Did you ever think that you would be able to ‘Pay’ with a watch?

I went to Walgreen’s this morning to test out ApplePay – not on my phone, I already tested that, but I wanted to use it on my AppleWatch.  I have to admit that this was my second attempt to try my watch.  I was not successful the first time because I did not fully listen to the video.  The video said to double-click the side button, so I did, not realizing that it did not mean the round button.  I did not want to hold up the line, so I decide to come back.

 I watched the video again and realized that when it said to double-click the side button, it was referring to the slick button on the side of my watch.   I walked in and picked up my items and went to the check out.  I told the clerk that I wanted to try to pay with my watch and he said that he had only seen one other customer do that before.  Once he finished scanning my items, I clicked on the side of my watch and it did not work.  Then I double-clicked and the image of my TB&T card popped up on my watch.  I turned the image towards the NFC reader and it dinged then the screen showed payment successful. The clerk said, “that is awesome.”  I was so excited about the ‘slick’ technology that I forgot to use my Walgreen’s coupon. 

Are you wondering how I got my checkcard information into my iWatch? It is quite simple.  You just select the Wallet and Apple Pay option in your iPhone 6 or 6s, and follow the prompts to set up your TB&T debit or credit card.  Just as a side note, if you do not use ITunes frequently, you might be prompted to contact the bank and validate some additional information – just as a security precaution.  If you have an Apple Watch, you will need to go into the app and select one of the cards that you setup for your iPhone.

Once you follow the prompts and add the card to your phone, all you need to do is go to an authorized ApplePay location (see Apple’s website) and just hold your phone next to the NFC reader with your thumb on the home button click to wake your phone, then you will see the image of your card, hold the home button while it confirms your transaction.  I almost forgot! You need to be sure that you already set up touch ID to recognize your fingerprints before you use ApplePay.

I paid with my iPhone 6 at Walgreen’s and it was pretty ‘slick’.  It was fun watching the facial expressions of the people in line behind me.  My phone immediately showed a notification that I made a purchase at Walgreen’s and gave me the amount.  How awesome is that? 

You are probably wondering, at least maybe some of you, “Is it secure?”  That was my first question, since I seem to be replacing my checkcard rather often due to fraud.  It is actually more secure than using your card.  Once you store your card in your phone, the Apple Pay technology is interesting and kind of complicated.  The technology actually takes your card numbers and creates a unique device token and stores it in your phone instead of your card.  Then, when you process a payment it is sending that token number instead of your card number to the machine…why is this important? Well, it protects your card from breaches, like the one at Target and other stores, where they hacked into the system and stole all of the card information.

I have to admit that I am a fan of Apple and this technology is a lot of fun; bu,t I also have to say that they are a little behind on technology.   Samsung Pay actually allows you to pay with a card at almost all locations, not just ones that have a NFC reader; it uses a magnetic secure transmission technology that transmits the information as if you swiped your card. 

More Technology to come…SamsungPay, Android, etc., it’s in the works…and, hopefully, Apple is working on some form of magnetic secure transmission, so I can use my iPhone at the majority of businesses and not just the select few that Apple partnered with.

Go out and try it today…it is really neat to see how cool technology can be and almost ‘Jetsons’ like to think that I actually purchased something with my watch. 

By: Sheri Parish, Senior Vice President
and Director of Deposit Operations

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel 

My Marriage Misconception

Well, hello again! Long time no write. It’s been a year since I last wrote to you when my 52 Week Savings Challenge came to an end. A lot happens in a years’ time and many lessons learned as well. So, let’s start by catching up a bit.

When I left you a year ago, I had completed my savings challenge, was in the middle of planning a wedding to my now husband of almost one year (I can’t seem to grasp how fast time has gone), sold my home in Texas, left everything and everyone in life I knew, and moved to the Aloha State, Hawaii, to be with my husband. Like I said, a lot has happened. 

As you can imagine, one cannot go through several major life changes without learning a thing or two, whether you want to learn it or not. I’m here to tell you firsthand, you cannot hide from or outrun the lessons life tries to teach you; it’s just becomes more difficult if you try. I hope that piece of advice saves some readers out there some time and trouble. 

