“I’ve got plenty of time,” you might be saying.

While that phrase may be tied to the idea that you do not need to start investing right away, we encourage you to think of it as having plenty of time to grow investments. The time you have now, as a young person, to start building a long-term portfolio is truly invaluable. The younger and sooner you begin, the more you can grow your wealth over time.

By following a few key strategies, you can start building an investment portfolio the right way:

Solidify your investment goals. Even in your teens and 20s, retirement should be a key investment goal – but you may have other goals, as well. Your investment goals will drive the types of investments you make because how long you have to reach these goals will dictate how risky your investments can be. If you have a long time to invest for a particular goal, you can take greater risk (for potentially greater upside) with your investments, such as stocks and mutual funds. For short-term goals, low-risk investments like certificates of deposit are optimal.

Diversify. No matter your investment goals, your investment portfolio should be diversified – split into diverse investment types. This typically includes domestic stocks, foreign stocks, bonds, and short-term investments. Mutual funds can help diversify for you, often incorporating over 100 various stocks or bonds within the fund. Diversification helps spread your risk out over many different investments so that, in case one particular stock experiences dramatic losses, your overall portfolio is not so greatly affected.

Keep some savings in cash. As part of your diversification strategy, keep some of your money in cash or short-term investments like certificates of deposit. This can act as an
emergency fund in case you need it.

Lead with your head, not your heart. Even as Gen Z prefers to make investments that offer a deeper emotional connection, it is wiser to keep emotions at bay when creating an investment strategy. When someone makes an investment out of emotion, such as fear or being swept up in a trend, the financial repercussions can be swift and brutal. Instead, do your research and make sure that any investment you consider is worth the risk.

If you do these things consistently, then the occasional risky or emotional investment can play a role within your overall portfolio for long-term goals, especially since you have plenty of time to reach them.

First Financial has been recognized as the 2024 Best Credit Union by The Daily Record’s Reader Rankings. This award celebrates and recognizes the very best in our community. Thank you to everyone who voted! To view all winners, visit The Daily Record. 

Living in the moment is a feel-good approach to life that boosts mental health and enhances lifestyle in the present. Certainly, people of any age can adopt this approach to everyday living, but it’s especially true among Gen Z. That fact may not be surprising, given that younger generations tend to focus on the short term over the long term.

However, this mentality is resulting in a trend known as “soft saving” – a tendency to put a disproportionately smaller amount of money toward savings goals and more toward lifestyle choices and comforts. That’s definitely living in the moment.

From teens and college students living on after-school jobs to young professionals who have found their footing in a career, a large share of Gen Z would rather put their money toward things and experiences that offer an emotional appeal or a “soft” lifestyle, one that reduces stress and focuses on personal (not financial) growth.

The problem with accepting this soft saving trend without challenging it is that there will come a time when Gen Z will wish they had started saving earlier. Many people find themselves unable to work as long as they expect and consequently need a nest egg for retirement.

Living the soft life while saving

While the soft life is all about a higher quality of life in the present, there are ways to find a balance. Adopting a few simple strategies can help you live well and save at the same time. Here are some ways you can incorporate saving and earning into your current lifestyle:

Do you want to start a business as a young entrepreneur, but have more enthusiasm than experience? Don’t worry—being excited about a big idea is a great place to start.

Things look different when you’re starting a business under age 18, but that doesn’t mean it can’t be done. Read on for a list of questions to consider before becoming your own boss.

What’s Your Big Business Idea?

If you don’t have an idea for your business—just the idea that you’d like to start a business—start by thinking through your strengths and interests. If you’ve already got a great idea, this advice still holds. Choosing a first-time business that builds on your skills and interests makes your work enjoyable and keeps you motivated when things get hard.

Think through the time you have available for a business. You’re likely a full-time student, and that’s your No.1 priority. A business model that can run on a flexible schedule and be ramped up as you have more time is ideal.

Your business could be a physical or digital good or service. Digital or virtual services typically have lower startup costs (or the initial costs to get going), while physical goods often require more money and management. For instance, if you manufacture a product—say a cool phone case—you’ll likely pay to create, store, and ship your items.

Who is Your Ideal Customer?

Next, think about who your ideal customer is. Will you sell to them one-time, or is your product or service something they will repurchase multiple times?

