It’s a question that parents have been struggling with for decades: should our kid or kids have an allowance?  There are arguments for both sides.

Lincoln Savings Bank isn’t leaning towards one argument or the other, but we do have some questions to ask that will help you decide if an allowance is right for your family.

1. Do they need it? Having money will help teach them about saving and how to manage money. On the flipside, it can undermine the life lesson that money is never free. To help you decide, examine possible ways your child can earn money.
2. Are you comfortable paying an allowance to your child?  This is key because paying an allowance can be viewed as a long-term investment. Use your own experience to help you decide: did having/not having an allowance as a child benefit or inhibit you at all?
3. Is your child old enough to have an allowance? When your child shows an interest in money that is generally a good time to start. For most kids, this is between 5 and 6 years old. You need to be sure they can comprehend what you’re teaching them, however.
4. How much should I pay?  Here’s a common option: A) pay them their age every week (ex. $5/week for a 5-year old), though this can get expensive, especially with multiple children. Make sure it’s something you can afford and isn’t too much for their age.
5. Is the allowance dependent on anything? This can be tricky. Establish which household chores are expectations and which ones go above and beyond. This will help engrain that some tasks are necessary while also helping them understand working in exchange for money.
6. How do you give it to them? Weekly is the established minimum; you want your child’s “income” to be somewhat regular for them to be able to do something with it.
7. Are there limits on how it’s spent? We recommend the three S’s: spending, sharing and saving. You can also make a list of what money can be spent on, as well as what it cannot.

Again, there’s no perfect answer to this question, and your solution will depend on your values and how you want to raise your children. We hope that these questions help you come to resolution everyone can accept.

Lincoln Savings Bank can help you manage your child’s money if you want to establish a savings account for them. Just visit your nearest branch to get started today!

It’s back to school time, so the summer break is over for most kids.  If they had a job the last couple of months, they may have saved a little money. However, for kids, money can quickly disappear as it tends to “burn a hole” in their pockets. They want to keep up with their friends, go to movies, buy clothes or food, and do other activities that may erase a summer’s worth of work fast.

As a parent, you want them to learn proper money management skills, but don’t want that to keep them from spending time with their friends. Here are few strategies from Lincoln Savings Bank to help them make the most of their money.

Open a checking and/or savings account- if they don’t have one already, open a checking and savings account to help them learn the value of saving and making the proper decisions with money. However, you may want to consider whether a debit card or cash is the best option for them.

Consider using cash- we have a much more intimate connection to cash than we do to swiping a debit card. The stimulus created by physically handing over cash can help kids to spend wiser and also look into getting the most for their money during this important time of their lives while they are learning important financial life lessons.

Institute spending limits- just like we suggested for college students, if something is over a certain limit, train your child to think if it’s really necessary. Filling their car with gas is one thing, spending $100 on jeans when there are cheaper options available is something entirely different.  

Combine strictness and leniency- there will be times where your instinct to say “no” when a child wants to purchase something is right, and times where it’s not. Let them learn by doing; let them go to the movies with friends, but don’t give in when they come to you in a few days asking for money to go shopping. Instead, educate them on needs versus wants and making better decisions.

What tactics have you used to help teach your children financial responsibility? Whether it’s something from this list or another technique, we hope it has worked for you.

Lincoln Savings Bank is always willing to help in any way possible, so you can come to us to help with your child’s ever changing financial needs.

We noted in our last blog post that August is one of the most popular months for childbirths, so we’re

continuing with our theme of babies and children this week. From birth until age 18, the cost of raising a child as risen to an average of $235,000, with middle class families averaging about $350,000 per child.

Now, 30 percent of those numbers are related to housing costs, but that still leaves a solid chunk of change to think about. What costs so much? Lincoln Savings Bank is here to give you a simplified breakdown* of the most common costs for your children up to age 18.

Birth – 5 Years Old

• Average childbirth and hospital stay: $9,700 ($12,500 for C-sections)
• Diapers, formula and food: $50/week, about $2,450 per year
• Clothing: $20-$50 per month to adjust for growing child
• Child care: $150-$250 per week
• Stroller and car seat: $400-$500
• Pre-school costs: $5,000-$13,000 depending on the school

6 – 10 Years Old

•          Recreation/sports costs: $300-$1,000 or higher (depends on number of sports played and level of play)
•          Education at a public school: $40-60 registration, additional costs for school lunches or other minor fees
•          Clothing: $30-50 dollars every month and a half to two months
•          Toys, movies, entertainment: $100-$200 month

11-18 Years Old

•          Public school education: middle school- $40-$70 for registration + school lunches and activity fees; high school- $65-$80 for registration + school lunches, specific course fees, activity fees
•          Auto insurance for a 16-year old: $1,000-$4,000 based on gender, location and vehicle
•          First car for a teen driver: $2,500-$5,000 (depending on type of car and how much your child will pay

There are of course many other costs associated with raising a child, but we wanted to give you a look at some of the most popular costs. You should also look into adding your child to your health insurance and any costs in setting up and contributing to a fund for your child.

