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Basic Banking Tips to Renew Your Financial Knowledge

New year, new financial game plan. Renew your financial knowledge with fast facts of three financial topics that’ll set you up for a successful 2016, courtesy of Iowa State Bank & Trust.

Creating a Monthly Budget: How-To

Categorize your expenses: Break up what you spend into obvious categories, like housing, food, auto, and personal. Then identify essentials from extras, starring the things you can’t live without and the one or two “extras” that add much-needed meaning to your life.
Identify what’s earned, estimate what’s spent: You can’t budget if you don’t know what you’re working with. Nail down exactly what you bring in each month with income after taxes and other side sources of cash flow, and subtract from it an estimate of what you typically spend in 30 days. This allows you to see if you’re saving, breaking even, or coming up negative.
Know where you’re going: If you have nothing you’re working towards, what’s the point of a budget? Pick a goal – paying off debt, buying a car – and rework your numbers from steps 1 & 2 to create a way to get there.

Understanding the Top 3 Bank Account Options

Savings: Use this one to save money first and foremost. Make deposits and withdrawals, but writing checks may be off the plate. Check up on your monthly or quarterly statements of these transactions to stay in line.
Basic Checking: Draw money for checks from this account. Typically, they don’t pay interest, and you may face an added fee for writing more than a certain number of checks each month.
Certificates of Deposit (CDs): Also called “time deposits” because of the holder’s agreement to keep money in the account for a specified time (three months, six years, etc.). Money here can’t be touched during that time, but it’s rewarded with a higher interest rate. Drawback: there may be penalties for withdrawals before the maturity date.

Launching a Retirement Plan

Know Your Needs: Your current age, expected age of retirement, amount currently in savings, and other factors are needed to determine how much you need to set aside. Check out a nifty retirement calculator for a rough estimate.
Check Your Employer’s Plan: If your employer offers a 401(k) or similar plan, hop on it. Lowered taxes, matched contributions from your business, and automatic monthly deductions make savings a breeze.
Start saving ASAP: Compound interest is a beautiful thing. Saving smaller for a longer length of time often yields more benefits than if you start saving big late in the game.

If any of these fields piqued your interest, our financial advisors at Iowa State Bank & Trust would love to help you learn more for a brighter new year!

Fun New Traditions for This Holiday Season

By this point of the season, your “holiday cheer” may be running thin. Candy canes? Too sweet. Festive tunes? How ‘bout no. If you need a spark in the ho-hum laundry list of holiday traditions, try a couple of these inexpensive adventures with your family to make a new tradition, courtesy of your friends at Iowa State Bank & Trust.

Create a crazy dinner: Hate spending hours in the kitchen prepping an elaborate meal while missing shenanigans in the next room? Let your family take the reins and give each member $3-$5 to spend at the grocery store on any item they want for dinner. Kids can go nuts grabbing items that might not normally make it to the table, and siblings can pool their money to buy big ticket items. Take your spoils home and enjoy a bizarre, family approved candlelit dinner that you can reminisce about at next year’s crazy meal.

Decorate the tree skirt: Buy a simple, solid colored tree skirt from a dollar store or bargain bin, and trace each of your children’s hands around the edge with a black sharpie. Let them write their name and age inside the handprints as soon as they’re able, and keep track of their growth each year when they add an annual handprint under the tree.

Update the holiday memory book: Grab a blank page from your scrapbook and record the highs and lows from the yea, attaching your family’s holiday card below. At your annual holiday gathering, pass it around to other families and ask them to do the same, preserving stories of your extended family in one treasured keepsake.

Tour the town: Bundled in pajamas and coats and blankets, load your kids into the family vehicle and cruise around town looking at the holiday light displays. Check your local paper ahead of time to scout out the most luminous neighborhoods and displays from area businesses. Bonus points for bringing hot chocolate and a tin of holiday cookies to pass around.

Write keepsake letters: The night before your special holiday, write a letter to each of your kids about the events, gifts, and excitements that made that December special for them, as well as your hopes for their new year. Keep these letters in a small holiday box that you share with them when they turn 18.

Operation Holiday Cheer: Show your kids it’s better to give than receive. Discover ways to uplift neighbors and members of your community. Shovel snow, bake treats, hang lights, all for the betterment of another. Not only will they get the reward of a job well done, but they’ll get to experience the joy of giving to others with no expectations or strings attached.

Iowa State Bank & Trust wishes you and your family a happy holidays!

What You Need to Know About Charitable Giving

During the season of giving, Americans dig into their pockets to give back to their favorite charities. You can give and receive this holiday season with tax deductions on charitable donations, minimizing taxable income and lowering the total amount you owe come April 15. Check out charitable giving FAQs from Iowa State Bank & Trust to help you make the most of your generosity.

