Tracy (00:08):
Welcome to the Feeling is Mutual podcast. I'm your host Tracy Becher, vice President of Marketing at First Federal Savings Bank. We are a community bank with a mutual charter. If you thought banking was boring, the feeling is mutual. But we're here to take the boring out of banking. In this podcast, we will bring our listeners real life stories and education on financial topics and it's all going to be delivered in a quick, fun and interesting format. And today we are going to be talking trends with our chief operating officer, Dina Weber. And even though Dina is a fashionista and a very trendy dresser today, she is going to be talking about financial literacy. She is also going to be talking about some important trends we are seeing right now with this topic. Dina, welcome.

Dena (01:14):
Thanks Tracy. I'm happy to be here. Thanks for that trendy introduction. I'll, very true. Hopefully live up to that. Very true

Tracy (01:21):
<laugh>. First of all, um, tell us a little bit about yourself.

Dena (01:25):
Well, I've been with the bank for just about 30 years, starting as a teller and working my way up in branch management. And now I am the Chief operating officer. So I work on the retail side of the bank, which is a lot of fun. So

Tracy (01:40):
Once again, we have an expert in our midst here. It seems like we have a lot of longevity with all of our experts that come in and talk with us. So, okay. I have to tell you, I'm a little interested about this trend that you're going to be talking about, but before we do that, I know it's obvious to us what financial literacy is because we are in the banking space, but tell our listeners what exactly is financial literacy.

Dena (02:10):
Sure, that's a great question. So really at its core, financial literacy is about improving a person's knowledge about money, how it impacts their lives, how it factors in to needs and wants, and ultimately how to make the money we have or earn secure a better, more stable future for us.

Tracy (02:28):
So it applies to all of us. Yes, it doesn't matter which generational bucket you fall into. It can be children, teens, young adults, older adults, et cetera.

Dena (02:38):
Yep, absolutely. It's not about how much money you have, it's about what you do with the money that you do have.

Tracy (02:44):
Wonderful. Okay. Who participates in financial literacy and what information do we provide?

Dena (02:51):
Well, financial institutions of course, like US banks, nonprofit organizations, your local library is a good resource. Human services agencies, those can all be great resources, but it starts a lot earlier than that. Parents, grandparents, teachers, friends, even TikTok can shape our relationship with money. How we spend it or how we save it.

Tracy (03:15):
Well I know how we save it sometimes can be very, very hard to do. And I know when I was young, I think as most of us had those piggy banks with that little cork on the bottom and after a few years that cork wasn't there cause it was too easy to pry off. You know, that obviously didn't work for me because that was just too easy to access. But speaking of TikTok, tell us more about the current trend that's called cash stuffing. It sounds very interesting. <laugh>.

Dena (03:49):
Yeah. Cash stuffing. So definitely it's a trend. It's gone viral on TikTok reaching more than 700 million viewers. It's similar to Dave Ramsey's envelope system, if you know a little bit about that or our listeners remember um, Dave Ramsey and uh, paying off debt. So this involves sorting your cash into various categories and an effort to save money to avoid overspending. And cash stuffing is really a form of budgeting using physical cash.

Tracy (04:22):
Huh. Okay. Well what are some of the categories and how does this actually work? <laugh>,

Dena (04:28):
The categories can be whatever you want them to be. So it's interesting, it sort of goes against the cashless society we now live in. First you need to come up with a budget for how your cash is going to be allocated. So your question about categories, basically you take your paycheck, you cash it out, and then you sort those funds or you stuff them as the trend tells us into envelopes for different categories like rent, groceries, maybe it's vacation saving for a car, you know, whatever your categories are. You take that cash and you put it into envelopes. So those can then fit nicely into a binder. They can each be labeled. And Tracy, I know you'll be shocked by this, but Amazon even has an array of cash stuffing sets available to make getting started really easy.

Tracy (05:19):
Amazon, what do they not have?

Dena (05:21):
Exactly.

Tracy (05:22):
I know they say cash is king, but this sounds like a very disciplined approach and might I say even a little bit scary having all of that cash on hand? Is that wise?

Dena (05:35):
Those are both really great points. Tracy, your question about having cash at home, you know, that's a little bit more of a serious topic. I think there's more to consider here, do you live at home? Do you live alone or with roommates? Do you have a secure place to keep your cash in your envelopes like a lockbox or a home safe? So safety is, you know, a key point if you're gonna consider doing this. And then as you mentioned, how disciplined are you? Because you're right, like if you have that cash at home, you have to be really disciplined not to go into those envelopes and start using it <laugh> and for that

Tracy (06:10):
Late night pizza

Dena (06:11):
Delivery. Exactly. And do they even take cash anymore? I don't exactly. I don't know. I don't think so. Exactly.

Tracy (06:16):
A lot of places don't even offer cash as a payment system,

Dena (06:20):
Right. So yeah, really good points there.

Tracy (06:23):
But you know, if you listen to TikTok, this all seems to be working, wouldn't you

Dena (06:27):
Agree? Right? Yeah. If it's on TikTok, it must be true <laugh> and and it must work. We all know that, you know, but to the seriousness of that point, clearly it's trending and it's gaining popularity. Cash stuffing may work for those who prefer a more hands-on approach. It seems that physically sorting their cash is helping Gen Z towards financial stability. It's a solution that's designed for those that have trouble with impulse buying, an impulse spending and you can't simply swipe your card or tap your phone anymore if you're following this system. Instead you have to go pull cash out of the appropriate envelope.

Tracy (07:04):
Exactly. I'm hearing a lot of pros to this system, but what are the cons?

