Why Your Kids Should Have a Lemonade Stand

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Nothing says summer like a good old-fashioned kids lemonade stand. It’s one of the best ways to teach money lessons for kids, while helping them build a small business of their own in a fun and safe way.

With summer on the horizon, now is the time to start thinking about how you can encourage your kids to set up shop on the street outside your home. If they need some persuading, we’re here to give you some reasons why a lemonade stand can transform their upcoming summer break.

It’s Fun!

After a long school year, the thought of even more learning probably isn’t top of mind for your kids—all they’re after is a few months of fun with their friends or siblings. Making memories that last long beyond childhood should be the number one reason you encourage your children to set up their own lemonade stand this summer.

Get creative when pitching them the idea and keep the more crucial financial and entrepreneurship lessons to a learn-on-the-job approach, rather than leading the conversation. Talk to your kids about the different types of lemonade they could make, fun marketing ideas to promote their new business, and even goals they can set for spending and saving their earnings.

It Gets Them Outside

Spending the day out of the house, away from screens and enjoying everything nature has to offer is one of the best ways to make the most of summer. Think about different places your kids could set up their lemonade stand, whether you’re looking for a quiet residential street where they could enjoy reading between customers, or a busier environment where they’ll be kept on their toes and making plenty of sales.

Not only is a lemonade stand a good excuse to put the screens away, but it also boosts your child’s health. Vitamin D is essential for healthy bone development, immune function, and overall health, and there’s no better way to get some much needed sun than a front yard lemonade stand.

They Can Build Entrepreneurial Skills

Entrepreneurship for kids can be difficult when they’re juggling school and extracurriculars, so a summer lemonade stand can be a great way to learn these important life skills. It’s one thing to make lemonade and hope someone turns up to buy it. It’s another to proactively market the business while also dealing with customers every single day.

Encourage your kids to find ways to promote their lemonade stand, like making signs or using supervised social media to attract new customers. Is there another neighborhood kid setting up shop? This is a great opportunity to teach your children about friendly competition from other businesses and ways that business owners can work together—maybe they sell snacks that your stand doesn’t, or you could do a product trade to help each other out.

It Teaches Them The Value of Money and Financial Literacy

One of the most important lessons you can teach your kids early on is the value of money. Financial literacy for children can be a challenge, even if they’re receiving an allowance each week. When they’re too young for a part time job, those money lessons for kids need to come from somewhere else. A lemonade stand is the perfect way to start teaching kids about money as soon as possible.

Budgeting is an early lesson you can start teaching your kids straight away, before the summer even arrives. They’ll want to figure out how much their supplies will cost them and what they should be setting their prices at if they want to make a profit. Saving some money to invest in the future of their business or for unexpected expenses is also a vital skill they’ll need to learn.

Once the business is up and running, they’ll need to understand the operating costs of their lemonade stand and start to work out how much profit they’re making based on their average sales.

Could they expand into more items for sale if they’re successful? Or do they need to scale back and find alternatives for expenses like cups or napkins if the profits are small? All of these are important conversations to have with your children as they start and run their small business.

They Become More Confident and Independent

Customer service skills are essential, no matter what your child’s future job is. Interacting with both adults and other children at their lemonade stand will quickly teach them how to communicate clearly and respectfully, while also making sure they have happy customers at the end of the day.

Talking to adults in particular may feel quite intimidating at first, especially for younger or more shy children. This is a good opportunity for them to practice those people skills in a safe environment, likely with other parents who understand that their first summer as a small business owner can be a challenge.

Being able to overcome some of these insecurities can help grow your child’s confidence over the summer, setting them up for a good school year ahead of them. They’ll learn important lessons about independence and responsibility while working their lemonade stand, which will make both them and you proud of everything they’ve achieved over the summer.

It Teaches Them To Be Flexible

As any business owner will tell you, unexpected issues will always come up. That’s especially true in the early days of a business, so it’s good for your children to learn how to adjust as needed. For instance, what do they do if they run out of lemons? Do they close up shop for the day or do they find someone to help them get more to make additional lemonade?

Decisions like this may seem small, but they’re a great way to help build your child’s critical thinking skills and reliance on their own decision making abilities. From there, they’ll gain more confidence as they see the tangible results of the actions they decide to take.

They Learn The Importance of Teamwork

Whether it’s you helping your children with their lemonade stand or they have several friends working with them, this entrepreneurial challenge can teach life lessons about teamwork and what that can achieve. Working together towards a shared outcome, while also accounting for how to split profits, is a vital skill that they can take into the next school year and beyond.

Help Your Kids Save Their Hard-Earned Money

Start your children’s good money management habits early and help them put their lemonade stand earnings in an account that grows with them. At F&M Bank, our Treehouse Savings Club is ideal for children who are looking to save their money and learn more about good financial management.

When your child opens an account through the savings club, they’ll get a piggy bank to take home with them, along with a passbook for recording transactions. They’ll also get a prize for every 5 deposits they make into their savings account.

It’s never too early to start saving with F&M Bank

Understanding Mortgage Interest Rates

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The mortgage market for homebuyers is buffeted by economic fluctuations, Federal Reserve activities, and the bond market, plus the supply and demand for housing.

While these issues are beyond a homebuyer’s control, it’s worth knowing how mortgage rates work and the factors influencing them.

It’s equally important to do what you can to improve your chances of obtaining a mortgage, and to get the lowest interest rate possible on your loan.

Buying a home is an investment for both the mortgage applicant and the lender.

