How The Milford Bank Is Engaging the Millennial Generation

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by Jorge Santiago

A recent Gallop poll on the banking tendencies of the millennial generation (those born between 1980 and 1996) reveals that this demographic is just as financially astute as preceding generations, despite perceptions to the contrary. In fact, nearly a quarter of them have more than $50,000 in investable, liquid assets. What’s more, millennials are actually more loyal than their elders, keeping the highest share of their total assets—69 percent—with their primary banking institutions. Yet, despite the solid investment that millennials represent, only 23 percent of these young adults report feeling fully engaged with their primary bank. Some 31 percent report being actively disengaged.

That’s why we at The Milford Bank have taken great strides to differentiate our services to address millennial concerns, which just so happens to benefit all of our customers—young and old.
Here are three reasons millennials choose Milford Bank for their banking services:

1. Multi-channel engagement: According to the aforementioned Gallop poll, 55 percent of millennials are fully engaged with their bank when satisfied with all communication channels (in person, social media, and online and mobile banking). This is where Milford Bank shines, leveraging our local small-business charm without missing the boat on online and mobile banking technology. Furthermore, The Milford Bank is active with our customers on social media, providing our community with financial advice and customer care across all the channels, such as Facebook, Twitter and LinkedIn.

2. A customer-first mentality: As many as 84 percent of millennials polled reported being fully engaged with their bank when they believed that their bank was looking out for their financial well-being. One factor that engenders such trust is a company’s social mindset. In fact, according to a 2013 Cone Communications study, millennials have 91 percent more trust in businesses that support social causes. Milford Bank has been an active participant in the local community since 1872, and was even awarded the 2015 Business of the Year award by West Haven’s Chamber of Commerce. In the past year alone, Milford Bank has sponsored events from free small-business seminars to health awareness programs.

3. Comprehensive set of banking products: Millennials are more inclined to consolidate their banking products with a primary bank than previous generations, according to the Gallop poll. What’s more, they are choosing to utilize additional services with their primary bank at an even higher rate. From home equity loans to advisory services, millennials are loyal to financial institutions that enable them to manage their finances in all arenas. Fortunately, Milford Bank handles it all, including personal bank accounts, offerings for businesses, loans, investments, mortgages and insurance. We even have programs for children, to ensure that every member of the community can benefit from our services.

For millennials looking for a place to do their banking, Milford Bank is clearly a great choice. Furthermore, when you become a Milford Bank customer, you do your part to support the community we serve. For more information about The Milford Bank, check out our website here.

Three Ways to Get Your Holiday Shopping Done Without Draining Your Savings

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by Lynn Viesti Berube

In an analysis from American Research Group, shoppers across America are planning to spend on average $882 on holiday shopping this year. Yet, in a survey from GoBankingRates, it was found that 62 percent of Americans have less than $1,000 in their savings accounts. The picture being painted here is that many consumers will spend beyond their means this December. But finding gifts for family and friends in celebration of the season shouldn’t have to break the bank.

Here are three ideas to help ensure you’ll still have a jingle in your pocket once you’ve finished your holiday shopping.

1. Check daily deal sites for whole-family experiences. Instead of wrapping up another sweater or tool this season, why not up your game and thrill your loved ones with the gift of a unique experience? Daily deal sites like Groupon or Living Social offer group discount rates on activities ranging from glass-blowing classes to helicopter tours of New York City. By getting your whole family—or those distant relatives—on board, you can qualify for great deals and share in a truly original gift that will create memories that will long outlive the latest electronic gadget or pair of slippers.

2. Do your holiday shopping year-round. One big reason that financial stress weighs so heavily on our shoulders during the holidays is that most of our annual shopping takes place during just six to eight weeks, straining monthly budgets. So, why not keep an eye out for holiday gifts throughout the course of the year instead? This can enable you to make purchases at more manageable increments, avoiding a huge cash outlay in a short time frame that may constitute use of your credit card and the potential for additional costs in the way of interest. Take the year, too, to take advantage of retail sales as they occur.

