Saves program website.

By Barbara O’Neill, Ph.D., CFP, CRPC, AFC, CHC, CFEd, CFCS, Rutgers Cooperative Extension

In recognition of Community Banking Month in April, FNB and the Independent Community Bankers of America (ICBA) are reminding consumers of the benefits of banking locally with an institution committed to their financial success and that stands with them through life’s ups, downs and everything in between.

“FNB is invested in our community’s success and works alongside our friends and neighbors to support our customers and help them plan for the unexpected, reach financial milestones, and establish a path to financial freedom,” said Sally Hopkins, FNB President & CEO. “I commend my fellow community bankers across the country for their efforts to enable millions of Americans to achieve their financial dreams and to uplift communities nationwide as relationship lenders and stewards of their communities.”

Community banks take in local deposits and redistribute them back into the community—consistently making more than 60 percent of small-business loans and more than 80 percent of agriculture loans. They also contribute tax dollars that help maintain local municipalities and keep local neighborhoods viable and strong because serving the best interests of their customers is fundamental to their business philosophy. Community banks:

• Are highly favored by small businesses, earning a 74 percent net satisfaction score compared to 60 percent for large banks, 46 percent for finance companies and just 25 percent for online lenders, according to a Federal Reserve study.
• Are committed lenders with loan growth that has outpaced noncommunity banks for eight years.
• Demonstrate safety and soundness with higher capital ratios and better loan quality than the largest institutions.
• Offer high-tech, high-touch service, giving consumers access to modern-day conveniences while maintaining the superior customer service for which community banks are known.
• Have a strong track record in helping underserved Americans by focusing a relatively large share of their resources in low- and moderate-income tracts.

“Community banks are relationship lenders that stand by their customers and communities, and the pandemic has only emphasized their vital role in our financial system,” ICBA President and CEO Rebeca Romero Rainey said. “During ICBA Community Banking Month we are proud to recognize community banks as financial first responders who continue to demonstrate their flexibility to address unique financial needs while performing acts of community service that create healthy, resilient and vibrant communities, which benefit Americans nationwide.”

ICBA pays tribute to community banks for their ongoing contributions to their communities with ICBA’s annual National Community Bank Service Awards showcasing the unmatched role community banks serve by reinvesting their customers’ hard-earned dollars to support urban, suburban and rural communities throughout America.

About FNB

FNB Bank, founded in 1875, is one of the oldest banks in the state of Kentucky and ranks among the highest in the nation in the area of safety and soundness. FNB is a 2021 ‘Best Places to Work in Kentucky’ Small Business Category Award Winner.  The bank currently has nine locations:  Mayfield Main, Mayfield Southside, Wingo, Lone Oak, Paducah Midtown, Murray North, Murray South, Cadiz Main, and Cadiz West.  FNB is member FDIC and an Equal Housing Lender.

About ICBA

The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.

 With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.

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In honor of ICBA Community Banking Month in April, FNB Bank and the Independent Community Bankers of America (ICBA) are shining a spotlight on community banks’ outsized role in fostering economic wellbeing and meeting the financial needs of their consumers and local communities.

“As a local small business ourselves, we are invested in building the prosperity of our customers, while enhancing the community we all call home,” said Sally Hopkins, FNB President & CEO. “FNB invites our local citizens to explore how we can help them throughout their financial journey as we work together to help them achieve their personal and business goals—all while keeping deposits local and boosting our local community.”

Community banks take in local deposits and redistribute them back into the community—making more than 60 percent of small-business loans and more than 80 percent of agriculture loans. They also contribute tax dollars that help maintain local municipalities and keep local neighborhoods viable and vibrant because serving the best interests of their customers is fundamental to their business philosophy. Community banks:

• Are America’s most trusted lenders and have a 73 percent net satisfaction score compared to 58 percent for large banks and just 37 percent for online lenders, according to a Federal Reserve study.
• Are committed lenders with loan growth that has outpaced noncommunity banks for eight years.
• Demonstrate safety and soundness with higher capital ratios and better loan quality than the largest institutions.
• Offer high-tech, high-touch service. This gives consumers access to modern-day conveniences while maintaining the high-quality customer service for which community banks are known.
• Have a strong track record in helping underserved Americans by focusing  a relatively large share of their resources in low- and moderate-income tracts.
• Understand and embrace local small businesses. In fact, community banks make more than 60 percent of all small business loans under $1 million.
• Give back to their communities. Civic service is a way of life for community bankers as reflected in ICBA’s National Community Bank Service Awards.

“Local market knowledge, relationship-based lending, and civic-minded service are community banking hallmarks and the cornerstone to our industry’s success and longevity,” ICBA President and CEO Rebeca Romero Rainey said. “ICBA is proud to represent community banks nationwide and support their efforts to build better communities through a strengthened local economy.”

For more facts about community banks, click here. Follow the ICBA Community Banking Month conversation on social media with the #BankLocally hashtag.

About FNB Bank

FNB Bank, founded in 1875, is one of the oldest banks in the state of Kentucky and ranks among the highest in the nation in the area of safety and soundness. FNB is a 2021 ‘Best Places to Work in Kentucky’ Small Business Category Award Winner.  The bank currently has nine locations:  Mayfield Main, Mayfield Southside, Wingo, Lone Oak, Paducah Midtown, Murray North, Murray South, Cadiz Main, and Cadiz West.  FNB is member FDIC and an Equal Housing Lender.

About ICBA

The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.

 With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation, and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.

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