A new year is the perfect opportunity to reset, refocus, and take control of your finances—especially for individuals and families living in Western Massachusetts who are looking for trusted financial services and guidance from a local credit union. Whether you’re looking to build your savings, pay down debt, or simply feel more confident about where your money is going, creating a realistic budget is one of the most powerful tools you have. As we head into 2026, here are some practical budgeting tips to help you start the year strong and stay on track.
Setting financial goals is a key part of successful personal banking and long-term financial planning. Before you crunch any numbers, take a moment to think about why you’re budgeting. Are you saving for an emergency fund, a family vacation, a home project, or your child’s education? Defining your goals makes budgeting feel purposeful, not restrictive. Try to be specific and realistic because small, achievable wins build momentum and keep you motivated throughout the year.
One of the most eye-opening steps in budgeting is reviewing your recent spending. Look back at the last few months of bank statements and categorize your expenses. This helps you understand your habits and identify areas where you may be overspending without realizing it. From there, you can make informed adjustments that align with your 2026 goals.
Whether you use digital banking tools or prefer in-branch support from a local financial institution, your budget should reflect how you truly live and spend. A successful budget isn’t about perfection; it’s about sustainability. Be sure to include:
Leaving room for flexibility helps ensure your budget can adapt to life’s unexpected moments.
One of the simplest ways to grow your savings is to prioritize it from the start. Setting up automatic transfers to your savings account can help you stay consistent without having to think about it. Even modest contributions add up over time and can make a meaningful difference by the end of the year.
Your budget shouldn’t be a “set it and forget it” tool. Schedule monthly or quarterly check-ins to review your progress, adjust categories, and celebrate milestones. Life changes, and your budget should be able to change with it.
At LUSO Federal Credit Union, a member-owned credit union proudly serving Hampden County and communities in Western Massachusetts, we believe budgeting is about more than numbers—it’s about supporting your overall financial health and providing accessible personal banking services that help you reach your goals with confidence. That’s why we offer products and services designed to help you save money and make the most of what you earn, from competitive savings accounts and certificates to affordable loan options that can help lower monthly payments.
Our team is here to provide guidance, answer questions, and help you choose the right financial products—from savings and checking accounts to certificates and affordable loan options—because when our members succeed, our entire Western Massachusetts community grows stronger.
Make 2026 the year you feel empowered about your finances. With a thoughtful budget and a trusted financial partner by your side, your savings goals are well within reach.
Contact LUSO Federal Credit Union to learn more about our financial services and savings solutions.
Money is one of the biggest stressors in most people’s lives. Whether it’s worrying about bills, feeling weighed down by debt, or wondering if you’re saving enough for the future, financial uncertainty can impact your mental and physical health. The good news? Building financial wellness can help reduce that stress and give you a greater sense of control over your daily life.
Financial wellness doesn’t mean having a six-figure income or living debt-free. It’s about feeling confident in your financial situation, managing your money effectively, and having a plan for the future. When you know where your money is going and you’re prepared for unexpected expenses, daily stress levels naturally decrease.
1. Fewer Money Surprises
Life always brings the unexpected, but having an emergency fund or a budget makes it easier to handle surprises like car repairs, medical bills, or home expenses without panic.
2. More Confidence in Decision-Making
When you understand your finances, you don’t have to second-guess every decision. You’ll feel more confident saying “yes” to opportunities or “no” to unnecessary expenses without guilt.
3. Better Relationships
Money stress often spills over into personal relationships. Couples who communicate openly about budgeting, saving, and financial goals tend to argue less and feel more connected.
4. Peace of Mind About the Future
Whether you’re planning for retirement, saving for college, or just working toward financial stability, knowing you’re on track with your goals brings peace of mind that reduces everyday worries.
Stress is a natural part of life, but money stress doesn’t have to control your day-to-day. By focusing on financial wellness—creating a plan, building savings, and setting goals—you’ll feel more in control, more confident, and more at ease.
At LUSO, we believe financial wellness is the key to living a happier, healthier life. Let us help you take the first step toward less stress and more peace of mind. To learn more, contact our Ludlow or Wilbraham branch toll free at 1-844-LUSO-FCU.