3. Do it yourself. Do you sew or paint? Are you a carpenter? Whatever your craft, you may be able to think of someone on your shopping list who would love what you can produce by hand. Many recipients will appreciate the personal touch that such gifts deliver. At the same time, you save your hard-earned money, as purchasing the materials required to create your handiwork typically costs less than purchasing the same item in a store. Then, you can use the money saved to offset other purchases, like one of the group activities mentioned above. In other words, pay the DIY method forward.

If you’re one of the many Americans who are letting holiday shopping adversely affect your savings, keep these tips in mind to ease some of the stress it is causing you and your wallet. For more advice on managing your finances, come to any office of The Milford Bank or visit our website here.

Just in time for fall clean up – gather your unwanted items!

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by Lynn Viesti Berube

The Milford Bank will host a Green Fair at its Main Office Campus on the Milford Green located at 33 Broad Street in Milford. The event will be held on Saturday, November 14th from 10:00 am until 4:00 pm.

Two trucks will be on hand that day. One will accept unwanted office supplies such as outdated computer equipment and office furniture. AFA Electronic Recyclers of Branford, CT will responsibly dispose of all items they collect.

The other truck will securely shred unwanted documents on site. The vendor providing this service is Infoshred of East Windsor, CT. (There is a limit of three medium sized moving boxes.)

These services will be provided at no charge to customers of The Milford Bank. Others are asked to make a donation of $5 per box. Funds collected will be donated to a local charity to fund a green initiative in 2016.

The Literacy Center of Milford will be collecting children’s books at the event and the First United Church Youth Group will collect deposit bottles and cans.

There will also be children’s crafts, information about home energy efficiency, tips for reducing paper consumption, arts and crafts vendors and more! Admission will be free.

Susan Shields, Milford Bank President & CEO says of the event, “The Milford Bank continues to support the residents of Milford and Stratford through community involvement, donations to many local charitable organizations, special events and financial education. The Bank is proud to partner with this year’s vendors. The goal of providing these services to members of our community is to assist with the responsible disposal of unneeded documentation and outdated electronics while educating the public on easy energy conservation.”

A list of accepted items can be obtained on the AFA Recycling website: www.afaelectronicrecyclers.com. Have a piece of electronics to recycle that is not on the list? Please contact AFA Recycling directly at (203) 421-4187.

The Milford Bank is Member FDIC.

Are You Financially Ready for an Emergency?

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by Celeste Lohrenz

By nature, personal finances are those monetary concerns that keep us, individually, up at night. We all adopt our own tactics and tricks to keep on top of our bills, rent/mortgage payments and other expenses, but some of us have more complicated assets than others and may need professional guidance from time to time. If you’re at the point where your personal wealth management has not led to the rewards you were anticipating, consider collaborating with our in-house financial advisors, John Kuehnle.

Regardless of the condition of your personal finances, John Kuehnle can help you get them in shape. After all, you never know when a situation may arise that requires someone besides yourself to sort through your personal finances on your behalf.

To avoid a worst-case scenario—where your assets are inaccessible due to outdated paperwork or ineffective management—follow these quick tips:

• Consolidate and back up: There is nothing wrong with keeping paper records as many of us do, but if you decide to go this route it is a good idea to keep them all in one organized, central and secure location. By doing so, you can easily share the information with trusted family, In Case of Emergency (ICE) contacts and financial advisors/attorneys. You may also want to make duplicate digital copies as a backup. Given how easy it is to back up your files up to a cloud server these days, taking this extra precaution may be wise. Files can be encrypted for security purposes and the cloud will keep them safe in case of a fire or destruction of your hard copies.

• Make a plan: It’s never fun to think about worst-case scenarios, but doing so ahead of time may save you many headaches down the road. It is a good idea to create a financial plan for common emergencies like serious illness, property destruction, natural disasters and any other scenario that could leave you unable to handle your own personal finances. Then, share that plan with the appropriate parties, make sure they understand how you would want your finances handled and, again, store these plans in a secure and central location for easy access.