Now, as this is only one blog entry, I won’t talk about ALL the lessons I’ve learned just yet, I’ll save those for later. However, I am going to talk about one that hit me hard, like walking into a wall you didn’t know was there. Sadly, I’ve literally done that several times. Anyway…this lesson is one that I am sure most married people out there can relate to. I am going to call this lesson, “My Marriage Misconception.”

As a very new bride coming off sacrificing my small indulgences I loved (oh, Mexican food) for a savings challenge, a wedding, and the many moving expenses I had to get from Texas to Hawaii, you can imagine how ecstatic I was when it dawned on me that I had gained another income! From then on, I was no longer just relying soley on my income to pay my bills, save for future expenses, or buy new handbags. I had another source contributing to my needs and wants. I mean “what’s yours is mine” right? Not until a couple months into marriage did I truly understand the real meaning of that phrase. 

In the beginning, all I seemed to be focusing on was MY expenses, MY bills, MY little indulgences, all while using OUR income. Believe me when I tell you that I ran into the “lesson wall” harder and faster than any of the real life walls I had ever encountered. Not only did marriage bring in an extra income, but, it also brought with it extra bills, expenses, and indulgences as well, something that I seemed to have slightly overlooked while taking in the joys of being a newlywed. Joining our lives also meant joining our financial responsibilities. I now had to account for double the bills, food for two people instead of one, an extra car payment, and his indulgences (lots of video games and tech toys). What was his really did become mine as well, I was just getting more than I originally had thought about, which I will admit was a very naïve mistake on my part. I learned I needed to pay more attention to where I am going so I don’t smack into walls right in front of me and save myself a bruise. 

As all married couples do, we learned how to adjust to having two incomes and how to combine our previously individual expenses to become OUR expenses. Using Texas Bank and Trust’s new online financial management service, myOFM, we developed a monthly household budget that includes BOTH incomes, monthly bills, savings, dining and entertainment, AND our handbags and video games. While he doesn’t use my handbags, I have played a game or two. They are half mine, right? I have learned that communication, especially with financials, is very important in a marriage to make sure that you both are on the same page and have the same financial goals. Together, we have learned where we should spend money and where to cut expenses, like when we should eat at home instead of dining out. Financials are a large part of marriage, so being in sync and following a budget has helped our household run more smoothly. 

We are planning to start the 52 Week Savings Challenge again, but together this time. We plan on using the savings to experience all the amazing things Hawaii has to offer. Sky diving anyone? I hope all you out there will also give the challenge another try. Until my next entry, happy savings! 

By: Tawny Browning

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel 

Steps for First Time Home Buyers

Many people have mixed feelings about purchasing a home; however, there are many benefits to buying a home for anyone who can. In the past five years, it has been more affordable than ever to buy.  Here are some reasons why anyone considering purchasing a home should act now: 

• Pride of ownership is the number one reason why people desire to own their home. Home ownership gives you and your family a sense of stability and security. Also, it is an investment in your future.


• There is a chance that your mortgage payment may be less than what you pay for rent and that alone is a good reason to own your home.


• Homeownership is one of the last remaining tax shelters.  In most cases, mortgage interest and property taxes reduce both taxable income and your overall income tax liability.


• Interest rates are still low. 


• Rental cost is on the rise.

The more you know about why you should buy a home, the less anxiety you will have about the process.  However, you do not have to know everything about financing and buying a home if you work with a knowledgeable mortgage loan officer and Realtor. 
When you are budgeting to purchase a home, you should know that your mortgage payment is only a fraction of the cost to sustain your home.  Others expenses that a potential homebuyer should know before buying are:

• Utilities bills
• Maintenance costs
• Property taxes
• Homeowners Insurance
• Association dues, if applicable

To prepare for purchasing a home, your initial step should be to get your finances in order and begin setting aside funds for your down payment and closing costs.  The more you put down the lower your monthly payment will be.  In addition to their savings, many borrowers use the following financial resources to cover down payment and closing costs:

• Tax refunds
• Gift funds
• Retirement funds

Potential buyers may also choose to negotiate closing costs with the seller.


