Generational Financial Habits: Baby Boomers, Gen X, Millennials, and Gen Z.

Saving Money

When it comes to your spending habits, your age may influence your decisions more than you think! Depending on your generation, there may be some key patterns that differentiate you from your older and younger counterparts. Discover your key financial traits with this helpful guide courtesy of Raccoon Valley Bank.

 

Baby Boomers

Typically classified as the savers of the modern age, many of those age 51-70 are known for tucking away funds as quickly as they can accumulate them. Many baby boomers were affected by both the Kennedy and Martin Luther King Jr. assassinations and hold strong sense of mistrust of the system. There are many in this generation who choose savings options outside of financial institutions. This large generation of approximately 70 million people, is currently in the process leaving the workforce and entering retirement. The most important item on their financial agenda is to save and secure funds for the decades of life they will enjoy outside nine to five.

 

Generation X

Often overshadowed by the large baby boomers ahead of them, generation X’ers tend to be strong willed and decisive, fighting for their share of the financial pie. Having been one of the first generations to experience divorce as a normal occurrence, many of those adults age 40-50 continue to look out for their individual financial wellbeing through strictly defensive tactics. Boasting on the highest education rates, this group makes strategic savings plans, constantly preparing for the ball to drop. They are best known for their cautious optimism and lofty financial goals.

 

Millennials

The current generation of twenty and thirtysomethings, were shaped by a highly digital world. Growing up in the age of computers and terrorism, these young adults believe that the typical American dream, may be slightly skewed. In many areas, home and car ownership is on the decline as more and more millennials strive to gain experiences over material possessions. Influenced by their parental counterparts, it is common to see this generation shying away from long term debt after seeing their parents succumb to missed payments and foreclosures during the 2008 economic crash. Couple that cautious initiative with crippling student loans and added inflation, where now today many college graduates are working multiple jobs to simply make ends meet.

 

Generation Z

The up-and-coming generation of the century, this group is the first age demographic to grow up completely immersed in digital technology. The days of cell phones and computers encompassed their childhood, and many of those age 0-20 have never known life without the digital realm. Still relatively young, these Gen Z’s take diversification to the next level, not trusting too much in any one entity. With advancing diagnostic systems this generation takes time and consideration into account before making any major life decision. As this generation ages, more experiences and choices will continue to shape their financial style.

 

No matter what generation you are a part of, there are a variety of ways you can improve your financial habits. Speak with one of our experienced personal bankers today, and we’ll show you how to get started!

 

What Your Teen Needs to Know About Money Management

Personal Finances

Throughout their teenage years, your children will begin to grow their personal money management style. Offer them some assistance by offering these four financial lessons from Raccoon Valley Bank.

 

Securing Their First Job

No matter if it’s babysitting, lifeguarding, or bagging groceries, there are plenty of employment options for eager high school students. These opportunities typically start at minimum wage with zero benefits, but offer a foundation of experience and learning. Talk with your son or daughter, and help them select positions to apply for that resonate with them. Resources such as the Chamber of Commerce often list local job openings, and are a good place to comb for recent availabilities.

 

Managing Money

The younger you begin various habits, the better they stick with you. Teach your children the positive effect proper money management can have on their pocketbook. Start by opening both a savings and a checking account for your teen. Each pay period, help them figure ten percent of their earnings to put into their savings. You can also work with them one-on-one each month to help balance their checkbook and plan for any large expenditures.

 

Saving for College

Secondary education isn’t cheap. If your son or daughter plans on attending a college or trade school, the time to start saving is now! Work with your future student to determine an educational budget, providing an estimate of upcoming expenses. Once you know the amount needed you can set savings goals for both you and your teen to start tucking money away. The sooner you begin your savings journey the smoother the road will be to your target amount.

 

Making Payments

Whether it’s purchasing their first car or simply covering the cost of meals at school, learning how to maintain a payment plan is an important life lesson. Explain your personal bill paying system to your teen and see how they can tailor it to their needs. Once they have a grasp on the system itself, gradually add payments to your child’s list of responsibilities, even if you add the money to their account. This will help them learn to keep an updated payment calendar before they graduate high school.

