There’s No Such Thing As A Free Lunch (break)

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by Nila Pathammavong

The saying goes that there’s no such thing as a free lunch. According to a recent report the common phrase is now more appropriate than ever. A pricing analysis conducted by NDP Group found that in many restaurant segments, prices have risen 5 percent in the last 12 months. At the same time, grocery prices have remained relatively stable. As a result, restaurant lunchtime traffic is down 4 percent and the average customer bill is down five percent—exactly the same amount as the average restaurant price hike.

According to NPD analyst Bonnie Riggs, “Price value, especially at lunch, is out of whack. Consumers have cut back because they can’t afford to go out for lunch every day.”

Nonetheless, you shouldn’t be cutting the meal from your diet entirely. So how can you take the bite out of your lunch budget without dealing with hunger pangs throughout the afternoon? Here are several ways that workers can deal with the rising price of lunches.

Bring your lunch from home. Packing your own lunch is a very simple solution to deal with the high cost of restaurant prices. The same sandwich you pick up at Subway will cost a fraction of the price if you make it at home. If you never seem to have enough time to make your lunch in the morning, consider doubling the recipe when you make a dinner the night before. If you have a short commute, you may even be able to stop home to prepare your lunch without taking too much time away from your work.

Plan your lunch around special offers. If you can’t find the time to prepare your own meals, at least stay alert for special discounts at the restaurants surrounding your workplace. There are often coupons in local newspapers or online, as well as in-store offers that may bring a meal that is typically too expensive back into your price range.

Eat family-style with your colleagues. Instead of footing a bill by yourself, bring a few colleagues out for lunch with you, order a few dishes that are easy to share and split the cost between yourselves. Not only will you all be able save a few dollars, but you’ll be able to sample a better variety of fare and get to know your coworkers better at the same time!

Graze throughout the day. The earliest humans were nomadic hunters and gatherers and would graze over the course of a day instead of sitting down for three square meals. You can get back to your ancestral roots by selecting a nutritious and filling snack, such as trail mix, and enjoying a few handfuls over the course of the day.

If the cost of your lunch break is leaving you sick to your stomach, try these cost-effective alternatives to eating out. For more ways to save money in your day to day life check out the Milford Bank blog here.

America Has a Saving Problem: What’s in Your Wallet?

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By Matt Kelly

Savings accounts are a vital component of anyone’s financial planning. By putting aside a portion of your earnings into a savings account, you can grow your wealth by taking advantage of interest rates so that you can be assured you’ll have the funds necessary when a need arises. Whether you’re saving up for retirement, planning to put your children through college or even just looking to take a vacation, it isn’t necessarily important why you’re saving—it only matters that you do it.

But based on recent data released by the Saint Louis Federal Reserve, Americans are having a hard time amassing money in their savings accounts. According to the Fed, 70 percent of Americans have less than $1,000 set aside in savings. In addition, the Fed found that Americans’ personal savings rate is only 5.7 percent. While that number has remained steady over the past few years, it is only half the amount saved by Americans 50 years ago.

Financial experts have made a number of recommendations to help people protect themselves during periods of financial turbulence. Individuals should be saving between 10 and 15 percent of their income. Additionally, it is prudent to have six months’ worth of your annual salary to avoid a pitfall in the event of job loss or other unforeseen expenses.

With the holidays coming up, these statistics are particularly alarming. According to a recent Gallup poll, the average American plans on spending $785 on Christmas gifts this year. That means a majority of Americans are planning to deplete their savings accounts in order to get gifts for friends and family members.

But what happens when your car needs a new transmission? What happens if your furnace dies in the middle of winter? While these are worst-case scenarios, your financial strategy should follow the mantra, “hope for the best but plan for the worst.”

And while it may seem impossible to begin accumulating more money in your savings account, there are a number of simple steps you can take to start heading in the right direction.

For starters, stop by a Milford Bank branch location and speak with a financial advisor. An experienced financial planner will be able to help you isolate the problematic areas of your budgeting and offer additional advice on managing any existing debt you may currently owe.

There are also numerous budgeting tools available for free today that can help you accumulate data and track your progress in real-time, meaning you can get a more comprehensive understanding of your spending habits that might not otherwise be easy to spot on a day-by-day basis.

If you can’t seem to stay disciplined enough to stop pulling money from your savings account, you may also want to consider an alternative investment vehicle. Certificates of deposit, for instance, are ideal. You can select a term limit that best reflects your needs. During that time period you will not be able to withdraw your funds, but will enjoy high yield interest rates upon completion of the term.

