It’s American Housing Month, and if you’re like most homeowners, you have a list of home renovations you’d like to tackle. With the average homeowner spending $6,649 on home improvements in the last 12 months (HomeAdvisor’s 2018 True Cost Report), choosing projects that retain resale value is a great investment.

First State Bank Mortgage clients Matt and Sarah Stevens are in the midst of a significant home remodel. “We bought our home in 2018 with financing from First State Bank Mortgage, and we are doing a complete ‘Chip and Joanna Gaines-style’ remodel,” says Matt, referring to the popular HGTV “Fixer Upper” stars.  “So far, we’ve focused on the interior and have completely redone the kitchen, updated two bathrooms, refreshed a fireplace, and moved a few walls.”

As the Stevens know, remodeling can be a very expensive process, and it’s important to know which projects provide the best bang for your renovation buck. The 2019 Cost vs. Value Report compares the average cost of popular remodeling projects with the value they retain at resale in more than 100 U.S. markets. The data reveals the most profitable renovations include:

1. Garage door replacement, 97.5% cost recouped at resale
2. Manufactured stone veneer, 94.9% cost recouped at resale
3. Minor kitchen remodel, 80.5% cost recouped at resale
4. Addition of a wood deck, 75.6% cost recouped at resale
5. Siding replacement, 75.6 % cost recouped at resale

“Remodeling a home is a lot of work. We are fortunate to have found the right lending partner in First State Bank Mortgage, so we don’t have to worry about that aspect,” Matt says. “Estimates show we have increased the value of our home by $100,000 to date…and we still have a lot of work planned.”

The Stevens’ attention will soon be focused on the outside of their home as they are hoping to tap into their home’s equity to help fund additional improvements with a cash-out refinance of their current mortgage. “I could shop around for a lender, but I’m not going to,” Matt says. “I’ve never met a loan officer that works as hard as ours does. The First State Bank Mortgage team is always there for us.”

Whether you are considering refinancing to fund home improvements or purchasing a new home, put the First State Bank Mortgage team to work for you. Our experienced loan officers can help you with a loan preapproval so you can plan accordingly. Apply online or call 636.940.LOAN (5626) today.

With kids back in school, we’d like to ask the question: When is the right time to start talking to your kids or grandkids about money? The answer is, if they are old enough to ask for a toy or a bike, they are old enough to start learning financial lessons! Here we share EIGHT tips and teachable moments you can use right away:

Teachable Moment #1: At the Bank

When you go to the bank, bring your children with you and show them how transactions work. Get the manager to explain how the bank operates, how money generates interest and how an ATM works. Ask the manager for a tour—be sure to ask to see the vault.

Teachable Moment #2: On payday

Discuss how your pay is budgeted to pay for housing, food and clothing, and how a portion is saved for future expenses such as college tuition and retirement.

Teachable Moment #3: Supermarket

At the grocery store, it’s easy to give clear examples of “needs” and “wants” using different kinds of foods at a grocery store. Milk (for strong bones) is a need; juice or soft drinks are a want. Explain the benefits of comparison shopping, coupons and store brands.

Teachable Moment #4: Chores and allowances

Assign chores and give them a monetary value. Discuss ways to budget and divide allowances. Encourage children to set a financial goal, such as saving for a bike, and figure out how to achieve it.

Teachable Moment #5: Paying bills

Explain the many ways that bills can be paid: over the phone, paper or by check, electronic check or online check draft. Discuss how each method of bill pay takes money out of your account. Be sure to cover late penalties, emphasizing the importance of paying bills on time.

Teachable Moment #6: Using credit cards

Explain that credit cards are a loan and need to be repaid. Share how each month a credit card statement comes in the mail with a bill.

Teachable Moment #7: Browsing the Internet

While online, explain to your children how valuable their personal information and privacy is to you, to them, and to online predators. Discuss the risks and benefits of sharing certain information. Then, as a family, make a list of rules for keeping personal information safe online.

Teachable Moment #8: Planning a vacation

Whether you are planning an outing to a local amusement park or a once-in-a-lifetime trip, emphasize the value of saving as a family. Set a family savings goal that involves your children. Figure out the cost and discuss ways everyone can help to reach the goal.

Always encourage your children to ask questions about money. If you don’t know the answer, research it together or ask your banker.

As Americans begin the process of filing tax returns, identity thieves are scheming to get their hands on that money. Tax identity theft has been the most common form of identity theft reported to the Federal Trade Commission for the past five years.

Tax identity fraud takes place when a criminal files a false tax return using a stolen Social Security number in order to fraudulently claim the refund. Identity thieves generally file false claims early in the year and victims are unaware until they file a return and learn one has already been filed in their name.

