Guide to College Savings

May 08, 2019 | 5 min read N/A

Worried about how you’ll be able to afford your child’s higher education? You’re not alone! With tuition costs rising year after year, many families are concerned with how they can send their kids to college.

According to a Value Penguin report, the average cost for a public, in-state university is over $25,000 per year. For a private college, that cost jumps to over $50,000, including tuition, room and board, and other fees. As a parent, the idea of paying for college is downright nerve-racking. With proper financial planning, however, you can help secure your child’s future education.

At American Savings Bank, we want you to know that you’re not alone in your worries about college. To make this process easier, we’ve put together some tips on different college savings accounts. Use our guide to financial planning for college expenses to save for your child’s future.

WHEN SHOULD I START SAVING FOR COLLEGE?

Like many long-term financial goals, the earlier you can start saving for your child’s college, the better. Every small amount you put towards paying for college contributes to your overall savings.

SAVINGS ACCOUNTS

A standard savings account offers one of the most straightforward methods of saving for college. The benefit, of course, is that a savings account is likely much safer than storing cash elsewhere, such as in your home. With a savings account, the money you put into the account earns interest. Over time, this interest can add up.

A savings account can be a good starting point in your financial planning for college. Unlike accounts dedicated to education funding, a savings account doesn’t have limitations on how the money can be used.

CERTIFICATE OF DEPOSIT (CD)

Much like a savings account, a Certificate of Deposit (CD) allows you to put money into an account that earns interest too. The return rate for a CD is usually higher than a savings account, and your interest rate is fixed, meaning it won’t change during the term of the CD. The major difference between CDs and typical savings accounts is that CDs have maturity terms. When you open a CD, you can choose how long you want to keep the money in the account.

SECTION 529 COLLEGE SAVINGS PLAN

Designed for college savings, 529 plans provide a great way to save for college expenses as part of your financial planning strategy. These plans may offer more risk than a typical savings account because they are investment accounts. The advantage to this risk, however, is the ability to take money out tax-free, including investment gains, for qualified education expenses. Please visit hi529.com.

Before investing in a 529 plan, investors should carefully consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 plan.

COVERDELL EDUCATION SAVINGS ACCOUNTS (CESA)

Coverdell Education Savings Accounts, or CESA, provide similar benefits to a 529 savings account. Anyone is allowed to contribute to a CESA. That means you can have relatives contribute to your child’s education fund as a birthday or other gift. There are annual contribution limits. The plus side to this is that contributions grow tax-free. You can also withdraw funds tax-free so long as the money is used for a qualified education expense. Money in a CESA must be used by age 30, but any unused funds can be rolled over without penalty to another family member that’s under 30.

CUSTODIAL ACCOUNTS

Custodial accounts under the Uniform Transfer to Minor Act (UTMA) and Uniform Gift to Minors Act (UGMA) are not designed only for college savings. Though the account is set up in your child’s name, you are in control of the funds until your child reaches a certain age (21 for UTMA and 18 for UGMA). Unlike 529 accounts or CESAs, you don’t have to use the money for education expenses. A withdrawal can be made for any expenses that benefit your child.

FINANCIAL PLANNING FOR COLLEGE EDUCATION

If you have young children or are getting ready to start a family, make college planning a part of your overall financial planning strategy. Worried about saving for your child’s future? Speak with one of our knowledgeable American Savings Investment Services* financial planning consultants about education planning. We’ll help you prepare for the cost of college, setting you and your children up for future financial success.

Please consult your tax advisor for more information regarding your individual situation.

*Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFGIS Insurance Agency), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Registered address and phone number: 300 North Beretania Street, Honolulu, HI 96817, (808) 735-1717.

NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. NOT A BANK DEPOSIT.

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What Are the Advantages of Building Credit?

May 09, 2019 | 5 min read N/A

Carrying some manageable debt is necessary for building credit. Your credit score has a big impact on your ability to finance big purchases. Knowing how to build credit and maintain a good credit score can help set you up for financial success in the future.

You might think your credit score isn’t important, or that building your score is too difficult to manage. Lucky for you, we’ve included a few tips below to help you build a high credit score – which can be instrumental in helping you buy your first house or finance a new car.