The homebuyer hopes their property will increase in value so they can make a profit when they sell the home. Mortgage lenders are banking on the likelihood that a buyer will maintain their home and make the mortgage payments.

How Economic Trends Impact Mortgage Interest Rates

There are many factors that affect mortgage rates, such as economic growth, inflation, government policies, and the Fed’s control of short-term interest rates.

When the economy is growing, mortgage interest rates tend to rise because they have to compete with other investment options such as the stock market and bond market.

During economic downturns and recessions, mortgage rates will typically decrease as government policies aim to stimulate the housing market and the Fed lowers interest rates.

Inflation, the Economy and the Fed

When inflation is high, the dollar’s buying power declines and the Fed raises short-term interest rates. As a result, lenders will demand higher interest rates for all loans, including mortgages.

Interest rates on mortgages and other loans tend to decline when inflation is under control and the Fed is reducing interest rates.

During times of economic weakness or uncertainty, lenders tighten their requirements for mortgage applicants. This can make it harder to obtain a loan, even if interest rates on mortgages decline.

When the nation’s GDP is growing at a sustainable rate, this can result in lower interest rates on mortgages and other loans because it’s considered less risky for banks to lend money when the economy is doing well.

If the economy starts to overheat, and the Fed starts raising interest rates, this can result in higher mortgage rates because it’s considered riskier for banks to lend money.

When the economy slips into a recession, the Fed lowers interest rates. Mortgage rates will often decline, but this also depends on what happens in the housing market.

The Housing Market

If fewer people are buying homes, mortgage rates would typically remain low. If people see weakness in the housing market as a chance to buy a home, and the demand for mortgages increases, mortgage rates rise as well.

A strong economy with low unemployment causes rising home prices, a demand for mortgages, and higher interest rates.

A weak economy, with higher unemployment and less consumer spending, may result in home prices stagnating or weakening as a result.

The Bond Market

When it comes to understanding home loan interest rates, one of the most influential and misunderstood factors is the bond market.

Mortgage rates are closely linked to the market for 10-year treasury bonds because they’re both long-term investments. The mortgage market keeps a close eye on long-term bonds to gauge the demand for investment capital. When bond yields rise, mortgage rates tend to rise as well.

How Bond Yields Work

For most government bonds, the income they provide (known as a dividend payment) is set when they’re sold during an auction by the Treasury Department.

Investors also buy and sell billions of dollars’ worth of these bonds every day in what’s known as the secondary bond market.

When the demand for 10-year bonds is high, the price of these bonds increases. The bond yield falls because that higher price equals a lower rate of return.

If the price of 10-year bonds fall, their profitability increases so the 10-year bond yield rises.

How to Obtain a Favorable Mortgage Rate

While consumers are affected by economic forces outside their control, there are some things you can do to improve your chances of obtaining a mortgage at a favorable interest rate.

Let’s take a look at how to check your credit score, what you can do to improve your credit rating, and how to increase your chances of obtaining a mortgage.

Check Your Credit Score

A credit score is one of the biggest factors that lenders use in deciding whether to grant a loan, and the interest rate. This includes mortgages.

You can check your credit history and credit score by getting a credit report once a year for free at AnnualCreditReport.com. This will give you three different scores from the nation’s credit reporting bureaus: Equifax, Experian, and TransUnion.

Each bureau has its own way of calculating credit scores, so the number you get from each one will vary. Take a close look at the information on your credit report. If there’s anything inaccurate, contact the bureau that contains this information so you can have it corrected.

You might also be able to check your credit score regularly through your credit card company online.

For conventional mortgages, the minimum credit score is in the 620-640 range. There are also government-backed mortgages available for those with credit scores of at least 580. For a mortgage backed by the Federal Housing Administration (FHA), someone might obtain a mortgage with a credit score of 500 but they would have to make a down payment of at least 10% of a home’s purchase price.

How Your Credit Score Is Calculated

There are many factors that apply to how your credit score is calculated:

  • Payment history: Responsible for 35% of your credit score, so paying your bills on time will improve your credit rating.
  • Credit utilization ratio: Makes up 30% of your credit score. This refers to how much credit you have versus your level of debt. For many people, this means the available limits on your credit cards versus how much credit card debt you have.
  • Average age of credit: Worth 15% of your credit score. The longer you’ve had your debts, including credit cards, the more this will boost your credit score.
  • Credit mix: Responsible for 10% of your credit score. This refers to the type of debt you have. Having a variety of debts, such as student loans, car loans, etc. can have a positive impact on your score, as opposed to someone whose entire debt load is placed solely on their credit cards.
  • New credit: Worth 10% of a credit score. Frequent loan applications and opening new credit cards within a short amount of time can have a negative impact on your credit score.

How to Improve Your Credit Score

A good credit score can improve your chances of obtaining a mortgage and has a direct impact on how much interest you’ll have to pay. A good credit rating can also improve your ability to take out other loans as well.

Follow these steps to improve your credit score:

  • Pay your bills on time.
  • Reduce your debts as much is possible and pay down your credit cards.
  • Hold on to your existing credit cards, as canceling them could negatively affect your credit score.
  • Ask your credit card company for a limit increase. This could negatively impact your credit score for a short time but can improve your credit rating in the long run by reducing your credit utilization ratio—as long as you don’t use the higher limit to take on more debt. With many credit cards, you can ask for an increase every six months.
  • Avoid any applications for new loans or credit accounts.

