Category: Personal Finance

Thanksgiving Costs Through History

Thanksgiving

Filled with laughter, good food, and heart-warming conversation, Thanksgiving is a holiday centered on all things family. Dating all the way back to 1621, this festive celebration originally began to signify a successful and fruitful fall harvest. Today we enjoy this day of thanks to remember all the blessings and loved ones in our life.

Many things have changed since 1621, or even since 1916! We wanted to see what this holiday may have looked like over the past century, to visualize how traditions and costs have changed through the years.

There are several factors when determining the cost of a Thanksgiving celebration. Today the average feast runs approximately $49. This includes a 16-pound turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries, carrots, celery, pumpkin pie with whipped cream, and coffee with milk. However, back in 1916 this meal cost approximately $6.81, but keep in mind, the turkey then cost $4.48, or $99.23 in today’s standards.

Take a look and see how the various costs of Thanksgiving have changed over the last 100 years. You’ll be surprised at the difference!

Cost of Today’s Feast Cost of Past Century’s Feast

1916 – $2.21 1916 – $6.81

1926 – $3.59 1926 – $11.06

1936 – $2.82 1936 – $8.68

1946 – $3.96 1946 – $12.18

1956 – $5.52 1956 – $16.99

1966 – $6.58 1966 – $20.24

1976 – $11.55 1976 – $35.55

1986 – $22.24 1986 – $68.47

1996 – $31.84 1996 – $98.03

2006 – $40.92 2006 – $125.95

2016 – $49.00 2016 – $150.84

At Milledgeville State Bank, we love learning about holidays and their history. It’s easy to see now how $6.81 can really add up! If you put those dollars in today’s standards, food costs would be astronomical! Can you imagine paying over $100 for just your turkey? This year the average cost per pound is about 93 cents, so for a 16-pound turkey, you should expect to pay around $15. Now that’s something to be thankful for!

The Envelope System 1-2-3

Budgeting

This age old budgeting is still offering valuable insights to individuals and family across the country. Simplistic in form, this budgeting tool can help you manage your funds through direct accountability and a simple tracking function. Get started today, and Milledgeville State Bank will help you along the way!

What is the envelope System?

The envelope system is a budgetary guide where each category of your budget is represented by a physical envelope, filled the cash for that month’s spending. As you need to spend in a designated category, you only use the funds from its matching envelope. Once the envelope is empty, no more spending.

How does it work?

This budget hinges upon your accountability to yourself, and not overspending in areas where there is no cash remaining. Before setting the amounts for the month, examine your current spending and see which areas perhaps you could cut back, and other categories that may need a few more dollars. This will help ensure that your monthly budget is an achievable goals, that won’t leave you wanting at the end of the month.

Why should I try it?

Getting your finances together helps open opportunities that may not have been present before. By accurately and responsibly managing your finances you may have the potential to save for a vacation, pay off debt, or purchase that item you’ve been dying for. By trying this system you are creating a goal for your and your family to look forward to a debt-free and more financially secure future.

Getting started is as easy as 1-2-3. Stop in the bank today and we can work with you to withdraw the amounts needed for your individual spending categories, and we’ll even give you the envelopes to go with them. If you’re still curious on how to best set-up your monthly budget, we can help with that too – just drop us a line or stop by!

What Your Teen Needs to Know About Money Management

Money Management

Throughout their teenage years, your children will begin to grow their personal money management style. Offer them some assistance by offering these four financial lessons from Milledgeville State Bank.

Securing Their First Job

No matter if it’s babysitting, lifeguarding, or bagging groceries, there are plenty of employment options for eager high school students. These opportunities typically start at minimum wage with zero benefits, but offer a foundation of experience and learning. Talk with your son or daughter, and help them select positions to apply for that resonate with them. Resources such as the Chamber of Commerce often list local job openings, and are a good place to comb for recent availabilities.

Managing Money

The younger you begin various habits, the better they stick with you. Teach your children the positive effect proper money management can have on their pocketbook. Start by opening both a savings and a checking account for your teen. Each pay period, help them figure ten percent of their earnings to put into their savings. You can also work with them one-on-one each month to help balance their checkbook and plan for any large expenditures.