To learn more, stop by any office of The Milford Bank or check out our online Learning Center here.

Wealth Management Lessons from the Billionaires’ Club

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By Karuna Kasbawala

When Forbes put out its latest list of the 500 wealthiest people around the world, the individuals selected had a collective net worth of $4.7 trillion. While you may not be in a position to ask for their advice on where to bring your private jet for maintenance, there is plenty for the average person to learn about wealth management from the people who do it better than anyone else.

Below are the five individuals that topped Forbes’ list, as well as a wealth management lesson you can apply in your own life.

Bill Gates: Gates is an annual contender for the richest person in the world. But his path to success wasn’t always clear. After enrolling in Harvard in 1973, he dropped out of school two years later to start a company you’ve probably heard of before—Microsoft. While earning a college degree can have a tremendous impact on your earning potential, don’t make the mistake of thinking it is the only way you can become successful.

Carlos Slim Helu: While lesser known than Bill Gates, Carlos Helu’s net worth is nearly identical. How has he done so well? The key was starting early. At 12 he was investing in bonds, stock and learning how to do book-keeping and read financial sheets from his father. If you have young children, don’t shy away from teaching them the importance of wealth management. Click here for additional resources to getting your kids educated about banking today.

Warren Buffett: Buffett owes much of his fortune to his ownership of Berkshire Hathaway. Much of the corporation’s work revolves around real estate, but Buffett himself is not a customer. He still lives in the home in Omaha, Nebraska that he purchased 60 years ago for just $31,500. Take a look at your own life—are there more cost-effective and practical ways to handle your assets?

Amancio Ortega: As the founder and chairman of Inditex—a famous fashion company in Europe—Ortega knows that when it comes to accumulating wealth, every step you take is important. As a young teenager in Spain, Ortega started working as a shop hand for a shirt maker in his town. He perfected his craft for years before finally launching his own line of bathrobes and opening his own business. Amancio Ortega’s success proves that all work has value. Even if you’re at the bottom of the ladder now, the hard work you put in can pay dividends down the road.

Larry Ellison: Larry Ellison is a testament to the notion that giving up hope should never be an option. Even though he is a successful Silicon Valley magnate today, Ellison was not exposed to computer sciences early in his life like other high-earning tech innovators. In fact, he was only introduced to computer design during his second attempt at higher education.

You don’t need billions of dollars to have a high quality of life. But if you’re like most, having a little extra money in your savings account wouldn’t hurt either. The wealthiest people in the world all had to earn their first dollar at one point, just like everybody else. It is their discipline, hard work and humility that helped them keep the momentum moving forward. Find more ways to manage your wealth at our online Learning Center by clicking here.

Six Things You May Not Know About Labor Day

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by Pat White

With Labor Day coming up on September 5—the first Monday of the month—many of us will be taking advantage of the impending three day weekend. Whether you’re using the chance to take one last weekend getaway to the beach before the end of summer, hosting a backyard party with your friends and family, or heading out to the mall to take advantage of Labor Day sales, we all have one thing in common—we’re grateful to have a little extra time for ourselves.

However you choose to spend your Labor Day, be sure to take a few moments to remember the meaning behind the holiday. We wouldn’t have the wages, benefits or time off that we enjoy today without the activism of our ancestors.

Here are five things you may not know about Labor Day to better educate you on the origins of the holiday.

  1. The idea for Labor Day is believed to have begun in Canada in 1872—22 years before it became a national holiday in the United States! In a show of solidarity for striking workers, 1,500 citizens from Hamilton, Ontario demonstrated in the streets. Their aim? A nine hour work day.
  2. Even though Labor Day became a national holiday in 1894, it was first celebrated in New York City by the Central Labor Union in 1882. Over the following 12 years, 23 states marked their own celebration before the Federal government opted to make it a universally recognized holiday.
  3. Congress voted unanimously to make Labor Day a national holiday in 1894, just six days after the conclusion of the Pullman Strike. During the strike, 125,000 railroad workers walked off the job to protest wage cuts without a corresponding decrease in rent and utility costs in their company-owned housing. During the strike 30 workers were killed, 57 were wounded and property damage exceeded $80 million.
  4. The average wage for a laborer during the 1890’s was 15 cents per hour. A skilled worker, such as a carpenter, would still expect to bring home an average of only 32 cents per hour.
  5. President Cleveland, though he supported the establishment of the Labor Day holiday, was fearful that empowering workers would give rise to strikes, riots and strengthen socialist and anarchist movements.
  6. The first minimum wage law was passed in New Zealand the same year that Labor Day was established as a national holiday.