Dealing with debt during a divorce can be frustrating, overwhelming, and can make saving money seem impossible. Your financial institution may or may not have the tools and tips necessary to help you manage your debt, so that’s where credit unions come in. Here are some ways credit unions can help you get rid of debt and start saving money again.
Legal Liability for Debt
It is common to think that debt created during a marriage will be divided according to the spouse that incurred it, but this may not be the case, depending on the state you live in. Both parties may be equally responsible for any debts, even if only one spouse created it without the other spouse having knowledge of it. Regardless of how the debt is divided by the court, banks still expect to be paid the full amount, in the name of the person who incurred it. For example, if you own a credit card under your name, but your ex-spouse used it for their purchases, you would still be responsible for your credit. If negotiations or agreements cannot be made between ex-spouses, legal action can be taken against the spouse who does not abide by the court order to ensure payments are made on the account in question. But, considering how long court cases may run, your credit may already be ruined by the time it is settled.
Solve the Debt Issue Before the Divorce
If you and your spouse are considering a divorce, you should solve the debt issue before filing and finalizing the decision. This is often a difficult task and requires teamwork, but it is necessary to prevent the innocent spouse from being stuck with a debt that doesn’t belong to them. In terms of credit cards, you may need to transfer balances to another credit card, or consolidate its balance with another loan. In the case of mortgages and car loans, these may require refinancing the loan into one person’s name (the person keeping the asset). Lenders provide couples in this situation with added flexibility such as allowing you to remove your name from the loan and putting your ex-spouse’s name on it instead. This option is typically available if the divorce has already been finalized.
Protect Yourself Against Future Debt
Leading up to and after a divorce, you should be careful about leaving joint accounts open. Credit cards or lines of credit that are left open are especially dangerous, as an ex-spouse will be able to transfer balances from their own accounts to ones that you hold together. Another way to protect your credit is to pay off the debts yourself and ask your spouse to repay you. If they refuse, you may want to go back to court to settle it, and this process can be expensive, but it will not damage your credit.
LUSO Federal Credit Union Can Help
Managing debt during and after a divorce can be stressful, especially if you feel like your bank cannot help you. Here is where a credit union like LUSO Federal Credit Union can help you. Our professionals can help you assess your debt and provide effective solutions or loans to keep your credit score up and help you regain control of your finances sooner. LUSO’s multitude of services include mortgage advising, manage finances, getting out of credit card debt, saving for future goals, and setting you up with the loans you need. Our services and rates are available to those who live, work, worship or attend school in Hampden County. Please contact our Ludlow or Wilbraham branch at 1-(844) 587-6328.
Are you a soon-to-be parent? If so, you may be wondering how your new role will impact your budget. According to the U.S. Department of Agriculture, the average cost of raising a child (from birth through age 17) is $233,610. If that number sends you into a panic, don’t fret. Here are a few steps you can take now to help you save some money and better prepare your budget (and your future) for your child’s arrival.
Get used to living on one income…
If your plan is for one parent to stay at home with your new baby, adjust to life on one income as early as possible. Automatically deposit the future stay-at-home parent’s full paycheck to a LUSO savings account while you’re both still working to help you readjust your budget before adding the stress of a new baby into the mix. By switching up your budget as soon on as possible, you can identify cost savings measures early on and create a seamless transition into life on a single income. Plus, by banking the other parent’s full salary, you’ll have a nice nest egg of money saved up for your little one’s arrival and you won’t have to dip into your emergency fund!
…Or plan for childcare expenses
If you’re unable to stay home with your new baby, you might be looking at childcare options. Typically, most families choose between in-home care (with an au pair or nanny) or in-center care at a licensed daycare center. With an au pair/nanny, a child can be cared for in his or her own home environment. Oftentimes with this care option, the caregiver will also perform light housework duties (such as laundry or light cleaning) while the child naps. With daycare, a child is brought to a facility where other children are also being care for. According to a 2019 report by Care.com, in Western Massachusetts, in-home care cost roughly $30,000 per year, while in-center care cost about $12,000. If that cost seems high, consider that you may be able to claim this expense on your taxes if you’re utilizing childcare in order to work. Be sure to ask your tax professional if this deduction is available for you.