Other Factors That Can Affect Your Mortgage Eligibility and Interest Rate

While a good credit score is important when applying for a mortgage, there are other factors that can affect your ability to obtain a loan. These include:

  • Debt-to-income ratio (DTI): Your gross monthly income divided by your monthly debt payments. You may need a DTI of 43% or less to qualify for some government-backed mortgages. In the conventional mortgage market, lenders prefer a ratio of less than 36%.
  • Employment history: Job hopping, an unsteady employment history, or an income that fluctuates every year can get in the way of your ability to obtain a mortgage.
  • The down payment: The more you can save up for a down payment, the more likely you are to qualify for a loan. With conventional mortgages, a down payment of at least 20% of the purchase price is customary. If your down payment is less than this, you can expect to pay for private mortgage insurance which may range from 0.46% to 1.50% of your loan amount. This cost will be added to your monthly mortgage payments, so the more you can save up for a down payment the better off you’ll be in the long run.
  • Collateral: With a home mortgage, the property itself is used as collateral for the loan. If you fail to keep up with the mortgage payments, the lender will foreclose on the loan and sell the home to get their money back. If you have other assets that can serve as additional collateral, it can improve your chance of obtaining a mortgage and can it also affect your interest rate.

This collateral would have to be something that could be easily converted into cash. This could be cash itself, such as a savings account, mutual fund, and similar investments. It might also include other properties, cars, and similar assets.

Apply for a Mortgage Today

Another way of obtaining a favorable rate on your mortgage is to work with a lender who knows the Shenandoah Valley region and can explain all your options to help you find the best mortgage rates in Virginia. We can also explain the tax considerations of buying and selling real estate

If you have any questions on how to apply for a mortgage and what your options are, please contact us or stop by one of our locations in Bridgewater, Broadway, Edinburg, Elkton, Harrisonburg, Staunton, Stuarts Draft, Timberville, Waynesboro, Winchester, and Woodstock.

Basics Of Homeowner’s Insurance

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Buying a home can trigger so many emotions. Excitement, nervousness, hopefulness, and fear all jump on the wagon at certain points throughout the journey. But as with most things in life, learning and getting the facts can help ease our fears, enabling us to make wiser decisions.

Our website is a valuable resource for articles on a variety of financial topics, including real estate and home ownership. In this blog, we tackle the topic of homeowner’s insurance.

What is homeowner’s insurance?

When you own a home, you usually need to purchase a policy to protect the property. Though not required by Virginia law, your mortgage will require it. And even if you don’t have a mortgage, it’s an important safeguard against financial loss.

A homeowner’s insurance policy is designed to protect homeowners from financial loss due to damage to their property or personal belongings. In addition, it covers liability for accidents that occur on their property.

Homeowner’s insurance covers risks like fire, theft, and some damage from storms and can help to cover costs for repairs. Each policy is tailored to the home itself, based on its location, size, materials, and risks. Coverages can vary based on the company and your specific policy. Let’s take a closer look at what homeowner’s insurance policies typically cover.

What does homeowner’s insurance cover?

If you’ve had renters’ insurance in the past, you’ll know that renters’ insurance coverage is limited to personal belongings and liability if someone is injured in the rental. Homeowners’ insurance is a bit different. It does cover your personal property and liability, but its most important job is to cover the home itself.

Most homeowner’s insurance policies contain the following coverages:

  • Dwelling: This will cover the cost of damages to the structure of your home, including walls, roof, and foundation, when caused by events like fire, storms, or vandalism.
  • Other structures: Covers other structures on your property that aren’t part of your home, such as detached garages, sheds, and fences.
  • Personal property: Like renters’ insurance, home insurance can cover your belongings, from furniture to electronics, if they are damaged, stolen, or destroyed in a covered event. However, highly valuable collectibles and jewelry might need an endorsement (also called an “add-on” or “rider”) to cover them.
  • Liability: This coverage protects you from lawsuits if someone else (not anyone who lives in the home) is injured on your property, or if you, a pet, or a family member cause damage to another property. A classic example of the latter is if your child were to hit a baseball through your neighbor’s window.
  • Medical costs: Pays for medical expenses of guests injured on your property—up to a certain limit.
  • Additional Living Expenses: If you are unable to stay in your home due to covered damages, ALE coverage can pay for temporary living costs, like hotel bills and meals.

What is not covered by homeowners insurance?

Homeowners’ insurance covers a wide range of potential expenses—even ones that may not seem to be directly related to your home (like some personal liability claims). But it doesn’t cover everything, and depending on where your home is located, it might be wise to purchase add-ons to insure your property is protected.

Homeowner’s insurance typically does not cover:

  • Flood damage: Damage caused by floods usually requires separate flood insurance. If you live in a flood zone or an area prone to flooding, you’ll want to get an additional plan. You can look up your home’s flood risk on FEMA’s Flood Maps.
  • Earthquake and sinkhole damage: Earthquakes and sinkholes are also not covered unless you purchase additional insurance. Minor earthquakes are common in Virginia, with almost 200 occurring within the last 50 years. Additionally, many parts of the Shenandoah Valley are more susceptible to sinkholes due to limestone substrate.
  • “Wear and tear”: Whether from normal use and exposure or issues with maintenance, wear and tear is expected and not covered.
  • Mold damage: Because mold often occurs because moisture isn’t managed properly, it is usually not covered.
  • Sewer backup: While you can often add sewer backup coverage, water and other damage from sewer backups is usually not covered.
  • Intentional destruction: If you or a family member living in your home damages the property intentionally, it won’t be covered.
  • Valuables: As we mentioned above, very expensive items like jewelry, art, or collectibles may not be fully covered without additional riders.
  • Home business: You’ll need separate coverage to protect your home business’s property, like equipment.