 

Money management is a continual learning process. There are always new techniques or tricks to better arrange your finances. Don’t stop honing your teen’s money management after these four lessons – stop by Raccoon Valley Bank and see how you can keep growing your family’s financial skills today!

How to Hit a Homerun in Retirement

Retiring

 

Winning in a baseball game or in your retirement savings is no easy feat! It takes dedication and determination to seal the win. As you begin to reexamine your retirement plan try these key pointers from Raccoon Valley Bank to coach you along the way!

 

Load the Bases

 

If you have available resources, make sure you’re using them! Just as a batter is primed to score with his bases covered in players, so are you by capitalizing on your 401(k), IRA, personal savings, and structured investing plan. Score extra points by taking advantage of your company’s 401(k) which matches your monthly contributions up to a certain percentage of your salary. Those are free dollars to aim towards your retirement!

 

Pitch a No Hitter

Don’t let the opposing team get ahead; work to pitch a no hitter by setting up your emergency savings fund. Instead of walking any unexpected expenses, such as auto repairs or medical bills, send those players back to the dugout with an added savings curve ball. You’ll be protecting your savings and racking up points, while staking your claim to your space in the hall of fame.

 

Build a Winning Team

Just as you would compile your fantasy team around leading scorers and left handed pitchers, the same applies to your financial team! At Raccoon Valley Bank we have a well-rounded lineup of personal bankers, wealth advisers, and lenders to help you make it to the big leagues.

 

Play Extra Innings

Even in retirement, there’s no rule against a little over time! Take up a part or full-time job you enjoy to cover living expenses before you have to dip into your savings account. You and your spouse could land a home run in the bottom of the 10th with some additional income at the start of your retirement.
No matter if you’re swinging for the fences or just trying to get on base, our experienced team at Raccoon Valley Bank can help craft a game plan for your retirement! Give us a call at (515) 993-4581 or stop by the bank today!

10 Things Successful People Do

Successful People

Ever wonder how Mark Zuckerberg or Richard Branson got where they are today? Success doesn’t come easy, but it grows where it is watered. At Raccoon Valley Bank, we want to help you climb into success with these simple tactics! Learn how to begin your journey to the top with these 10 key actions:

 

  1. Have maker time. No matter how many meetings there are in a day, schedule time each and every day to create, produce, and whittle down your to-do list. Not only will you get more done, but you’ll get more completed within your structured time!
  2. Prioritize your tasks. Sometimes that to-do list can be a mile long. Start your day with one main priority, and three sub tasks. Once these core items have been completed you can move on to the other smaller agendas you have for the day.
  3. Keep your values. Whether it’s making it home for dinner, or keeping on top of an evening health regiment, realize there are other values outside of work that need your attention too. Designate your time at work to do the most you can, so once the clock hits five, you know you’re scheduled to be somewhere else.
  4. Strategize your meetings. Do you need to be in every one of your meetings? Perhaps not! Speak with meeting organizers to determine if your input is truly needed and if so, could that be communicated through email instead? Time is precious, so make the most of yours!
  5. Say no. No is a powerful word. While you may not be able to say “no” to a supervisor’s request, when being asked to participate in additional projects, be selective and only join the workload you can handle appropriately
  6. Know when to delegate. You can’t do everything yourself. Invest time in your peers and ensure that if you need a task completed, they are up to the challenge. A great leader utilizers their team’s strengths and weaknesses, so be sure you’re putting the best person on each task.
  7. Create a daily routine. Everything from your morning breakfast choices, the various times you check your emails, to your scheduled breaks, you need to have a routine, and stick to it!
  8. Treat failure as a lesson. There’s a learning experience in every failure. By taking this simple mindset to heart, you can embrace the good that comes with every thwarted attempt. This insight helps not only grow your current project, but also broadens your mind to potential possibilities for future endeavors.
  9. Choose a mentor. The day you stop learning is the day you stop growing. One of the most effective things successful people do is to continue to learn. By never boasting a full cup, you can continue to add valuable knowledge to your repertoire and learn from someone who’s navigated many experiences you’ll soon face.  
  10. Wake up early. The early bird gets the worm! Whether you start work at 4:00am, 8:00am, or 8:00pm arrive early to collect your thoughts before your co-workers swarm in. During rush hour you’ll also notice an easier drive if you leave an extra half hour or hour early.

