Tag Archives: Savings

6 Banking Tips for Millennials

As millennials juggle a multitude of responsibilities – from school, to work, to planning for major life events – the American Bankers Association is highlighting eight banking tips to help them secure a financially sound future.

“Millennials are digital natives who understand the importance of staying connected socially, but staying connected to their bank can help their finances as they encounter life’s many milestones,” said Rob Nichols, ABA president and CEO. “From enhanced mobile resources to free budgeting tools, banks offer a variety of products and services to complement millennials’ unique lifestyles and ease their worries as they prepare to make some of life’s biggest financial decisions.”

With a recent report finding that more than 4 in 10 U.S. millennials say they are “chronically stressed” about money, ABA recommends these six tips to help them secure a strong financial footing:

  • Use bank tech to save without thinking about it. Consider automatic payroll deductions or automatic transfer from checking to savings. Arrange to have a specific amount transferred to your savings account every pay period. For more information on Stock Yard’s savings options, visit https://www.syb.com/personal/banking/savings.
  • Download your bank’s mobile app and make some smooth moves. Manage your finances from the palm of your hand. With the click of a button, you can easily make a deposit or access a record of all your recent transactions. Be sure to download the latest updates when they are available.
  • Use the personal finance tools your bank may offer. Banks offer an array of budgeting tools and resources to help you keep your finances in check. Access these via your bank’s mobile app and website. Check out Stock Yard’s calculator tools to help you organize financial goals.
  • Expect the unexpected – set up a rainy day fund. The last thing you want to be is stressed when life’s unexpected expenditures come knocking on your door. Set up a secondary checking or savings account for emergencies or link an existing account to your main account as an added layer of protection.
  • Get a head start. Banks play a major role in helping customers prepare for major life events such as buying a house and planning for retirement. Ask your banker how you can get a head start on your first major purchase by establishing credit or about starting a retirement account with a 401(k) from a previous employer.
  • Stay connected with social media. Interact with your bank via social media to get the latest news on products and services, ask bank-related questions and find links to exclusive bank content and resources. Visit Stock Yards on Facebook, Twitter and LinkedIn.

For more information on millennial bank customers, including ABA’s recent infographic on millennials compiling information from various sources, visit aba.com/Millennials.

Information provided by the American Bankers Association.

Buying vs. Renting

Buying a home is one of the biggest financial decisions you ever have to make.  You will be required to ask yourself questions about the kind of floor plan you like, the neighborhood or area of town where you would like to live, the price range you can afford, and your preferences regarding having a yard which will require regular work and maintenance vs. a maintenance free lawn provided through a condominium or patio home.  However, the most important question (the question you should ask yourself first) is should I rent a home or should I buy?

There are definitely advantages and disadvantages to both and it is important to consider the pros and cons before making the leap into homeownership.

Advantages to Buying a Home Include:

Equity or Savings

If you are renting, the money you spend each month pays for your place to live, but it does not provide any kind of long-term benefit or savings to you.  If you purchase a home and are paying your mortgage payment each month, you are building equity in your home.  The more you pay, the more equity or savings you have.  Homes typically increase in value, which also increases the equity or savings you have in your home.

Income Tax Deductions

You can deduct the amount of interest you pay through your mortgage payments as well as the amount you pay in annual property taxes.  Uncle Sam does not allow this deduction for rent payments.

Creative Freedom

You can paint every room a different color and decide on any carpet or floor covering you want if you own your home.  However, if you rent, your landlord most likely will have restrictions on painting and other creative ideas you have to make your home fit your personality.

Stable Housing Costs

With a fixed rate mortgage, your monthly housing costs will be more stable than rent which can increase from year to year.

Home ownership can also develop a sense of self-pride, which provides strong ties to the community in which you live.

Advantages to Renting Include:

Less Responsibility

Repairs to a home can be costly.  As a renter, the landlord will be responsible for any repair costs.

Flexibility

Since leases tend to be short term (a year or less), it is easier to move around if you rent.

Insurance Costs

Insurance as a renter is much less expensive than insurance as a homeowner.  You are only responsible for insuring your personal contents and not the home itself.

Purchasing a home or choosing to rent is a personal decision that you as an individual must make.  Owning a home is a financial responsibility that requires planning and commitment.  Home ownership is not for everyone.  Renting can be easier if you want to pursue job opportunities that may require frequent relocation.  However, home ownership makes sense if you plan to settle into an area or community and want to pay toward something you can eventually pay off and own outright.

Should you buy or should you rent?  It can be a tough decision to make.  We have qualified mortgage professionals that will be happy to assist you in this process. We have many programs, including down payment assistance, that can be tailored to meet your needs. Visit our website at www.syb.com for more information.