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 with it comes the rush to find the perfect gifts without breaking the bank—or compromising your security. Whether you’re a savvy online shopper or enjoy browsing the holiday displays in-store, preparation is key to a successful (and stress-free) shopping experience.
Before you dive into the deals, it’s important to do your homework: set a budget to avoid overspending, research sales to snag the best prices, and use technology like browser add-ons and mobile apps to maximize savings. And while hunting for bargains, don’t forget to safeguard your identity by taking simple but effective steps, no matter where or how you shop.
Ready to make the most of this holiday shopping season? Let’s explore how to stay financially smart, tech-savvy, and secure while checking off your gift list.
Don’t get caught in the frenzy of the holiday shopping season. It’s tempting to toss items in your cart because the sales are too good to pass up but giving into the impulse could actually cost you money! Do your homework and figure out your holiday shopping list/budget before you shop. By giving yourself a set budget plus a list of items to purchase for each person, you can limit the potential for impulse purchases. Having a shopping list prepared in advance also allows you to compare deals from retailers. It’s a good idea to check out the price of the items you wish to buy at multiple stores today and compare it to the advertised post-Thanksgiving “sale” price to get an idea of exactly how big a discount you’re really getting.
Did you know there are web browser add-ons and mobile apps that can help you ensure you’re getting a holiday bargain?
Whether you shop in-person or online, it’s always important to safeguard your personal information! Keeping your personal data safe and always being on the lookout for fraudulent transactions could help you protect identity theft:
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.
Want to prepare your child(ren) for a lifetime of financial wellness? Now is the time to help them develop a healthy relationship with money. The most fundamental lessons about money are related to how we use it. In addition to earning money, we tend to save, spend, or share it. Teaching kids how their financial choices affect them (and others) will help them make smart financial choices as they grow.
While younger children won’t be able to fully understand the value of money, they can grasp basic money concepts by age 3. Research shows that by age 7, children can recognize the value of planning/budgeting and delayed gratification and understand that some of the decisions they make in spending money are permanent. Oftentimes, the money habits that kids develop by this age are carried into adulthood.
Teaching your kids how to save and budget their money at an early age helps them reinforce the good money habits that will set them up for long-term financial health and wellness. If you’re unsure where to start, LUSO recommends the Save, Spend, Share plan, which helps kids understand the fundamentals:
The Save, Spend, Share plan is a simplified budgeting strategy that includes three buckets (or piggy banks): one for saving, one for spending, and one for gifts/sharing with others. You can decide what percentage of each dollar earned goes into each bucket, but we recommend a plan that looks like this:
For every $1 kids receive, save $0.30 (or 30 percent) of their funds.
Saving money teaches kids about delayed gratification, planning for future use, and the importance of goal setting. When kids set goals and track their progress with each deposit into their savings piggy bank, they will learn a valuable lesson that some things are worth waiting and saving for.
For every $1 kids receive, we recommend spending $0.50 (or 50 percent) of their funds.
Does your child enjoy purchasing toys with their own money? Do they have their eye on a new book or video game? Giving kids 50 percent of their money to spend gives them the satisfaction of purchasing what they want, and deciding for themselves if that’s really worth their money.
For every $1 kids receive, share $0.20 (or 20 percent) of their funds.
Most kids are taught the importance of sharing from an early age, so this is a natural extension of those lessons. Setting aside some money to give to others (whether as a gift or as a form of charity) empowers kids to make a difference, which they’ll carry into adulthood.
It’s simple. That’s what makes this plan so effective. Many parents will notice that this kid-friendly approach to money closely mirrors the 50/30/20 rule that divides monthly income into three buckets: 50% for needs (housing/food, etc), 30% for wants (recreation), and 20% for savings and debt repayment.
The best part about these spending/savings plans for kids and adults is that they’re flexible. The Save/Spend/Share recommendations provided here can be tailored to suit your specific child while still instilling the same basic financial concepts/goals.
LUSO offers children’s savings accounts as well as an in-school banking program that gives them the opportunity to conduct their banking in person, right from school! It’s easy and fun and we’d love to include them! Visit our Student page to see if your school participates or download a banking agreement. If you have any questions, contact our member service department at (413) 589-9966.