Because loan approval is generally the key to a purchase transaction, it is to your advantage to obtain a pre-qualification letter from your preferred lender when you are ready to begin shopping for your home.  Lenders will base their decision on information provided on your loan application, employment history, and credit history.  Your credit history is a key factor when making a decision to approve your mortgage loan.  It is always a good strategy to get your FREE credit reports by visiting www.annualcreditreport.com. You are eligible for a FREE credit report every 12 months from all three credit reporting agencies – Equifax, Experian, and TransUnion. Review these reports prior to applying for a mortgage loan to ensure the accuracy of the information. If you find errors, report them to the appropriate reporting agency. 

Choosing a real estate agent to help guide you through the process of buying your home is a wise decision and will help you avoid potential setbacks.  A good agent will provide information based on their experience and market knowledge. When shopping for your home, you want to make sure you are looking in marketable areas for re-sale purposes, which includes the neighborhood, school district, location, and the surroundings. Life can change overnight. Therefore, you need to make sure your home is marketable and will have a good re-sale value.


Purchasing a home may be one of the most significant decisions you make. Therefore, if you are thinking about buying a home, or currently in the market to buy, you should be aware of your own finances and consider all the elements of your current circumstances before making a decision. Buying a home is a very personal decision and you should buy only when it is right for you.


Click here for more information about Texas Bank and Trust’s mortgage loan options. To speak with one of our mortgage lending officers, please call 903-237-5584.


Texas Bank and Trust is an Equal Housing Lender.







By: Lora Hollins
Vice President/Mortgage Loan Officer

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel

Making Managing Your Finances Fun!
In a recent blog written by James Sheridan, Senior Vice President and Commercial Lending Officer, he shared why it is important to have a personalized budget and gave a good list of steps to follow as well as a list of priorities. To view his blog click here.

In this post, we are going to build on his list of steps/priorities and show you how managing your finances can be more personal and fun. You may be asking yourself how can budgeting and managing your finances be fun? Well, TBTmyWay online banking services now allows users to manage, track, and interact with all of their finances in one convenient place with a new service called myOFM. The great thing about myOFM is it not only allows users to create and manage a budget but it also allows users to aggregate accounts from other websites, categorize spending, create alerts, manage debts, set goals, view transactions, track spending over time, and view their total net worth.

Here are some specific ways myOFM can benefit your personal management of your finances and make it fun while doing so:

1. Account Aggregation: Why spend all day visiting numerous websites just to check the balances on your various accounts? myOFM allows users to view the balances and transactions from all of their accounts at various financial institutions in one secure network. The primary TB&T accounts that users have access to through their online banking portal should automatically populate inside the myOFM tab. Then with a few easy steps, users can also add many of their external accounts that they hold with other financial institutions. This allows users to have a more complete picture of their financial information.
2. Alerts:  This tool allows users to create an email or text message alert for each account setup within myOFM to notify them of fees being charged, low balance, large deposit or large expense/withdraw. It also gives users the ability to create an alert if a budget has been exceeded.
3. Budgets:  The Budgets view presents a targeted display of users spending and progress to hitting their overall budget each month. After budgets are created, moving forward, by default, budgets will be shown in the bubble form (the Bubble Budgets view allows users to see both the health and the importance of their budgets simultaneously). Users will also have the ability to view and edit their projected income within budgets, helping the users to make budget decisions that balance with their income.
4. Categorize Spending:  The Spending view presents a comprehensive spending wheel displaying what percentage of users spending is in each transaction category. Users can hover over each section of the spending wheel and see how much was spent in each category.
5. Debt Management:  The Debts view is a powerful tool that allows users to see all of their debts in one place and proactively determine an expedited payoff plan.
6. Goals:  This tool helps users plan and visualize long-term financial objectives such as saving for a home or paying off a debt. The Goals view automatically calculates how long it will take to complete each goal and maps it on an interactive timeline, making it easy to see at a glance how close users are to their objectives.
7. Net Worth:  The Net Worth view tracks the net sum of all the assets and liabilities over the past year that users have accumulated.
8. Transactions:  This feature allows users to view transaction information for each account that they have listed within myOFM.
9. Trends: The Trends view presents a graph that is helpful for users who want to see spending trends over time. It shows a six-month history of spending by category along with a green line showing income. This way, users can quickly determine if they are spending more than they are making.

