Author Archives: ISBTC Blogger

Money Lessons For Your Children

Money habits can be instilled in children at a very young age. These habits turn into core behaviors that shape the way your child will handle money throughout their life. For this reason, it’s crucial to start teaching a few of these money lessons to your kiddos earlier rather than later.

Work With Your Budget

If your child wants to buy a Barbie and her Dream House, you’ll have to work with your child to show them how a budget works. They may not have enough money to spend on both items. If they do, they shouldn’t spend it all and be left with no savings. Teaching them to keep some money in savings and budget correctly is a great lesson!

Don’t Spend It Right Away

Once a kid gets a few dollars, they instantly want to buy a candy bar with it. Teaching them to be patient and think before they act will make them super savers and allow them to grow in other aspects of life as well.

Create a Wish List

Encourage your child to make a wish list of everything they want. Over time, they’ll get more excited to save in order to buy the items they’ve been working towards.

Let Your Child Make Decisions

Give your child a couple dollars at the grocery store and have them pick out which fruit they’d like for the week. You could also let them tap into their own funds and choose something to buy on their own. Allowing them to see they have control over their money and the power to spend it will teach them the value of the dollar.

Work Is Rewarding

Give your child an allowance for chores they do around the house. Showing them that hard work pays off will allow them to gain a strong work ethic.

Money Is Not Everything

There are many people out there who get caught up in the value of money. While teaching financial lessons to your child, it’s important to remind them to stay humble, as money doesn’t mean everything.

Teach a Choice

There are four choices when it comes to your money: spend, save, donate and invest. Explain these terms to your child and allow them to choose what percentage of their allowance goes to each of the four choices.

Raising your baby with fantastic financial finesse will allow them to go far as they age. Work with your child to implement a few of these lessons, so they can be on the fast track to saving success!

Why Choose a Local Bank?

Whether in bustling cities or the rural Midwest, community banks improve lives in the communities they serve. This seems to be a popular notion across the nation, as can be seen by their large local support. According to the ICBA, community banks make up 96 percent of all banking institutions in the country. They are successful because they work and are a positive light in the community.

You take great care when it comes to choosing a financial institution that you trust. If you haven’t made the switch to a local bank yet, here are just a few reasons why you may want to make the switch.

1. They support community organizations.
While we can’t speak for every community bank, we make it a priority to give back to the area. We realize the importance of donating to local charities and even encourage employees to volunteer to local regions of need. Every individual at every level of service in the bank is personally connected to the community and wants to see it thrive.

2. They have the same state of the art resources of big banks.
Some may think that community banks are still in the Stone Age when it comes to technology. This could not be further from the truth. We know that the future of banking is online and we have made it a priority to meet our customers in a way that is easiest for them.

Customers can access their account information, make deposits or withdrawals when the office is closed or if they are traveling out of the area. Although, we still love to see your smiling face in person when you have a chance to come into one of our locations.

In addition to being technologically up-to-date, we have competitive individual and business services that a big bank has to offer, but likely at a better rate.

3. They have a personal approach to lending.
Unlike big banks, we know our customers. Our kids might play baseball with yours or we may have even gone to high school together. Whatever the case, our approach to lending is more personal, because it is personal. We take a more rounded approach to lending instead of simply seeing you as a credit number like a large bank might do. We are here to serve the average Joe and play no favorites.

4. They maintain great customer service.
Community banking is about relationships. With that comes a customer service approach that is caring and helpful. You will likely see the same people working there every time you need assistance and can develop relationships. You are able to really feel like your bank is looking out for you because they know you and have your family’s best interests at heart.

5. They invest in the community.
Because they are a small business themselves, community banks value local businesses and understand the benefit they have on the economy. When you invest locally, the entire community prospers. We aren’t interested in siphoning out investments to Wall Street. Right here is where we want to be and see the area grow.

We can’t wait to meet you. Stop by our bank to see all the benefits our products can offer you!

Savings Resolutions For The New Year

Now that we’ve welcomed a new year, we must also begin welcoming new saving habits. Setting reasonable resolutions isn’t always the easiest, which is why we wanted to offer some simple ideas to start. Begin promoting your financial positivity by picking one or two of these savings resolutions to implement for the rest of the year!

