Tag Archives: education

How Reading Can Improve Your Financial Well Being

Does being a reader make you more of a leader? Well that might be the case in life and the financial world.  When infamous Warren Buffett was asked about his success he pointed to a stack of books and said, “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.” Most likely if you’re reading this article, you already see some value in the declaration and are here for affirmation. However, for those of you who still aren’t convinced and maybe even guffawed at the notion of fitting in that much reading into an already hectic schedule, let Raccoon Valley Bank give you some insight to consider.

 

It’s a Low Cost Investment

Instead of taking an expensive flight to an expensive conference, you might consider swinging by your nearest bookstore. Because there is no limit to where knowledge can take you, investing in books is a low investment, with an infinite ROI. You can learn from the best in your business field, or pick up a novel.  The jury is still out on whether memory or comprehension is better with print vs. digital, so get what works best for your lifestyle. Owning the book is preferred if you want to become more engaged by writing in the margins, but stopping at your local library another great option!

 

Makes You More Employable

You can make a great difference in your success by expanding your education. Generally, knowledge cannot be lost. What you learn from reading a few books will set you apart, in that you already know something that has taken others years to learn from experience. Unfortunately, only 42% of adults will read a book after they graduate from college-just think about how much of an advantage that can give you! You will be a great resource for your team and have a greater ability to think on your feet because of the reading vitamins you consume. This makes you more desirable to potential employers and encourages a higher salary because of the value you bring to the workplace.

 

Boosts Brain Power

You’ve heard it said, knowledge is power. Are you unhappy about your financial situation? Pick up the Wall Street Journal or the financial matters section in newspapers. You are sure to gain a wealth of information to help you out of your current situation. Some studies show reading will help strengthen your analytical skills, increase your vocabulary and help you to prioritize goals. Your knowledge of the world will be stronger, and you may just notice your financial skills sharpening as your mind is being refined. This is especially true when you read chapter books, as it encourages deep reading and assessment.

The majority of what you read will not only make you a more rounded individual, it will help you to make more sound, financial decisions. You will be a greater financial asset to your company, and yourself. So grab a book, a hot cup of coffee and settle into your next lesson!

Student Loan PSA: What Student Debt Really Looks Like

Student Loans

Obtaining your secondary education can be a landmark goal on your journey to success. By opening up opportunities, and enhancing your capabilities, the study of a discipline gives you the skills you need to conquer your future ambitions. More often than not, student loans offer a helpful supplement when financing this experience. However, many students are able to obtain these financial aids without having to budget or offer a credit history, causing a higher likelihood of default among student borrowers. To help avoid this, Raccoon Valley Bank suggests answering the following questions before choosing how to pay for your collegiate participation:

 

What are you starting with?

The first question you should ask yourself is, ‘What money do I have to begin my education?’ If you have applied for and received scholarships, those should first count towards tuition and books. Additionally, if you have any financial support from relatives, these funds may be allocated best at the base of your budget during your college planning. By totaling the sum of these two amounts, you can determine the support outside your own savings that will be contributed towards your future learning efforts. Knowing whether or not this amount will be offered on a recurring basis can help you then decide what financial steps you need to take in order to save, earn, and/or borrow the remaining funds necessary.

 

How much and how often can you contribute?

After learning your total amount of support, it is now possible to create a plan of action to facilitate the rest. Depending on your length and type of education, your costs may vary drastically. When selecting both a field and institution of study, the factor of price is an important one to consider. By thinking of your education as an investment, you can ensure that you choose both a rewarding and promising career path to help you repay any debt you do incur during this time. To help decrease overall expenditures, many students take on a part-time job to supplement the costs of their education, along with the associated room and board. Utilizing this choice can decrease the overall amount of your anticipated loan, and help you avoid the additional expense of interest. Should the cost your education still be more than you can currently cover, the option of a student loan may be a viable solution.

 

What is student debt?

While obtaining an education has potential and opportunities, the accompanying debt can often be overbearing. In order to minimize this, we recommend borrowing only the minimum amount needed. By opting for a lesser sum, you are able to save your future-self hundreds or thousands of dollars on interest alone. For example, the average debt for a United States student is approximately $37,172. With borrowers averaging ten years for repayment, the potential cost of interest alone can add up to over $9,000.

 

Choosing the best option to finance your education can affect your life well past college. To help you make the most informed decisions, our team at Raccoon Valley Bank offers sound financial advice and information. To learn more, stop by one of our locations, we’d love to get to know you and your education aspirations.

5 Easy Lessons to Teach Your Children About Money

Teaching Your Children

Building a successful financial future for your little one starts with a strong foundation. At Raccoon Valley Bank we offer financial opportunities for all ages! Grow the building blocks of fiscal understanding with your kiddos using these fun and easy lessons.

 

  1. See the value of savings: Before they understand the concept of retirement, help them see the advantage of long term savings. Just as companies offer to match their employee’s savings plan contributions, offer to match your child’s investment in a purchase. If they save for half the amount, you’ll contribute the other half.
  2. Create a goal chart: Saving for a car, a college degree, or a home takes years of planning. Let your child see the value of long term savings by helping them visually track progress in their own investment. Choose a purchase such as a new tech device or a day trip to an amusement park. Based on their allowance and other sources of income, draw a column of boxes to represent the number of weeks of savings it will require, then draw an X or place a sticker in each box once they save the weekly amount.
  3. Open a savings account: An interest-bearing savings account can help your child track their money as it expands through simple deposits and compound interest. Open an account for your child early on to educate them on the concept of finances, and have them deposit a percentage of their allowance each month to see their own wealth grow.
  4. Demonstrate checking: When your child is comfortable with complex addition and subtraction, have them assist you as you track your deposits and purchases while balancing your checkbook. Show them a bank statement and explain the different components, identifying which numbers help you balance your checking account. Take this opportunity to explain the relationship between savings and checking accounts and give examples of why and when you would use each.
  5. Set an example: Your children look to you to set a precedent, so if you save, they save, and if you spend, they spend. Set up a savings jar at home for extra change and designate these additional funds to fun family events such as ice cream trips, movie nights, and more. Show them the power of savings one coin at a time!

Raccoon Valley Bank wants to see you and your little ones succeed. Stop in today to learn about our children’s savings account options!