Follow these tips to help prevent tax ID fraud:

• File early. File your tax return as soon as you’re able, giving criminals less time to use your information to file a false return.
• File on a protected wi-fi network. If you’re using an online service to file your return, be sure you’re connected to a password-protected personal network. Avoid using public networks like a wi-fi hotspot at a coffee shop.
• Use a secure mailbox. If you’re filing by mail, drop your tax return at the post office or an official postal box instead of your mailbox at home. Some criminals look for completed tax return forms in home mailboxes during tax season.
• Find a tax preparer you trust. If you’re planning to hire someone to do your taxes, get recommendations and research a tax preparer thoroughly before handing over all of your financial information.
• Shred what you don’t need. Once you’ve completed your tax return, shred the sensitive documents that you no longer need and safely file away the ones you do.
• Beware of phishing scams by email, text or phone. Scammers may try to solicit sensitive information by impersonating the IRS. Know that the IRS will not contact you by email, text or social media. If the IRS needs information, they will contact you by mail first.
• Keep an eye out for missing mail. Fraudsters look for W-2s, tax refunds or other mail containing your financial information. If you don’t receive your W-2s, and your employer indicates they’ve been mailed, or it looks like it has been previously opened upon delivery, contact the IRS immediately.

If you believe you’re a victim of tax identity theft or if the IRS denies your tax return because one has previously been filed under your name, alert the IRS Identity Protection Specialized Unit at 1-800-908-4490. In addition, you should:

• Respond immediately to any IRS notice and complete IRS Form 14039, Identity Theft Affidavit.
• Contact First State Bank immediately, and close any accounts opened without your permission or tampered with.
• Contact the three major credit bureaus to place a ‘fraud alert’ on your credit records:
  • Equifax, www.Equifax.com , 1-800-525-6285
  • Experian, www.Experian.com , 1-888-397-3742
  • TransUnion, www.TransUnion.com , 1-800-680-7289
• Continue to pay your taxes and file your tax return, even if you must do so by paper.

More information about tax identity theft is available from the FTC at ftc.gov/taxidtheft and the IRS at irs.gov/identitytheft .

Forty-three percent of consumers know their credit score, a key metric that helps determine whether they can get credit cards, auto loans, mortgages and insurance coverage, according to a recent survey by the American Bankers Association. Whether or not you know your score, you can take action now to understand and protect your credit.

“The more you know about your own credit history, the better you can position yourself for lower rates when applying for a loan or insurance coverage,” said Nessa Feddis, the American Bankers Association’s senior vice president and deputy chief counsel for consumer protection and payments.

Credit scores are reflective of a person’s creditworthiness and are based on their credit reports, which indicate whether a person pays their bills on time. Lenders use a consumer’s credit score to decide whether to lend them money and at what rate. Credit scores are also used by organizations for screening insurance and other applications. Consumers receive their credit score when they apply for a mortgage, if they are turned down for credit or if a bank used their credit score to determine their interest rate.

“If you check your score and don’t like what you see, you can take action today to begin improving it,” said Feddis. “While there is no overnight fix for a low credit score, paying your debts on time and demonstrating that you can manage credit responsibly can help you gradually rebuild your score.”

Below are tips from the American Bankers Association to help you improve and maintain your credit score:

Credit Do’s:

• Do order a copy of your credit report annually. The three major credit bureaus are required to provide you with a free copy of your credit report at your request each year. To get a free copy of your credit report, visit www.annualcreditreport.com or call 1-877-322-8228. You can also obtain your credit score from any of these credit bureaus for a reasonable fee.
• Do know the power of credit. Banks look at your credit history as an indication of your future financial behavior. By using credit wisely, you can build a good credit history making it easier to get loans with low interest rates, rent an apartment, purchase a car or home, and may even help you get a job.
• Do read the fine print on the credit application. The application is a contract, so read it carefully before signing. Credit card companies are very competitive so interest rates, credit limits, grace periods, annual fees, terms and conditions may vary.
• Do pay at least the minimum due and contact your creditor if you have trouble making payments. This will help you to avoid late fees and a rising APR. To pay off your balance more quickly, pay more than the minimum due. If you are unable to make the minimum monthly payments, let your creditor know so they can work with you to create a more manageable payment plan.
• Do be wary of anyone who claims they can “fix” your credit report. No one can legally remove negative information from your credit history if it is accurate. The only thing that can fix a credit report is time and a positive payment history.

Credit Don’ts:

• Don’t pay your bills late. Late payments can affect your credit rating and increase your balance. If you are unable to pay the minimum monthly payment, let your creditor know and it may be able to lower your payments.
• Don’t spend more than you can afford. Credit is a loan and has to be repaid. It is your responsibility to manage your debts and to keep your commitment with lenders. Avoid reaching your credit limit or “maxing out” your cards.
• Don’t ignore the warning signs of credit trouble. If you pay only the minimum balance, pay late, use cash-advances to fund daily living expenses or transfer a lot of balances you might be in the credit “danger zone.” Talk to a non-profit financial counseling organization like the National Foundation for Credit Counseling (www.nfcc.org) to regain control of your finances.
• Don’t share your credit card number. Never give out credit card or personal information if you have not initiated the transaction. Be aware of identity theft and phishing scams that ask for credit card numbers. If you suspect that your identity has been compromised, call your bank and file a complaint with the Federal Trade Commission at 1-877-ID-THEFT (1-877-438-4338) or www.identitytheft.gov/#/.

For more tips and resources on this and other personal finance topics, visit aba.com/consumers.