Dena (07:09):
Well, you know, I think we already touched on the biggest and that's being less protection for your money. When you withdraw your funds, you do lose that safety net of having your money in the bank and maybe some added interest that you could be earning on your money. You know, it's also pretty time consuming process. Not to mention it can be really difficult to pay certain bills in cash. We were talking about can you even pay the delivery guy in cash for your DoorDash? But if you have to actually consider other bills, you may need to pay in cash. You know, that's gonna add time to your day to really manage this process.

Tracy (07:45):
That is a great point Dina. But it sounds like people need and want help budgeting and savings. So what are some ways that the bank can help?

Dena (07:54):
You're absolutely right, Tracy and I agree. We can all use a little help when it comes to budgeting and saving money and maybe there's a safer way to do it and accomplish the same goals without having all that cash at home or carrying that around with you.

Tracy (08:09):
Right. So tell us, what are some trendy ways your local bank can help you save money?

Dena (08:15):
Well, first of all, there's already a lot of really great budgeting apps and tools available. So kind of getting back to the basic, it all starts with creating a budget and understanding what money needs to go where. So you do still need to put in some work upfront. You do need to review your current bills, you need to know how you're spending your money now. And of course you need to set your goals. Is it saving for the rainy day or paying off debt? You know, some of the things we already touched on a vacation, a trip, maybe you're saving for a down payment on a house. Maybe it's a combination of all those things.

Tracy (08:52):
Okay, so you get all this together, you're looking at your list and it might seem a little scary and to some of us, those piggy bank busters a little overwhelming. So what's next?

Dena (09:07):
You're right Tracy, it might be terrifying, but now you have a plan. So instead of physical envelopes with cash, why not set up virtual envelopes? And you asked how can the bank help or how can we make this work? Maybe it's through an app as far as getting your budget in line and setting up those virtual envelopes, but maybe it's in the form of separate accounts that function as your envelopes.

Tracy (09:34):
So you can really do that. Setting up like virtual envelopes sounds, well that in itself sounds very trendy, <laugh>. Um, is there a limit to the number of accounts that someone can have at the bank and more importantly, is it at an expense?

Dena (09:48):
Great questions. Most banks allow customers to open as many accounts as they need. But yeah, you're right. It would be important to check things like minimum amounts to open an account, minimum balance requirements, you know, are there fees associated with the account? What's the ease of access? And use a basic statement savings account like we offer at first. Federal can be opened with a small amount, but there is even more good news, Tracy.

Tracy (10:14):
Okay, you're perfectly right. And I have to say I am a firm believer in our savings account. I think we have one of the best ones around, but what else is there?

Dena (10:27):
Well, for starters, you're right, you can open a savings account or multiple accounts. You need to set up those envelopes online in less than five or 10 minutes. It's so quick and easy. You can name your accounts. So again, that can become your virtual envelope. You can set up as few or as many as you need and you can earmark those for the specific spending or savings items that we've discussed. Plus you may even earn interest on your accounts as you save. You know, the other nice thing with doing it this way is there's tools like online and mobile banking that you can easily manage your money. You can set up automatic transfers, you can use electronic services like debit card controls, mobile deposit bill pay. Those are all things that can help you plan and budget your spending.

Tracy (11:18):
Exactly. Dina, what about a checking account? Do you still need that if you are budgeting with envelopes or cash or even with savings accounts?

Dena (11:29):
That's a really great point, Tracy. It's important not to overlook the benefits of a checking account and a debit card in this process. All of these things can help you track your spending, manage your funds, and meet your personal savings goals. Did you know that you can even categorize your deposits and withdrawals and then view a chart that will show you exactly how much you're spending, how much you're saving, and in each category

Tracy (11:52):
We can do

Dena (11:52):
That? Yeah, you can do that. <laugh> again, kind of, maybe you

Tracy (11:55):
Can show me after this.

Dena (11:57):
I absolutely will. We'll name your accounts and then we'll look at your spending habits and and take a look at what that looks like. But you know, some other key points to consider if you're looking at taking this cash stopping trend and making it more virtual and safer, you can also turn off your debit card. You can set spending

Tracy (12:17):
Limits. I done that before

Dena (12:18):
<laugh>.

Tracy (12:18):
I've even done that for my kids before.

Dena (12:20):
Right, right. You can do that for your kids. Good point. But we can do that for ourselves too. You know, you can set spending limits, you can even set merchant limits. So if you struggle and instead of breaking open that piggy bank, you're tempted to break open that debit card, you can, you know, set up those safeguards and put those in place to help you better manage your money. Well

Tracy (12:42):
It sounds like technology really has a helping hand in all of this. And I have to say, I know I have automatic transfers set up. I have an automatic transfer out of my paycheck where it goes into my savings account and it's convenient. I know it's coming out. I don't see it, but yet I know it's there. So how do we get started?

Dena (13:07):
Really, whatever way works best, you can come in. Our staff loves sitting down with new and existing customers and helping them to open up or set up savings accounts. They can review all the features and benefits that we offer. Or you can simply visit our website at www f fsb web.com. You can check out the various accounts we offer and the electronic services we provide or give us a call. We're here to help.

Tracy (13:35):
Well, thank you very much Dina. That was some great information. And I personally will be stepping down to your office for you to help me set up that pie chart

Dena (13:46):
<laugh>. I absolutely will. <laugh>.

Tracy (13:48):
Great. Well again, thank you so much. We appreciate it very much. You sound like a very, very knowledgeable person when it comes to being very financially savvy. And I may be also interested in hearing about some of the latest fashion trends. So when we're setting up that pie chart, maybe we can talk fashion too. Perfect

Dena (14:11):
<laugh>.

Tracy (14:12):
Okay, well thank you so much Dina. And thank you again to all of our listeners. We appreciate the time. And once again, www f f sb web.com. Check us out where you can read more about this trendy little topic and also get some great information on all of our products and services here at First Federal Savings Bank.