Start a New Business in 5 Easy Steps

Business

Getting your business off the ground isn’t always as easy as it seems. With a laundry list of to-do items, it can be hard to prioritize which needs have to come first. Luckily, Raccoon Valley Bank is here to help! By following these key stepping stones, we’ll help you get on the path to success with your new business venture.

 

  1. Develop a business plan. Determine what it is you want your business to do, and how you want to do it.
  2. Capital. Capital. Capital. Make sure whether you’re working with investors, securing a business loan, or putting up the money yourself, you have all the funds you need in addition to a large cushion for overhead and operating expenses.
  3. Get it in writing. With options such as an L.L.C, Corporation, S Corporation, Nonprofit or Cooperative, you’ll want to protect your personal finances with a legal structure for your business.
  4. Make it official. After registering with state and local tax agencies, you’ll need to obtain the appropriate permits and licenses to make your business compliant with local laws and regulations.
  5. Get people in the door. Ensure you have an effective marketing strategy, or list of transferred clients to get your business off the ground. The old saying, “If you build it they will come,” no longer applies. Make sure everyone in your area knows you’re opening, and offer a valuable incentive to help encourage them to stop by!

 

Local businesses are the backbone of small town America. If you’re looking to set-up your own new shop, Raccoon Valley Bank is eager to help! Our experienced business lenders are here to find you the best business financing option for your needs!

How to Tip on Vacation

Vacation

Traveling the world is both adventurous and insightful. From climbing mountain peaks, to swimming among tropical fish, wherever your next vacation takes you, make sure you’re financially prepared. At Raccoon Valley Bank, were excited to help you get ready for your upcoming destination! Try these tipping tricks next time you’re out and about on your future getaway.

 

Bartenders: $1 per drink or, or 15-20 percent of the total bill.

 

Bellman/Porter: $1-2 per piece of luggage.

 

Casino Card Dealers:Tip a chip in the amount you are betting, staggered on your amount of win’s. If you are playing $5 chips and win a few then giving the dealer a $5 chip as well.

 

Concierge: $5 per request.

 

Hairdresser/Manicurist: An additional 10-20 percent for a good service.

 

Housekeeping: $2-3 per night up to $5 generally in more high end hotels.

 

Instructors: An additional $10-20 per quality lesson for various sport or leisure activities.

 

In suite dining: Service charge goes to the hotel not the waiter. If no gratuity added put on an additional 15-20 percent tip.

 

Scuba Diving: For an afternoon (or 2 tank dive) it is common to tip $20 per person, per day of the trip. These tips generally go to the deck hands and dive guides for equipment hauling and tank turnover.

 

Spa: Tip 10-20 percent if gratuity has not already been included.

 

Tour Guides: 15-20 percent or more depending on knowledge and quality of the outing.

 

Valet Parking: $2-5 when picking up car.

 

For all your vacation excursions and more, these helpful tips will aid you in all of your travel spending. To better manage your finances back home, be sure to give Sunset Bank & Savings a call! We’ll work with you to help boost your savings to make your next vacation a relaxing success.

Save $3,500 this Year by Removing These 6 Things

Savings

Saving money is no easy task! Only after dedication and determination, can you look successfully into your account to see the difference saving can make. At Raccoon Valley Bank, we’re excited to help you achieve your financial goals, and we can’t wait to get started! If you’re looking to tuck some funds away for an emergency savings, or vacation fund, these six tips can help you accumulate $3,500 in savings over the course of the next year.