Subscription services for everything from television streaming channels and food to books and pet supplies (and so much more) have gained popularity in recent years. When the pandemic began in 2020, people all over the world were stuck at home and limited in their ability to travel. Without many options for how to occupy their time, many people signed up for digital entertainment services and regular subscription boxes.
According to a 2021 Washington Post article, the typical U.S. consumer has two to three subscriptions, and, with the “subscription economy” expected to grow even more by 2025, those averages are likely to increase exponentially.
Unlike traditional bills where the consumer is sent an invoice and expected to pay, a subscription service automatically takes recurring payments from a credit or debit card on file. It’s usually easy to set up online or in-app using your card number.
While deciding which option to use is a matter of personal preference, it should be noted that by using your debit card, you can have regular payments withdrawn directly from your checking account, which allows you to avoid credit card interest.
If you’re wary of entering your debit or credit card information online, consider utilizing a digital wallet app like Apple Pay, Samsung Pay, or Google Pay.
Digital Wallets securely store your payment information and passwords and allow you to complete purchases in-store, online, or in-app 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.
Regardless of which payment option you choose, it’s always important to check your monthly statement to ensure that the service was billed correctly.
LUSO Federal Credit Union is a not-for-profit, member-owned financial institution that strives to provide customers and members with the best financial services and products. Our team proudly meets the financial needs of our members by helping them understand their financial situation, manage their income, pay off their debts, increase their chances of getting loans, and helping them build good habits for saving money. Our services and rates are available in Wilbraham and Ludlow, Massachusetts. To learn more about our products and services, contact our Ludlow or Wilbraham branch at (844) LUSO-FCU.
Emergency funds are extremely important whether you are an individual or own a business. Managing your savings, however, is not always easy, especially when you are trying to pay down debt or have high bills each month. Here are several strategies to starting an emergency fund and budgeting your income so you can make the most out of your money.
An emergency fund can be used to pay for essential expenses and propel you through a tough time. It should cover your take home pay for at least three months, but ideally six. It might be overwhelming to take out a huge chunk of your income to put into savings, so saving a smaller amount regularly will make the task less daunting. By contributing a small percentage from each pay, you can meet your savings goals more easily, especially when you use direct deposit to automate your savings!
Whether you set a budgeting app on your phone, use Microsoft Excel spreadsheets, or write by hand, it is important to keep track of your monthly expenses. Knowing how much money goes in and out of your account each month, and knowing recurring expenses such as mortgage and utility bills, can help you create a better estimate of how much you are actually able to save. It also keeps you on track if you have the bad habit of spending spontaneously. If you’re wondering how much you should set aside, our Emergency Fund Calculator can help.
Aside from finding out how much you can save, find out how much you need to. Depending on your goal, you may need to save more than you think. For example, if you plan to take a two-week vacation in Europe, you would need to consider the cost of the flight there and back, a hotel stay, food, and sightseeing. Once you have an estimate of the trip cost, you will know how much you need to save from each paycheck to meet the date of your vacation.
Emergency funds need to be available when you need them, so using a retirement account such as a 401K in which your funds are locked is not a good idea. There are many saving options available to keep your emergency funds accessible in case you need it quickly, yet not too convenient to reach. After all, you don’t want to be tempted to dip into these funds when it’s not an emergency. Whether you’re looking for a savings account, a money market account, or a term share certificate, LUSO’s Member Service staff can help you find the best account to suit your needs.
Tax refunds usually get people excited as they wonder how to use their tax refund money. Instead of immediately spending it on things you didn’t plan for, save it. Putting that money into your emergency savings can give you peace of mind that your money hasn’t been wasted, but it allows you the excitement of knowing it is there for your future expense, whether it be your vacation, wedding, home down payment, or new puppy.
If you’re in the process of paying off debt, you might think saving should be postponed until later. Although it makes sense to aggressively pay down balances on credit cards or loans, it is still recommended to have even a small amount to set aside for savings. Find out the best way to pay off debt and set savings aside each month.
LUSO Federal Credit Union is a not-for-profit, member-owned financial institution that strives to provide customers and members with the best financial services and products. Our team proudly meets the financial needs of our members by helping them understand their financial situation, manage their income, pay off their debts, increase their chances of getting loans, and helping them build good habits for saving money. Our services and rates are available in Wilbraham and Ludlow, Massachusetts. To learn more about emergency savings, contact our Ludlow or Wilbraham branch at (844) LUSO-FCU.