Every policy will lay out what it covers and what it doesn’t. If you have concerns about coverage for your home or property or aren’t sure how much insurance you need, your insurance agent can help you sort through your risks and requirements.

How do insurance companies determine premium costs?

When an insurance agency creates a coverage plan, they will review details including your home appraisal, property taxes, how and when the home was built (and with what materials), recent improvements, and other property details and risks.

This serves two purposes: determining risks for insuring your home (like older wiring or fireplaces) and knowing how much it will cost to repair or replace your home and the items within.

Some things that might increase your premiums include:

  • Having an older home: It may be more expensive to insure an older home not just because they may be in worse repair but also because they tend to be better-constructed, with quality materials like brick and stone, which will cost more to replace.
  • Location: Homes in areas prone to natural disasters are generally more to insure.
  • Fireplaces and swimming pools: Anything that increases risk for damage or liability will increase your premium. Because wood-burning heating sources increase fire risks, your premium costs will go up if you have one. Swimming pools can create liability risks and may also result in higher premiums.
  • Dog breeds: Some dog breeds, especially larger ones that are prone to biting and attacks, may impact your rate.
  • Bad credit: Insurers often consider your credit score when setting premiums.

Things that you can do to lower your premium:

  • Increase your deductible: Higher deductibles usually mean that smaller issues won’t be reported for a claim, saving your insurance company. They will pass this savings onto you through lower premiums.
  • Bundle your insurance policies: See if you can get a lower rate when you use the same company for other insurance needs, like car insurance.
  • Improve home security and safety features: Installing smoke detectors, security alarms, and even deadbolt locks may help lower your premium.

How do they know how much my home and property are worth?

Insurance companies can’t know for certain how much everything in your home will cost to repair or replace, but they do have some pretty sophisticated methods for estimating it.

Here are a few methods insurers use to determine how much things are worth.

  • Appraisals: For valuable items like jewelry or art, an appraisal helps determine their worth for coverage or payout if they’re damaged or stolen. Your home’s appraisal may also be used to determine its replacement cost.
  • Actual Cash Value (ACV): This is what your damaged or lost item is actually worth today, factoring in age and wear. For instance, a five-year-old laptop’s cash value will not be its purchase price but rather what it is worth based on its age and condition.
  • Replacement Cost Value (RCV): RCV covers the cost to replace a damaged or lost item with a new one of similar quality without considering depreciation.
  • Extended or Guaranteed Replacement Cost: This covers the full cost to rebuild your home, even if it exceeds your policy limits (usually up to a certain percentage).

When you look at your premium details, you might notice there are different designations for value and replacement cost—especially regarding your home. This is because homes often cost more to replace than their market value—especially older, well-built homes.

How does my deductible work?

A home insurance deductible is the amount you must pay out of pocket first—before your insurance company covers anything. For instance, if you have a $2,000 deductible and a tree falls on your roof resulting in $5,000 in damage, your insurance would kick in after you pay the first $2,000. Usually, you’ll pay your deductible directly to whomever is making the repairs, and your insurance company will pay the balance.

Higher deductibles usually result in lower premiums. If you rarely file claims, your home is less risky, or you can cover small repairs out of pocket, a higher deductible could save you money.

I’m buying my first home. How do I get homeowners insurance?

There are many options for insurance, and ultimately there are pros and cons with each option. Your mortgage broker can often help identify best-fit options for you, as well as those with streamlined processes that will help make the entire home-buying process seamless and easier.

How do I pay for homeowners insurance?/How is home insurance factored into my mortgage payment?

For many, if not most, home buyers, expenses such as property taxes and homeowners insurance are bundled up as part of their mortgage payments. This is especially true for government-backed mortgages and for those where the buyer has put 20% or less down.

Bundling taxes and insurance with your mortgage payment can be beneficial as it streamlines the process, requiring fewer checks each month.

How can I get a discount?

Simply put, ask. Discounts are available for many different reasons, and finding out what you might be eligible for can be challenging on your own.  Discounts for seniors, veterans, and first-time home buyers are common; discounts for teachers and healthcare workers might be available too based on the company you go with. When in doubt, speak up and ask.

How do I file a claim?

Different insurance providers have different processes, but most offer online and telephone options that provide the ability to start the claims process in a matter of minutes.

Understanding the claims process can also be an important determining factor in your choice of providers. Feel free to ask questions about the process and get comfortable in advance because often claims are filed at a time where “one more hassle” really isn’t what you need.

Home Is Where Memories Are Made

For so many, owning a home is a big part of “the American Dream,” and where better to own one than right here in what we’ll argue is the most beautiful spot on earth, the Shenndoah Valley? Whether you’re just getting started on your home hunt or you’ve already identified the ideal property, right now is the ideal time for a conversation with F&M Bank and F&M Mortgages.

Building a Financial Future: F&M Bank’s Commitment to JMU Alumni

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At F&M Bank, we’re proud to be a Purple Partner of the James Madison University Alumni Association. Just like JMU, which was founded in 1908, we’ve been a trusted community partner for over a century. Whether you’re a recent graduate starting your financial journey or a seasoned Duke, we’re here to support you with tailored financial solutions, exclusive promotions, and helpful resources designed to help you build a strong financial future.

