Life Stages > Active Family
Managing the Financial Responsibilities of Family Life
By the time you have a family of your own, there will be accompanying expenses such as fees for various activities and lessons for your children, family vacations, saving for college educations or buying a new home. Throughout this time, you should regularly evaluate your progress towards achieving the financial goals you set earlier in your life and adjust your spending, budgeting and saving to make sure you stay on track. With all the demands a family places on your income, it is still important to build your long-term investments.
Planning and discipline that determines what and how you spend contributes to your future financial success. Here are some tips CBC Bank recommends for sound financial management during this demanding time of your life.
1. Shop for the best mortgage and consumer loans.
Seeking the best mortgage or consumer loan by shopping, comparing and negotiating may save you thousands of dollars. A mortgage - whether for a home purchase, refinancing or a home equity loan - is a product, just like a car, so terms may be negotiable. You’ll want to compare all the costs involved in obtaining a mortgage including interest rates, points, fees and down payment and private mortgage insurance requirements. Home equity loans and lines of credit can be helpful when extra cash is needed to reduce significant credit card debt - but be cautious about re-building credit card debt once it is paid.
With competitive rates, experienced lending professionals and local decision-making, you’ll be sure to find a loan at CBC Bank that meets your needs. To apply for a mortgage or consumer loan, talk with one of our mortgage specialists.
- Fixed Rate Mortgages
- Adjustable Rate Mortgages
- Construction Loans
- Installment Loans
- Home Improvement Loans
- Second Mortgage Loans
- Installment Loans
- Home Equity Loans
- Home Equity Line of Credit
2. Understand your credit report.
Your financial behavior over the past seven years, including how much credit you have, how long you've had it and whether you pay your bills on time is information included in your credit report. Three credit reporting agencies - Equifax, TransUnion and Experian - maintain these reports, and lenders buy them to help them decide whether to offer you a prequalification. Your credit report also carries your credit score ranked between 300 and 850 that many lenders use to decide whether you are creditworthy and will you'll repay a loan. Your credit score can also influence the interest rate you pay. In many cases the higher your score, the lower your interest rate. Your credit score is available from the three credit reporting agencies:
3. Start Saving for College.
By starting early, when your child is in preschool or before, you can build a realistic fund through the power of compounding over many years. The earlier you start, the less you’ll have to save per month.
Through CBC Bank, you can access products designed to help you fund your child’s higher education.
4. Conserve time, money and paper with CBC Bank's convenient checking accounts with online banking and bill pay and no-charge ATM services.
You'll reduce the time it takes to pay your bills and save on the expense of printed paper checks and postage while helping the environment as well.
- Choice Checking -- Unlimited transactions and no minimum balance requirements.
- NOW Interest Checking- Pays interest on your balance of $1,000.00 or more.
5. Improve funds availability and save time and money with CBC Bank's convenient direct deposit service.
Save the time and expense required to prepare, transport and deposit transactions by requesting Direct Deposit. Business customers may utilize Remote Deposit from your office at any time of day or night. Our simple, web-based interface integrated with an inexpensive flatbed scanner and our online banking service lets you electronically deposit checks into your business account for improved cash flow. To learn more, go to Direct Deposit.
6. Save for retirement.
Many people underestimate the amount of money they’ll need in retirement. Be realistic about major expenditures, e.g., will your mortgage be paid off by retirement? If so, you may need less income than you do now. Do you plan to buy a vacation home or travel extensively? Will you have to pay for your own health insurance? These and other financial considerations all come into play.
Now is a good time to up your contributions to your retirement savings accounts. Talk with CBC Bank's financial consultants to learn about the FDIC Insured products or talk with our investment professionals at The Investment Centre to learn more about savings options that best suit your needs..
- Certificates of Deposit-A great way to save for your retirement with FDIC coverage.
- The Investment Centre - Non-FDIC insured products and numerous investment options.
Tips for Effective Financial Management
- Make sure your mortgage payment, including taxes and insurance, represents no more than 43 percent of your gross monthly income.
- Review the cost of your health care insurance and make sure you are getting adequate coverage at the best price.
- Make wise purchasing decisions by determining what you "need" compared to what you "want." This will help you make ongoing decisions to keep your finances in check.
- Guard against impulse shopping, especially for costly purchases such as vehicles, major appliances, furniture, jewelry and the like.
Some Financial Calculators for the Active Family
Our calculators can help you determine what you need to achieve your goals and stay on budget.