Make extra mortgage payments

Making your minimum payments on what you owe is completely fine. However, try stepping up your game by increasing the amount you pay towards your mortgage. We understand you can’t make extra payments each month, but when you can, put your cash towards that. You can even utilize a financial calculator to help!

Open a new savings account

We offer savings accounts that match your needs. Opening a new account will help you allocate money to a specific purpose. For example, one savings account could hold your normal funds while another is specifically for emergencies. Figure out what will work for you best and divide your money accordingly.

Save more for retirement

Until retirement hits, many people don’t think about putting plenty of funds towards it in their 20s and 30s. However, if you wait to save until you’re older, you won’t be able to have enough funds. Start thinking about how much you will actually need when the time comes to retire. A good rule of thumb for your 20s is to save 10% of your pre-tax income. When you come to your 30s and begin saving, you’ll need to save 15-20%. If you start saving in your 40s, 30% will be the number to save.

Track your spending

Many don’t realize the positives of tracking how much is spent each month. Knowing how much money you make and where it goes every month will help you budget better. This will help you realize where you are spending too much and find ways to save!

Build an emergency fund

If you don’t have an emergency fund, this should be your first item on your resolutions list. The unexpected happens, well, unexpectedly. Don’t get caught off guard without the money to fix your problem. A new HVAC system or car can be needed out of the blue, and you’ll want to be sure you’re prepared for random expenses. If you already have an emergency fund, great! But, you’ll want to work on growing it. That 500-1,000 dollars you have saved for emergencies won’t be enough to buy that used car you need when yours quits.

Only pick one or two of the above items to implement this year. Once you’ve locked down your resolution, begin thinking which one you’ll pick for the next year. With these ideas in mind, you’ll be able to get closer to your financial goals sooner than expected! If you need help growing your funds, contact us – we’d be happy to provide a solution for you.

6 Money Themed Activities for Preschoolers

Is four years old too early to be learning money management? We don’t believe so! There are many American adults who still struggle with understanding their own finances and keeping a budget. By starting their education early on, you will build their confidence and familiarity with money in order to build a stable foundation for the future. The question is, how do you make it engaging for preschoolers? Here are our 6 favorite money themed activities for your youngsters!

Learning About Coins: Time to Sort

To begin teaching little ones about money management, it’s important for them to learn the money itself! A great place to start is to build their familiarity with coins. Grab a muffin tin and ten nickels, dimes, quarters and pennies. Challenge your preschooler to sort each of the coins and teach them the names. You could teach them how to make a pattern in each tin. For an additional challenge, you can label each muffin space with a value where the student can match to each coin’s value. Show them that ten pennies have the same value as a dime and so on.

Playing Store

Use the materials you already have around such as play food or simple toys. Label each item with a price tag of five, ten, fifteen or twenty-five cents. Play pretend by giving each student a certain amount of change and teaching them that items always have a value that is exchanged for money. This can help them with counting and remembering the worth of coins.

Clip Coupons

Sure, you might take the more tech-savvy approach when it comes to coupons, but the old-fashioned practice of clipping coupons is a fun hands-on way to teach youngsters the worth of items. Once you have the coupons of interest, take them to the store with you and make a game out of finding the items. This is a helpful way to teach them about the importance of saving money.

DIY Piggy Bank

Every child should have a piggy bank! Whether it’s a simply decorated jar or a paper mache pig, it is a smart way to teach them about saving early!

The Allowance Game

If you want to teach children that in order to get money, they need to work for it, there is no better time to start an allowance. For a preschooler, you can have them do simple tasks around the house. They can “purchase” items from your own DIY store in the home. You can purchase candy or small toys that the child can exchange their earnings for. Let them know the value of each item and clearly explain what they would need to do in order to earn this.

The Dollar Dance

To teach preschoolers about bills, grab some ones, fives, tens and twenties. Throw them in a hat and draw one at random. Whatever value you draw, have the child do something X many times. For example, if you drew a $5 bill, you could have them spin in a circle five times. This will help them to become familiar with the value of each bill and where it is located.