Saving for College

Secondary education isn’t cheap. If your son or daughter plans on attending a college or trade school, the time to start saving is now! Work with your future student to determine an educational budget, providing an estimate of upcoming expenses. Once you know the amount needed you can set savings goals for both you and your teen to start tucking money away. The sooner you begin your savings journey the smoother the road will be to your target amount.

Making Payments

Whether it’s purchasing their first car or simply covering the cost of meals at school, learning how to maintain a payment plan is an important life lesson. Explain your personal bill paying system to your teen and see how they can tailor it to their needs. Once they have a grasp on the system itself, gradually add payments to your child’s list of responsibilities, even if you add the money to their account. This will help them learn to keep an updated payment calendar before they graduate high school.

Money management is a continual learning process. There are always new techniques or tricks to better arrange your finances. Don’t stop honing your teen’s money management after these four lessons – stop by Milledgeville State Bank and see how you can keep growing your family’s financial skills today!

Generational Financial Habits: Baby Boomers, Gen X, Millennials, and Gen Z.

Spending

When it comes to your spending habits, your age may influence your decisions more than you think! Depending on your generation, there may be some key patterns that differentiate you from your older and younger counterparts. Discover your key financial traits with this helpful guide courtesy of Milledgeville State Bank.

Baby Boomers

Typically classified as the savers of the modern age, many of those age 51-70 are known for tucking away funds as quickly as they can accumulate them. Many baby boomers were affected by both the Kennedy and Martin Luther King Jr. assassinations and hold strong sense of mistrust of the system. There are many in this generation who choose savings options outside of financial institutions. This large generation of approximately 70 million people, is currently in the process leaving the workforce and entering retirement. The most important item on their financial agenda is to save and secure funds for the decades of life they will enjoy outside nine to five.

Generation X

Often overshadowed by the large baby boomers ahead of them, generation X’ers tend to be strong willed and decisive, fighting for their share of the financial pie. Having been one of the first generations to experience divorce as a normal occurrence, many of those adults age 40-50 continue to look out for their individual financial wellbeing through strictly defensive tactics. Boasting on the highest education rates, this group makes strategic savings plans, constantly preparing for the ball to drop. They are best known for their cautious optimism and lofty financial goals.

Millennials

The current generation of twenty and thirtysomethings, were shaped by a highly digital world. Growing up in the age of computers and terrorism, these young adults believe that the typical American dream, may be slightly skewed. In many areas, home and car ownership is on the decline as more and more millennials strive to gain experiences over material possessions. Influenced by their parental counterparts, it is common to see this generation shying away from long term debt after seeing their parents succumb to missed payments and foreclosures during the 2008 economic crash. Couple that cautious initiative with crippling student loans and added inflation, where now today many college graduates are working multiple jobs to simply make ends meet.

Generation Z

The up-and-coming generation of the century, this group is the first age demographic to grow up completely immersed in digital technology. The days of cell phones and computers encompassed their childhood, and many of those age 0-20 have never known life without the digital realm. Still relatively young, these Gen Z’s take diversification to the next level, not trusting too much in any one entity. With advancing diagnostic systems this generation takes time and consideration into account before making any major life decision. As this generation ages, more experiences and choices will continue to shape their financial style.

No matter what generation you are a part of, there are a variety of ways you can improve your financial habits. Speak with one of our experienced personal bankers today, and we’ll show you how to get started!

What’s Your Spending Style?

Personal Spending

Everyone spends and saves differently. There are spending personalities on all ends of the spectrum that range from extreme spenders to tireless penny pinchers. Discover what type of spender you are with this helpful quiz courtesy of Milledgeville State Bank.

What’s your typical lunch during the workweek?

A: A packed lunch, typically leftovers from the night before.

B: A variety of prepared lunches from home and a handful of take out meals throughout the month.

C: I usually grab something from one of the local restaurants during my lunch break, occasionally I’ll bring something from home if it was really good.