With every New Year, we all create our own list of "New Year’s Resolutions." This year, let’s make our finances one of those top priorities! So, the only question I have now is... will you join me by starting the New Year off right and take advantage of these great tools that myOFM provides? If you answered yes, then get ready to feel more empowered and be more engaged in managing your finances than ever before. Together, we will actually see where our money is being spent and the impact that this spending has on the budgets we create, and not only that, but we can manage all of our accounts through one convenient login and set goals for 2015 and the years to come.


By: Chris Davis
E-banking Manager

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel

Beware of the '12 Online Scams of Christmas'

“Ho, Ho, Ho,” how we delight in imitating Santa Claus, as we embark upon the Christmas shopping season. What should be a merry time for all; includes hackers, scammers and con artists!

As we rush into the Christmas shopping season please take time to think carefully before making your purchases and any charitable donations.

Scammers are always on the prowl for victims with the following scams, consumers are especially vulnerable during the holidays. With so much to do, many otherwise cautious people let their guards down.

Con artists are ready to exploit busy, distracted shoppers -- some desperate to buy popular gift items. They're also ready to "ramp up" their emotional appeals when posing as representatives of real (or real-sounding) charities.

The McAfee company released the results of its 2012 Holiday Online & Mobile Shopping Study as well as the “Twelve Scams of Christmas,” that cyber criminals plan to use to cheat consumers this year. The survey among 2,397 adults, ages 18 and older, revealed the following trends:

• 70% will do some Christmas shopping online this season.
• 1 in 4 Americans plan to shop online this Holiday season via mobile (phone/tablet)
• 13 percent of all Americans will use an app this holiday season to research or purchase holiday gifts.
• Roughly 41% of American smartphone and/or tablet owners indicate that they have used mobile devices to research or purchase holiday gifts; and 87 percent of them are concerned that their personal information could be stolen while using an app on such devices.’

1. Social media scams: Scammers can use sites like Facebook and Twitter to scam consumers during the holidays. Be careful when liking Fan Pages, clicking on fake alerts from friends’ accounts that have been hacked, or installing suspicious “holiday deal” apps that give your private data away. Also beware of Twitter ads and special discounts for popular gifts using blind, shortened links.
2. Malicious Mobile Apps: Be careful not to download a malicious application designed to steal information or send out premium-rate text messages. Make sure that you only download applications from official app stores and check other users’ reviews and the app’s permission policies. 
3. Travel Scams: Before booking travel arrangements, beware of scams with too-good-to-be-true deals, phony travel webpages with beautiful pictures and rock-bottom prices. The Federal Bureau of Investigation also warns travelers of a hotel Wi-Fi scam where a malicious pop-up ad prompts computer users to install a popular software product before connecting to their hotel Wi-Fi. Do a security software update before traveling, to guard against the latest scams.
4. Holiday Spam/Phishing: Cheap Rolex watches and pharmaceuticals may be advertised as the “perfect gift” while holiday-themed phishing emails may try to trick you into revealing financial or personal details by posing as an offer from a legitimate business.  
5. The new iPad, iPhone 5, and other hot holiday gift scams: Cybercrooks are likely to mention must-have holiday gifts in dangerous links, phony contests and phishing emails.  
6. Skype Message Scare: A new Skype message scam attempts to infect victims' machines, and hold their files for ransom. The threat appears as a Skype instant message with the scam line “Lol is this your new profile pic?” Clicking on the link downloads a Trojan onto the computer. 
7. Bogus gift cards: Be wary of buying gift cards from third parties and buy instead from the official retailer.  
8. Holiday SMiShing or phishing via text message: The scammer tries to lure you into revealing information by pretending to be a legitimate organization.  
9. Phony E-tailers: Phony e-commerce sites that appear real will try to lure you into typing in your credit card number and other personal details.
10. Fake charities: Cybercriminals may try to fool you into thinking that they are a real charity, such as the Red Cross, with a "stolen logo and copycat text." It is safer to visit the charity’s legitimate website. 
11. Dangerous e-cards: Some are malicious and may contain spyware or viruses, or download a Trojan.  
12. Phony classifieds: Phony offers may ask for too much personal information or ask you to wire funds via Western Union.