These are all good ways to start teaching today’s youth not only about money but how to manage it well. Starting young will give them the confidence they need to be successful with their purchase and investment decisions in the future. Open a savings account for your little one today to teach them more about money!

5 To-Dos Before Buying a Home

Are you about to begin the hunt for your future home? We understand that the home buying process can become overwhelming, which is why we’d like to offer you a little insight. Start your home buying journey off right by completing this checklist!

Strengthen your credit.

A 620 FICO score means you can get a mortgage, but that doesn’t mean you’ll want to. According to recent data from myFICO.com, someone with the minimum credit score can expect to pay over $82,000 more in interest over the life of a $250,000, 30-year mortgage than a person with a 760-plus score. Working on making your credit higher, such as paying bills on time, will help lower your interest and save you some big bucks.

Get preapproved for a mortgage.

This is a very important step, and sadly, it’s missed frequently. Getting preapproved means you’ll have some advantage over other potential buyers. This letter shows Realtors and sellers that you’re serious about buying and provides evidence that you have the funds to pay for the home. Set up an appointment with us to get preapproved and utilize our handy-dandy mortgage calculators!

Figure out how much house you can afford.

You may get preapproved for a certain amount and have a good portion of money put away in savings, so why not spend it all on a home? Even though you have the funds, be sure to think ahead to future bills and emergency expenses that will have to be paid. You’ll also need to plan on spending in the range of 1-3% of the home’s price for closing costs. It’s important to downsize your budget a bit in order to make future costs and purchases feasible.

Get a real estate agent.

Hiring an agent does cost money, but they will help you through every step of the way. Real estate agents will make sure all of your closing documents are in order and give you recommendations on trusted inspectors, which will take a lot of stress off of you. They supply you with the knowledge of the buying process, so you don’t miss any steps.

Schedule an inspection.

Once you find your home sweet home, it’s important to cover your bases. Schedule an inspection to be sure a new HVAC system or roof isn’t in the near future. You’re going to be spending a large sum of cash, so spending a little more to have everything checked out is a good plan of action.

Congratulations! You’re now on the right track to becoming a homeowner. Iowa State Bank offers mortgage options that fit your lifestyle. Stop in or give us a call to discuss your options today.

Cheap, Fun Winter Activities

Enjoy the winter wonderland happening outside with your family! Don’t stay cooped up in the house all day – find something fun to do. Create quality time with those close to you with a few of the below ideas from Iowa State Bank.

Build a Snowman

Frosty isn’t going to build himself. Get the kids outside and moving with this fun idea. See who can build a bigger snowman or have a competition to find out who the best fort builder is. Then, have a snowball fight! Encourage the kids to play with neighbors and invite them to join the fun.

Go Sledding

Find the biggest hill you can and enjoy the ride. Not only is this activity free, but it can be just as exciting as an amusement park ride you’d pay for – especially when you don’t know how to stop at the bottom of the hill! This can become a daring adventure if your children are older because finding a steep hill will make the outing “cool” enough to your teenager.

Host a Movie Marathon

Sometimes it’s just too cold to go outside. Having friends or family over to enjoy movies can be a great bonding experience. Movies bring everyone together!

Take the Family Skating

Ice skating is great for all ages. You’re able to get out of the house and have fun doing something you all love. A pond can be a free option, but renting skates and going ice skating in a mall can be very cheap as well. Either way, you’re getting lots of fun for a very little price.

Bake Cookies

Bonding with your kids can never go wrong when sweets are involved! Make cookies, oreo balls, cake pops and more to see who the better baker is. You could even try out new recipes you saw on the Food Network if you’re looking for a challenge.

Play Board Games

Teaching your child the game of chess or another strategical game can get their brain juices pumping. Encourage your children to think before they make a move, and see how far they can go or if they can beat you.

Set Up a Savings Account

If your child is old enough to start saving, encourage them to come to the bank with you and set up a savings account. Since it’s cold and there’s less to do, now is the perfect time to teach them a little more about finances.

We love these cheap alternatives to having fun with your family during the cold weather. What activities do you enjoy best?