 

  1. $720: Cut the cable – at $60+ each month this common expense eat up your budget in a hurry!
  2. $1400: Brew your own java – instead of grabbing a latte on your way to work make your own cup of joe and save that extra $4/day.
  3. $600: Plan Your Meals – instead of playing by ear each night for dinner, make a dedicated meal plan each week and stick to it. This will help cut costs on eating out and unused groceries. Remove one dining out meal each month and see the difference this can make!
  4. $468: Workout at home – the average gym membership runs $39/month which over the course of the year can add up quick. Try online workout videos and create a routine which uses various household items.
  5. $312: Pack your lunch – With most quick lunches running about $10/each, sneaking away for lunch could be costing you! Try packing a lunch from home to avoid these expensive dining options. Changing just three lunches each month could save you more than three-hundred dollars!

 

Learn how to open up your ideal savings account at Raccoon Valley Bank to get started on your savings dreams today!

The Real Cost of a Fixer Upper

Fixer Upper

The Real Cost of A Fixer Upper

Throughout your real estate search, you’ve probably asked yourself the infamous question, “What would Chip and Joanna do?” With HGTV’s Fixer Upper series gaining popularity, more and more families are looking to buy inexpensive fixer uppers to fulfill their home buying dreams. Filled with projects, setbacks, and endless design potentials, these diamonds in the rough come with their own unique set of pros and cons. Luckily, Raccoon Valley Bank is here to help you discover the true cost to working through your own fixer upper.

 

Every home has different needs, but these are some key expenses you’ll need to plan for when purchasing a fixer upper:

 

  • Realtor Fee: if you’re selling your current property, be prepared to fork over the 6 percent fee to have your home sold. Ideally you’re looking to sell your home for a higher dollar than you purchased it for, but this is not always the case. Be sure to have some funds in reserve just in case you have to cover the realtor fee out of your own pocket.
  • Construction Costs: Typically divided into two billing arenas, you can expect to either pay one lump sum, or a calculated cost of labor, materials, and an added profit margin. Expect to pay $100-$200 per square foot of intensive renovation work.
  • Materials: The more upgrades you want, the faster your price will climb. While simply getting the property up to speed is a task all its own, creating your own customized space inside will continue to add dollars and cents to your overall bill.
  • Furnishings: Depending on the format of your last home, you may be upgrading your furniture in this new abode. After various searches and bargain finds, you’ll still need to tuck away and extra some extra funds to ensure you can furnish the home once it is finished.
  • Landscaping: Now that the house is complete, it’s time get to work on the curb appeal – and it isn’t cheap! With an average price tag of $5,000, finishing your home with a completed landscape design can also add to the overall budget.

Altogether, purchasing a fixer upper may cost about the same as a newer home purchase after the cost of renovations. The advantage to these love-needing homes however, is their potential for customization, and creating the ideal home for you and your family. If you’re looking to repair or update your next home, consider financing through one of our structured Home Equity Lines of Credit. Our experienced mortgage lenders are here to help you every step of the way!

The Most Common Phishing Scams and How to Avoid Them

Scams

The Most Common Phishing Scams

Phishing is a common term for the unfortunate schemes hackers and online criminals use to lure users into giving their personal information. Typically disguised as familiar online activity, these scam artists have cleverly found several distinctive ways to attempt to trick YOU into handing over your private details. Be on the lookout for these common phishing scams next time you’re roaming the web!

 

  1.   Foreign Lottery Scam

With this tactic you generally receive an email informing you that you have just won the lottery of some far-away land! To obtain these exorbitant funds you simply have to send a small fee to cover the transfer cost. A simple online search will show that this thrilling lottery is no more than phony website with a long distance phone number. Typically if the sending address doesn’t look familiar, or if you have not applied to any foreign lotteries, it will be a dead giveaway that this email is just an attempt to get your information and your money.

 

  1.   Survey Scam

Do you like supporting the humane society or other animal organizations? This scam takes advantage of your online history and sends you a survey to submit your opinion on issues that matter to you. Instead of using your responses on animal treatment, this system discovers your email address, and other relative personal information, to hack your account and send out further spam emails.

 

  1.   Online Banking Scam

Most phishing schemes disguise themselves as something familiar, often as PayPal or even your personal bank. This particular scam typically indicates that some type of immediate action is needed, and your financial account is at risk. Before sending any type of reply communication, check the source of the email, and call your personal contact at the organization to see if the email is legitimate. If you question the validity of any portion of the email, delete it and call the company this con artist is attempting to masquerade as ASAP.