By: Ken Hartley
Security/Loss Prevention Officer

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel

Holiday Savings Tips

The holiday season is fast approaching and the pressure of financial worries often hampers holiday cheer.  Shopping for that perfect gift, cooking big meals, and making travel plans add stress to an already hectic time.  If this sounds familiar to you, then it’s time to learn a few ways to alleviate the burden on your wallet and spend more time relaxing during this special time.  Try these simple tips to keep your spending under control:

·         Set a budget and stick to it:  Setting a budget for your gift list and entertainment expenses is the first step in handling your holiday costs. Make a list of each recipient‘s name along with the amount of money you are willing to spend.  Make another list for decorations, food, travel, and other necessities for the holidays.  Once you have this is in writing you will find it much easier to keep your holiday spending under control.

·         Homemade Gifts:  Handmade gifts or personalized coupons can be a special treat in this age of store-bought presents.  Use your creativity and talents to make that special gift that will be appreciated. You can put together a gift basket, create a photo album, knit a scarf, or bake some cookies.  Another great gift idea is to create your own coupons for home-cooked meals, house cleaning, yard work, babysitting, or dog walking. Your personalized effort will be worth more to your loved ones than any dollar amount you could spend.

·         Shop early:   It’s never too early to start, so make your list and start watching for sales and picking up nonspecific gifts at bargain prices.  When you spread out your spending you may avoid using credit cards to make purchases.  Now is the time to buy non-perishable food that you may need for your holiday cooking and baking.   

·         Entertainment and Activities:  There are many ways to get into the holiday spirit without over spending.  Try some of these ideas to keep your family entertained with little or no costs involved; attend the local tree lighting ceremony or Christmas parade; watch a holiday classic such as, “It’s a Wonderful Life;” have the kids or grandkids put on a holiday play and invite the neighbors for a potluck dinner; celebrate with game night and pull out your best board games.

·         After Christmas Sales:  If you are not going to see friends or family on the day itself you can take advantage of post-holiday sales on everything from clothes, electronics and more.  This is also a great opportunity to purchase items for next year’s festivities such as wrapping paper, ribbon, decorations, Christmas cards, etc.

There are so many ways to save money this holiday, get creative and think outside the box.  Hopefully these tips will help ease some of the stress of the season and make your holidays more relaxing.  Spend time with one another, sit around the dinner table sharing stories of holidays past, and enjoy every minute of this wonderful time of year.

By: Sherry Gibbon
Vice President and
Community Relations and OMNI Manager

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel

Establishing a Personalized Budget

We have all heard before that it is important to establish a budget, but what is a budget and why is it so important? A budget is simply a financial plan for you and your family to help identify your current and future financial needs, and adjusting those needs to fit your income level. A budget will change as your income changes. It is not set in stone, it is an evolving plan.  For purposes of our discussion, I will cover establishing a budget from the perspective of someone who is developing a budget for the first time.  

The first two critical steps to establishing a budget are: 1.) understanding the difference between a “need” and a “want,” and 2.) having the self-discipline to follow your budget consistently.  It does not matter how good your plan is if you do not stick to it.  

Here are some standard budget priorities in order of importance, and some considerations with each:

1.       Food: Take advantage of advertised specials and coupons, but do not buy items you don’t need just to save money. Buy non-perishable items in bulk if you can; typically, retailers give better discounts for buying in larger quantity. Make sure you read the cost per unit tag on the shelf when selecting groceries. If you are on a tight budget, try to avoid eating out.

 

2.       Housing (rent or mortgage payment): Be aware with a lease agreement that there is a possibility the monthly rent will increase when the first lease expires. Also, realize your monthly house payment will probably increase over time as your real estate taxes and insurance will probably increase.

 

3.       Fuel/travel: There are several applications available for your smartphone that tell you where to find the cheapest gas. There are also grocery stores that sell gasoline and give you a price break on their fuel by shopping at their store.

 

4.       Utilities: Electricity and natural gas are negotiable with your provider in Texas since the industry deregulated. Log on to www.powertochoose.com to see what options you may have. Understand, however, that typically the cheapest rates require a long-term contract with expensive penalties for breaking early. They will require you pay your bill via automatic draft. Cable TV and Internet are “wants,” unless you utilize the Internet for your job. If your budget is really tight, consider doing without these two items until your budget is stable.

