County National Bank

In an effort to teach the local community how to effectively use credit, CNB is teaming up with the American Bankers Association Education Foundation’s Get Smart About Credit program.  The program, now in its ninth year, is a national campaign of volunteer bankers who help young people develop responsible credit habits. County National Bank has contacted area schools and is prepared to leave the bank and join the classroom.  It’s a great opportunity for bank staff to share with students ways to use credit responsibly.

As a participant in the Get Smart About Credit program, CNB offers the following Dos and Don’ts of Credit:

• DO pay at least the minimum due and contact your creditor if you have trouble making payments.  This will help you avoid late fees and a rising APR.  To pay off your balance quicker, pay more than the minimum due.  If you are unable to make the minimum monthly payments, let your creditor know so they can work with you to create a more manageable payment plan.
• DO be wary of anyone who claims they can “fix” your credit report.  No one can legally remove negative accurate information from your credit history.  The only thing that can fix a credit report is time and a positive payment history.
• DO read the fine print on the credit application.  The application is a contract, so read it carefully before signing.  Credit card companies are very competitive so interest rates, credit limits, grace periods, annual fees, terms, and conditions may vary.
• DON’T feel pressure to get a credit card.  If you don’t want one, you have the right to say no.  Under the new CARD Act 2009, consumers aged 18-21 cannot be solicited for credit.  If you no longer wish to receive prescreened offers, opt out by calling 1-888-5-OPTOUT (1-888-567-8688).
• DON’T ignore the warning signs of credit trouble.  If you pay only the minimum balance, pay late, use cash-advances to fund daily living expenses or transfer a lot of balances you might be in the credit danger zone.  Talk to a financial counseling organization to regain control of your finances.
• DON’T share your credit card number.  Never give out credit card or personal information if you have not initiated the transaction.  Be aware of identity theft and phishing scams that ask for credit card numbers.  If you suspect that your identity has been compromised, file a complaint with the Federal Trade Commission by calling 1-877-ID-THEFT (1-877-438-4338).

A budget is an organized list of your sources of income and the money you spend on essentials like housing and food, fun things like dinner and a movie, and what you need to save for the future. Just as using a map to make sure you reach your destination, budgeting is a tool that helps you realize your financial goals. It can help you navigate those moments when you experience financial difficulties. You can take charge of your finances by setting financial goals, planning a budget, and sticking to it. Saving is important for many reasons, including for unexpected expenses such as car repairs, medical emergencies, and possible unemployment, and for planned needs such as a vacation, college tuition, or retirement. A budget can also help you reduce your debt.

Collecting as much information as you can about your spending will allow you to prepare and plan. Keep monthly records of your spending so you’ll spot places where you can save money. Know how much you can reasonably spend — and be realistic about it. Being disciplined to save a smaller amount of money on a regular basis is generally better than saving more money sporadically. Finally, rewarding yourself by spending a reasonable portion of money you have saved with the help of a budget is a good incentive to stick with your budget.

read more »

Teens notice each time you pull out the plastic – but do they understand how it works? Probably not. You might be using a debit or credit card – very different ways to pay for things, but to kids, they look the same. Any time you make a purchase, regardless of whether you use cash, credit or debit, there’s an opportunity to teach kids about saving, budgeting, and credit.

Learning about credit cards and debit cards is particularly important for teens, with debit cards becoming a very good option over credit cards. In fact, 50% of teens aged 18 and 19 had a debit card in 2005, according to Teenage Research Unlimited, up from 37% in 2001. Moreover, credit cards held by this same group declined to 25% in 2005 from 45% in 2001. Teens and their parents are realizing that a debit card can be a very valuable budgeting tool since cardholders can only spend what is already in their account. As kids mature, a credit card will be an important option in order to establish a credit history that may be necessary to rent or purchase a home. The credit history may even be checked by a potential employer. Thus, helping your teens develop good credit management habits will help them avoid serious consequences that can last for years.

read more »

Planning and saving for retirement may seem like goals that are far in the future. Yet saving, especially for retirement, should start early and continue throughout your lifetime. Here are four reasons why saving matters to women – and especially to you!

Do you know?

• Women are more likely to work in part-time jobs that don’t qualify for a retirement plan. And working women are more likely than men to interrupt their careers to take care of family members. Therefore, they work fewer years and contribute less toward their retirement, resulting in lower lifetime savings. If you work and if you qualify, join a retirement plan now.
• Of the 62 million wage and salaried women (age 21 to 64) working in the United States, just 45 percent participated in a retirement plan. Remember, even small amounts can earn interest and add up over time.
• On average, a female at age 65 can expect to live another 19 years, 3 years longer than a man the same age. Savings can increase a woman’s chances of having enough money to last during her retirement.
• By and large, women invest more conservatively than men. Choose carefully where you put your money and learn how to improve your investment returns.

read more »