Getting Started: 4 Tips to Kickstart Your Financial Journey

Here are a few quick tips to keep your finances on track as you begin to build your career and plan for the future:

  1. Map Out Big Purchases
    Planning ahead for major expenses like a new car, home, or travel can help you avoid unnecessary debt and give you a clearer picture of your financial standing. Use budgeting tools or apps to categorize your expenses and set a monthly spending limit.
  2. Cancel Unnecessary Subscriptions
    Streaming services, meal delivery kits, and fitness apps can add up quickly! Do a quick audit of your recurring subscriptions and eliminate those you don’t regularly use. You’d be surprised how much this simple step can save you each month.
  3. Use Reward Accounts to Save Automatically
    F&M Bank’s Cash Back Checking Account is a great way to put money back in your pocket. With this account, you can earn up to $10 cashback each month, enjoy free nationwide ATM access, and more! Little wins like these add up over time and can accelerate your savings.
  4. Watch Your Savings Grow
    Once you have a solid budget and a handle on spending, start building your savings. Consider setting up automatic transfers to a high-yield savings account or opening a savings account specifically for emergency funds or future goals.

Make the Most of Your Banking Experience

As a JMU alum, we want to ensure you have access to products and services that are as dynamic as your future. That’s why we offer free consultations with an F&M Financial Services Advisor or an F&M Mortgage Advisor to guide you through investing, buying your first home, or building long-term wealth.

Ready to Take the Next Step?

Whether you’re looking for a checking account with real perks or want personalized advice on managing your money, F&M Bank is here to help every step of the way. Visit us at one of our branches or contact us online to learn more about our Purple Partner benefits.

Together, we can build a stronger financial future—for Dukes, by Dukes. Go Dukes!

F&M Bank Welcomes Kevin Saylor as New Commercial Relationship Manager for Rockingham County

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F&M Bank Welcomes Kevin Saylor as New Commercial Relationship Manager for Rockingham County

 

Timberville, VA (10/11/2024)   FOR IMMEDIATE RELEASE – F&M Bank is proud to announce the addition of Kevin Saylor as our new Commercial Relationship Manager, serving Rockingham County and the surrounding areas. Kevin will be based out of the Crossroads Branch and will work with clients in Harrisonburg, Rockingham, and Shenandoah Counties.

Kevin brings a wealth of experience in sales and client relationship management, making him a strong fit for this role. His expertise, combined with his deep local connections, ensures he will provide the level of personalized service that F&M Bank is known for.

“The people I have met here before I even began my first day have been warm and welcoming,” Kevin shared. “Growing up in Grottoes, I have always wanted to positively contribute to the community. F&M has been a longstanding bank in our area, and I am thrilled to be a part of it.”

Kevin’s approach to commercial banking is centered around genuine partnerships. “My focus is on providing responsible guidance for our clients’ financial needs, remaining attentive to their questions and concerns, and building trust through authenticity and transparency. My goal is to cultivate strong, long-term relationships where clients feel confident in both my expertise and F&M Bank’s commitment to their success.”

“We are excited to welcome Kevin to our team and see how his insights will help us cultivate lasting relationships and achieve success together,” said Katherine Preston, Senior Vice President & Valley Market Executive. “His passion for our community and dedication to serving local businesses aligns perfectly with our mission to support and uplift the Shenandoah Valley.”

For more information or to connect with Kevin Saylor, please reach out to him at ksaylor@fmbankva.com or visit our Crossroads Branch.

 

About F&M Bank

F&M Bank Corp. is an independent, locally owned, financial holding company offering a full range of financial services through our subsidiary, Farmers & Merchants Bank’s (F&M Bank) fourteen banking offices in Rockingham, Shenandoah, and Augusta counties, Virginia, and the cities of Winchester and Waynesboro, Virginia. The Company also owns F&M Mortgage, a mortgage lending subsidiary, and VSTitle, a title company subsidiary. Founded in 1908 as a community venture to serve the farmers and merchants of the Shenandoah Valley, where both the Company and the Bank are headquartered, F&M Bank remains more committed than ever to the success of the agricultural industry, small business ventures, and the nonprofit sector. F&M’s values, which are gregarious, resolute, original, and wholehearted (G.R.O.W.), combined with our brand pillars of sustenance, security, and enrichment, shape the Company’s decision-making, philanthropy, and volunteerism. The only publicly traded organization based in Rockingham County, we offer a diverse suite of financial products and services and a strong team dedicated to living our mission of being the financial partner of choice in the Shenandoah Valley, both today and tomorrow, as we have been since 1908. Additional information may be found by visiting our website, fmbankva.com.

 

Media Contact:

Jacob Mowry

Vice President, Marketing Manager

F&M Bank

jmowry@fmbankva.com

F&M Bank to Host VBA Bank Day Student Scholarship Program in March

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F&M Bank is excited to partner again with the Virginia Bankers Association Education Foundation (VBA) to offer your seniors a unique scholarship opportunity on March 19, 2024 called Bank Day.

What is Bank Day?

The third Tuesday in March was declared Bank Day by the Virginia General Assembly in 1991.  Through this program, high school seniors learn about banking, financial services, career opportunities within the banking industry, and the vital role banks play in their communities.  From their experience, the students are required to write essays on their experiences. Thirteen scholarships will be awarded based on the essays.

Students will have access to a VBA-created Bank Day resource webpage during the month of March. This resource page will house relevant information that students will need to research to complete their essays for a chance to win college scholarships. F&M Bank will also be hosting students in-person, 9:00am-1:00pm on Tuesday, March 19, for an opportunity to learn more about our bank, the banking industry in Virginia, how we support our community, and financial career opportunities. More information about this gathering will be shared with students upon registration.

How much scholarship money is available?