 

5.       Transportation: Remember to include your monthly vehicle payment and the associated insurance in your calculations. Also be sure to include oil changes, tires, etc. in your cash reserve mentioned below. If you live where you are able to utilize public transportation to get to work or can arrange to carpool, these are both alternatives to lower your transportation budget.    

 

6.       Debt payments: Include personal loans, credit cards, and other lines of credit. Make sure you pay bills when due to keep your credit rating good. Also, try to pay extra on existing debts. As you pay one off, apply those funds to the remaining debts. Paying debt off early saves you interest. Once all your consumer debts are paid off, apply the former debt payment towards building your cash reserve fund. 

7.       Savings: For our discussion, we will consider two types of savings accounts- a cash reserve and retirement. It is important, no matter what your current income level or financial status, that you establish a pattern of savings. Even if it is $10 per pay period, it reinforces the habit to put money away to build a cash reserve. There are many opinions on how much you need to save, but a good rule to follow is to build up a cash reserve equal to six months of household expenses, then start contributing to a retirement savings plan through your employer, such as a 401K plan, if available.

 

By: James Sheridan
Senior Vice President and
Lending Officer

 

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel

 

 

 

 

Why is it that every time I turn around it seems as if I’m running across the street from the Technology Center to the Main Bank to get a new DebitCard?  If I did not work for Texas Bank and Trust, I would be asking myself “Why can’t the bank keep my card information safe from the card breaches that we keep hearing about at places like Target and Home Depot”?  Is my account at Texas Bank and Trust safe?  First let me say that “Yes” your account information is safe.  Texas Bank and Trust’s systems were not compromised.  It was the systems of the large retailers previously mentioned. When you swipe your debit card to pay for a purchase, the swipe includes your debit card number, which is processed through the retailer’s system then sent through the card network to process from your account at Texas Bank and Trust.  What is a breach?  Simply put, a hacker gains entry into the large retailer’s systems to steal the transaction information which includes your debit card number.  To be certain that you do not have an active card with information that was compromised, we replace those cards to protect your account.  Although we have systems monitoring for fraud on your account(s), we must also rely on you to monitor your accounts and report any fraudulent activity.

My next question would be “What do I do if I encounter fraud?”  If you ever encounter debit card fraud on your account you can “cancel” or “hot card” your card through your mobile device, online banking or by calling our Bank Card department at 903-237-5555 between 8:30 am – 5:00 pm or 866-546-8273 after hours.  We will credit your account for the fraudulent transaction the same business day. You will need to stop by any branch location to sign a form stating that you have fraudulent activity on your account.  If that is not convenient for you, we can mail the form to you.   

You are probably thinking that nothing about this IS convenient.  If you are like me - my debit card is my lifeline.  We definitely understand that and can instantly issue a new card for you at any of our TBT branch locations.   You may be thinking “Maybe one part of that is convenient but what about all of my electronic drafts attached to my debit card that I have set up? Now you are changing my debit card number.”  Unfortunately, you will have to change those automatic payments, but I do have a suggestion- you can either utilize our bill pay service, myPay, through online banking to pay those bills, or you can simply use your account number and our bank routing number, 111923238, to have them directly draft your account.  Therefore, if a store where you regularly shop is part of another card compromise in the future you will not have to set up your drafts again.  

What do I mean by “if my card is part of another compromise again?”  Will this not end? Although we cannot protect other systems from compromise, your TBT account information is protected by our systems and we want you to know what tools we have to help you protect your card information.  If you want to know if a breach has occurred, watch our website for updates, ‘LIKE’ us on FACEBOOK, and be on the lookout for alert messages sent to your online banking.  If we miss you through all of those channels, we will contact you by phone or mail if our fraud detection systems detect suspicious activity on your account, or if we receive a notification of fraud on your account.

 Still concerned about the safety of your debit card?  You have control of your card at your fingertips through our mobile and online banking services.  You can suspend or cancel your VISA © checkcard through the mySettings’ “manage your card” link. You can also stop by any TBT branch and walk out with your new checkcard in minutes.

If you make your card your lifeline, take us with you on your mobile device, so that you can control and be aware of what is happening with your accounts at all times. 