Update your health insurance plan
Did you know the birth of a new child counts as a qualifying life event that allows you to update your employee benefits like health insurance? Since you’ll likely be increasing doctor visits and check-ups, consider lowering your deductible and making higher monthly payments. Or it might be worth switching to a high-deductible insurance plan so you can contribute to a Health Savings Account (HSA), which lets you put aside pre-taxed dollars that you can use toward your deductible and other qualifying medical expenses.
Consider baby subscription services
If there’s one thing we know for sure, it’s that babies will use a lot of diapers. The average baby goes through six to 10 diapers a day, which, according to the National Diaper Bank Network, can set you back $70 to $80 per month, or about $900 a year. And if you choose not to breastfeed, formula can cost you an additional $150 per month, or about $1,800 a year. The good news is companies such as Amazon offer delivery discounts for repeat subscriptions on products like diapers/wipes, and formula.
Evaluate your budget regularly
If you’re concerned about your budget after baby, be sure to evaluate regularly once he or she arrives. Your budget will fluctuate as your baby moves into and out of various stages of life. For example, when your child begins eating solid food or using the potty, you can save on formula and diaper costs. If you’re paying for weekday childcare costs for your toddler so you can go to work, you’ll likely save a significant amount of money when they begin school. Speaking of school, don’t forget to account for school-related expenses in your budget. You’ll have to purchase clothes and supplies for your child, as well as tuition if you elect to enroll them in private school.
Start a 529 Savings Plan
While you’re holding your newborn in your arms, you might not be thinking about the day he or she heads off to college. But it’s important to start planning now for that eventuality. Consider a 529 Savings Plan to grow your money tax-free so that when your child is ready to head off to college, the funds in the account can be spent on tuition, books or other qualified expenses. Contact Community Financial Services at LUSO Federal Credit Union to learn about your options and set up a 529 Savings Plan.
LUSO Federal Credit Union is a not-for-profit, member-owned financial cooperative dedicated to providing members with quality financial services and products. We at LUSO pride ourselves on serving the financial needs of our members and helping them save for the special occasions in life.
Feel free to contact our Ludlow or Wilbraham branch toll free at 1-844-LUSO-FCU.
In the last 15 to 20 years, mobile devices have replaced a lot of (bulky) products we used to use daily: phone, calculator, camera, video games, etc. Today, it’s taking aim at your wallet. With digital wallet apps like Apple Pay, Samsung Pay and Google Pay, it’s possible to make electronic transactions without presenting a physical credit or debit card.
Digital wallets – available at LUSO Federal Credit Union – securely store your payment information and passwords and allow you to complete purchases in-store and online, quickly and easily with just your phone. Because most digital wallets encrypt your account information, the number that is transmitted to a merchant during checkout is not your actual account number. Digital wallets generate encrypted account numbers for a single use, so each transaction will have a unique account number, which safeguards your information.
There are two types of digital wallets: device-based and web-based.
Device-based digital wallets use near field communication (NFC) technology that enables users to pay for purchases without swiping their debit or credit card. Instead, customers wave their phone (or other NFC-capable device, including certain smartwatches) near a reader at a merchant to transmit payment account information. Apple Pay, Samsung Pay and Google Pay are examples of device-based digital wallets because they require a smartphone or smartwatch to make a payment.
Web-based digital wallets allow customers to add credit or debit card information to a personal account or profile. When a customer makes a purchase online, they log into their account and use it to pay for the purchase. Web-based digital wallets allow consumers to pay for purchases without providing their card details, billing/shipping address or creating an account on the website on which they’re shopping. Visa Checkout is an example of a web-based digital wallet.
Yes. Digital wallets are equipped with built-in enhanced security. Because your card information is encrypted, your account details are kept secure, making it harder for a security breach to happen.
Many major retailers are already accepting digital wallets in-store, in-app and online. Some independent retailers have started accepting them as well. You can use your digital wallet to pay in stores that accept contactless payments, simply look for this symbol at checkout:
Most digital wallets allow you to store multiple cards. When you use your digital wallet to make an in-store purchase, your screen will show your default card at the top of your device. Your other cards will be stacked at the bottom of the screen. To use a card other than your default card, simply tap the stack of cards at the bottom of the screen, then select the one you’d like to use to make your payment.
For the most up-to-date information and technical assistance with any of the digital wallet options LUSO offers, visit Apple Pay, Samsung Pay or Google Pay websites.