Ultimately, we should not celebrate Labor Day without forgetting the activism and difficult conditions that workers endured in our recent past. Because those individuals were willing to stand up and fight for their rights, we now enjoy the fruits of rising wages, shorter work hours and better benefits.

All offices of The Milford Bank offices will be closed in observance of Memorial Day. Be sure to download our mobile application though, and you’ll be able to conduct your banking conveniently without having to stop at one of our locations. You can download the application here.

New Changes to Our Mobile App Makes Banking More Convenient Than Ever!

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By Kristine Rodriguez

If you’re among the 72 percent of Americans with a smartphone, we’ve got great news for you: Managing your finances with The Milford Bank has never been more convenient. Thanks to recent upgrades to our mobile banking application, our customers can now complete financial transactions whenever and wherever they choose. We provide this functionality for iOS and Android smartphone and tablet users alike. We’ve even got you covered if you use one of Amazon’s Fire tablets.

With Milford Bank’s mobile app you can:

  • Check your account balances.
  • Review recent account activity.
  • Transfer funds among your Milford Bank accounts.
  • Pay a bill or set up automatic payments.
  • Make changes to pending payments.
  • Find the nearest ATM or branch location.
  • Make deposits.

But that’s not all. We recently added a feature that should evoke an even more positive experience for our customers: Instant Balance!

Have you ever needed to determine your account balance quickly, but your cellular signal wasn’t strong enough to open your applications or connect you to the Internet? Or perhaps you forgot your login information for the Milford Bank mobile application. You’ve got to make a purchase but are hesitant to do so without knowing your balance for fear that you might drain your account.

With the Instant Balance feature, you can tap an icon right on the logon page and a pop-up box will provide the balances for all your Milford Bank accounts. For security, the pop-up box will not reveal your account numbers in full, nor will you be able to use this feature for any other banking function.

You’ll have instantaneous access to your account balances, giving you the flexibility to complete transactions, and the peace of mind from knowing exactly how much money you’ve got to spare. You won’t hold up the line at the grocery store, and you’ll greatly reduce the risk of bouncing checks.

We understand that our customers don’t want banking to be another item on their to-do lists. We would much rather be helping them cross things off those lists. With the technology available today, the financial services you need should be convenient, seamless and always there, moving as quickly as you do. That’s why we’ve taken the time to provide a mobile application that supports those objectives.

To learn how to bank mobile and download the Milford Bank mobile application, click here.

Three Ways You Can Improve Your Credit Score

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By Paul Mulligan

The importance of having good credit cannot be overstated. Having a good credit score—at least 700 on a scale from 300 to 850—can open up a world of possibilities that might otherwise have been unavailable to you. Good credit can help you get approved for a car loan or mortgage. In some cases, employers and landlords will even use credit scores as part of their background checks. A good credit score may also help you qualify for financing and credit cards with lower interest rates.

In general, you’ll find managing your finances and improving your quality of life easier with a first-rate credit score. On the other hand, the lower your credit score drops, the harder time you’ll have qualifying for low interest rates that will help you cut into your debt.

Fortunately, you can establish a good credit score early on and keep it headed in the right direction by following these three steps.

  • Apply for a secured credit card. Building credit is difficult to do without an existing payment history. One of the quickest ways to establish your ability and willingness to pay off debts in a timely manner is by using a credit card. Yet, first you have to qualify for the card, which is also contingent upon a solid history of loan repayment. In this case, a good solution is to procure a secured credit card. The lender assumes no risk with this alternative, as a sum of money equivalent to the total available balance on the card is held in an account and only released after you’ve established a track record for making regular payments.
  • Pay more than the minimum on your credit card(s). Another way to prove that you’re a low-risk customer is to pay down more than the monthly minimum on any of your existing balances. You don’t need to go overboard; paying 10 extra dollars a month can have an impact.
  • Leave repaid debts on your credit history. There is a difference between good and bad debt. If you’ve paid off a loan, don’t make the mistake of trying to erase the evidence that you had debt from your credit score. The fact that you incurred debt and handled it responsibly will help your score.

To learn more about the importance of credit and what you can do to improve your standing, stop by Milford Bank to speak with one of our financial advisors, or check out our Online Learning Center by clicking here.