Keep Your Data Safe & Secure

Did you know that an alarming 73 percent of all Americans have become victims to some type of cyber crime? We are constantly glued to our devices; whether we’re checking emails or browsing social media, we have so much to do with so little time. Are we really paying close attention to ensure our personal data is kept safe and secure? We can’t forget about the basics when it comes to protecting your information, so read these 5 ways on how to keep your data protected and unharmed.

Update With Security Software – If possible, regularly update your devices with security software. Security software will protect your data from any random attacks from viruses and hackers. Any older software won’t be able to protect your data from the latest viruses. Cyber attacks are increasing, so it is important to keep on top of the latest updates.
Be On Wi-Fi Watch – When you step into a different place that does not have secure Wi-Fi, you will want to be wary. Often times we think nothing about connecting to “Free Wi-Fi,” because it has become second nature. However, hackers are able to position themselves in an area where they can receive direct access to your data between you and the access point. So, if you are someone who regularly uses public Wi-Fi, be careful — you can be at serious risk!
Protect With A Password – There are passwords for everything nowadays, especially with accounts that use personal information. With that being said, the simpler the password you have, the easier it is for a hacker to gain information. Passwords may never be completely secure, but be sure to follow password tips. Some tips include: password length of at least eight characters, use upper and lowercase letters, combine symbols and numbers, and use different passwords for each of your accounts. Utilizing these tips can ensure an increase in protection of your personal data. Additional tips can be found
Don’t Click On Emails From Unknown Sources – Be sure to stay alert when filtering through your emails. Hackers are getting smarter every day, therefore it is imperative that you know exactly who your emails are from and if they are legitimate. If there are any emails that you may not recognize, don’t open the attachments or respond. If you are ever suspicious of the authenticity — report it!
Physical Data Is Still Out There – Yes, we are undoubtedly in a digital world. But, in the workplace there are still many instances where printed files and documents are needed. In order to make sure your data stays safe and secure, you will want to make sure you are the holder of all information that is important to you. Secondly, when you need to dispose of any data information, use a shredder so it all becomes completely distorted. It may also be helpful to use locked filing cabinets for any of your private information.

By taking these extra measures, you can help ensure your personal data is safe and secure. Pay closer attention to your surroundings, as greater awareness decreases the chance of cyber crime. If you have additional questions, contact us today!

7 Ways You Can Give To Charity Without Breaking Your Budget

Generosity is a great quality to have, especially if you have children watching your every move. Lead by example when it comes to your friends or family by giving back – even if you don’t have the funds to do so! Iowa State Bank & Trust Company of Fairfield offers a few ways you can be charitable without breaking your budget.

Closet Clean Out

Look through your closet and find the items you haven’t worn for 8 months or more. Chances are you won’t be wearing that again, so give it to a good cause instead of hoarding it in your dresser. Donate your used clothes to Goodwill, the Salvation Army or another second hand store. Some stores even offer you money back for your items!

Share Skills

Your skills are worth more than you know. Teach a class to veterans about your online marketing job, so they can learn about how to work on the Web. Host a cooking class if you’re a chef to share your money saving recipes with others – and the list goes on and on!

Lend Your Dog

Your pet can be used to help others in distress and give affection. College campuses, nursing homes, children hospitals and veteran hospitals all have times where owners can bring their animals to give love to those who need it. Look into what places near you offer this type of program.

Get Snippy

Donate your luscious locks to a good cause such as Locks of Love and Wigs for Kids. Grow out your hair so you can help bring a smile to those less fortunate.

Donate Blood

Give blood to help those with their surgery or unexpected life events. Plasma and platelets are also an option for you to donate, as they help cancer and organ transplant treatments centers. Be sure to be an organ donor as well, so you can save up to eight lives!

Ask Your Company

Talk with your boss about sponsoring a youth sports team or giving to a local cause. Companies are always looking for ways they can support the community, so bringing a special case to them is another option you can utilize to give back.

Support Small Businesses

Shop at your local small businesses to keep their shops open. Supporting those around you is a great way to give back, along with gaining unique items for your home.

Don’t worry if your bank account isn’t able to help others. These ideas are fun and simple ways you can give back without hurting your savings. What are some other unique ways you’re charitable within your community?