The holiday season is here, and it’s the perfect time to find meaningful gifts without stretching your budget—or risking your personal information. Whether you prefer shopping in stores or browsing online, a little preparation goes a long way toward stress-free, budget-friendly holiday shopping.
Impulse buys can quickly derail your holiday budget. Before you shop, make a list of gifts for each person and set a spending limit. This lets you compare deals across retailers and ensures you really get the best holiday deals. Tracking prices ahead of time helps you avoid “sale” prices that aren’t as good as they seem.
Smart online shopping tools can make holiday shopping faster, easier, and more affordable. Price comparison websites, browser extensions, and mobile apps help you find the best deals, track sales, and even alert you when your favorite items drop in price. Using these tools keeps your shopping organized, maximizes your savings, and makes online shopping safer.
Whether shopping online or in-store, keeping your personal information safe is essential:
Above all, don’t be duped by the hype of the holiday shopping kickoff. Be patient and prepared and you’ll find the best deals.
LUSO Federal Credit Union is a not-for-profit, member-owned financial cooperative dedicated to providing members with quality financial services and products. We at LUSO pride ourselves on serving the financial needs of our members and helping them save for the special occasions in life.
Feel free to contact our Ludlow or Wilbraham branch toll free at 1-844-LUSO-FCU.
Whether you’re purchasing your first car or upgrading your current model, it’s important to understand the commitment you’re making and plan for the long-term expense. Before signing any papers and driving your new car off the lot, make sure you do your homework and have your budget set or your payment plan in place.
Financing Your New Car
When you decide to purchase a new car, there are a lot of considerations to make: will you be trading in your current vehicle and/or putting money down? If so, how much? The more money you are able to put down up front, the lower the amount you’ll need to finance.
Speaking of financing, many people finance their automobile through their dealer or through a bank, but they often end up paying a higher interest rate as a result. Securing a low-interest auto loan through LUSO Federal Credit Union can result in a significant cost savings over the life of your loan. Figure out how much you can afford to pay for a car loan each month with our online Auto Loan Affordability Calculator.
Budget for Related Expenses
Aside from the monthly payment for your auto loan, there are other considerations to make when buying a new car. In addition to regular car payments, you’ll have to pay for your insurance premium, the cost of gas and other driving expenses such as parking or tolls, and regular maintenance, inspections and registration costs. And don’t forget emergency expenses for unexpected repairs that aren’t covered under warranty. Setting up a LUSO savings account with direct deposit when you open your auto loan can make budgeting for these unexpected expenses a bit easier.
If you’ve decided to purchase a new car, truck or SUV or if you’ve already purchased your new car with dealer financing, ask us how we can help you refinance to lower your payments!
LUSO Federal Credit Union is a not-for-profit, member-owned financial cooperative dedicated to providing members with quality financial services and products. We at LUSO pride ourselves on serving the financial needs of our members and helping them save for the special occasions in life.
Feel free to contact our Ludlow or Wilbraham branch toll free at 1-844-LUSO-FCU.
In today’s digital age, providing your child with a debit card can be a valuable tool for teaching financial responsibility. Beyond the convenience of cashless transactions, a debit card offers numerous benefits that can set your child on the right path toward financial independence. So how old should your child be to obtain a debit card? There’s no universal answer to this question, as every child is different in terms of maturity and responsibility, but there are some benefits to holding a debit card at a young age.
Benefits of Providing Your Child with a Debit Card
Financial Literacy
Responsibility and Independence
Security
Convenience
Teaching Financial Responsibility at an Early Age
The appropriate age for a child to own a debit card varies depending on maturity and understanding of money. Generally, children as young as 12 years old can start using a debit card under parental supervision. Prepaid debit cards designed for younger users can serve as a good introduction before transitioning to a regular debit card in their teenage years.
Start with the Basics
Hands-On Learning
Involve Them in Family Finances
Educational Resources
Why Debit Cards Are Safer Than Cash
Reduced Risk of Loss
Fraud Protection
Parental Controls and Monitoring
Transparency
LUSO Federal Credit Union Has Banking Options for Your Child
Providing your child with a debit card is more than just a convenience; it’s a powerful tool for teaching financial responsibility. By starting early and guiding them through the basics of money management, you can help your child develop the skills they need to make sound financial decisions throughout their life. LUSO Federal Credit Union is happy to offer a Smart Start Checking account that include a debit card with daily limits, ATM fee reimbursement, and the same online and mobile banking features as regular bank accounts. We also offer Smart Start Visa Credit Cards for those who are looking to get an early start on their credit score. LUSO is here to help guide your children on their path toward financial responsibility.