How will you reach your customers? Social media and online platforms like Etsy, Shopify, or SquareSpace make it easier to expose your business to a potentially huge audience at a lower cost to you. Some of these marketing efforts will cost little more than your time; others will have fees, as well as one-time and ongoing costs you’ll want to research before you dive in.

How Do I Get Money To Start a Business?

You’ve gotta spend money to make money, or so the saying goes. While there are ways to start a small business with little to no money, you may have an easier time starting with at least some money for things like supplies, small business website design and hosting, or advertising.

So, how will you get money to start your business? Unfortunately, minors under age 18 cannot apply for a Small Business Administration (SBA) loan. You also cannot sign binding contracts on your behalf, so getting other first-time business loans would require a trusted adult to cosign for you. Maxing out credit cards to start a business is never a good idea.

That means the best way to start a business as a young entrepreneur is by bootstrapping it—this means you use your own money and resources to get the business off the ground. It could be money from your savings account, from a part-time job, or even money made from selling items you already own. Set a goal for how much you’ll need for your business and make a plan to save up that much.

Ways to Fund Your Business

What Are the Costs to Keep Your Business Going?

In addition to the money you’ll need just to start the business, there are ongoing costs to keep in mind. For instance, if you’re selling crafty items through an online platform like Etsy, you’ll need to pay a portion of all sales to the platform in order to use it. You’ll also be on the hook for payment processing fees.

Think through all the costs that might come up and make a plan for paying for them. Try our Banzai Earning Extra Income coach to get an idea of the costs involved. Don’t forget that you’ll need to file and pay taxes if you make over a certain amount, even as a minor. Be prepared to hire an accountant to help you with filing business taxes for an LLC for the first time. You’ll likely need to pay those taxes each quarter.

It’s a good idea to open a separate business account to keep track of what you make and spend on your business. Visit a local banking institution to set up an account.

What Are The Legal Requirements?

Make sure you’re aware of your state’s legal requirements to start a business. Most states don’t expressly prohibit kids under age 18 from owning a business, but some states do have restrictions on minors forming limited liability corporations or LLCs, a popular business structure for starting a small business. These states include Colorado, Illinois, Minnesota, and Oregon.

Even if you don’t reside in one of those states, you’ll likely need an adult on board to sign legally binding contracts. So it’s important to have someone who can help you deal with any legal and financial issues that come up.

Maybe you’re hoping to avoid a business license altogether. It’s best to do things legally to avoid issues; check with your local government entities to make sure you have the right business licenses and structures in place.

Other Ideas for New Entrepreneurs

A few more considerations when starting a business:

Being a young successful entrepreneur takes more than a viral video and a lucky break. But there’s no reason you can’t get a business off the ground if you’re willing to put in the work, be open to ideas from those around you, and make smart decisions.

Article Courtesy of Banzai Learning Center 

Disclaimer
While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed professional who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today.

Neither Banzai nor its sponsoring partners make any warranties or representations as to the accuracy, applicability, completeness, or suitability for any particular purpose of the information contained herein. Banzai and its sponsoring partners expressly disclaim any liability arising from the use or misuse of these materials and, by visiting this site, you agree to release Banzai and its sponsoring partners from any such liability. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.

When you earn income, you get to decide how you spend that money. What you spend money on won’t be the same as other people, because everyone has different spending habits. Learning when and what to spend money on is an important part of money management.

Opportunity Cost

Every purchase comes with a tradeoff. This tradeoff is called the opportunity cost, and it means that when you spend money on one thing, that money is no longer available for a different purchase. If you buy a new video game with all your money, for instance, you won’t have money to buy a Lego set.

Money is limited, so before you make a purchase, think through other ways you could use it. What is the opportunity cost of a purchase? It’s also important to identify what is a need and what is only a want. Consider what you might want to spend money on down the road.

Spending Decisions

There are different reasons for spending money. Does it cost more than you have to spend? Or are you buying it just because it’s on sale?

You may want to buy something just because other people you know have it, or because a friend is pressuring you to make a purchase. This happens to everyone. Try to avoid spending money because of peer pressure.

Advertising also influences you to spend money. Not all advertising is accurate. If you’re researching a purchase, make sure you’re using reliable sources for information.

To save money, you may want to split the cost of an item or service with someone. Or borrow an item or trade a service, like doing a chore for a friend in exchange for using their bike for the day.