A total of $26,000 will be awarded to twelve students across the Commonwealth.

  • Six honorable mention winners, each winning a $1,000 scholarship.
  • Six regional winners, each winning a $2,500 scholarship.
  • One of the regional winners will also be named the statewide winner, earning an extra $5,000 scholarship for a total of $7,500 in college scholarships!

How can your students participate?

To participate, students must be currently enrolled as seniors in a Virginia high school with cumulative GPAs of 3.0 or higher. Interested students must register online by March 3rd through the VBA using the following link: VBA Bank Day Scholarship Program – 2024 Student Registration Form (formpl.us).

Contact marketing@fmbankva.com for more information!

6 Key Metrics For Your Small Business

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Running a small business can be challenging. Knowing what metrics to track can help you get on the right path and stay there. In this article, we’ll explain the most important metrics you can measure for your small business in Virginia.

Track Sales Revenue

Knowing how much money you’re bringing in is vital for any business. Revenue, also known as top-line income, means the amount of money your business makes before deducting expenses.

Tracking your sales revenue on a month-over-month basis can help you measure your business’s success and ROI on marketing campaigns. It will also alert you to signs that your sales have started declining.

How to track sales

  • Define the steps involved in your sales process. What needs to happen before a deal gets closed?
  • Use a CRM (Customer Relationship Manager) to keep track of leads and where they are in the sales funnel.
  • Prioritize a quick response to online form submissions.
  • Based on the data you collect from tracking your sales, look for ways to increase the number of sales you make.

CRM Infographic

Customer Acquisition Cost (CAC)

Of course, increasing sales doesn’t come without costs. That’s why our next metric looks at the cost of acquiring each new customer. This includes sales and marketing efforts, as well as physical assets (property, equipment, etc.) required to close a sale.

To calculate Customer Acquisition Cost, divide Total Marketing Costs (MCC) by Total Customers Acquired. This will give you the estimated cost of each customer acquired.

You can compare the cost per customer to the lifetime value of customers. A good rule of thumb is to spend no more than 33% of lifetime value on customer acquisition.

If you find you’re spending too much on acquiring a new customer who gives your business limited lifetime value, you can try reducing your marketing spend and focus on customer retention and upsells instead. Make sure you’re giving customers a reason to return to your business again and again.

Net Profit Margin

Net profit margin, also known as net margin, measures the percentage of sales revenue that becomes profit. This is an important indicator of your business’s financial health. Calculating net profit margin will help you evaluate the success of your marketing and sales efforts and forecast future profits based on sales revenue.

To calculate net profit margin, subtract the costs of doing business (cost of goods sold, operating expenses, interest, and taxes) from revenue and then divide that number by revenue, multiplying by 100 to convert the answer into a percentage.

When it comes to net profit margin, 10% is considered good and 20% is high. If your margin is lower than 10%, look for ways to improve it. In general, this requires you to find the right balance between increasing sales (which takes a certain amount of investment) and reducing expenses (which can lead to bad outcomes if taken too far).

Customer Retention Rate

This metric tracks the percentage of customers who buy from you more than once within a given time period. Customer retention is an important metric to track because gaining new customers is more expensive than retaining existing ones. And the more engaged your customers are, the more likely they are to try new products or services and keep spending more money on your business. This is why just a 5% increase in customer retention can increase profit by 25% or more.

To calculate your customer retention rate, (((CE-CN)/CS)) X 100.

  • CE = number of customers at the end of a defined time period, such as 1 year
  • CN = number of new customers acquired during the same time period
  • CS = number of clients at the start of the time period

If you want to improve customer loyalty, work on providing better customer service and offering the highest quality products or services.

hand holding magnet out of a computer towards stick figures

Gross Profit Margin

Gross profit margin is related to your gross profit, but it looks at your financial profit as a percentage. Tracking your gross profit margin will help you truly understand how your business is performing. If your gross profit margin continues to climb over time, it’s a good indicator of financial health. The higher your gross profit margin, the more you are keeping from each sales dollar (as opposed to the costs of doing business).

You can calculate gross profit margin by subtracting the cost of goods sold from net sales and then dividing that number by net sales.

If you want to increase your gross profit margin, look for ways to reduce operating expenses while maintaining pricing or increase prices without also increasing the cost of doing business. Where can you add efficiencies or boost productivity?

Customer Conversion Rates

This metric looks at the number of leads or prospects who turn into paying customers. Customer conversion rate can help you assess your sales team’s performance or the quality of the service or product you offer.

To calculate customer conversions, divide monthly new leads by monthly new customers.

With a low or stagnant conversion rate, there are some variables you can look at:

  • Products or services offered
  • Sales staff
  • Website experience
  • Social Media prescence
  • Customer reviews

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About Section

Headquartered in the Shenandoah Valley, F&M Bank is proud to be a Virginia tradition since 1908. We are committed to the success of our small business customers, including agricultural operations, nonprofits, and other business ventures. Learn more about our business banking solutions and contact us to learn more about how we can help your company grow and thrive.

Safeguarding Your Finances: Protecting Yourself from Holiday Season Scams and Frauds

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As the holiday season approaches, it’s important to be aware of the increased risk of frauds and scams that banks often witness during this time. Unfortunately, cybercriminals take advantage of the festive spirit and heightened online shopping activity to target unsuspecting individuals. F&M Bank offers an array of security features and tips to help you protect your identity and accounts.  In this blog post, we will explore the common scams and frauds that occur during the holiday season and provide you with practical tips to protect your personal and financial information.

safe shopping transaction alerts

  1. Be Wary of Phishing Attempts

Phishing emails and text messages are a common method used by fraudsters to trick people into revealing sensitive information. Be cautious of unexpected emails or messages asking for personal details, login credentials, or credit card information. Remember, reputable organizations will never ask for such information via email or text.

