Building Your Financial Literacy

Why financial literacy matters.

Financial literacy is the ability to understand and put good habits in place surrounding key areas of your finances, such as budgeting, saving, building credit, borrowing, managing debt and investing for the future. Tools like Financial Insights, available through Online Banking, can help you track spending, build savings, and plan more effectively. Being financially literate gives you the tools and resources you need to be financially secure throughout your life.

Financial Literacy Can Help You:

• Gain confidence in your financial decision-making
• Avoid life-impacting financial mistakes
• Reach your near-term and long-term goals
• Be prepared for financial emergencies
• Have peace of mind about your finances

Explore these tips for financial success.

1. Create a Budget

Effective budgeting is crucial for taking control of your finances. Taking the time to plan a realistic budget can help remove much of the stress commonly associated with money and help you achieve financial stability.

• Split your monthly, take-home pay into three categories of spending: 50% for needs, 30% for wants and 20% for savings.
• Focus on your essentials like food, transportation and housing, first. Then, set a savings goal and spending limits for extras, like entertainment and eating out, with any surplus you have after your needs are met.
• Simplify budgeting by setting up automatic deposits, automatic payments and alerts for reaching spending limits.
• With Financial Insights in Online Banking, you can automatically sort your spending into categories, making it easier to understand your habits and stay on track. 

 2. Separate Savings from Checking

Keeping a high-yield savings account that is separate from your checking account can help you resist the temptation to spend your savings. The interest earned with a savings account is generally higher than a checking account, as well.

• Set up automatic transfers from your checking account to your savings account to help your savings grow at a steady pace.
• Use Financial Insights in Online Banking to spot opportunities to save, such as when you have extra cash that could be put to better use in savings. 
• Consider opening an Apple Bank Simple Checking and Apple Bank Simple Savings account together and make qualifying transactions to earn a preferred interest rate.¹

3. Build an Emergency Fund

An emergency fund keeps you prepared for unexpected costs without needing to rely on high-interest loans or credit cards. It is recommended that you set aside 3-6 months of living expenses in such a fund.

• Get started by opening a high-yield savings account that allows easy access to your funds, such as an Apple Bank Simple Savings Account or Apple Bank Choice Money Market Account.
• Calculate the amount you want to save and set a monthly savings goal to reach it.
• Set up automatic transfers from your checking account to your savings account to ensure you stay on track.

 4. Pay Bills Promptly

Paying bills on time helps you maintain a good credit score and avoid costly late fees or other penalties.

• Set reminders for when payments are due, so you’re not caught off guard.
• Enroll in Online Banking to make hassle-free payments with Apple Bank’s online Bill Pay.

5. Borrow Smartly

Some forms of debt can benefit your financial health in the long run, such as borrowing for a home, debt consolidation or an education.

• Be sure to only take on loans you’re sure you can afford to pay off.
• Take time to investigate loan types, reputable lenders, compare interest rates, re-payment terms, monthly payment amounts and pre-payment penalties before you sign on the dotted line.

 6. Build Good Credit

Lenders use credit scores to determine if they should offer you a loan or credit. Having good credit increases your chances of loan approval and can lower your interest rate. This can save you a lot in interest over time, making borrowing more affordable.

• Use Financial Insights in Online Banking to view upcoming payments so you can plan your cash flow and avoid surprises.
• Review your credit report every year. You're entitled to a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus. Visit www.annualcreditreport.com for more information.
• Learn more about how to get and keep a good credit score at the Consumer Financial Protection Bureau.

7. Use Credit Cards Wisely

Don’t charge more than you can pay for. Avoid carrying a larger balance than you can pay off in a month.

• Choose credit cards that earn rewards and perks that suit your lifestyle, such as airline miles or cash back on purchases. 
• Automate your payments with online bill pay to avoid paying late fees.

¹ You will be automatically enrolled in the Simple Banking Program once you have established a Simple Checking account (anchor account) and a Simple Savings account (benefit account). Customers who maintain a Simple Checking and a Simple Savings account and meet the monthly transaction requirements for the Simple Checking account will be eligible to receive an interest rate that is 0.50% higher (preferred interest rate) than the then current interest rate in effect for the Simple Savings account(s). The Primary owner of the Simple Checking account must be a Primary or Secondary owner of the Simple Savings account (benefit account) and complete five (5) qualifying credit and/or debit transactions (minimum $25.00 per transaction) per month for the account to be eligible to receive the preferred interest rate. If you do not meet the qualification requirements in any monthly evaluation period, the preferred interest rate will be reduced to the then current Simple Savings interest rate in effect on the day after evaluation date. The Simple Banking Program allows for one (1) Simple Checking account which may be linked to multiple Simple Savings accounts for the purpose of receiving the preferred interest rate when the required activity in your Simple Checking account is met.

A qualifying transaction for purposes of receiving the preferred interest rate of this Program means a credit or debit of $25 or more in your Simple Checking account from: an electronic transaction such as direct deposit, bill payment, or automatic payment made through ACH (automated clearing house) or a transfer system that sends electronic payments in real time; a transfer to or from an account at another financial institution; Person-to-Person payments (P2P), such as Zelle; or a purchase using your Visa Debit Card. Credit or Debit transactions by any other means (e.g., deposits or withdrawals at an ATM and/or in-person at a branch or transfers between your accounts at Apple Bank) do not qualify as a transaction for purposes of meeting the eligibility criteria for the preferred interest rate.

Benefits Evaluation Period: The benefits evaluation period (“evaluation period”) is determined by the statement cycle date (currently month end) of your Simple Checking account. The Bank will evaluate the transactions conducted on your Simple Checking account to determine if you will receive the benefit during the evaluation period. The evaluation period begins three (3) business days before your statement cycle date (the date on which your account statement is produced) and ends three (3) business days prior to the following statement cycle date.