ADVANTAGES OF A HIGH CREDIT SCORE

Unless you have an unlimited supply of cash, a high credit score can help you pay for many of life’s big events. Securing a great interest rate on a loan is a lot easier if you have a credit history and have built a high credit score. There are many different situations where a solid credit score can give you an advantage, including:

BIG PURCHASES

Have you thought about buying a house someday? Or, are you looking to purchase a new car? Both of these purchases likely require financing. Having a high credit score is essential. When you’re taking out a loan for a major purchase, your credit score is used by your lender to determine if you’re responsible enough to pay back the loan on time. Plus, good credit generally gives you access to better loan rates than if you have a bad credit score.

CREDIT CARDS

Much like a loan for a new car, buying a house, or making a big purchase with a personal loan, your credit score affects your approval and interest rates for credit cards. Many credit cards with rewards, for example, require good credit. With a high credit score, you may also be approved for a higher credit limit on a new credit card.

OTHER PERKS TO GOOD CREDIT

While getting the best interest rate available is a great advantage to a high credit score, there are some perks that are often overlooked. For example, a high credit score may help you qualify for lower car insurance rates. Credit is one of the factors that many insurance providers take into account when giving you an auto insurance quote. With good credit, you may also get an easier approval when renting an apartment. Once you’ve moved into that new apartment, a high credit score can reduce or eliminate the deposit you have to pay to set up utilities in your name.

WAYS TO START BUILDING CREDIT

If you’re starting from scratch, building credit can seem almost impossible. To get good credit, you need some form of a loan or credit line. You can use the following strategies to build credit if you don’t have a credit history.

SECURED CREDIT CARDS

Without a credit history, or if you are rebuilding your credit history, it can be hard to get approved for a credit card. Secured credit cards, unlike other credit cards, can be a good start. A secured card requires a cash deposit to open. This deposit is retained as collateral in case you default on payments on your credit card. Generally, the amount of your deposit is your credit limit for your new credit card. Once you’re approved for a secured card, you use it just the same as a regular credit card, making sure to pay the full balance each month.

FIND A CO-SIGNER

Sometimes you may need cash to pay for something when you don’t have an established credit history. When this happens, a co-signer can help you get the money you need and build your credit. A co-signer is someone with good credit who agrees to pay your loan or debts if you don’t make payments. Many young adults have their parents or grandparents co-sign on their loan. As long as you make your payments on time, your co-signer will not be responsible for any of your debts.

A similar method to finding a co-signer for building credit is to become an authorized user on someone else’s credit card. If you’re in college, for example, your parents may add you as an authorized user on their credit card. You’ll get your own card, but your parent will be responsible for paying the bill each month. Many families use this method to build credit for their children. Parents often require their children to pay them back for their monthly purchases.

RENT AND UTILITIES

You may be able to build a positive credit history by making on-time rent and utility payments. There are several companies that allow you to record your rent payments. These are sent to the credit reporting agencies. Several months or years of on-time rent payments can help demonstrate that you make monthly payments reliably.

HOW TO MAINTAIN A GOOD CREDIT SCORE

You’ve finally built up a good credit score, but how do you maintain that score? The most important factor in keeping your good credit score is to make payments on time and in full. If you regularly use your credit card, for example, make sure to pay the full balance before it’s due. Likewise, make your loan payments on time each month. Getting behind on payments can quickly decrease your credit score.

You can also maintain a high credit score by not taking out too many loans or having too many credit cards. Each time you take out a new loan or open a new credit card, you will receive an inquiry on your credit history. Multiple credit inquiries can have a negative effect on your credit score.

LEARN MORE ABOUT BUILDING CREDIT
Building credit doesn’t have to be confusing or difficult. Knowing how to build your credit score can help you establish healthy financial habits for the future. Stop by one of our convenient branch locations to speak with an ASB teammate and start building your credit history today.

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What's a Health Care Directive?