Lincoln Savings Bank can help with these or other items to help ensure your family’s financial stability for years to come. Just get in contact with us today to get started.

* This breakdown is provided by Lincoln Savings Bank as a guide. Numbers used are averages, and differ based on your unique situation.

As we touched on in a blog post from last month, having a child is one of life’s greatest events, but also one that requires the proper amount of planning. While we gave you some ways to get started if you’re thinking about having a child or are already pregnant, there are a few additional costs of having a baby to think about.

Since August is one of the most popular months for childbirths, we at Lincoln Savings Bank figured now was as good a time as any to provide you with some surprise costs (no, it’s not twins) to keep in mind in the months leading up to your little miracle.  

1. The birth itself- unfortunately, childbirth sometimes results in complications that are unforeseen, and can cause emotional, physical and financial stress. Complications and NICU visits can be costly, so be sure to find out what kind of health insurance coverage you have to cover these expenses should they arrive. 
2. Insurance Co-Pays- from visits to the OB/GYN during pregnancy and your hospital stay during childbirth to the 6-12 times you’ll be taking your child to the doctor in their first year, these costs really start to add up. Again, understanding your insurance coverage and knowing your exposure to these costs is important.
3. Baby formula- most new parents don’t think about this, but the average cost of formula is 25 cents per ounce. So, at 20 ounces a day for one year, you could be getting close to $2,000 spent on formula for your child during their first year.
4. Clothing- for both you and your child. While you may get some baby clothes as gifts, babies grow quickly and often grow out of those gifts during the first few months. Additionally, you most likely won’t be able to slip right into your pre-pregnancy clothes, so some transitional clothing may be in order.
5. Food- for you and the rest of your family. Being a new parent is exhausting work, so you may want to budget a little extra money for take-out to give yourself a break from cooking every night.

While there are a lot of great resources available for expecting parents, you may also want to meet with a Lincoln Savings Bank financial planner. They can help make sure your family is on the best financial path.

If you’re expecting a child soon or have just had a child, all of us at Lincoln Savings Bank wish you congratulations and good luck in the future!

Lincoln Savings Bank is back with more tips to help you turn your hectic finances into a smart, easy-to-

manage part of your life. Be sure to take a look back at our post from earlier in the week to see what the easiest ways are for you to take the stress out of your life. Without further adieu, here we go!

• Create and emergency fund- this takes discipline for many people, but there may come a time where you’ll be thankful you have it. Three to six months of living expenses should give you peace of mind.
• Simplify your investments- “diversified” and “simple” aren’t mutually exclusive. You should be able to describe what you’re investing in and how it works.
• Buy and hold- the market is a fickle thing, so quit trying to “time” the markets. It only causes additional stress.
• Make a list of all your possessions- okay, so making the list may not be simple, but the purpose is simple. You can see which of the things you own are unnecessary and it will give a much needed wake up call to consume, spend and own less. Then…
• Sell half of your list in a month- have a garage sale, put your stuff up on eBay, list it on Craigslist. You’ll make some cash, reduce storage costs and learn what you really need to live well.
• Whatever it is you do well, do more of it- what gives the most value to your employer? Find out and replicate it as much as possible. No matter where you’re at in life, find out what extra value you offer and focus on that. You can’t be everything to everyone.
• Learn to negotiate- this may seem foreign and even rude to some of us kind Iowa folks, but learning how to haggle (respectfully) can pay off in more areas of life than you might think.

Which of these tips speaks the most to you?

We hope that these and our previous bits of advice give you something to think about (and hopefully act on!) when it comes to your financial life. If you need help simplifying things, Lincoln Savings Bank is just a phone call away!

No matter your age, chances are your financial life could be simpler. Do you have three or four different

checking or savings accounts, multiple IRAs or 401(k)s or have trouble keeping track of bill payments? Many of us may answer a resounding “yes” to any or all of those, but it’s time to take back our time and eliminate everything standing in the way of our financial goals and passions in life.

Last week was National Simplify Your Life Week, so we decided to offer up these tips to help you simplify the financial side of your life.

