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.
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.
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.
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.
November is the time when many people begin their holiday shopping. As you search for the best gifts for friends and family, it’s easy to end up going over budget and getting tangled up in monetary difficulty without realizing it. This is why it’s important to find ways to stick to sound financial planning amidst a season that shouts “buy!” from all directions. Whether you’re waiting for a Black Friday door-buster sale or plan to get your gift-buying done tomorrow, here are some money-saving tips to help you stay on track this season.
Making a budget is a valuable activity for any type of financial planning. Lay out what your expenses are, how much you think you need to spend, how much you can afford to set aside from each paycheck, and so on. Ideally, the budget should remain your constant frame of reference during your holiday shopping. Draw up a list of who you plan to give gifts to, and assign each person a fixed dollar amount for their present that you will not exceed. Don’t be afraid to take a cue from Santa and check your list twice to find extra opportunities for saving or redistributing funds, but you should also be able to take a step back at the end and finalize your plans.
It may be helpful to set up a separate holiday account that you draw on for gift purchases. LUSO’s Holiday Club accounts help you save a pre-determined amount of money each week, all year long. Or you can open a savings account with direct deposit week so that the account silently fills up with the funds you need. This is sometimes referred to as a “stealth approach” since it doesn’t make the loss from your main funds immediately obvious.
It is easier for people to overspend when using credit or debit cards. If you know you have this habit, take a cash-only approach to your holiday shopping. Once you establish your budget for gifts, withdraw the amount and use it (and only it) for your purchases. When the cash is gone, your holiday shopping ends—no exceptions.
Online shopping can sometimes be more affordable than making purchases in the store itself since online vendors don’t have the same types of infrastructure costs and can pass the savings on to you. When shopping online, pay attention to any delivery fees and conditions in order to make sure you are actually getting a good deal and, perhaps most importantly, that the gift will actually arrive before the big day occurs.
This may seem a bit random, but if you have a wedding coming up, then the November-December season is actually a good time to go bridal shopping. Wedding dresses are usually cheaper at this time of year since most people are too occupied with other festivities, and business will be slow. Additionally, holiday bargains can make buying someone a wedding gift easier on the wallet.
Keep careful track of how much you spend during the holidays. Not only does this help you stay on budget, but you can use the information to guide your financial planning activities for the following year. Make particular note of any areas where you ended up spending more or less than expected so you can factor it in the next time the holidays roll around.
It’s easy to get caught up in searching for the biggest, shiniest gift, but remember that there are plenty of other ways to give people meaningful presents. Homemade gifts, cooking special treats, babysitting so your friends can have a night to themselves, and other presents or gestures can be just as or more meaningful than something bought in the store.
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.
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.