May 01, 2019 | 5 min read N/A

Planning ahead is an important part of life. Many of us plan ahead for exciting major life events like buying a home or retirement. It’s also important, however, to plan for the unexpected. Deciding what advance health care decisions you prefer if you become unable to make them for yourself is daunting, to say the least. In addition to being a difficult topic to think about, there’s also a lot of confusing medical and legal language involved.

At American Savings Bank, we know that you don’t want to spend any more time than you have to on complicated matters like this. We’ve put together a list of suggested go-to tips to help you better understand your options when it comes to advance care directives. But, first and foremost, we strongly recommend speaking with your attorney before making these important decisions.

WHAT ARE ADVANCE DIRECTIVES?

You may have heard the term “living will” before. A living will is your declaration of what types of treatments or medical procedures you will or won’t accept if you become unable to make these decisions for yourself. These personal instructions for end-of-life care generally include instructions for the administration of pain medications or the use of treatments to prolong life without a chance for recovery.

If you’re confused by the term, you’re not alone. To prevent confusion among Hawaii residents, the State of Hawaii stopped using the term “living will” and instead uses the term “individual instruction.” Individual instructions are only one part of an advance health care directive. Health care directives can be legal documents or oral instructions, usually given to your doctor to be included in your medical records. They cover your individual instructions for end-of-life treatment as well as other important health care concerns, such as appointing a person of your choice to make decisions for you.

OTHER TYPES OF ADVANCE HEALTH CARE DIRECTIVES

Your health care directive lets you state exactly what your end-of-life decisions are even if you can’t communicate those wishes in the future. In addition to your individual instructions, or living will, your directive can include:

DURABLE POWER OF ATTORNEY FOR HEALTH CARE: A legal document that appoints a person of your choice to make decisions on your behalf if you are unable. Known as your “health care agent,” many Hawaii residents think this person must be your attorney. This isn’t true; your “health care agent” can be anyone you trust. Many people choose to appoint their adult child, spouse, or trusted family friend. Generally, the only restriction in choosing an agent is that the person can’t be an owner or employee of the medical facilities where you wish to receive care unless you are related.
PROVIDER ORDERS FOR LIFE SUSTAINING TREATMENT (POLST): Not technically a health care directive, POLST are provided in a form signed by a physician or Advanced Practice Registered Nurse (APRN) and used for immediate action. Generally, a POLST form is used as a summary of sorts that details what is included in a person’s advance health care directive. When a medical decision needs to be made, the instructions from a health care directive are documented on the POLST form. The form allows medical professionals to act upon your wishes right away.
DO NOT RESUSCITATE (DNR) ORDER: A health care order made to a doctor or other medical professionals, such as emergency crews, refusing CPR in the event a person has stopped breathing or is suffering a heart attack. DNR orders can be made by a health care agent or, if the patient is able to communicate, by the patient themselves in an emergency. Many people who wish to include a DNR order add it to their health care directive so that the decision is made well before an emergency takes place.
ORGAN DONATION: Unlike other health care directives, organ donation is generally made through the Department of Motor Vehicles. You can choose to become an organ donor when you apply for or renew your driver’s license. If a person has specific wishes for their body or organs, they can include additional instructions on their health care directive document.

HOW TO CREATE HEALTH CARE DIRECTIVES IN HAWAII

Though it can be tedious to go through the legal language used in advance directives, it should be an important part of your life planning process. Fortunately, Hawaii has made it easy to create your own health care directive. The state provides a fillable form that can be downloaded and completed on your computer. They also include a checklist so that you know you’re on the right track to creating a legally accurate directive.

Be sure to speak with your attorney about your health care directive options. As you think about your end-of-life treatment wishes, be sure to remember the financial aspect of health care planning. A life insurance or long-term care policy may help your family members pay for the treatment you wish to receive. Planning for the end of your life can be uncomfortable, but remember that by making these decisions now, you will save your family from difficult decisions in the future.

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In the Spirit of “Building” a Stronger Community, ASB Donates Nearly $320,000 to 15 Local Nonprofits

April 29, 2019 | 5 min read N/A

HONOLULU, HI – American Savings Bank (ASB) today announced that in the first quarter of 2019, it donated $318,133 to 15 nonprofit organizations in the state of Hawai‘i. The majority of the funds were raised through ASB’s 2019 Kahiau Giving Campaign, an annual workplace giving program that benefits local community organizations.