D: I can’t get through the day without my latte in the morning, and a solid lunch out of the office in the afternoon.

How important is your credit score to you personally?

A: I live and breathe by this number, it influences almost all of my buying decisions.

B: I check my credit every month, it’s important to know where you stand.

C: I have a general idea where I’m at, but it’s not the first thing on my mind.

D: What’s a credit score?

If you want something that is $3,000 but you only have $1,500 available funds in your account what would you do?

A: Wait until I can save the additional $1,500 I need before purchasing it.

B: Compromise on a similar item that only costs the $1,500 I currently have.

C: Purchase the $3,000 item, paying $1,500 up front, and putting the rest on credit.

D: Purchase the $3,000 item and put it all on credit.

What does retirement savings mean to you?

A: Roth IRA, 401(k), stocks, bonds, and personal savings.

B: Using my work benefits along with personal savings.

C: I think I get something for retirement through my place of employment.

D: Something I don’t have to worry about until I’m older.

When you see an exciting impulse buy, how do you manage the situation?

A: I remind myself I’m here for these 5 items and nothing else.

B: I remember I already bought a small impulse buy yesterday, so this one could potentially harm my budget.

C: I made it through the work day today, I deserve this.

D: I already have 4 other things I wasn’t expecting to buy, what’s one more?

If most of your answers were [A] then you are a Penny Pincher: For you, finances are the key to your existence. All aspects of your financials are crafted into a strategic plan to make the most out of your various savings accounts. You’re the first to suggest a restaurant based on cost, and the last to splurge on a large purchase. Typically you’re also the person other family members typically ask for well-rounded financial advice.

If most of your answers were [B] then you are a Balanced Budgeter: In your world, the life of a budget doesn’t have to centered around a hunker down mentality. A budget is a fluid medium that is meant to be customizable to you and your needs. Occasionally an added expenses or unforeseen purchase is needed or warranted, but overall, you ensure you and your family stay on track with a well thought out financial plan.

If most of your answers were [C] then you are a Cautious Creditor: Although much of your financial expertise is based on credit card rewards, and other point benefits, you do care about your money management. While not all your choices are made to help boost your savings, there are certain measures you take on a continual basis to help push your financial goals forward.

If most of your answers were [D] then you are a Debt Developer: Often times you spend more than you intend. Between check-out line snacks, and lunch time splurges, your bank account just tries to keep up. Understanding your financials isn’t necessarily first on your list of priorities, but there are certainly some things you know you could improve. You appreciate the things you purchase and genuinely enjoy the experience of shopping.

No matter what type of spender you are, Milledgeville State Bank is here to help you succeed. For everything from setting up savings accounts, to consulting on wealth management, we have everything you need to continue your financial success. Give us a call at (815) 225-7171 or stop by today to get started!

Home Renovations with a HELOC

Home Renovations

With warm weather approaching spring is the ideal time to shake off the dust and get your house back into shape! Get started on your next home renovation with a strategic Home Equity Line of Credit from Milledgeville State Bank. Our custom financing allows you withdraw only the funds you need along the course of your future project. Inspiration can be found everywhere when updating common areas such as the kitchen, bathrooms, basement, or outdoor living area. See what these average home renovations cost with this handy guide courtesy of Milledgeville State Bank.

Kitchen Remodel: Creating your ideal culinary environment is more than just choosing cabinets and granite. With all the updates and finishing work, a typical Midwestern kitchen remodel can cost around $15,000 to complete. Carefully crafting the heart of your home takes concentrated decision making and long term planning. Consider updating your kitchen appliances to save you time and energy while preparing future meals. You may want to refinish or replace worn out flooring to match the new feel of your fresh remodel.

Bathroom Remodel: Giving your common space a much needed facelift can help you add value to your home. With updates as simple as new hardware and a tasteful backsplash you can bring some timeless style to a functional space. When undertaking a full renovation, features like a walk-in shower or a double vanity can bring a bold statement to the room. The average bathroom remodel in Illinois typically runs under $12,000 for a completely revamped space.

