This Isn't Your Father's Financial Literacy

Assistant Vice President and Marketing Officer, Karen Hart of Skowhegan Savings.

By Karen Hart, Assistant Vice President and Marketing Officer

Long gone are the days when the basic lessons of financial management would do to get people started on the path to sound money management. When many of us went to school, we received a lesson in how to balance a checkbook and told to put a little bit away each week or month into a savings account.

Now, in a time when our personal and global financial systems are increasing in complexity and we are bombarded with an abundance of credit offers, account and investment options, online transactions and multiple debit/credit purchasing tools, the next generation needs more than a causal lesson in how not to bounce a check. In 2009, a survey compiled by Maine Jump$tart found that in at least 40% of schools statewide, less than 10% of the students were receiving any type of financial education at all.

Jump$tart is a nationwide program that brings local organizations together into coalitions to support financial literacy efforts in schools. This group partners with educators to bring lessons into classrooms about creating budgets, credit, saving, investing, managing financial expectations and planning for the long-term.

It is just one of many organizations working to drastically improve the quality and quantity of financial education in our schools. And the lessons don't end after graduation.

Learning to plan for and manage a mortgage, pay for college tuition and save for retirement are lessons that need to be learned, and often re-learned as we age due to changing circumstances - many of us aren't thinking of our "golden years" when we turn 18. The Maine State Treasurer's office provides a list of resources for people of all ages to use to boost their own financial literacy.

Skowhegan Savings gives priority in its charitable giving practices to organizations that work on financial literacy. However, in the coming months, will be working to do even more to partner with local educators and organizations to provide the educational resources that our communities need to make sound financial decisions.

Do You Know the 4C's of Commercial Lending?

Commercial Lending Team Members: (left to right) Jack Ducharme, Debbie Knox and Kurt Maynard.

By Skowhegan Savings Commercial Lending Team, Jack Ducharme, Debbie Knox and Kurt Maynard

The majority of Maine's companies are classified as small businesses - firms that started with an idea and an ambitious entrepreneur. Often, people venture into the business world with a lot of expertise in their company or product, but without the financial background to put their company's best financial foot forward.

Our commercial lending team has over 100 years of combined banking experience and can help build businesses large and small. We look to build relationships with clients - based on individual needs and circumstances and provide resources to help their companies thrive. When we work with companies on lending, there are 4Cs that we look at:

1)      Credit. How well established is your company's credit and/or your personal credit score? Knowing that you've borrowed and paid off previous credit is a plus.

2)      Cash Flow. How is the business doing? Is there enough money coming in to cover the credit and other expenses over the term of the loan?

3)      Collateral. What can serve as insurance in case you cannot repay the loan? Real estate, equipment or other items of value assure the bank that their investment is protected.

4)      Character. At Skowhegan Savings, we get to know our customers, their businesses and put trust into the relationships we build because we know if local businesses succeed, our communities are stronger and we all succeed.

If you are thinking about starting a new business or looking to take your company to the next level, our lending team can walk you through the process and design a custom solution that meets your needs.