Where does my gift need to go to make it tax deductible?

Score a deduction by itemizing and filing a 1040 form when you donate to a qualified organization. Non-profit institutions like religious groups, public government causes, nonprofit schools and hospitals, public parks and recreation areas, and war veterans’ groups fall under the qualified category, whereas for-profit entities, individuals, or political candidates for public office, don’t make the cut.

What’s with itemizing?

There are two types of deductions: standard and itemized. Standard is a fixed amount that reduces the income you’re taxed based on your filing status and age. Itemized lets you list your deductions on a schedule, which includes filings like property taxes and charitable donations. If you claim standard instead of itemized on gifts, you may not receive the deduction you deserve.

How much can I deduct from charitable donations?

If your cash benefits a public organization, deduct up to 50 percent from that year’s Adjusted Gross Income (AGI). That means that a $25,000 donation from your $40,000 AGI will only let you claim $20,000 on your charitable gift in the year that you give it. You can, however, roll over that extra $5,000 up to five years after donating. For contributions to private donations like the Bill & Melinda Gates Foundations, use the same rules but swap 50 percent with 30.

I donated stuff, not cash. Does that count?

Yep! Household goods (clothing, furniture, certain appliances, etc.) and other personal property can be claimed based on fair market value. However, it must be in good or better shape that when it was first purchased for the IRS to count it as a deduction. Regardless of the item, keep track of receipts from your donated items, which is especially required for donations of more than $250.

More questions about how your charitable giving plays out on your tax forms? Our financial advisors would love to lend a hand. Give us a call at Iowa State Bank & Trust, and have a happy holidays!

5 Tips to Saving Like a Millennial

For those graduating in 2016, lessons have only just begun. 7 out of 10 Millennials face nearly $30,000 of debt before they’ve even stepped off campus, making the need for a financial education critical. Iowa State Bank & Trust suggests you pass on these five money-savvy lessons to a help secure a financially secure future for everyone:

Spend like a student until you’re not paying like one. Some classmates may get a lucky break from the get-go, landing jobs with salaries that help them pay off their debt fast. Others hop into the workforce with a clean slate thanks to scholarships and grants that prevented debt. If you’re not in either camp, don’t spend like you are. When they’re buying new cars or moving to expensive cities, continue spending as frugally as you did in college until you can afford otherwise.
Harness the power of compounding. Start saving ASAP. For a car, for a house, for retirement, it’s never too early to start setting aside a portion of your income for later. When faced with bracing against a monsoon of student debt, a consistent, small addition to savings can rack up big interest in the long-term.
Take advantage of employer-sponsored plans. If your company offers a 401(k) or similar retirement plan, jump on it. Small, regular paycheck deductions create a consistent boost in your savings without the temptation of spending. Also, deductions reduce your taxable income, meaning less income tax is lifted from your paycheck.
Cash isn’t always better than credit. Cash may help you limit splurge purchases and stick to a budget, but it can’t build your credit score. When it affects your ability to secure a loan, the interest rate you’ll pay on it, and at what credit limit, your score can’t be taken lightly. 35% of your rating is simply based on making your payment on time, so make monthly online purchases and grocery charges with your credit card so you can easily pay off your balance in full each month.
You can’t learn everything online. Yes, the Internet gives access to tutorials and FAQs and budgeting programs that can help you manage your financials. However, it can’t fully replace the expert opinion of someone trained to diagnose and treat your unique financial ailments. Maintaining a relationship with a financial advisor is invaluable, as they walk with you through the peaks and valleys of your monetary journey and can guide you in the right direction.

If you have a younger loved one that could benefit from Financial Literacy 101, get in touch with one of our advisors at Iowa State Bank & Trust today.

Donating to Your Community During the Holidays

There are a lot of ways for you to give back to your community during the holidays to help those in need.

We all have an idea in our head of what makes for the perfect holiday, be it opening a gift, singing carols or simply spending time relaxing with our loved ones. But for many people in our communities, these ideas are much more difficult to attain. Whether they’re dealing with an illness, a recent job loss or some other hardship, there are many people in our community who are less fortunate.

Iowa State Bank & Trust Company believes that everyone should have a joyful holiday season, and we know there are things we can do to help make our community better during the holidays. Here are some ideas on how we can all give back to our great community this holiday season.