How to Save for A House Down Payment

If you’re looking to buy a house, having a larger down payment will offer you a lot less financial stress in the long run. However, in order to put a larger sum of money down, you will need to take the right steps to save. Follow these 5 steps and you will be on your way to being a first-time home owner!

Step 1: Figure out how much you will need to save – If possible, secure a number or range on the amount you can responsibly spend on a house. You can plan to sit down with a mortgage lender or use a home buying calculator to help figure out how much you can afford. With the use of a calculator, be sure to remember that it will not take in account every aspect of your financials.

Step 2: Find the best ways to save – After you know an estimated range of how much you need to save, the next step is to figure out what expenses you can cut down – maybe skip vacations for year. The money you would spend on vacation can make a huge contribution toward a down payment. Next, take a look at your monthly expenses and see what you can reduce or eliminate; put that extra money into a down payment savings account. Lastly, work more. This may be easier said than done, but when there is opportunity to work an extra shift or add on hours, do it. Working more will be worth it when you are able to find your dream home!

Step 3: Transfer a fixed amount into a savings account each month – In addition to saving that extra money, set up a savings account specific for your house down payment. Then, with each paycheck you receive, have a certain amount automatically taken out each time and deposited into that savings account. That way it will remove any temptation to spend the money on other purchases. Before you know it, you will have enough money for a down payment.

Step 4: Leave room for flexibility in your savings – With all of this saving, it is equally important to leave room for flexibility. There will be other demands on your finances such as: car repairs, uncovered medical expenses or even loss of a job. You will need to be ready when and if these happen to occur – it is also helpful to create an emergency fund!

Step 5: Reduce your high interest rate debt – If you have high interest rates on your credit cards, it can painfully limit your ability to save. For this last step, do yourself a favor and pay off those high interest credit cards. Begin with your highest card and once that is paid off, close it and proceed to the next card. Lastly, transfer your credit card balances to the card with the lowest interest rate.

The process of buying a house can be very long and probably will require a big hunk of your savings. However, creating a larger sum for your down payment will sure be rewarding when you become a first-time home owner! Follow these 5 steps, and we can ensure much less stress in the long run.

Cybersecurity: Q&A

We all know this one – use different passwords and switch them up periodically. While this is a helpful tip to avoid being hacked, there are some questions you may still have on cybersecurity. Luckily, we offer a few answers to your existing questions.

Question: How can I protect my personal information from an attack?

Answer: Be sure that your antivirus program is up-to-date. When it is time to renew that software, do it. Don’t wait around thinking it will be okay for a few weeks. Hackers have more freedom to get your information when anti-virus programs are down. Another tip is to update your WIFI password regularly along with creating a unique network name.

Question: How risky is using public WIFI?

Answer: Even though free WIFI sounds like a great deal, don’t be tempted. Hackers sit waiting for potential targets connecting to public WIFI zones. They have the perfect opportunity to go undetected and gain access to your personal information.

Question: What kind of passwords should I be creating and using?

Answer: Utilize a password that contains letters, numbers and special characters such as @, #, ^, etc. Be sure that everyone in your family uses different passwords with separate logins. This ensures that if one person gets hacked, that other family members’ information can still be protected. Be sure to turn on 2-step authentication wherever it’s available and keep your browser and software updated.

Question: Can a hacker access my webcam?

Answer: Although the short answer is yes, don’t begin to worry too much. As long as you continue to make updates to your software, you should be okay. Cyber criminals focus on drawing you to untrusted sites, having you click on links or download certain items. Once this happens, hackers are able to begin stealing your information or encrypt your data. Some even make you pay a “ransom” to get control of your computer and access to your information.

Question: Is paper the safe option to do business?

Answer: Doing business electronically is perfectly safe if you use the right tools. Paper information can be stolen, lost in the mail or misplaced into the wrong hands. Properly securing your business passwords and information along with keeping it separate from your personal information will help protect your data. Shred any hard copy information you no longer need if you decide to go that route and lock up the important files that shouldn’t be left in the open.

We hope these answers help you understand cybersecurity a little better! Don’t be afraid to surf the web – just stay aware and continue updating your software. Don’t get caught up on the technical terms, just learn more from us to better protect yourself!