April is Financial Literacy Month, making it the perfect time to brush up on key financial skills that can set you up for success. Whether you are just starting to manage your own money or looking for ways to optimize your finances, understanding the fundamentals is essential. Here are five key finance basics everyone should know, along with practical ways to save money in 2025.
1. Budgeting: The Foundation Of Financial Health
Creating and maintaining a budget helps you track your income, expenses, and savings goals. Here is how to build a simple, but effective budget:
- 50/30/20 Rule – Allocate 50% of your income to needs (housing, utilities, groceries), 30% to wants (dining out, entertainment), and 20% to savings or debt repayment.
- Use Budgeting Tools – Apps like Mint or YNAB (You Need a Budget) can simplify tracking and help you stay on top of spending. Use free online financial calculators to determine if you are saving enough, can afford to refinance your home, and more.
- Adjust As Needed – Your budget should be flexible. If you are overspending in one category, adjust to stay balanced.
Banterra Tip: Open a savings account with higher interest rates than traditional savings to help boost your earnings. Plus, set up automatic savings methods to take some of the pressure off and prevent you from overspending on what is in your checking account.
2. Saving & Investing: Grow Your Wealth Over Time
Saving money ensures financial stability, while investing could help grow your wealth for the future. Consider these strategies:
- Emergency Fund – Aim for three to six months’ worth of expenses in a savings account to cover unexpected costs. Get tips on how to do so here: Building An Emergency Fund 101
- High-Yield Savings Accounts – Earn more interest on your savings by choosing a high-yield account. Explore options for high-yield savings accounts here.
- Retirement Planning – Start contributing to a 401(k), IRA, or Roth IRA early to benefit from compound interest. Learn more about IRAs.
- Diversified Investments – Consider a mix of stocks, bonds, and index funds to spread out risk while building wealth. Not sure where to start? Banterra has Investment Professionals who can help you create an investment strategy to work toward your goals within a set timeframe and budget!
Banterra Tip: Open a Banterra savings account to start growing your emergency fund with competitive interest rates.
3. Credit & Debt Management: Keep Your Score Strong
Your credit score impacts your ability to secure loans, mortgages, and even rental agreements. Here is how to maintain a strong score and manage debt wisely:
- Pay Bills On Time – Late payments hurt your score, so set up automatic payments when possible.
- Keep Credit Utilization Low – Try to use less than 30% of your available credit limit.
- Avoid Unnecessary Debt – Not all debt is bad, but high-interest loans (like payday loans) can quickly become overwhelming.
Banterra Tip: Want to build credit wisely? Meet your favorite new credit card by exploring Banterra’s options, including a Platinum Card with no interest for 18 months2, an Everyday Rewards+ Card that lets you earn 4x points3 on dining, take-out and restaurant delivery and more.
4. Smart Spending: Make Every Dollar Count
Making intentional choices with your spending ensures you get the most value from your money:
- Comparison Shopping – Always compare prices before making a purchase. Apps like Honey and Rakuten help find the best deals.
- Buy Quality, Not Just Cheap – Investing in higher-quality items can save money in the long run by reducing replacement costs.
- Understand Interest Rates – Whether financing a car or opening a new credit card, always check the APR to avoid excessive fees.
Banterra Tip: Choose a credit card that aligns with your spending habits. For example, some credit cards reward you with redeemable points on everyday purchases and lifestyle purchases like dining, grocery stores, gas stations, streaming services, and more.
5. Extra Ways To Save Money In 2025
Small changes in daily habits can add up to big savings overtime. Here are a few ways to cut expenses this year:
- Cancel Unused Subscriptions – Streaming services, gym memberships, or software you do not use can quietly drain your budget.
- Eat At Home More Often – Cooking at home is not only healthier but significantly cheaper than dining out.
- Use Cashback & Reward Programs – Many credit cards and store apps offer cashback on everyday purchases.
- Refinance Or Pay Down High-Interest Debt – Consider refinancing loans to lower interest rates or making extra payments to reduce debt faster.
- Shop Secondhand – Thrift stores, online marketplaces, and refurbished electronics can help you save on big-ticket items.
Banterra Tip: Use Banterra’s online banking tools to track spending trends and identify areas where you can cut costs.
Final Thoughts
Financial literacy is a lifelong journey, and understanding these basics can help you make better money decisions. Whether you are building a budget, improving your credit, or finding new ways to save, every step brings you closer to financial security.
Looking for a place to grow your savings or manage your money more effectively? Banterra Bank offers a variety of financial tools and services to help you achieve your goals. Visit our website or stop by a branch to learn more.
1Securities are offered through LPL Financial (LPL), a registered broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Banterra Bank and Banterra Insurance and Investments Inc. are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Banterra Insurance and Investments Inc. and may also be employees of Banterra Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Banterra Bank or Banterra Insurance and Investments Inc. Securities and insurance offered through LPL, or its affiliates are:
Not Insured by FDIC or Any Other Government Agency
Not Bank Guaranteed
Not Bank Deposits or Obligations
May Lose Value
2Intro APR* for Purchases and Balance Transfers: Platinum: 0% introductory APR for the first 18 billing cycles. After that, 17.74% to 28.74% based on your creditworthiness when you open your account. This APR will vary with the market and is based on the Prime Rate. See Terms & Conditions
34x points on your first $2,000 each quarter, after that 1x points.
April 23, 2025 by Banterra Bank
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