Make food and dish it out- cookies and casseroles can be great gifts this time of year. You can provide them for those who don’t have the means or are short on food, as well firefighters, police officers and other public servants.
Pack stockings for the homeless- pick out some cheap stockings and fill them with practical items. These can range from food and drink (granola bars, bottles of water, etc.) to gloves, socks and hygiene items.
Donate old toys- kids’ toys and games can get pricey in a hurry. Purge your kids’ old toys to donate to families who are less fortunate.
Pay a visit to a local nursing home- the holidays can be hard on elderly people living in nursing homes. A short visit or gift from a stranger could brighten their day, or even make their entire week.
“Adopt” a family- there are many ways you can support families in our community, and our local food pantry would be a good place to start. Find out about families in need and support them throughout the winter, the toughest time for families in need.
Donate to the food bank- winter, especially in our area, is a difficult part of the year; it is far worse if you don’t have enough food. Our local food pantry, The Lord’s Cupboard of Jefferson County, could put your donation to good use.
Have family members make a donation in your name- replace one thing on your Christmas list with the wish that in lieu of a present, a donation is made in your name to the charity of your choice.

There’s no wrong way to make a donation to help the less fortunate. At Iowa State Bank & Trust Company, we have a culture dedicated to supporting the Fairfield community, and we love it when others share in that spirit of giving. Regardless of how you choose to help, we wish you a very happy holiday season.

Preparing for Black Friday Shopping

Get the best deals for Holiday Shopping while saving yourself time with these shopping tips.

You get up early, stand in line with hundreds of other people hoping to find the perfect gift and rush into a store as soon as the doors open. Of course, we’re talking about Black Friday.

As the biggest shopping day of the year, Black Friday already offers you a lot of opportunities for savings, whether you’re shopping for yourself or to get the perfect holiday gift for a loved one. But there are ways you can ensure you not only save money on Black Friday, but that you shop smart too. Iowa State Bank & Trust Company has some tips for you to help you get through the Black Friday madness.

Be Aware of Online Deals

For several of the bigger stores, customers want to avoid the lines and hassle that can sometimes come with holiday shopping, especially on Black Friday. To help customers avoid the crowds, many retailers offer Black Friday deals on their websites, allowing you to shop in your pajamas with your laptop instead of braving the cold and crowds. Be sure to note any sales and still get up early, as there are often limited online quantities available in online sales.

Shop with a Plan

While several deals will be available online, many more will be in-store exclusives designed to pull customers into the store. If the item you want is only offered as part of an in-store promotion, be prepared to get up early so you can get to store to take advantage of the savings.

Shopping With Friends & Family

When it comes to Black Friday, it is extremely beneficial to make shopping a team sport. By shopping as part of a large group, you can send different people to different sections of a store, or even another store altogether, to pick up items for the rest of the team while you do the same. With a group mentality, you can still get the items you want without navigating the crowds by yourself.

If you do spend a lot of money on Black Friday, Iowa State Bank & Trust Company is here for you. We offer a variety of savings account options, including our Christmas Club Account that will allow you to save for next year’s gifts! Contact us to learn more.

Cooking Thanksgiving Dinner on a Budget

Cook your family a wonderful Thanksgiving dinner without breaking the bank with these tips.

When you’re hosting Thanksgiving, it seems like you have a list with a million things to do. The biggest item on this list is preparing a meal that everyone will love. After all, one of the main highlights of Thanksgiving, aside from spending time with our loved ones, is eating all the delicious food. But if you’re the one cooking, that meal can cost a lot of time to prepare, but also a lot of money if you don’t shop effectively. With that in mind, Iowa State Bank & Trust Company has some shopping tips to help you cook a great meal and stay within your budget.

Shop with a Plan

An accurate headcount is your best friend when it comes to Thanksgiving dinner. When you know how many people you’re cooking for, you can limit your shopping to having enough food to feed that number. When you’ve got your headcount, create your menu and head to the grocery store. If you don’t know exactly what you’ll be serving, you’ll end up spending more money than you mean to.

Shop Smart

Our local grocery stores will most likely have several coupons or in-store deals available for those who are picking up what they need for Thanksgiving, and when you’re cooking for a large number of people, every bit of savings helps. Coupons are great, but you can also save money by buying generic or store-brand products, because most of the time you’re really only paying more for a name brand. The last key to shopping is to start now. We’re just two short weeks from Thanksgiving Day, so you’ll want to get your shopping done now and avoid packed lines and the risk that your ingredients aren’t available.

Take Advantage of Leftovers

Part of the beauty of Thanksgiving is that you cook so much food that you need to take a lot home. While this may seem like you bought too much food, it’s actually a blessing to have leftovers, so don’t throw them away! Instead, use those leftovers to feed your family for a few days. Each day you eat leftovers is a day you save money by not cooking another dinner.

Iowa State Bank & Trust Company wants you to have a great Thanksgiving with your family and avoid breaking the bank on the Thanksgiving menu. To find out how you can save money throughout the year, contact us and learn about the banking services we offer.

Preparing for Winter Expenses

It never hurts to be prepared for the winter in Iowa. These tips help you save money during the coldest part of the year.