• Continue to update: Having a budget is a smart financial decision, but many people create that budget for a designated time frame, file it away and never look at it again. It is a good idea to continually updating your budget, whether that means once a month or every six months. Having a sound financial plan that outlines when bills are due, for example, can aid others who are helping to keep you on top of your finances when you can’t do so yourself.

• Create an emergency savings account: While your personal finances should be accessible in case of an emergency, as discussed above, it is also helpful to start an emergency savings account. One that you can add to on a regular basis and has a low or no minimum balance requirement is preferred so it can be deeply tapped in case of emergency without penalty.
Personal finances can be complicated, but once you’ve gotten on top of them, they can be a piece of cake to manage. If you need help getting to a good place with your assets, reach out to us at 203-783-5700.

Three Ways to Save Energy This Fall

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by Lynn Viesti Berube

With Labor Day in the rear view mirror, we’re now into fall and, with it, colder weather. After the winter Connecticut experienced in 2014, it’s safe to say that we’re all holding tightly to these last few days of warm weather. While you may not have turned on the furnace just yet, you might want to plan for the colder months sooner rather than later when it comes to financing your warm home.

To help you cut heating costs this fall and winter, here are three ways to conserve energy:

• Eliminate the cracks: You may not pay them much attention, but those tiny cracks below your door and around your windows are sucking the money right out of your home. These cracks allow conditioned air within your home to escape and cold air to seep in. By investing in inexpensive draft stoppers and by shrink-wrapping your windows, you can keep the warm air in, the cold air out and save big on your monthly energy bill.

• Optimize your heating system: One major way we waste energy and run up electric bills during the colder months is by overworking inefficient heating systems. Instead, optimize your heating system with a few at-home solutions that shouldn’t break the bank. First, consider placing area rugs in high-occupancy rooms (such as your family room) where you may otherwise have bare floors. Doing so will help retain heat and keep your feet feeling cozy. Second, change the filters in your heating system on a monthly basis to ensure you’re not forcing your system to work harder than it needs to. Finally, make sure heating vents aren’t being blocked by furniture—it may keep the couch nice and warm, but the furniture will draw the heat out of the air and keep the temperature in the room down.

• Opt for electronics with batteries: It’s no secret that during the colder months many of us prefer to wrap ourselves in a warm blanket and watch Netflix, rather than bundle up and brave the elements. However, the extra time we spend in our homes can have a major effect on our electric bills, based on our increased use of electronics alone. Instead of turning on the TV, or heading to your desktop computer this season, opt for electronics with batteries, such as laptops, tablets and other mobile devices. These devices often cost less to charge and, as long as you unplug the charger after you’re all juiced up, will save you big bucks over the course of the next few months.

As the holidays approach, don’t let good tidings be overcome by high electricity bills! These three steps will help you save on your monthly bill while staying warm. And, if you ever have a question of what to do with your new-found savings, consider a Milford Bank savings account!

Want more tips on energy efficiency and saving money on your power bills? Visit our Green Fair on November 14th!

Green-Fair-postcard

 

Three Things You Need to Know About Your Credit Score

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by Trish Townsend

If you have aspirations of one day owning a home, leasing a car or paying for college (either for you or your children) then you know the road to obtaining these goals leads directly through your credit score. Your credit score is the numerical evaluation of your lending history, and it is often the determining factor when lenders accept or deny your loan request. With a good credit score the sky is the limit; however, a poor score can make a task as simple as applying for a credit card become nearly impossible.

Considering how important a credit score is to an individual’s future, it’s surprising to discover that nearly 60 percent of adults haven’t checked their score within the last year. In the spirit of educating our account holders, here are three things you may not know about your credit score:

• Payment history: The largest chunk of your credit score—35 percent in fact—is based on your payment history. This should not be confused with your history of repaying loans, but rather it includes bill payments of any kind. That means if you still have that library book from high school in the back of your closet that’s rung up unimaginable late fees, it is possible that it could end up on your credit score and negatively affect it. Likewise, medical bills, parking tickets and even a late cable bill can be factored in to your credit score.