When it’s time to spend money, you can use cash, checks, and cards. Paying with cash is immediate—the money is gone right away. If you use checks, the money may take a few days to leave your checking account. With a debit card, there could also be a short waiting period.

If you use a credit card, you’ll make a payment now and need to pay the money back to the credit card company later. If you don’t pay the credit balance in full by the due date, you’ll owe interest on what you borrowed. This increases the overall cost of the purchase.

Even if you don’t have a lot to spend, making good spending decisions now is necessary practice for spending appropriately in the future.

*Remember, you must be 18 years or older in order to apply for a credit card. Most credit card issuers will ask for a co-signer or proof of independent income for those under 21. 

Article Courtesy of Banzai Learning Center

Disclaimer
While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed professional who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today.

Neither Banzai nor its sponsoring partners make any warranties or representations as to the accuracy, applicability, completeness, or suitability for any particular purpose of the information contained herein. Banzai and its sponsoring partners expressly disclaim any liability arising from the use or misuse of these materials and, by visiting this site, you agree to release Banzai and its sponsoring partners from any such liability. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.

Say hello to our Virtual Assistant!

First Financial Federal Credit Union is excited to announce the launch of an enhanced phone experience. Say goodbye to navigating through a phone menu and waiting on hold! Simply speak into the phone the reason for your call and our virtual assistant can provide prompt responses and updates to assist you.

With the launch of our new phone experience, members can expect:

As a member-owned credit union, we are dedicated to using technology and innovative banking solutions to make every member encounter easy, personal, and secure. 

To experience our new Virtual Assistant – press or say “Option 1” when calling the credit union at 410-321-6060 or toll-free 1-800-903-3328. 

Security Alert: It has been brought to our attention that some members may be receiving calls from a scammer attempting to compromise their card information.

We are seeing the scammer attempt to frighten members with a made-up story – such as illegal activity, fraud monitoring, or compromised Facebook or Amazon accounts – and ask the members to verify their information. 

Please be aware that these phone calls are not from anyone at First Financial. First Financial will never contact you to request this information by phone, email or text. Always hang up and contact First Financial directly at 410-321-6060 or toll-free at 800-903-3328 to confirm the legitimacy of the request.

How to Avoid Scam Calls:

Remember, scammers often pretend to be from an organization you know and trust. Scammers also attempt to create a sense of urgency and intimidation; pressuring you to act immediately.

Keep these tips in mind to help protect yourself against scammers:

As always, if you have any concerns or believe you have received a suspicious message, please contact Member Services at 410-321-6060 or toll-free 800-903-3328. You can also send us a secure message through Online Banking or Mobile App.

Visit our Security Center for more tips on keeping your information and devices safe.

Whether you are riding with Uber, Lyft, Via, or any of the other Transportation Network Companies (TNC), the most important first step you can take to ensure your ride is seamless and safe is to make sure you enter the right vehicle.

Before pick-up, every TNC provides the customer with valuable information to ensure they enter the correct vehicle. Information should include the vehicle make and model, the first name of the driver, a photo of the driver, and the vehicle license plate number. 

Ride Share Safety Tips: 

For more helpful information and security tips, visit our Fraud Protection page.

Security Alert: It has been brought to our attention that some members may be receiving text messages from a sender acting as First Financial Federal Credit Union. The impersonator may ask about verifying credentials – such as online banking username and password, Multi-Factor Authentication codes, card information, or PIN. 

Please remember, First Financial will never ask for your personal or sensitive account information via email, text, or phone. 

Recognizing Spam Text Messages:

As always, if you have any concerns or believe you have received a suspicious message, please get in touch with Member Services at 410-321-6060, or send us a secure message through Online Banking or Mobile App.

Visit Fraud Protection for more tips on keeping your information and devices safe.

Wondering how to get your first credit card? Understanding how the process works and how to qualify for one will help ensure you’re fully prepared to take the plunge.

Credit Card Basics

A credit card is a powerful tool in your financial arsenal if used carefully and correctly. With a credit card, you can borrow money for day-to-day purchases. Each month, you’ll receive a statement that includes the minimum you need to pay back by the due date. Everything not repaid by then will accrue interest. If you don’t want to owe more than you borrowed, you’ll need to pay the balance off in full (not just the minimum) by the due date.