In the Hawaiian language, “kahiau” means “to give from the heart without expecting anything in return.” This meaning translated well in the bank’s 2019 Kahiau Giving Campaign, during which the LEGO-themed workplace fundraiser generated a total of $170,633 – matched with an additional $100,000 from ASB. The campaign also broke a company record – with an astonishing 95 percent of the bank’s 1,100+ teammates participating.

Trulli — *ASB teammates presented their donation to Kahiau Giving Campaign beneficiaries at the bank’s new Campus.*

“Our teammates truly showed the power of coming together around a good cause with a phenomenal 95 percent turnout for our 2019 Kahiau Giving Campaign,” said Rich Wacker, president and CEO of ASB. “These gifts further our continued support for these community-based organizations and the life-changing services they provide to the people of Hawai‘i.”

The Kahiau funds were donated to Child & Family Service, Kapi‘olani Health Foundation, Kupu, Partners in Development Foundation and United Way. In addition to these monetary gifts, ASB supports its Kahiau Community Partners year-round through the bank’s Seeds of Service volunteer program and financial literacy workshops.

In addition to the gifts made through the Kahiau Giving Campaign, ASB announced grants to several other community organizations: Education Incubator in partnership with Superpower Academy (supporting a program with Kamiloiki Elementary School, an ASB Bank for Education ‘Ohana School), Habitat for Humanity Hawai‘i Island, Island School (an ASB Bank for Education ’Ohana School), Maui Youth and Family Services, One Shared Future in partnership with Child & Family Service, and Pacific and Asian Affairs Council, to support four Bank for Education ‘Ohana Schools.

ASB supports initiatives that promote educational excellence and financial literacy, strengthen families and foster innovation and entrepreneurship through donations, sponsorships, grants, scholarships, internships and volunteerism. In total, ASB has donated millions of dollars to Hawai‘i’s nonprofits and community organizations, including nearly $2 million raised through the Kahiau Giving Campaign since 2011.

ASB’s gift recipients include:

Aloha United Way
Child & Family Service
Education Incubator/Superpower Academy/Kamiloiki Elementary
Friendly Isle United Fund
Habitat for Humanity Hawai‘i Island
Hawai‘i Island United Way
Island School Capital Campaign
Kaua‘i United Way
Kapi‘olani Health Foundation*
Kupu
Maui United Way
Maui Youth and Family Services
One Shared Future/Child & Family Service
Pacific & Asian Affairs Council
Partners in Development Foundation*
Kahiau Partner

About American Savings Bank
American Savings Bank (ASB) has been serving Hawai‘i’s businesses and communities since 1925 and currently provides a full range of financial products and services, including business and consumer banking, home loans, insurance and investments. ASB is one of Hawai‘i’s leading financial institutions, with e-banking services and branch locations throughout the state offering evening, weekend and holiday hours. ASB provides Hawai‘i’s consumers and businesses with more extended weekday and weekend hours than other similarly sized local banks, as well as convenient in-store branches. ASB was the first Hawaii bank to introduce remote-deposit capture with a mobile banking application.

ASB matches its exceptional customer experience with an employee experience that has garnered local and national awards. ASB has been recognized nationally as one of the “Best Banks to Work For” by American Banker Magazine and locally as one of the “Best Places to Work” by Hawai‘i Business Magazine for 10 consecutive years and honored nationally as one of the “Best Banks to Work For” by American Banker Magazine. Fortune Magazine has recognized ASB as one of the 100 Best Workplaces for Women and 50 Best Workplaces for Diversity. For more than 90 years, ASB has been helping build strong communities. Through its Seeds of Service program, ASB teammates have contributed nearly 48,000 hours of volunteer service, and ASB has donated millions of dollars to Hawai‘i’s nonprofits and community organizations. For more information, visit https://www.asbhawaii.com/ or follow American Savings Bank on Facebook, Instagram and LinkedIn.

