April 6, 2020
It’s our responsibility to support the financial literacy of the communities we serve. The next generation’s money habits are key to the success of our hometowns and our states.
There is no finish line when it comes to financial literacy. Continuing education is vital—no matter your age. As new technologies emerge, our communities find themselves plagued by age-old problems. At MVB, we serve as a cornerstone of financial stability and knowledge, focused on educating students of all grade levels, informing senior citizens and helping everyday clients power their financial potential in three general areas.
- Making and maintaining a healthy budget that fits your income and lifestyle is the first step in living a financially healthy life. Giving some organization to your expenses, whether they be mandatory or discretionary, is stressful and unpleasant for many. However, there is no greater feeling of empowerment and relief than achieving a firm understanding of your finances. Facing your current money habits and making a plan for the future gives you a perspective on what financial health looks and feels like for you, and this knowledge comes with immense peace of mind.
- There is a multitude of excellent resources available that can help you create a budget. Generally speaking, a good budget separates money you must spend each month (rent, car payments, groceries, and other bills), and money you don’t have to spend (eating out, streaming services, clothing). Then, you can decide what expenses are easiest avoid.
2. Managing Debt
- Responsible and strategic borrowing has many benefits, but for most people, debt is like quicksand. A few credit card purchases here and there can swell out of control if the debt holder doesn’t have a good understanding of interest. Many—probably most—Americans are always a step behind their credit card payments or student loans. It’s easy to become overwhelmed and exhausted. We’re here to help customers create a plan for tackling their debt, and staying the course until they’ve escaped their debt.
- Always do your research before taking on any form of debt. Even if it’s as simple as applying for a low-limit credit card, fully understanding the terms and how to effectively use the tool is the first and most important step to managing debt. Not surprisingly, a strong budget can also help you proactively limit the affects of debt on your day-to-day life. Keeping track of your student loans, car notes, or any other form of lending you make regular payments towards can go a long way in avoiding some unwanted surprises. You can also explore options for refinancing large amounts of debt to make it just a little bit easier to pay back what you owe.
- When you think “investing,” you might think of manic Wall Street brokers throwing heaps of paper slips across the New York Stock Exchange in the early 80’s, or some Silicon Valley tech investor striking it rich with the latest digital fad. At MVB, we want to connect all of our customers with investment opportunities like retirement of index funds, which build slowly and predictably over time.
- No two people are the same when it comes to retirement. Team MVB is standing by to help guide you in determining which retirement solutions may be best for you and your family. Popular options are a 401(k) through your employer, or an individual retirement account you manage on your own. These options allow you to make contributions over time to a diversified portfolio of investments—which means you don’t have to hedge your bets, and your future, on the hot stock of the week.
Of course, managing your money can get complicated. But starting off is simple. At MVB, we’re here to put you on your path to financial responsibility.
If you’re interested in learning more about financial literacy for students, senior citizens or other groups, contact LRye@MVBBanking.com. Or, if you’re ready to take the first step to reaching your own financial goals, contact your local banking center today to see how we can help power your potential.