For over 50 years, LUSO Federal Credit Union has supported our members’ financial health. This April, we’re celebrating National Financial Literacy Month by focusing on how important it is to learn good money habits at any age.
Teaching Kids Smart Money Habits
At LUSO, helping our members starts with helping young people. For more than 10 years, our staff has visited elementary and middle schools in Ludlow, Wilbraham, and Hampden through our School Banking Program. We give students a fun way to learn about saving money and building strong financial habits early on.
Each week during the school year, LUSO staff visit schools so students can deposit money into their Savings is Fun account. We make it exciting with small prizes and raffle entries, helping students build money skills that will last a lifetime.
Learn Online with the Banzai Financial Wellness Center
LUSO also offers a free online learning tool called the Financial Wellness Center, powered by Banzai. It’s a great way for people of all ages to learn about budgeting, saving, credit, investing, and more. The site includes:
You’ll find tips on everything from buying a home or starting a business to planning for retirement.
“LUSO Federal Credit Union plays an important role in our community by ensuring that our members have access to financial literacy programs and information that provide the knowledge necessary to make responsible decisions about their personal finances,” said Jennifer M.G. Calheno, President and CEO of LUSO. “Our goal is to provide members with the tools they need to build a strong financial foundation for their futures.”
To help members further manage their personal finance, LUSO also offers Credit Sense, a free credit monitoring service that provides instant credit score access and improvement tips, savings opportunities, educational tools, credit report monitoring alerts, and more, all through LUSO’s online and mobile banking platforms. Access LUSO’s library of financial articles and interactive games or learn about our In-School Banking Program.
For more information about LUSO Federal Credit Union or to become a member, contact us.
Have you ever heard the phrase, “Pay yourself first”? Put simply, it means to set aside a portion of your paycheck each week, before you pay your bills and purchase necessities like groceries or gas for your car. The purpose? To create a savings strategy that could help you weather the storm if a financial emergency arises.
Develop Good Financial Habits
Regular, consistent contributions to a savings account can go a long way toward building a nest egg over time, providing you with financial freedom in the long term.
The easiest way to accomplish that goal is to do so automatically by splitting your direct deposit so that a portion goes directly into your savings account – without you having to think about it.
First, determine how much of your salary you would like to set aside to meet your financial goals. If you know you can only afford to pay yourself a small amount now, look for opportunities to change your spending habits, such as bringing lunch to work instead of ordering out each day. This little bit adds up over time and would allow you to increase payments to yourself.
Once you’ve identified how much you would like to save, set up a direct deposit into your LUSO Federal Credit Union savings account. To do so, you’ll need to fill out a form to submit to your company’s human resources department. This form includes LUSO’s routing number (211883922), your account number, and the amount you wish to deposit.
Out of Sight, Out of Mind
Once you have set up a direct deposit into your LUSO savings account, remember that it’s important to treat it as if it’s off-limits. If you can avoid the temptation to withdraw from that account – except in the case of a true financial emergency – you’ll be amazed at how quickly it grows.
If you’re ready to start saving with direct deposit, and you don’t currently have a savings account, or you’re looking for one at a credit union outside of your primary financial institution, consider opening a Basic Statement Share Account with LUSO. With a $5.00 minimum deposit at account opening, you’ll receive Online Banking and Bill Payer Access, eStatement processing, and ATM Card or Debit Card through SUM Program with REWARDS Scorecard, plus access to all the products and services LUSO offers.
A Local Source for Direct Deposit Savings
LUSO Federal Credit Union is a member-owned, not-for-profit financial cooperative dedicated to providing its members with quality financial services and products. We at LUSO pride ourselves on serving the financial needs of those who live, work, worship, do business, or attend school throughout Western Massachusetts, regardless of economic status.
For more information, or to open a savings account, contact our Ludlow or Wilbraham branch toll free at 1-844-LUSO-FCU.