New Deck: Building a fun outdoor patio or deck can open up the area for countless fun family activities. Costing around $6000 for the average Midwestern deck, you can complete this exciting renovation in time and under budget. Spice up your new construction with added rails to hold beverages or food during grill outs and get-togethers.

Finishing a Basement: Depending on your foundation and other structural issues, most basement renovations center on adding dry wall, placing new flooring, and waterproofing the entirety of the room. Typically costing under $25,000, a finished basement can serve as additional space for an office or play room, increasing the livable square footage of your home.

There are endless projects to begin your spring to-do list this season. Let Milledgeville State Bank help you get started on your next home renovation with a tailored Home Equity Line of Credit. Speak with one of our helpful lenders to get started today!

Top 5 Budgeting Apps to Get You Organized

Top 5 Budgeting Apps

Have you noticed yourself hitting the “check out” button a little more frequently when you shop on your phone? You’re not alone. In 2015, mobile commerce grew to a staggering 30% of all U.S. online shopping. This shows a growing trend of mobile purchasing moving billions of dollars in sales via handheld technology.

While smart phones enable spending, they can also be powerful tools for strategic saving. Check out these top budgeting apps and learn how to easily keep track of your finances.

Mint. By pulling all your balances and transactions into one simple design, Mint allows you to see the big picture. You can add accounts, cards, and bills and track spending patterns and investments in real time. A budget calculated by your average spending will break down where your cash is flowing from month-to-month and year-to-year so you can watch your savings progress over time. (Free)
PocketGuard. If spur-of-the-moment spending is your weakness, PocketGuard is here for you. Connecting directly to your bank accounts, the app’s home screen tells you how much you’ve spent for the day, week, or month in relation to your income. With transactions automatically updated 24/7 you have an instant visual of your personal cash flow. (Free)
Level Money. This helpful app aids you in spending for the short-term and saving for the long-term. By analyzing your income and expenses, Level Money reveals a daily allowance to help you save for a larger purchases or pay down debt. Connect the app straight to your bank account and create goals for saving and spending, all backed by a planning module that sends reminders and encouragements to help you stick to your goals. (Free)
You Need a Budget. YNAB operates on 4 Rules; Give every dollar a job, save for a rainy day, roll with the punches, and live on last month’s income. This app adjusts your entire budget to prevent overspending. This app also ensures a constant safety cushion of funds so you’re never scrambling to cover unexpected expenses. ($5/month or $50/year)
Good Budget. Unclutter your envelope budget with this exciting app. Instead of juggling a stack of envelopes for different expenditure categories, you can open digital folders on one simple screen. For joint accounts, you can easily synch the app with your spouse across multiple devices to prevent double dipping into funds. ($15/3 months or $24/6 months)

If you’re ready to take the first steps in re-evaluating your budget stop by Milledegeville State Bank today. With knowledgeable lender, we’re here to answer all of your budgeting needs.

5 Easy Ways to Save for Your Next Vacation

Savings

Whether it’s skiing in the mountains, scuba diving among the reefs, or exploring history throughout famous museums, your ideal vacation can be anything you make it. Wherever you dream of traveling to, price is sure to be a factor in your decision. Make the trip of your dreams into a reality with these smart saving tricks to help fund your travels wherever they may lead.

Open a dedicated savings account. To keep your goal clearly in sight and prevent overspending, establish a dedicated savings account for family vacations. You can use these funds throughout the vacation planning stages to book hotels and tickets. During your trip, easily track your designated spending while preventing unneeded dips into a primary savings account.
Trust the change jar. The nickels and dimes that collect at the bottom of your pockets may seem insignificant, but a mere $1.25 saved every day in spare change adds up to just under $500 in only one year. Establish a large lidded container for your trip funds, for gas or gifts. Be sure to keep your eyes peeled for loose change both at home and during your work day.
Designate a pantry week. In the months leading up to your vacation, pick one week each month to skip the grocery store and eat out of personal food storage. By eating meals such as spaghetti, soup, or rice, you’ll par down the grocery bill while consuming pre-purchased food before it goes bad.
Repurpose gift cards. Instead of letting that plastic currency go to waste speak with friends and family members to see if any of them are interested in a trade. If there is no trade to be had, selling the gift card for slightly less than the card’s value may create a better incentive for buyers while still allowing you to receive the best benefit.
Save energy. Cut down on your monthly utility bill by creating a list of action items to save on energy costs. Running the dishwasher for extreme loads only, switching to cold instead of hot water for laundry, setting a time limit for showers, and only turning on essential lights can lower your utility bill piece by piece. Take the difference saved and funnel it into your travel savings account.