• Free reports: Your credit report—detailing your credit score and how it was calculated—can be freely obtained three times a year; one each from the three major credit-reporting agencies: Equifax, Experian and TransUnion. While you can contact the credit-reporting agencies individually, they can more easily be obtained through annualcreditreport.com, the only website explicitly directed by Federal law to provide credit reports. Knowing your score is the first step to improving it, and it’s a great way to monitor against identity theft.

• Constant change: Your credit score is alive, and it’s changing almost every single day. Many people are unaware of how a change in their credit score actually occurs, so having this knowledge will be helpful when seeking loans. As a best practice, check your credit score by using one of your free reports as soon to applying for a loan as possible. Doing so will allow you to address any glaring inaccuracies, as well as will offer you a better picture of how much money you’ll be allowed to borrow.

Your credit score can be your best friend or your biggest foe, but you’ll never know until you find out more.

Three Tools for Teaching Cent$ible Kid$ Personal Finance

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by Becky Tudor

Americans today are having a difficult time saving money for the future. In fact, the independent research firm NextAdvisor recently found that nearly one in every four Americans has no savings at all. With recent history showing how unstable economies can become, parents today would be well-advised to educate their children about the importance of personal finance.

As of now, only 17 states have personal finance classes as a high school graduation requirement. If you live in one of the 33 states that doesn’t have this requirement (Connecticut is one of them) it might be wise to find other means of educating your children in this area.

Here are three tools the Milford Banks Cent$ible Kid$ Program employs to help teach your children personal finance:

1. Games: Yes, kids love games and, oftentimes, parents worry they might love them too much. But when games are educational, research shows it helps children learn. Computer games, like “Cash Puzzler” and “Road Trip in Savings” available through The Milford Bank’s program, entertain kids while teaching them lessons about money and spending.

2. Savings account: Cent$ible Kid$ operates by giving children their own savings accounts. Along with responsibility for this important personal finance tool comes a chance for these young owners to develop their own plan for savings.

3. Newsletter: Visual learning is important to children. Their young minds are receiving educational stimuli when they read our Cent$ible Kid$ newsletter. To get a taste of our children-friendly newsletters, that provides children with visual learning materials, check out the latest here.

Today’s Youth Grade Themselves ‘C’ or Below When It Comes to Managing Finances

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by Cortney Meng

Despite the fact that today’s youth have grown up in the era of mobile banking, digital wallets and financial services platforms—from Venmo to Splitwise—a number of millennials feel ill-equipped to handle their finances. In fact, according to a survey of 1,640 college students, as part of U.S. Bank’s 2015 U.S. Bank Students and Personal Finance Study, 50 percent of coeds would give themselves a “C” or below when it comes to how successful they are in managing their money.

What’s more, the survey found that:
• More than 60 percent of college students have little to no knowledge of investments or retirement savings.
• Twenty-one percent of students are barely keeping up on day-to-day expenses, with only 5 percent prepared for unexpected expenses.
• Only 39 percent of students correctly know that paying off a delinquent loan or credit card balance is not enough to remove it from a credit report.

So how can today’s millennials start better preparing for their financial future? To begin, young adults can get a good handle on their current financial situation by asking themselves questions like:
• Am I currently in debt? If so, if I continue down the same payment rate, at what point will my debt be paid off?
• Do I have any major financial decisions ahead that I need to start prepping for today, e.g., buying a new car, saving for a house or merging accounts with a soon-to-be spouse?
• How am I currently saving for retirement? Have I started a 401k investment? Am I investing in stock? Do I have an IRA?

The answers to these questions can help guide them down a specific financial path. Youth who are in debt can begin to set budgets and reduce their lines of credit to make payments more expediently. What’s more, they can create a detailed document listing the interest rate, balance and minimum monthly payment of all their debts to stay on track of payments.