Back to Basics: Banking 101

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by Pam Reiss

Believe it or not, many people get through life without understanding the basic principles of banking. They make their deposits on payday and make withdrawals to pay the bills, and as long as the balance is in the black their finances aren’t given a second thought. But to know the “what” of banking is only half the story—understanding the “why” is equally important. By educating yourself on why certain elements of banking happen the way they do, you can become better equipped to manage your assets responsibly.

Even some of the most basic banking principles, like balancing a checkbook, have gone by the wayside—especially with the growth of online banking. Would you believe that 69 percent of people never balance their checkbook?

So let’s get back to basics and cover a few of the fundamentals of banking that you should understand about your hard earned savings.

Why do you need to balance your checkbook?

While the practice of balancing a checkbook is commonly viewed as a lost practice these days, in fact it is more important than ever. Even though there are strict procedures in place within financial institutions to protect your assets at all times, cases of identity theft and cyberattacks continue to rise. If this happened to you and you haven’t reconciled your account, you might not catch the crime until more damage has been done.

Why are there temporary holds on check deposits?

When you make a checking deposit, a portion of those funds become immediately available for use. But a temporary hold is placed on the remainder. This is important to know so that you can avoid bouncing checks with money that has yet to be transferred to your account. Don’t take it personally, though—the reasoning has nothing to do with your bank’s impression of you. In fact, your bank is simply waiting for the funds to be transferred from the payer’s bank, which can take up to several days. Your financial institution is simply making sure those funds arrive as planned.

Why pay off your whole credit card balance instead of the monthly minimum?

When you’re struggling to make ends meet, the monthly minimum payment option offered by credit card companies might seem enticing. But paying off the bare minimum has a far-reaching impact. Credit scores, for instance, are calculated largely based on the amount of debt that you carry. You also may end up owing more in the long run, as your interest rates could end up creating more debt than you’re paying off each month.

Even if you can’t pay the whole balance in full, making a payment a little above the minimum will help you avoid letting your debt spiral and will demonstrate to your card issuer that you are a responsible customer, giving you more bargaining power in the future when you look to increase your credit line or take out a loan.

For more basic banking principles, stop by a Milford Bank branch location near you or check out our Learning Center online by clicking here.

Why You May Soon Be Seeing Yet Another New Chip in Your Credit Card

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by Patty Gallagher

When it comes to finances, concerns about privacy and security are not always top of mind for consumers performing a common action like making a purchase. And maybe they should be, since today’s customers frequently shop using plastic—most commonly a credit or debit card, which can be directly linked to their bank accounts. Trusting customers swipe their cards and type in their PIN numbers not realizing that their transactions, which contain their personal identification information, might not be secure.

Following the theft of millions of customers’ information in 2013, when a major data breach at Target affected 40 million customers who had used their credit or debit cards between Nov. 27 and Dec. 15, banks and credit card companies decided to increase the level of security for credit and debit card users by installing a chip into each card.

This chip, called a radio frequency identification (RFID) chip and installed in EMV cards, or cards that meet the international standard of chip security and technology, produces a one-time code for each transaction. The card number is not recorded, as was done in the past—just the transaction code—reducing the ability of thieves to obtain card information.

Yet, as with any security technology, hackers have found ways to undermine the RFID chips by studying the radio frequency used and the fluctuations in the chip’s power source, scanning and then rewriting the chips to reflect their own data.

So, now what? Well, according to an article published by Science Daily on Feb. 3, MIT and Texas Instruments researchers have developed a new RFID chip that is almost impossible to hack. This newly designed chip will circumvent hackers by providing a power source within the chip (to mitigate any fluctuations in power) and memory cells that retain the information the chip is processing at the time the chip begins to lose power. As the chip will remember the data it was processing, hackers will not be able to rewrite or reroute the chips to reflect their own data.

One downside of this newly developed secure RFID chip is that it will mean longer checkout times for the consumer, as the chip will have to power on and store the data being processed every time the chip is activated.

In an era filled with constant threats to credit and debit card security, these technological advancements couldn’t come at a better time. While the level of privacy expected by bank and credit card customers may not have changed, the lengths to which financial companies have to go to secure personal information has undoubtedly increased. As hackers become more proficient at stealing personal information, banks, including The Milford Bank, will continually seek new ways to protect their customers. As new technology is developed and rolled out, we’ll keep you posted!

Go Mobile with The Milford Bank

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by Becky Tudor

The Milford Bank recently updated our mobile platform for customers by adding a mobile app for Apple, Android and Amazon tablets. The app is designed to make your banking experience more convenient by enabling you to manage your day-to-day finances from your own smart devices. Best of all, the app is free! (Although cell phone carrier charges may apply.) If you are not already enrolled, you can sign up here.