Even though the fall season didn’t officially begin until the end of September, it is already time to start thinking about saving money on common winter expenses. When you live in the upper Midwest, you need to be ready for Mother Nature to throw you a curve ball at any time.

Iowa State Bank & Trust Company agrees with you. We wish the cold winter winds, snow and ice would stay away, but we think it’s important that you’re prepared. There are steps you can take now to make sure you don’t have to spend a lot of money during the winter months, when it will cost you more. Taking a proactive approach now will save you money later.

Winterize Your Home & Vehicles

If you live in Iowa, you’ve likely experienced the frustration when your car doesn’t start in the morning due to cold weather. The cold can damage your vehicle in a lot of ways, from draining the battery to freezing fuel lines. Before winter sets in, make an appointment with your mechanic to make sure your car is ready for winter. If there are any repairs that need to be made, it will likely be cheaper than fixing them later when the cold has made everything worse.

The cold can also leave your home vulnerable. Obviously, you can expect your heating bill to go up during the winter months, so you should make sure you have enough saved to cover the larger bill. You also should take steps to stop the cold from freezing your pipes, which can be very expensive to fix. Cover pipes in unheated areas with blankets and make sure valves are closed off to prevent freezing.

Holiday Cheer

Not everything about preparing for winter has to be expensive. In fact, there are steps you can take to make sure you’re prepared for the holiday season. Iowa State Bank & Trust Company offers Christmas Club Savings Accounts that allow you to save for the holidays throughout the year. While it’s too late to take advantage of the savings for this year, you can open your Christmas Club Account to make sure you have money to buy presents for your loved ones next year.

The winter can be an expensive time if you are not prepared for it. To make sure you have money saved for unexpected winter expenses, open a savings account at Iowa State Bank & Trust Company.

Financial Crime Prevention Tips

These tips will help you reduce your risk for being a victim of financial crime.

You work hard for the money you earn, and Iowa State Bank & Trust Company offers several savings accounts and checking accounts to give you a place to store your money. Unfortunately, there are individuals out there who are also working hard, but they’re not working hard at saving their own money; they’re working hard at trying to take your money.

In observance of October as Financial Crime Prevention Month, Iowa State Bank & Trust Company is here to offer you tips to help keep your money safe.

Switch to E-Statements

E-Statements are a great way to keep track of your savings and checking accounts, showing you how your money was spent each month. Unlike paper statements, which are mailed to your home, e-statements are delivered to you via a secure email and can only be accessed through a password of your choosing. This makes it much less likely that your financial information can be taken away.

Be Aware of Scams

The fact of the matter is this: criminals are getting smarter and constantly thinking of new ways to try and steal your money. Among the newest trends in financial crimes are people impersonating banks or credit card companies.

These people will pretend to be calling or emailing to let you know of a problem with your account, and that you need to verify your account. They will then ask you to submit your account information. You should NEVER give out your account information to people you do not know, whether it’s over the phone, through email or in person.

If you believe your accounts may have been compromised, or that you may be at risk for identity theft, there are steps you can take to help restore your money. First, contact Iowa State Bank & Trust to let us know of any problems you are noticing. Next, notify the local police so they can begin investigating the crime.

For more information about how you can protect yourself from fraud, visit the Iowa State Bank & Trust Company website.

Breast Cancer Charity Donation Tips

Use these tips to make sure you are donating your money to a well-respected charity that will help the people you’re looking to help.

Whether you’re seeing pink ribbons around your community or you notice your favorite National Football League players wearing pink socks and gloves on Sundays, you’re likely well aware of the fact that October is Breast Cancer Awareness Month across the country.

Iowa State Bank & Trust Company believes in supporting causes that help raise awareness and funds for breast cancer research, but we want to make sure you know that there are steps you can take to make sure the money you’re donating is going to help the people who need it most.

Research The Charity

Before writing your check, take some time to go online and research the charity that is seeking your donation. That fact is, billions of dollars are donated toward charitable causes each year in the United States, and people will look to take advantage of your generosity. There are scam artists out there who will set up fake charities and collect money that will never go toward research or aiding individuals with breast cancer.

View the Charities Expenses

Once you’ve verified that the charity is authentic, ask for a breakdown of how the charity uses its donations. The Better Business Bureau recommends charities spend about 65 percent of its donated funds on program expenses, which allows for up to 35 percent of money brought in through fundraising to be put toward research. You can use tools like Charity Navigator to research expenses. Unfortunately, there are many charities across the country that will see their program expenses go well above the 65 percent threshold, which means they are putting more money into running the charity than helping people. Remember, the less the charity spends on itself, the more it’s spending on the cause you donated to in the first place.

Iowa State Bank & Trust Company believes in donating to causes that support breast cancer research and helping people fight the disease. To make sure you have enough money to donate to a well-researched charity, consider opening a savings account at Iowa State Bank & Trust.