 

  1.   Clickbait

Social media has a hacking arena all its own. With links scattered across newsfeeds, it’s often hard to determine what is genuine and what is clickbait. Clickbait is a link generated using common controversial issues to get you to click on it. Once clicked, the link may switch to a Facebook login, where you login again. Unfortunately this false login page is a common maneuver by cyber criminals to get your social media login. Having this information, online criminals can now access your account and spam the people you are connected with.

 

If you think you’ve been a victim of an online phishing scam and your personal banking information has been compromised, call Raccoon Valley Bank. We’ll help you watch for signs of identity theft within your personal bank accounts.

What’s Your Spending Style?

Spending Style

What’s Your Spending Style

Everyone spends and saves differently. There are spending personalities on all ends of the spectrum that range from extreme spenders to tireless penny pinchers. Discover what type of spender you are with this helpful quiz courtesy of Raccoon Valley Bank.

 

What’s your typical lunch during the workweek?

A: A packed lunch, typically leftovers from the night before.

B: A variety of prepared lunches from home and a handful of take out meals throughout the month.

C: I usually grab something from one of the local restaurants during my lunch break, occasionally I’ll bring something from home if it was really good.

D: I can’t get through the day without my latte in the morning, and a solid lunch out of the office in the afternoon.

 

How important is your credit score to you personally?

A: I live and breathe by this number, it influences almost all of my buying decisions.

B: I check my credit every month, it’s important to know where you stand.

C: I have a general idea where I’m at, but it’s not the first thing on my mind.

D: What’s a credit score?

 

If you want something that is $3,000 but you only have $1,500 available funds in your account what would you do?

A: Wait until I can save the additional $1,500 I need before purchasing it.

B: Compromise on a similar item that only costs the $1,500 I currently have.

C: Purchase the $3,000 item, paying $1,500 up front, and putting the rest on credit.

D: Purchase the $3,000 item and put it all on credit.

 

What does retirement savings mean to you?

A: Roth IRA, 401(k), stocks, bonds, and personal savings.

B: Using my work benefits along with personal savings.

C: I think I get something for retirement through my place of employment.

D: Something I don’t have to worry about until I’m older.

 

When you see an exciting impulse buy, how do you manage the situation?

A: I remind myself I’m here for these 5 items and nothing else.

B: I remember I already bought a small impulse buy yesterday, so this one could potentially harm my budget.

C: I made it through the work day today, I deserve this.

D: I already have 4 other things I wasn’t expecting to buy, what’s one more?

 

If most of your answers were [A] then you are a Penny Pincher: For you, finances are the key to your existence. All aspects of your financials are crafted into a strategic plan to make the most out of your various savings accounts. You’re the first to suggest a restaurant based on cost, and the last to splurge on a large purchase. Typically you’re also the person other family members typically ask for well-rounded financial advice.

 

If most of your answers were [B] then you are a Balanced Budgeter: In your world, the life of a budget doesn’t have to centered around a hunker down mentality. A budget is a fluid medium that is meant to be customizable to you and your needs. Occasionally an added expenses or unforeseen purchase is needed or warranted, but overall, you ensure you and your family stay on track with a well thought out financial plan.

 

If most of your answers were [C] then you are a Cautious Creditor: Although much of your financial expertise is based on credit card rewards, and other point benefits, you do care about your money management. While not all your choices are made to help boost your savings, there are certain measures you take on a continual basis to help push your financial goals forward.

 

If most of your answers were [D] then you are a Debt Developer: Often times you spend more than you intend. Between check-out line snacks, and lunch time splurges, your bank account just tries to keep up. Understanding your financials isn’t necessarily first on your list of priorities, but there are certainly some things you know you could improve. You appreciate the things you purchase and genuinely enjoy the experience of shopping.

 

No matter what type of spender you are, Raccoon Valley Bank is here to help you succeed. For everything from setting up savings accounts, to consulting on wealth management, we have everything you need to continue your financial success. Give us a call at (515) 993-4581 or stop by today to get started!

We're Centered Around You