  1. Shop on Secure Websites:

Before making any online purchase, ensure that the website is secure. Look for the padlock symbol in the address bar and the “s” – When paying online, check the URL to ensure it begins with “https://”. The “s” at the end indicates a secure connection. Additionally, check that the name of the web page does not contain spelling errors or strange characters.  Avoid making transactions on unsecured or suspicious websites, as they may be designed to steal your information.

  1. Use Strong and Unique Passwords:

Protect your accounts by using strong, unique passwords for each online platform you use. Avoid using easily guessable passwords or reusing them across multiple websites. Consider using a password manager to securely store and generate complex passwords.

  1. Stay Updated on Security Measures:

Familiarize yourself with the security features provided by your bank and payment providers. Enable two-factor authentication whenever possible. Regularly review your account statements and transaction history for any suspicious activity.

  1. Avoid Public Wi-Fi for Financial Transactions:

Public Wi-Fi networks are often unsecured, making it easier for hackers to intercept your data. Refrain from conducting any financial transactions or accessing sensitive information while connected to public networks. Instead, use a trusted and secure network, such as your home Wi-Fi or a personal hotspot.

  1. Be Cautious of Gift Card Scams:

During the holiday season, gift cards are a popular choice for presents. However, be cautious when purchasing or receiving gift cards from unofficial sources. Scammers may tamper with the cards, steal their codes, or sell counterfeit cards. Always buy gift cards from reputable retailers.

  1. Monitor Your Accounts:

Regularly monitor your bank and credit card accounts for any unauthorized transactions. Be sure to install F&M Mobile on your mobile device to monitor your accounts and receive alerts while on the go!

  • Set up transaction alerts to receive notifications whenever a transaction is made. Report any suspicious activity to your financial institution immediately. Purchase alerts are customizable, can be received via email or text, and can be used to confirm legitimate purchases or notify you of suspicious activity. F&M Bank allows you to set transaction and balance alerts within F&M Mobile and Online Banking to stay on top of unexpected transactions on your account.

safe urls safe shopping

The Visa Payment Fraud Disruption also recommends that all consumers consider these safeguards while shopping this holiday season:

  • Do not click on hyperlinks found in emails or text messages from unknown or suspicious sources.
  • Maintain device and software security by keeping software patched and up-to-date.
  • Ensure Multi-Factor Authentication (MFA) is implemented on all sensitive log in environments.
    • F&M Mobile offers facial and fingerprint recognition on iOS and Android devices.  Enabling this feature on your device further protects your account from being accessed by an untrusted source if your device is misplaced or stolen.
    • With F&M Bank’s Online Banking can detect when you are signing into your account from a new device or browser.  Attempts to access your account from a new or unfamiliar device prompts our system to verify your identity with multifactor authentication and security questions you established at account opening. All information within our Online Banking uses the Secure Socket Layer (SSL) protocol for transferring data. SSL is a cryptosystem that creates a secure environment for the information being transferred between your browser and F&M Bank.
  • Use cybersecurity best practices, including enabling anti-phishing protection on your web browser, adding multi-factor authentication to account log ins, using unique, strong passwords for different accounts, not clicking on unsolicited links, and remain vigilant of the URLs you are visiting.
  • Contact your bank directly by using the phone number or website listed on the back of your card, rather than following guidance from an email, phone call, or text message you received.
  • Never provide a one-time-passcode to a caller, or via email or SMS text message, and do not install Remote Access software unless instructed by a trusted system support provider.
  • Check shipping details on accounts. Be aware of details in the 2nd or 3rd lines of the shipping addresses that might be used to reroute packages.
  • Review bills, bank statements, and credit reports to identify anomalies that could indicate fraud, identity theft, or if someone else has access to your account. Be sure to install F&M Mobile on your mobile device to monitor your accounts and receive alerts while on the go!
  • Update system and application software – Install the latest software on your computer, tablet, or phone.
  • Use tokens when possible. A token can be viewed as a “secret code” that contains no customer or sensitive data, which can be used to transmit a payment. Use of a token for a purchase, or tokenization, is the digital equivalent of using a card’s chip for in-person purchase. The value of the token changes with each transaction, making them more resistant to use by fraudsters.
  • Take advantage of identity and credit monitoring services. These services may be provided by your bank/credit union, credit card provider, employer, or insurance company.
  • Watch for scam indicators in the method of payment being requested: scammers often ask for payment in the form of wire transfers or other money transfers, reloadable or prepaid gift cards, cryptocurrency, or sending cash, since these formats are more difficult to trace.
  • If you suspect a scam, stop and talk to someone you trust about the situation and seek guidance from the organization’s official website before acting on the suspected scammer’s request. Call your local F&M Bank location when you suspect fraud. You can also lock your debit card, and reorder a new one at any time with F&M Mobile and Online Banking.
  • Use caution when posting on social media. Be aware that sharing sensitive personal information can provide criminals with clues to answer your security questions or craft believable, targeted scam messages.

Consumers aren’t the only targets during the holiday season.  Businesses also see an increase in fraud attempts and F&M Bank provides a robust digital suite to help our local businesses safeguard their funds.  Learn more about our business banking recourses here.