• Focus on one goal at a time- regardless if you’re attacking your debt, saving for a down payment or building an emergency fund, commit to the one goal until it’s met.
• Consolidate accounts- this goes for checking, savings and retirement accounts. Fewer accounts = less time wasted managing them.
• Pay off your credit cards- especially if you have debt issues or carry high balances. Pay it off, shred your statements and say goodbye to paying interest on your balances. 
• Budget with pen and paper- if you can’t write out your budget, it’s too complex. Writing it out helps you understand where our money is going and can decrease wasteful spending.
• Experiment with money “hacks”- try out “no spending days” or create a 30-day list for must-have purchases. If you don’t need them after 30 days, you don’t need them.
• Think big picture- forget about monthly payments, how much will that new big screen cost in your lifetime? Thinking “total cost” will help prevent impulse spending.
• Package services- package your insurance needs, phone/data services, etc. with one company. This reduces confusion with payments and usually results in a discount. Also, make a list of what you need before you start shopping to eliminate unnecessary add-ons. (Tip: LSB offers multiple policy discounts on insurance, contact us to learn more!)

Another way to simplify your finances is to speak with a Lincoln Savings Bank financial planners and use our online Budget Plus tool to keep track of your expenses.

We’ll be back later this week with another blog post about simplifying your money troubles, so check back!

Today is the day so many of us have been looking forward to since last August: it is opening day of the 2013 Iowa State Fair! Yes, it’s time to fill our bellies with the finest fair foods, hop on the Ferris wheel, check out the butter sculptures and soak up what it means to be a proud Iowan.

If you plan to visit the fair this year, there are some important things you should know before you go!  First, we want to be sure you stop by the butter sculpture exhibit and take your picture with the butter sculpture of Abraham Lincoln for a chance to win a $100 Visa gift card from Lincoln Savings Bank!  As we mentioned in our last blog post [link to previous post], all you need to do to enter the contest is upload your picture with butter Abe to our Facebook page at www.facebook.com/mylsb.  Be sure to upload your pictures by Thursday, August 22 for a chance to win!

Second, we want to make sure you are prepared financially for a fun day at the fair.  You’ll want to be sure to have enough money on hand so you can have a fun day and not worry about unexpected costs. Here is a high-level rundown of some of the costs:

Tickets- if you didn’t pre-order your tickets, you can get them at the gate when you get there. Ticket costs are as follows: $11 for Adults (ages 12+), $5 for children ages 6-11 and free admission for children age 5 and younger.

Midway Rides & Games- be kings and queens of the midway and hit the rides and games while you’re at the fair!

·         Midway Play Packs- $14 that has 5 ride tickets included in the plan

·         One-Day Unlimited Rides Pass- for weekdays only, $25 gets you unlimited mechanical rides from 11 a.m. to 5 p.m.

Food- with over 200 food stands and 60 food items available for easy munching on a stick, you can be assured your every food and beverage craving will be satisfied. There are number of great options for under $2, but make sure you have enough cash to try one of the fair’s signature food items like an Octo-dog (hot dog shaped like an octopus).

Grandstand- the concerts and events on the Grandstand this year vary in price from $20-$49 per ticket depending on which event you choose.  Each day of the fair offers a new and different Grandstand attraction.  Visit http://www.iowastatefair.org/on-stage/grandstand/ for a complete listing of all Grandstand events. 

You may be wondering if you should bring cash or if your LSB debit card can be used.  We recommend carrying mostly cash as it will be accepted no matter where you are on the fairgrounds.  You may want to bring more money than you think you’ll need so you are prepared.  There will be 30 ATMs throughout the fairgrounds, but you may be charged a transaction fee since the ATMs at the fair aren’t owned by LSB (remember that LSB doesn’t charge you a fee for using the ATM). 

Your debit and credit cards aren’t useless at the fair.  You may encounter alternative payment methods like Square. These secure ways of taking credit and debit payments use a card reader attached to an iPhone, iPad or Android device. These alternative payment methods are secure and safe for you to use. No information from your transaction is actually stored on the device. It goes straight into the program the vendor uses to track their sales.

All of us at Lincoln Savings Bank hope that everyone planning to head to the Iowa State Fair has a safe and amazing experience full of rides, games and multiple Octo-Dogs!

It’s once again time for one of the greatest state fairs in the country, the Iowa State Fair! The fair gates open on Thursday, August 8 and remain open until Sunday, August 18. From the colorful midway and many exhibits to the exciting rides and diverse selection of foods, there is so much to do. This year, we at Lincoln Savings Bank are extra excited about one of the exhibits…a butter replica of the Lincoln Highway Bridge in Tama and a relief sculpture of Abraham Lincoln!