Media Contact

Karwin Sui
Communications Manager
(808) 539-7268
ksui@asbhawaii.com

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How to Save for a Rainy Day

April 24, 2019 | 5 min read N/A

A sudden, unexpected expense can really put a damper on your mental wellbeing. In fact, in a 2017 study by the Federal Reserve, 40% of Americans said they wouldn’t be able to pay for an unexpected $400 expense.

So, how can you avoid being part of that 40%? Consider creating a rainy day fund so that you’re ready for the unexpected. Of course, we at American Savings Bank know that’s easier said than done. That’s why we’ve put together this list of actionable steps you can use to start your own rainy-day fund today!

WHAT’S A RAINY-DAY FUND?

First thing’s first when building a rainy-day fund: what is it exactly? Your idea of a rainy-day fund might be slightly different than your neighbor’s. The important part is to determine how you would use this fund for you and your family.

Some people like to consider a rainy-day fund and emergency fund as two separate entities for saving. Usually, if you keep your rainy-day money and emergency money separate, you use the rainy-day fund for smaller expenses and the emergency fund only in serious financial emergencies. For example, let’s say your refrigerator stops working. You call a repair company and they tell you they can fix it for $350. This is money you would probably take out of your rainy-day fund. On the other hand, if you suddenly lost your job and needed to cover a couple months’ worth of expenses, you probably need to take money out of your emergency fund.

Alternatively, you can choose to use your rainy-day fund and emergency fund as one savings account. You’ll want to keep enough money in the single account to cover both big and small unexpected expenses. No matter what approach you choose for your family’s rainy-day fund, the most important part is that you work to build savings for sudden expenses.

SET SAVINGS GOALS

The best way to save for a rainy day is to think about how much you want to save and a timeframe for saving up. Sit down with your family and look at the past year’s unexpected expenses or potential upcoming expenses. Do you have an older car or appliance that might need repair work soon? Do your children play sports and you’re concerned about unexpected medical bills due to injuries? Think about these things to determine approximately how much you might need to save.

Once you have an amount in mind, decide on your savings timeline. If, for example, you’re hoping to save $600 in the next year, you’ll need to put $50 a month into your rainy-day fund. It’s important to be realistic when deciding on a timeline for your rainy-day fund. You can make setting savings goals easier by taking a quick financial checkup to determine the health of your finances right now.

AUTOMATE SAVING

You’ve set a savings goal and have a timeline for your rainy-day fund, but how can you be sure that you and your family will reach these goals? An easy way to meet your savings goals is to automate your savings with an automatic transfer into your rainy-day fund. Automating your savings means you won’t have to worry about you or your family members being tempted to use the money that’s meant for a rainy day.

USE EXTRA CASH FOR YOUR RAINY-DAY FUND

Even if you’re sticking to your savings goals, having extra money is a good thing. Finding you have some extra cash at the end of the month after paying your bills? Go ahead and deposit it into your rainy-day fund. Not only will you reach your set goal sooner, but you’ll also end up saving more over the course of your savings timeline.

EXAMINE AND CUT YOUR EXPENSES

Have you taken a look at your expenses recently? Look over your expenses for the past month or two and see if there are any places where costs could be cut. Of course, some expenses can’t be cut down. Things like your mortgage payment or other loan payments are usually set expenses. On the other hand, you might be able to slim down how much you spend on smaller things. For example, instead of grabbing a coffee from the coffee shop each morning on your way to work, commit to taking a coffee from home even just three days a week. These small savings can quickly add up over time.

CREATE A RAINY-DAY FUND TODAY

Starting a rainy-day fund doesn’t have to be complicated. Use our simple tips to open a new savings account and start saving today. If you’re not sure what type of account is best for your family’s rainy-day fund, contact us to learn about our different savings account options. Our friendly ASB Dream Team can help you set up an account and get started!

Note: Please be aware that the effect of inflation over time could have an impact on your savings plans.

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Introducing Our New Financial Checkup

April 18, 2019 | 5 min read N/A

How often do you really think about your financial goals? Do you know if you’re on track to reach them? Managing your finances while also trying to plan for the future doesn’t necessarily come second nature to all of us. Fortunately, there’s no need to figure it out all on your own. At American Savings Bank, we know that financial planning isn’t always easy, especially here in Hawaii. That’s why we’re here to help you get your financial planning on track!

