Money Feature | Advice you can use from a pro in the know
9 Money Principles
Money Insights from a Community Banker by Anne Songy
Larry Hensgens, senior vice-president at Community First Bank.
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t’s true the world seems to be changing at the speed of light, but when it comes to money, there are certain core principles that hold up over time. No matter what new gadget or technology becomes available to consumers, foundational truths seem to prevail. We asked senior vice president of Community First Bank Larry Hensgens to weigh in on these topics, and this is what the 45-year veteran banker had to say: What’s the difference between banks? In community banking, it’s not only about providing the technology, but also the noseto-nose and toe-to-toe service. For a lot of the younger generation, that (person-to-person) experience might not be as important right now, and they’re more interested in the technology of a bank. Even though most community banks have the latest and greatest technology, it’s always good to put a face to your banker in case you have issues and need to talk to somebody. I love
community banking because you’re not forced into any (national-bank) matrixes. You can use common sense with the customer. How much should be in my emergency fund? My rule of thumb with my customers is to try to keep at least six months worth of expenses in an emergency fund. Twelve months is an even better spot. For non-profit organizations, you should have one or two years of cash available. Should people use credit cards? Credit cards have morphed and evolved over the years. Where customers used to come in to borrow a couple of thousand dollars for personal loans, now they get credit cards. They can serve a purpose, but they can be easily abused. As far as affecting your credit score, you don’t want any more than 30% balance on your credit limit, or it will negatively impact your credit score. When should I think about investing?
If customers are looking for something more than bank deposit products, then the alternative is to go into the investment market and tailor their investments into conservative, aggressive, moderate – whatever the case may be. Some people don’t like the idea of being in the market, but I think that stigma has gone away in recent years. People are a lot more savvy than they used to be and there’s a lot more information available. When they’re educated about investing, they find out it’s a good thing. Is online bill paying safe? Ninety percent of the population uses online bill paying services. We have all the bells and whistles for that here and we have protections. On the commercial side there is a product called “Positive Pay” where the customer can send an electronic register to the bank, and if that doesn’t line up, then we know something’s out of whack and we can go back to the customer. For individuals, with the debit cards, we have an app where you can turn off your card whenever you Continued on page 48 Acadiana Lifestyle, January 2022 47