At Milledgeville State Bank, we love seeing you accomplish your financial goals and enjoy all of the incredible places they can take you. If a vacation is on your horizon, make an appointment with one of our financial advisors today and learn how to make the most of your savings.

The Dos and Don’ts of Credit and Debit Cards

Personal Finance

Throughout the month of April, the United State of America celebrates Financial Literacy Month. In efforts to catapult our nation’s level of financial knowledge, April has become the catalyst to help children and adults alike, learn the ins and outs of the finances. With topics ranging from budgeting, lending, saving, and beyond, this month offers an incredible opportunity to better understand the potential your money holds.

This week we are excited to dive into the do’s and don’ts of credit and debit cards! Offering two very similar, but uniquely different services for your financial needs, these cards can help you to reign in your finances and grow your credit score when used properly. Learn all about these tips and tricks courtesy of Milledgeville State Bank.

Debit Card: A card issued by a bank, that is tied directly to a checking or savings account, which allows money to be electronically transferred from one bank account to another when making a purchase.

Use for daily transactions. It’s always great to have a paper trail reminding you of your purchases.
Use for repeated expenses such as gas, groceries, and other costs you can plan for.
Balance your check book. Sometimes charges such as gas or dining can take several days to run through so be sure to keep track of your spending by balancing your checkbook weekly.

DON’T

Use your debit card online unless you absolutely have to. Having your credit card information stolen is one thing, having your bank information stolen is another.
Spend more than you have in your account. Overdraft fees are no fun for anyone!
Postdate transactions if funds are not readily available in your account.

Credit Card: A small plastic card that is offered by a bank or other financial institution, allowing the card owner to purchase goods and services on credit.

Use for online expenses through secured vendors. Many discounts may be offered online only and can save you and your family a bundle.
Pay your bill in full each and every month. Make to avoid hefty interest rates and other timely fees by not extending your balance over the next month.
Utilize points to help you earn while you spend. These points are great for supplementing costs of family trips or other extra activities.

DON’T

Spend more than you have allocated for the month. Paying more for interest and other fees is money wasted.
Open too many credit card accounts. Keep one or two cards that you use and payoff each month to help boost your score.
Max out your balance, even if you pay if off each month this can potentially damage your credit score and serve as a red flag to potential lenders.

Get started on your finances today with a secure debit card from Milledgeville State Bank!

10 Random Acts of Kindness

Random Acts Kindness

There are so many small and valuable things we can do to impact the life of another. While some of them are financially bound, others can be simple tasks, such as opening the door for someone. This year challenge yourself to more acts of kindness, random or not.

Pay for the person’s food or beverage behind you in line.
Write a letter to a soldier.
Donate new and used toys to daycares or children’s hospitals.
Cook a meal for a family who may be without.
Give a good server the largest tip you can afford.
Scoop snow or do other yard work for your neighbor.
Pick up trash at an area park.
Offer assistance to a charitable organization with your time and skills.
Bake treats for your area school’s teachers.
Visit a nursing home and spend time with the residents.

In addition to being kinder in 2016 you may find yourself becoming happier as well! With so many opportunities to make a difference, this list will help you get started! Add your own acts of kindness and see what you can do to better the lives of others this year.

If you’d like to contribute to others in a financial avenue let us know, we’d love to help! Milledgeville State Bank can assist you in remaining anonymous in donations, arranging monthly transfers, dispensing cash for personal giving, and more!