The first step to securing your future financial goals is to know where you stand today. Just like a physical checkup at your doctor’s office, our new Financial Checkup lets you check the health of your current financial situation. Read on to learn how our Financial Checkup can get you started on reaching your financial goals.

HOW DOES IT WORK?

Using a quick online quiz, our Financial Checkup reviews your current saving, spending, and financial planning habits. The quiz is only 9 questions long and quick and easy to complete. You’ll be asked questions on topics such as retirement and budgeting. The Checkup then analyzes your answers to determine your financial health.

Once you’ve completed the Financial Checkup survey, you’ll be given a score out of 100. A higher score indicates that you’re on the right path with your financial planning. A score somewhere in the middle likely means you’re ready to take your financial planning to the next level. Lower scores provide an opportunity for you to get started on saving and planning for the future. We get that while living in Hawaii is a wonderful experience, it can be financially challenging. The goal of the ASB Financial Checkup is to help you learn where you’re at and how you can improve your financial situation over time.

asb financial checkup result

WHAT DO I NEED TO DO TO TAKE THE FINANCIAL CHECKUP?

It’s super easy to see where you are in meeting your financial planning goals with our Financial Checkup. Don’t worry; we’re not going to make you sign up for anything to get your results! In fact, you should be able to answer all of the questions on our short financial survey without needing any resources like bank statements or other documents.

GET CUSTOMIZED FINANCIAL PLANNING RESOURCES

Your financial goals and needs might be unique, but you’re not alone if you worry about money or are concerned about your financial health. Unfortunately, living in Hawaii comes with a higher cost of living than other places. Our ASB Dream Team understands the struggles that come with living in paradise. When you use our Financial Checkup, you’ll get customized recommendations for financial resources based on your answers. We’ve divided our helpful articles, calculators, and banking services into four main categories: Managing Your Money, Preparing for the Unexpected, Borrowing Wisely, and Saving for the Future.

MANAGING YOUR MONEY

If your Financial Checkup answers reveal that you could use some help planning and maintaining a budget, we have resources related to money management. From text alerts to online bill pay, we offer resources to help you understand where your finances are, even when you’re on the go. Use our tools to create a budget that helps you stay financially healthy.

PREPARING FOR THE UNEXPECTED

Life isn’t always predictable, and sometimes those unpredictable moments can be costly. Even the wealthiest person may not be able to afford an unforeseen expense or life change if they don’t prepare for the unexpected. Luckily, our Financial Checkup provides you with the resources you need to plan ahead for almost any situation.

BORROWING WISELY

Knowing your credit score and staying up to date on any potential changes can help you improve and maintain it. The better your credit score, the more likely you are to get desirable rates on loans like personal lines of credit or a home loan for first-time buyers. Our resources for borrowing wisely show you how to build credit, increase your score, and leverage credit wisely for the big purchases in your life.

SAVING FOR THE FUTURE

Sometimes life feels like it’s flying by. As you approach various life events, your savings needs will likely change. Your financial plan should take these changes into effect. If your Financial Checkup indicates you need help saving for life’s big moments, we’re here to help with resources tailored towards growing your savings.

asb make appointment

LET US HELP YOU REACH YOUR FINANCIAL GOALS

Financial planning doesn’t have to be scary or difficult. The ASB Financial Checkup lets you answer a few “yes” or “no” questions about your financial situation to get information and encouragement tailored to your financial needs. Check out the Financial Checkup today to get started on reaching your financial goals.

Note: Please be aware that the effect of inflation over time could have an impact on your savings plans.

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What Should You Think About Before Getting Married?

April 12, 2019 | 5 min read N/A

In the whirlwind of excitement that comes with planning a wedding, it’s easy to forget some of the most important conversations. While talking about finances isn’t always romantic, it’s much better to have these conversations well before you say, “I do.”

At American Savings Bank, we want you and your future spouse to be prepared for your life together. Our first tip? Make time to sit down and have a chat about these important topics. Being open and honest about your finances with each other can help make your relationship (and your bank accounts) stronger.