In addition, young adults may want to consider consulting with a reputable financial advisor, either formally or informally. For instance, a lot of banks can pair members with financial coaches and advisors who specialize in everything from wealth and asset management to retirement planning. Here at The Milford Bank, for instance, our resident expert John Kuehnle is always on hand to make recommendations and provide financial direction based on the information provided to him.

Millennials can also spend more time discussing their finances with their parents, especially since the survey found that 91 percent of students learn about money from their parents, either directly or by example. Moreover, 55 percent of students identified their parents as the No. 1 influence on their financial habits, as well as their go-to source for financial advice.

Are you a millennial just starting out on his or her career? Are you looking for additional financial resources? Be sure to check out our learning center, where you can pick up tips and tricks on everything from how to pay for college to how to employ basic investing strategies.

How to Save on Back to School Supplies

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by Lynn Viesti Berube

It’s officially August, and that means parents are getting their kids ready for the new school year. And while the first bell is rapidly approaching, there is still one last obstacle for many people to overcome before students are back in the classroom… back to school shopping.

Anyone sending their kids back to school this fall knows just how expensive back to school shopping can be, but did you know it’s the second-largest seasonal shopping period of the year? That’s the word according to Statista, which ranks back to school shopping as No. 2, just ahead of Mother’s Day and Valentine’s Day. In fact, Statista estimates that $74.9 billion will be spent this year alone on back to school needs.

Here are a few ways you can save during this seasonal shopping period:

• Shop from Aug. 16-22: That is Connecticut’s tax free week. During this tax holiday, consumers can shop for clothing and footwear, tax free, on purchases up to $300.
• Buy in bulk: Not only will you be able to get a lot of items you need for the entire year by shopping in bulk, but leftovers can be used the next year as well, which can help save you some money a year from now.
• Check your inventory: If you already shop in bulk, or even if you don’t, chances are you have school supplies left over from the year before. Check your inventory and decide what can be reused and what needs to be replaced.
• Buy from dollar stores: It’s amazing that pens, pencils, markers and notebooks can be as expensive as they are, but they can also all be found at dollar stores. Consider forgoing the name brands for their dollar store counterparts to get the most bang for your buck.

Being strategic in your back to school shopping can net you big savings. Once you’ve done so, consider depositing your savings into a Milford Bank savings account for your future graduate.

Five Ways to Grow Your Savings Accounts

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by Becky Tudor

We get it… allocating a set amount of your income each month for your savings accounts may seem all but impossible. But it’s important to put money aside for a rainy day; you never know when emergencies (or even retirement) will creep up.

Here are five suggestions to help you save money:

1. Keep Track of Your Spending: To figure out how much you can put aside each month, pinpoint how much you are spending. Tally your monthly expenditures. Hold on to every receipt—no matter if you pay with cash or credit—so at the end of the month you can perform an audit. Take a look how much you spend on recurring items (think rent, cable and electric) as well as one-offs like lunches, movie ticket, and sporting events. Once you’ve aggregated this data, you can set a target for how much money you can put into your savings accounts.

2. Pay Your Savings Account: The best way to save is to make it automatic. For instance, when you receive your regular paycheck, schedule a portion of it to be automatically deposited into your dedicated savings account or 401K—instead of waiting until the end of the month to move it over. In other words, pretend as if that money is not there. When that money is not available, you cannot spend it and, thus, your savings accounts can flourish.

3. Be Careful With Your Credit Cards: All too often, individuals end up paying down the interest on loans, debts and credit instead of paying the actual sum of money borrowed. You may be able to avoid paying interest if you pay off the entire balance each month.

4. Get Creative With Your Social Events: While limiting your entertainment budget is a surefire way to pad your savings accounts, it is incredibly important to find ways to satiate your quest for social gatherings while doing so on a budget. So instead of limiting your social events, get creative with them. Consider going for hikes, playing board games or inviting friends over for a pot luck dinner rather than suggesting pricier social gatherings. Just swapping even one concert night for a karaoke night could save you hundreds of dollars in one month.

There are so many great money saving tips out there, so we want to hear from you! How do you suggest padding your savings accounts each month?