The dangers of credit cards come when you borrow more than you can easily afford to pay back. When you carry a balance month to month, the amount you owe will continue to grow because of interest. Credit cards tend to have relatively high interest rates when compared to other types of credit, which makes what you owe grow very quickly. That, and the ease of buying things with a credit card, means that you need to be careful and aware whenever you swipe it at checkout. A credit card does not give you access to free money. It gives you access to money you borrow with the intention of paying back relatively quickly.

A credit card is a type of revolving credit. This means that you’re only approved to borrow up to a certain amount of money (your credit limit). If you hit that limit, you won’t be able to borrow any more until you pay part or all of the money back.

Finally, just because you’ve decided that you want a credit card doesn’t mean a provider will agree to give you one. You must be approved by the provider in order to get a credit card, and there are a few key qualifications you’ll need to meet in order to do so.

Assessing Your Credit History

A person’s credit history and credit score are usually the biggest determining factors in whether they’re approved for a card or not. Your credit history is a record of the money you’ve borrowed and payments you’ve made or missed. Your credit score is a reflection of that history shown as a number between 300 and 850. Nearly every credit card has a recommended level of credit, usually either “fair,” “good,” or “excellent,” and these levels are tied to your credit score. Lenders use both credit history and credit score to determine if and how much they should allow someone to borrow based on the likelihood that they’ll pay it back.

It’s likely you don’t have a lot of credit history or an overly strong credit score as a first time credit card user. This doesn’t necessarily mean you won’t be able to get a credit card, but it will limit the cards available to you. For example, you may need to seek out a first-time credit card with no credit history requirement or one that doesn’t require a credit check.

If you can’t qualify on your own or you want a card outside of your credit score’s level, you may need someone to co-sign. This means the credit card provider will take a look at that person’s credit history as well as yours. If it’s good, the lender can extend you credit with the agreement that the co-signer will be on the hook if you become unable to pay back what you borrowed.

Building History

Generally, you need to be 18 to get your own credit card. If you aren’t and if you’re wondering how to establish credit when you have no credit history, you can look into becoming an authorized user on someone else’s account, such as a parent or guardian. This allows you to make purchases that are assessed to that person’s account. They will be the one legally responsible to pay back all the money borrowed, but it can help you build your credit history. Be careful, though, this means that positive (on-time payments) and negative (missed payments) actions on an account you can’t control will be reflected in your credit history.

What to Look For In A Credit Card

With all the options out there, picking the right credit card may feel overwhelming. Focusing on the most important aspects can help narrow your search. Look into all the details to be sure you get a full picture of what you would be agreeing to. If you can, it’s best to get a card with no annual fee. This means you won’t have to pay the lender just for having an account with them. Watch out for other fees like finance charges if you don’t pay your balance off by a certain date or cash advance fees for using an ATM.

Similarly, it’s best to try for the lowest interest rate you can qualify for. This will be listed as the APR, which stands for annual percentage rate. Many credit cards have a variable APR, which means that the rate is subject to change, so it can be hard to know exactly what rate you’re getting.

Finally, you should find a card with rewards and benefits that suit your priorities. Some cards offer cashback for qualified purchases while others offer discounts in certain categories like groceries or gas and others earn miles for travel. These benefits can add up to make a big difference and help you earn rewards for the things you were going to buy anyway.

How to Apply For Your First Credit Card

Once you’ve done all your research, it’s time to submit an application. You’ll usually need little more than your birth date, social security number, and income. Depending on the card, there may also be an application fee. Most often, the entire process can be completed online and in one sitting.

Be careful about submitting too many applications in a short period of time. Each application uses one of two ways to pull (check) your credit. A soft pull won’t affect your score but a hard pull will do a little damage. That just means you should be conservative in your applications and only apply if you think you will qualify.

Credit cards are one of many financial tools that you should consider carefully before using. While they can be dangerous if misused, they can also add ease to your everyday shopping and bonus rewards for good habits. What matters most is that you understand what you are agreeing to and do your research carefully before selecting your first card.

Article Courtesy of Banzai Learning Center

Disclaimer
While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed professional who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today.

Neither Banzai nor its sponsoring partners make any warranties or representations as to the accuracy, applicability, completeness, or suitability for any particular purpose of the information contained herein. Banzai and its sponsoring partners expressly disclaim any liability arising from the use or misuse of these materials and, by visiting this site, you agree to release Banzai and its sponsoring partners from any such liability. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.