While the holiday season is a time of joy and giving, it’s crucial to remain vigilant against frauds and scams. By following these tips, you can protect yourself from falling victim to cybercriminals and safeguard your personal and financial information. Remember, staying informed and adopting safe online practices will make your holiday shopping experience more secure and enjoyable.

Teaching Children About Charitable Giving

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Teaching your kids about money early on is always a smart move, but educating them about charitable giving is one of the most important ways to help them develop as compassionate, thoughtful members of their communities.

A recent study found that nearly 50% of those who donated more than $5,000 each year had experienced strong giving traditions within their family as children, so what you teach early on has a real impact later.

If you’re looking to encourage your family with some fun charitable giving this holiday season, take a look at our suggestions for how to get started.

Some of the best ways to teach empathy to small children are making them aware of their own feelings and those of others

Teach Empathy

The foundation of generosity is the ability to empathize with those around you, especially people who may be living in very different circumstances to your own. Start teaching kids this when they’re young, even before they go to school.

Some of the best ways to teach empathy to small children are making them aware of their own feelings and those of others. Make suggestions for helping other people, such as “let’s get your friend a bandaid for their cut” or “I think they’re sad because they lost their toy, let’s get them another one to help them feel better.”

“I feel…” statements are also a good way to teach self-awareness, along with reading books about feelings and openly discussing these as a family.

Lead By Example

Children are often visual learners, so leading by action is one of the best ways to teach a charitable mindset. When you take time to give back and do this frequently, your children will notice and copy your actions. Once you make giving and volunteering a regular part of your life, they’ll naturally start to pick up the habit too.

Include your children in volunteer activities where possible, even something as simple as taking unwanted items to a donation center. Make charitable giving an ongoing conversation in your household.

Talk about times that you’ve helped give back to others, and educate your children on the idea of being fortunate and what that means. You can also explain to them the different ways people can be helped and how both time and money can be valuable resources for those in need.

Consider sponsoring a child in your community or abroad during the holidays.

Adopt a Child for the Holidays

During the holidays, many large organizations (and some local charities too) organize “Adopt a Child” and gift giving events. The Salvation Army Angel Tree is a good example of this, where you can purchase clothing or toys for children in need.

You could also consider sponsoring a child in your community or abroad during the holidays or throughout the year. Organizations like ChildFund help children in 23 countries receive necessities like food, healthcare and education.

Explore Donating

Another option for teaching children a charitable mindset is donations. Collect their old toys once they’ve outgrown them or ask them to choose a toy or two that they no longer want and give them to a local children’s hospital. This is a great way to build empathy in children by helping them connect with other children around their age.

Clothing donations are also good donation opportunities. The SAW Style Clothing Event for Staunton, Augusta, and Waynesboro students regularly helps hundreds of families in the area with essential clothing items all year.

Similarly, a “Stuff the Bus” school supply drive is an excellent way to support local children with their education. The Salvation Army in Staunton and West Augusta County, along with Waynesboro, run these events every year during back-to-school season.

Having a donation box somewhere in your home, particularly somewhere visible like by the front door, can help reinforce a charitable mindset. Encourage your children to routinely go through their belongings and find items they can part with and add to the donation box. Once the box is full, take your items to a donation center together to help children see the impact of their giving.

Matching volunteering roles with your child's interests will help them stay engaged for longer.

Seek Out Volunteer Opportunities

For a more hands-on experience, look for volunteering opportunities that your children can participate in throughout your community. Matching volunteering roles with your child’s interests will help them stay engaged for longer, while still educating them on the importance of giving back.

Soup kitchens, shelters, local places of worship, libraries and schools all frequently need volunteer help for a range of activities and initiatives. For animal-loving children and teens, the Shenandoah Valley Animal Service Center takes volunteers for dog walking, grooming and cleaning all year round.

Positive reinforcement, especially for activities that take time out of their free schedule, is essential for encouraging this charitable behavior. If you see your child doing something helpful for someone else, be sure to praise them and let them know that was a kind action to take.

Divvy Up Allowances

If you give your child a weekly or monthly allowance, this is the perfect opportunity to teach a lifelong lesson about the value of money, hard work, and giving.

Consider a three-bucket approach for your children’s money—some for spending, some for saving, and some for giving. For younger children, you can suggest causes that they may want to give to, while older children should be free to make their own choice.

Labeled jars can be a useful visual, especially for younger children, to reinforce the goal of splitting their money this way. The Greenlight debit card for kids and teens is also a good way to digitize this approach to money. Within the app, allowances can easily be divided into save, give, invest and spend categories.

Charitable giving can, and should, start close to home

Be Neighborly

Charitable giving can, and should, start close to home. Encourage your kids to help your neighbors, particularly elderly ones, with outdoor chores like raking leaves, shoveling snow, or bringing in their heavy grocery bags.

Baking or cooking for your neighbors, especially around the holidays, is a fun opportunity to share food together and brighten someone’s day. Make a pie for Thanksgiving or take a box of holiday cookies over to your neighbor to let them know that you and your children are there for them.

For younger children, “I spy” games while you walk around your neighborhood can be a fun way to encourage them to find places that could use some attention. Picking up litter or cleaning up a spill may not sound fun to a little kid, but making it into a game can quickly incentivize them.

Give Back All Year Round

It’s always important to teach your children about giving back to the community they’re a part of. But your charitable giving doesn’t need to be limited to the Shenandoah Valley.

A giving mindset should be something you’re always thinking and talking about with your family, even when you’re on vacation or away from home. Encourage them to empathize with anyone they meet, wherever that may be, and talk about ways you can support others in need all year round.