Financial Literacy

What is Financial Literacy?

Financial literacy is the comprehension of financial skills, principles and knowledge and applying that information into your spending and saving habits in your life. Financial skills and principles may include but are not limited to: personal money management, budgeting, investing, building and maintaining credit, etc.

Becoming more financially literate can help individuals to avoid making uninformed financial decisions and instead, increase the quality of their financial health. Education is key!

Fraud Prevention

At Taylor County Bank, you can rest assured that your accounts are monitored for suspicious activity. Taylor County Bank utilizes the latest in digital banking technology in order to alert and protect you of any potential fraud that has occurred within your account. Taylor County Bank card holders will be contacted via text (first method), email (second method), and/or cell phone/home phone calls (third method) in the case that fraud has been detected on your debit card. Please be sure to update your information with us.

Protecting My Accounts

Your deposits are federally insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.00

Learn more about FDIC Coverage here: https://www.fdic.gov/resources/deposit-insurance/

What can I do To Help Protect My Accounts?

Taylor County Bank will never call and ask for your accounts or passwords over the phone. If you receive a call or a text message asking for any identifying information, please hang up and call Taylor County Bank directly, if you have questions. Our phone number is (270) 465-4196; we would be glad to assist you.
Never give your passwords, usernames, or PIN number to anyone.
Delete scam messages and do not engage with them.
Monitor your account activity on a regular basis.
Set account alerts using the TCB Now App.
Check the legitimacy of any websites that you may order merchandise from.
Create strong, unique usernames and passwords that do not contain any personal information.
Set travel notices within the TCB Now App when you plan to travel outside of your normal location radius. This will help to keep us informed.
In the case that fraud does occur on your debit card, act fast. You can turn your card off using the TCB Now App or by calling/visiting a branch. Alert the bank and we will be happy to help you navigate the next steps.

Credit and Credit Scores

Building and maintaining good credit is essential to bettering your financial health. Credit health is measured in credit scores. Credit scores can range from 300-850. Credit scores are essentially ”adult report cards'' related to the financial health of an individual. Factors that may affect your credit score may include but are not limited to: loan payment history, length of credit history, amount of loans you have, types of credit, etc. Tips for building good credit may include: making payments on time, building your credit line, not over utilizing credit cards, having a select few channels that affect your credit, etc. Your credit score is a number that can have a significant impact on your financial life. If you have a good credit score, you are more likely to qualify for loans and to receive better terms that can save you money. Learning what your credit score is and what goes into calculating your credit score can help you take steps to improve it.

Saving Money

It is important to remember to save money as you make it for either specific needs/wants, to grow your emergency funds, or for retirement, etc. An emergency fund is always recommended in case of a rainy day. Most people have a separate savings account for their emergency savings. This account should cover 6 months of living expenses, ideally. This money should not be used for paying regular expenses. Most commonly, people utilize their emergency funds to handle financial hardships such as job loss, medical bills, car repairs, home repairs, etc.

Asset

An asset is any resource (tangible or intangible, owned or controlled) that holds value. In other words, assets contain value that can be converted into money. An individual, company, or country can own or control assets, which include things like cash, investments, art, technology, real estate, and intellectual property.

Bankruptcy

Bankruptcy is a legal status that a person or entity can enter when they're unable to repay their debts. Bankruptcy shields borrowers from debt collection, but it requires that they sell their assets to repay the money they owe. Bankruptcy carries significant financial consequences.

Budget

A budget is a plan for using income to meet financial obligations. It tracks how much income a person receives and details how that money will be allocated to pay for expenses, build savings, and meet financial goals.

Comparison shopping

Comparison shopping is a strategy that consumers can use to save money on purchases. It consists of comparing the prices of similar products to determine which is least expensive.