You may be wondering…but what about the butter cow?  No worries, the butter cow will again be the star of the show.  However, each year the fair chooses a companion piece for the famous butter cow.  This year our nation celebrates the 150^th anniversary of Lincoln’s Emancipation Proclamation and Gettysburg Address and Iowa’s Lincoln Highway also turns 100 years old, so the timing was perfect to commemorate our most famous President in butter!

Are you planning to visit the fair this year?  If so, you have the chance to win a $100 gift card from Lincoln Savings Bank.  Here’s all you have to do…while you’re at the fair, visit the butter replica of Abraham Lincoln and take your picture with Butter Abe.  Be creative in your photos!  Then, visit LSB’s Facebook page and upload your photo to our Butter Abe Photo Contest page.  Every person who uploads a photo will be entered in a contest for a chance to win the $100 gift card.  Just be sure to upload your photos by Thursday, August 22, 2013 because we will draw a winner from all entries on Friday, August 23, 2013.  Visit www.facebook.com/mylsb for full contest details and rules. 

Also if you’re planning to visit the fair for multiple days and love to hit the Midway rides, you may want to consider pre-ordering a Mega Pass.  You can order mega passes online until August 7.  For a Weekday Mega Pass, it’s $25 for unlimited mechanical rides any weekday from open to close.  The Any Day Mega Pass is $30 for unlimited mechanical rides all day any day, including weekends.  Visit http://www.iowastatefair.org/fair-attractions/midway/ to order your Mega Pass.

If you and your family and friends are headed to the Iowa State Fair, we hope you have a great time and come away with wonderful memories!  We look forward to seeing all the photos of the butter Abe with our friends and customers!  Check out our blog on Thursday for more details about the fair, including some financial considerations for your day at the fair.

Ever get the feeling you’re falling behind the 8-ball when it comes to your financial life? Have you ever said the following phrase: “Wait, I should’ve been saving more/investing more/paying off my credit card SOONER”?

Financial planning should be a lifelong process, not something
you start once you're already behind.

Financial matters are a great source of stress for Americans of all ages, so we at Lincoln Savings Bank want to help. We offer you the Lifetime Financial Cheat Sheet! It offers a quick reference for some important financial milestones through various stages of your life.

Your 20s

• Get a source of income- get a good job and continue to improve your skills
• Build an emergency fund- it should  be 3-6 months of expenses stashed away in a savings or money market account
• Make a plan to repay your debt- it doesn’t have to be all at once, but shoot for having it paid off before your 30^th birthday
• Start a 401(k) or IRA- yes, you need to start saving for retirement. For example, putting $150 a month into an IRA that earns 8 percent starting at age 25, you’ll have over $500,000 by age 65. Waiting until you’re 30 will net you over $180,000 less.

Your 30s

• Increase your 401(k) contributions- by this point hopefully you’ve worked up the ladder a bit, so you have more money to save
• Save outside of work, too- maxing out your 401(k) contributions? Nice! Now look into opening an IRA outside of work to save more
• Invest- don’t put all your eggs in one basket; invest wisely by diversifying
• Be liquid- yes, you need a certain amount of investments, but by now you may have a family and kids. Accidents and emergencies happen, so you need readily available funds

Your 40s

• Continue to max out savings- make sure your taking maximum advantage of your 401(k) and outside IRA. If you have kids, this is the time you may have to begin thinking about their education or other expenses, so having enough saved up goes a long way
• Get some advice- talk to a financial planner or trusted investment manager about your investments. It may be wise to reduce the percentage of assets in stocks and put them into bonds

Your 50s

• Play catch up- catch up contributions for your 401(k) allow you to save $5,500 more once you turn 50; this could be more if you can get a company match too!
• Consolidate 401(k)s- one manageable IRA is easier to oversee then multiple 401(k)s with varying amounts of money in them
• Look into long-term care insurance- daily care in a nursing home can burn through retirement savings quickly, so it’s better to be prepared
• Think about Social Security- you can apply for Social Security benefits starting at 62, but your monthly check will be smaller for the rest of your life
• Reassess retirement costs- we all think we can live on less, but most people badly underestimate health costs and other expenses

The rest of your life- take advantage of being smart with money your whole life!

Everyone’s case is different, but these are great general topics to help get you thinking about retirement no matter your age. For help in planning out your financial life, Lincoln Savings Bank’s Personal Financial Advisors will help you make sense and take advantage of the things you need.