By: Sheri Parish
       Senior Vice President and
       Assistant Manger of Technology

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel 

Back to School: Teachable Moments in Money Management

With the dog days of summer coming to a close and school now back in session, it is the perfect time to open the books on sound money management for kids. Did your child spend the summer working for some extra cash in their pocket? Whether he or she did odd jobs around the house or worked at the local pool, why not use this time to teach your child sound financial lessons that will last a lifetime.

One of the greatest lessons of money management is that it is never too early to begin teaching children the basics of finance. Exposing your children to experiences like visiting the bank, budgeting, and paying bills will go a long way to deepening their understanding of managing their own personal finances into adulthood.

If you are looking for those “a-ha” moments to help get you started, consider these lessons that teach more than they preach:

• Take it to the bank. Bringing your child with you on regular trips to the bank allows you the opportunity to show him or her how transactions work and the importance of establishing long-term banking relationships for future needs. To expand on the lesson, inquire about the possibility of a bank tour, having the manager explain how the bank operates, how money generates interest, and even how an ATM works.

• On payday. Helping your child understand household finances by discussing how your pay is budgeted to pay for the essentials - mortgage, food, and clothing - may open their eyes to the resources available for such expenses. Show your child how a portion at each pay period is saved for future expenses, such as college tuition and retirement, with regular deposits to your own savings.

• At the grocery store. Explaining the benefits of comparison shopping, using coupons, and selecting store brands, will highlight for your child how to buy on budget. You can even complement the lesson with an explanation of needs vs. wants when making purchases.

• Paying bills. Explaining the many ways that bills can be paid will show your child the the different methods of payments available today. Whether you pay your bills over the phone, online, in person, by check, electronic account withdrawals, or with cash, discuss how each method takes money out of your account. Be sure to cover late penalties, emphasizing the importance of paying bills on time.

• Using credit cards. Sharing how credit cards are a loan and need to be repaid will give your child needed insight into the responsible use of credit. Explain how each month a credit card statement comes in the mail with a bill. Go over the features of different types of cards, such as debit and credit cards, and the need to study them carefully to choose the appropriate card for your financial needs.

• Pay Yourself First. Establishing a personal savings account for your child will help plant the seed for a lifetime of savings. Many financial institutions offer a minor savings account with no minimum balance requirements and an opportunity to earn interest. Show your child how to grow their money with regular deposits at birthdays, holidays, and with income from their daily chores.

The fun has just begun with invaluable learning lessons on money management! For additional tips on helping your kids increase their financial literacy, log on to www.thisismytbt.com for money activities in MyClubhouse (ages 12 and under) and MyRoom (ages 13-15). 

By: Karen Partee
       Senior Vice President and
       Chief Marketing Officer

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel 

Is now the time to purchase the home of your dreams?

The choice between buying a home and renting is among the biggest decisions that most people will ever make.  But if you ask yourself if now is the time to buy, the answer is yes.  Here are some reasons why anyone who can afford to buy a home should consider it.

·         Pride of ownership is the number one reason why people desire to own their home.  Home ownership gives you and your family a sense of stability and security.  It is also an investment in your future.  When you pay rent, you do not end up owning anything.  When you pay a mortgage, you increase your equity in your home with every monthly payment.

·         Interest rates are still at a historic low rate and there is a chance your mortgage payment may be less than what you pay for rent.  In that case, it really does make sense to own your home rather than renting. 

·         Homeownership is one of the last remaining tax shelters.  In most cases, mortgage interest and property taxes reduce both taxable income and your overall tax liability.  That is a benefit you do not receive as a renter.  In addition, those who work from home may be eligible to take deductions for their home office. 

·         You have creative control for home improvements and enhancements, such as hanging pictures and changeing the color of the walls whenever you choose.

·         If you live in a rental, you are at the mercy of the landlord when repairs are made.  If you own a home, you can decide how to approach maintenance, either doing it yourself or hiring a contractor. 

Since purchasing a home is one of the largest assets that you will buy, it is a good idea to pre-qualify for your mortgage with a lender before you go shopping.  This will let you know how much you can afford and boost your bargaining power with the seller. 