Credit

Credit is a financial arrangement in which money is borrowed for a purchase and paid back at a later date. It allows consumers to make purchases that they wouldn’t be able to afford if they had to pay the full price in one installment. By spreading the cost over time, credit enables borrowers to make big-ticket purchases such as homes and vehicles. Common forms of credit include loans and credit cards.

Credit score

A credit score is a three-digit number that represents how likely a borrower is to repay a debt. It is calculated based on the information in a borrower’s credit report and ranges from 300 to 850. Borrowers with higher scores are viewed as more likely to repay debt obligations and are thus more likely to be approved for credit and receive lower interest rates.

Creditworthiness

Creditworthiness is a term that refers to how much confidence a lender can have in a borrower’s ability to repay a loan. Creditworthiness is primarily determined by how well a borrower has managed previous debt obligations.

Debit card

Unlike a credit card, a debit card immediately withdraws funds from the user’s bank account. Debit cards are less likely to contribute to excessive debt than credit cards, but users face fees if they overdraw their account.

Debt

Debt is the money that a borrower owes to a lender. It can be accrued through any form of borrowing—credit cards, mortgages, personal loans, and auto loans among others.

Emergency fund

An emergency fund is money set aside for big, unexpected expenses such as job loss or large medical bills. It provides a financial buffer that shields against accruing unwanted debt.

Income

Income is money received through sources such as employment, investments, or business transactions. There are two ways to measure income: gross income and net income. Gross income is the total amount that’s earned before expenses, taxes, and other costs. Net income is what remains after these expenses are deducted.

Need vs. want

One of the most basic concepts of personal finance is being able to differentiate between needs and wants. A “need” is defined as an essential expense, such as food or housing. A “want” is an expense that would be nice to have but isn't essential, such as designer clothing.

Loans

At Taylor County Bank, we offer loans for both personal and business use. We are proud to offer loans to best suit your needs. When applying for a loan, some key terms to remember are:

Credit History and Credit Scores

Principal

Principal is the amount of money due on a loan before interest.

Interest

Interest is the percentage of a loan principal that lenders charge borrowers. There are two primary kinds of interest: simple interest and compound interest. Simple interest is calculated exclusively on the initial amount of money borrowed, while compound interest is calculated based on the loan principal plus the interest that accumulates each period.

Business Financial Literacy

Beneficial Ownership Information

What is BOI?

Beneficial Ownership Information (BOI) is a requirement as part of the U.S. Department of Treasury Financial Crimes Enforcement Network (FinCEN). Many companies in the United States will need to report information about their beneficial owners. This is in addition to filing your business with the Kentucky Secretary of State.

Who Needs To File a BOI?

Your company may be a reporting company and need to report information about its beneficial owners if your company is: 1. A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe ; or 2. A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.

VIEW THE FINCEN REPORTING COMPANY FLOW CHART HERE:

https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide.v1.1-FINAL.pdf

Reports will be accepted starting on January 1, 2024. • If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025, to report BOI. • If your company was created or registered on or after January 1, 2024, and before January 1, 2025, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier. • If your company was created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective. • Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days. Please note that failure to file your BOI within the timeframe that applies to your business will result in fines of $500 per day up to a max of $10,000. Willful failure to file is a felony and punished by up to two years in prison.

EXEMPTIONS:

Securities reporting issuer
Governmental Authority
Bank
Credit Union
Depository institution holding company
Money services business
Broker or dealer in securities
Securities exchange or clearing agency
Other Exchange Act registered entity
Investment company or investment adviser
Venture capital fund adviser
Insurance Company
State-licensed insurance provider
Commodity Exchange Act registered entity
Accounting firm
Public utility
Financial market utility
Pooled investment vehicle
Tax-exempt entity
Entity assisting a tax-exempt entity
Large operating company
Subsidiary of certain exempt entities
Inactive entity

SEE MORE DETAILED EXEMPTION INFORMATION IN THE BOI SMALL ENTITY COMPLIANCE GUIDE. THIS GUIDE CAN BE FOUND HERE: