Need a little budgeting 101? In this conversation, Lake Region Bank bankers Lisa Groff and Jeremy Schmidt share practical budgeting tips, including tracking expenses, managing credit, saving for the future, and using digital banking tools to stay on track.
A good budget can help you make sense of where your money’s going so you can do more with it. It helps you achieve financial goals, prepare for emergencies, reduce financial stress, empower intentional spending, and promote accountability.
Recently, our personal bankers Lisa Groff and Jeremy Schmidt sat down to share with you how to save money for the future, spend it wisely, and watch it grow.
Budgeting 101 Transcript
Jeremy: So Lisa, I was recently talking to a graduate from Ridgewater College. He came in asking about different kinds of credit, but he had his first paycheck from his first job and wanted to know more about budgeting. I know we’ve talked about this in the past, and we help other customers with that.
So, first I got more information about his paycheck, and we talked about direct deposit. I started going over how before you get into credit, we can help you with budgets and budgeting. We talked about managing his expenses, what comes in, what goes out, and being prepared for bills that are coming up. I know you’ve talked a lot about budgeting with customers, too. What are some of things you typically talk about?
Lisa: Did you bring up needs versus wants?
Jeremy: Yes! That’s a good point.
Lisa: Needs are things that we have to have in order to survive (housing, food, utilities). Wants are things that we save for because we want them but don’t necessarily need them.
Jeremy: Yes, that’s a great point, because right away he wanted to get a vehicle loan because he’s got his first job, and he’s ready to spend some of that money now that he’s graduated.
Lisa: Customers always ask how they can build their credit. One of the mistakes a lot of young adults make is once they get that first credit card, they max it out, and then they get another one and another one, and soon, they’re in over their heads and it affects their credit. So, it’s good to get that budget down on paper and then get a budgeting app to help you.
Jeremy: Yeah, that’s true. There are several different apps available. We talked about how you need to keep up on the budget every month. You’ve got to keep records showing what’s coming in and what’s going out.
Lisa: Yeah, that’s good because then he’s going to be accountable and see where he’s spending his money. The other thing you can notice is when you log into your digital banking dashboard, you see the little charges from the convenience store, a coffee here and there. It’s amazing how much you spend that you don’t even realize!
Jeremy: Some of the other tools we offer on our app is that you can look on your debit card, and it shows categories of different expenses that you have (gas, groceries, and so on). That can also help with your budgeting.
Lisa: If you have questions on budgeting, just come into the bank and ask for a personal banker. We’ll be happy to go over that and explain how credit cards work, what your FICO or credit score is, how to create budgets, and make sure you’re not overspending.
Jeremy: It’s great when people come in to talk about their budget because we can help them stay ahead of it and pay their bills on time so they don’t have missed or late payments that affect their credit. We can sit down and go over all of their expenses and their income to make sure they’re staying on track and have a plan so they don’t get themselves into financial trouble.
Lisa: Come and see us in either the New London branch or the Willmar branch and we’ll help you. If you’d like some help setting up your budget or have questions about saving, spending, loans, or credit, get in touch with our banking team today. Our friendly, local personal bankers are here to help you grow your money wisely.
Budgeting 101 FAQs
Why is budgeting important?
A budget helps you see how much money is coming in and going out so you can manage expenses, prepare for unexpected costs, reduce financial stress, and work toward your financial goals.
What is the difference between a need and a want?
Needs are essential expenses such as housing, food, and utilities. Wants are things you would like to purchase but don’t necessarily need, such as entertainment, dining out, or certain nonessential purchases.
How can budgeting help me build my credit?
A budget can help you make sure you have enough money to pay bills and credit card payments on time. It can also help you avoid taking on more debt than you can afford, which can support healthier credit habits.
How can Lake Region Bank help me create a budget?
Lake Region Bank’s personal bankers can help you review your income and expenses, understand credit and credit scores, and develop a budget that fits your financial goals. Digital banking tools can also help you track spending and see where your money is going.