When prequalifying with a lender the following factors will be used to determine your ability to repay the loan during the underwriting process:

·         credit history

·         income

·         stability of your employment history

In most cases a minimum of two years employment history is required.  Most lenders will not want your monthly mortgage payment (principal, interest, taxes, hazard insurance, private mortgage insurance and association fees) to exceed 28 percent of your gross monthly income and your total monthly debt to income ratio (i.e., mortgage payment , minimum monthly credit card payments, other loan payments and child support) to exceed 38 percent of your gross monthly income.  The remaining percentage of your income is left to pay for home maintenance, utilities, and other living expenses.  Some lenders may allow for a higher total monthly debt to income ratio.

There seems to be a misconception that lenders are requiring a 20 percent down payment but that is not true.  Most lenders are requiring a minimum of 5 percent down payment for conventional loans, and if you finance a FHA loan 3.5 percent is the minimum down payment.  Closing cost is estimated to be approximately $3,000 plus homeowners insurance and escrow reserves.  The cost to secure a rental property may exceed the closing cost to purchase when paying the first and last month rental payment and security deposit. 

Since credit is a main factor when making the decision to approve a mortgage loan, it is always a good idea for the borrower to get a free annual credit report at www.annualcreditreport.com to review prior to applying to see where they stand.  There may be items that need to be corrected or investigated further.

Many people have mixed feelings about purchasing a home because they are concerned about taking on additional debt and cost.  Borrowers should be well-informed of their own finances and consider all the elements of their current circumstance before making a decision.  However, now is a good time to buy while the rates are still low and the market is stable.

By: Lora Hollins
       Vice President and
       Mortgage Loan Officer

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The End of the 52 Week Savings Challenge

The 52 Week Savings Challenge has ended! (Please insert desired celebratory music here). I cannot believe that a year has already passed. Congratulations to those of you who participated and completed the Challenge. Also, a big thank you to the readers of this blog who have followed me on my year-long journey, many of whom encouraged me along the way when I felt like crawling under a rock and living as a hermit for the rest of my days.

If you did read my last blog, I left you by saying that with the massive expense that my wedding was becoming, I was not sure if I would be able to complete my Challenge. Well, I am happy to inform all of you that I DID IT! (Happy jumping took place at this news) That’s right, even with all my other expenses, I still managed to put back my money. It feels pretty awesome to have completed a goal that I set out to finish a year ago. Now, I must be truthful with you as I have been thus far. To complete the Challenge, I put back wedding expense money into this account to be able to reach my goal of $1,378, which I am technically going to count because it is still money that I was saving. At the end of 52 weeks, I had a whopping $1,575, exceeding my original goal by $197! Again, snaps for Tawny.

I now must regretfully tell you that I did have spend ALL of my Challenge money this week. It paid for wedding items so it’s not like I just went on a massive shopping spree, even though I would have much rather done that. As I mentioned before, saving money for future needs is what the whole point of this Challenge was about. We all need to be more aware of our spending habits and establish a routine of putting money back into savings on a regular basis. I say that making it sound easy, but I will admit saving money is a very hard thing to do. Can I get an Amen? With all the life bombs that happen, and will happen, it becomes very difficult to set money aside when there is an actual need for it elsewhere in your life.

This Challenge taught me a lot about self-discipline, will power, budgeting, and really defining my needs vs. wants scenario. I had to make a lot of hard decisions and sacrifices, and get pretty creative on how to make things work, such as trying to fix my broken window or what I could make for dinner with what I already had at home, e.g. grilling bread and cheese together makes a darn good sandwich. If you search hard enough and honestly decide what is an actual need (not cable TV), everyone can make cuts in their spending to save a little more. I am sure glad I did, so I had a reserve of money for when I needed it and was not scrambling to come up with the cash.

I do plan on taking the Challenge again in the future. I think this will be great for me and my new hubby to start together! I have had suggestions from others, such as starting the Challenge at week 52 and working backwards or doubling the amount every week (only brave souls should attempt this).

I want to hear from you on your experience or what suggestions you have. How did the Challenge go for you? What would you have done differently? Will you do the Challenge again? I know many started the Challenge, but a life bomb happened and had to use their savings. I encourage you to try again and see what happens. Let me hear your story. 

Total Savings: $1,575 

By: Tawny Ormes
      Marketing Projects Coordinator
      and TBT Webmaster

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