The app provides five basic services: deposits, balance inquiries, transaction history, bill and person-to-person (P2P) payments and funds transfers. Within Apple and Android devices, the app also provides ATM and office locations.

Customers are now able to access their bank accounts from wherever they are and whenever they want without having to worry about the security of their private information. The application was designed with your privacy in mind, and by making P2P payments you’ll be able to avoid points of sale which have been linked to instances of hacking like those perpetrated on card users at Target locations in 2014.

The mobile deposit feature is extremely convenient. Forget about deposit slips and envelopes –or even bothering to leave your desk. After endorsing your check, simply pick up your tablet, take a photo of the front and back of your check, open your app and use your photo to make an immediate deposit.

Plus, now you can check your deposits on the fly to confirm the time and date when the funds are made available in your account. While you’re in the app, feel free to check your balances and any other transactions that have occurred. All your accounts are visible through the app.

Fund transfers are easy too. You simply click on the “transfers” tab, and it opens the screen to a page that is designed for easy navigation and convenience. After choosing the accounts you want to transfer money to and from and the amount you would like to transfer, click the “transfer now” button, and your funds are on their way.

Another benefit is that you can pay your bills directly from the app. Once you’ve set up online automatic or one-time payments online, you can alter the amount of the payment(s) or cancel them altogether hassle-free and on the move. These electronic payments will allow for timely bill payments without the cost of stamps or physical handling.

Finally, the P2P feature can save you the hassle of writing a check to a friend or family member and then wondering when the person will deposit the check. A notification is sent to the recipient of the check, and then the recipient accepts the notification. This allows for information about your accounts to be up-to-date and accurate.

We understand that our customers today are constantly on the move and need the convenience of bringing us with them wherever that may be. The new features of our mobile app are designed to do just that. If you’d like more information on using the Milford Bank mobile app, visit our website here or stop in at any of our branch locations to speak with a representative today.

In Four Baby Steps, Help Your Children Establish Their Own Credit Histories

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by Celeste Lohrenz

A sound credit history can help you obtain the best rates and terms when making purchases that lead to a more satisfying life (aka the American dream). Whether you’re trying to finance an automobile or a house, or even just rent an apartment, your credit score can be very important. And this situation is unlikely to change before your children reach adulthood. So, how can you help your kids establish credit histories that will support their future endeavors?

The path to a good credit standing starts with fiscal responsibility, and a great way to develop this in children is through exposure. That is, start building your child’s credit standing as early as possible. (Of course, all children mature at their own rate. Be sure they are able to handle responsible money management before helping them to establish credit.)

Here are some tips to establish credit histories for your children before the time comes when they step out into the world on their own:

1. Begin with a savings account: Because most banks will not allow you to open a checking account for your children until they are older, start with a savings account. You can open one for your child the day he or she is born or wait until the child matures to the point when such an event will have the most beneficial impact. Consider, for instance, whether or not he or she is earning money. Being an earner can be a good foundation for helping your child to understand the value of money. Putting aside some of their earnings could become a valued practice among children when you teach them what accumulated savings can buy.

2. Open a joint checking account: Once your child is older and a little more responsible, you can open a joint checking account. If you choose, both you and your child will be able to get a debit card for the account, and you will have the ability to monitor transactions. This gives your child a little more responsibility while still giving you oversight.

3. Obtain a credit card: The earliest age that your child can obtain a credit card is 18. If he or she has shown responsibility with their joint checking account prior to turning 18, then the child may be ready to move ahead. Many banks offer “secured” cards with a small line of credit while holding back a corresponding amount of cash in a linked savings account. This way, banks limit their liability and still enable individuals to start building credit by paying off the card according to set guidelines. You also may want to consider cards from retail stores like Target or Home Depot, as these are generally flexible and can help curb excessive spending because they are only good for purchases made in their stores.

4. Pay off a credit card: A good way to build credit is to show creditors that you don’t spend excessively, and that you consistently pay your bill on time. For this reason, impart to your child the importance of limiting spending to about 30 percent of the available credit limit and paying the balance off regularly each month. This is better than not using the card at all or maxing it out—even if it is paid in full regularly.

More doors will open later in life for your children when you help them build a sound credit history. To learn more about ways you can encourage your children to learn more about financial responsibility, click here to read our Cent$ible Kid$ newsletters.