DIVING INTO DETAILS

Talking about money can be uncomfortable and awkward at best. While you may not want to have a financial discussion as early as the third date, you and your partner should consider being open about your perspective on finances as your relationship grows. Though every couple is on a different timeline, you should be aware of your partner’s financials before tying the knot. In fact, once you feel the relationship has gotten serious, it’s probably time to talk about money.

You don’t want to give out your online account login information or PIN numbers, but talking about your financial situation with your partner should be an open and honest conversation. This might include discussing your credit score and any debt you might have, such as student loans. You may also want to discuss how much money you have in savings, retirement accounts, and other accounts like health savings accounts. Though it can be uncomfortable, you’ll be better prepared for your future if you know of any financial concerns that may affect your life together.

asb-marriage-2

LET’S TALK ABOUT HABITS

Part of creating a financial plan in your marriage involves learning and accepting one another’s spending and saving habits. Before you take the next step in your relationship, talk about how much you like to save or what you tend to spend money on. Do you like to go out to a nice dinner every weekend when your partner prefers to save money and eat in? Do you make an effort to stash away cash for a rainy day when your significant other enjoys spending a little more to live in the moment?

Asking yourselves these kinds of questions can help you determine if one of you is a saver and one is a spender, or if you happen to both be one or the other. This also presents a great opportunity for you to outline your separate incomes and look for areas where you can both improve on your saving and spending patterns. For example, perhaps you discover both you and your partner are impulse buyers in the first few days after payday. Consider setting up an automatic transfer to a savings account to set aside a little from each paycheck for a big purchase, such as your next vacation together, your wedding or even your honeymoon.

HANDLING ACCOUNTS IN MARRIAGE

Combining your finances may seem like the most logical route after getting married. However, many couples actually choose to use a combination of joint and individual accounts to manage their money. Couples who live together before marriage also face this dilemma. It may seem easier to pay for rent and utilities from one account that you can both contribute to, versus one person paying the bills and the other sending money via an app or online banking (such as ASB’s Pay-A-Friend feature). However, putting all of your money into one joint account can make it difficult to achieve individual savings goals. Things like a birthday present surprise might lose some of its excitement if the recipient gets a notification when you buy it. Plus, individually, you do not have full control over the money in the account once you share it with another person.

Be sure to discuss all of the pros and cons of using a joint account with your partner. If you’re unsure which works best for you, consider opening a joint account with a limited amount of money to test the waters. Both of you can retain your individual accounts and still put a set amount into the joint account for bills or savings.

LONG TERM PLANNING

When discussing money with your partner, one thing you want to be sure to do is create a joint budget. Use our handy guide to creating a budget as a guideline for making a household budget. Not only will a budget be a great resource to keep you both on the same page financially, but it gives you a chance to understand each other’s approach to managing money. You’ll be able to see what your partner cares about most by how much they allot in the budget to certain things.

Another great part about setting a budget together is that it gives you a chance to talk about the future. Finances and marriage go way past the wedding day. Once you’ve exchanged vows and returned from the honeymoon, you’ll need to get straight to work on your combined financial goals. Set goals together and talk about your future. For example, if you plan to have kids, buy a house, or retire early, you will want to adjust your budget to save for these things.

asb-marriage-3

NEED SOME HELP?

Talking about money with your significant other doesn’t have to be scary or uncomfortable. By having financial conversations often, you’ll be more aware of your partner’s finances, and your plans for the future. Need some help on what to discuss? Stop by a branch and let an ASB Dream Team member help you get started.

Note: Please be aware that the effect of inflation over time could have an impact on your savings plans.

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Online Banking Quickstart Guide

ASB Online Banking

Manage and Pay Bills

What You Can Do with ASB Online Banking

PAY BILLS

MANAGE YOUR ACCOUNTS

DEPOSIT CHECKS

Additional Resources

How to Log In

Set Up Bill Pay

Set Up Alerts

Sign Up for eStatements

Alex Truong

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Media Contact

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Voted One of Hawaii's Best BanksSince 2018

Voted One of Hawaii's Best Banks
Since 2018