Setting Effective Savings Goals for Children

Setting effective savings goals is one of the most valuable financial lessons you can teach your child. Whether they’re dreaming of a new bike, tablet, or their first car, helping kids plan and save for big purchases builds skills like discipline and money management that last a lifetime. At SouthStar Bank, we believe early financial education lays the foundation for confident, capable adults, and a great way to get started is with simple, intentional goal-setting.

Why Savings Goals Matter for Kids

Children often live in the moment, making it difficult to understand delayed gratification. Setting a savings goal introduces the concept of planning for the future and working toward something meaningful. It teaches discipline, patience, and the value of money; all lessons that extend far beyond childhood.

By giving kids a clear target, such as saving $200 for a new gaming console, they can better understand how small, consistent contributions add up over time. This hands-on experience makes a much greater impact than simply telling them to “save their money.”

Start with a Clear, Achievable Goal

The first step in teaching kids to save is helping them define what they want and how much it costs. Break the goal into manageable steps. For example, if your child wants a $100 item, show them how saving $10 per week can help them reach that goal in 10 weeks.

Visual aids can make a big difference. Consider using a savings chart, jar, or app to track progress. Seeing their savings grow keeps kids motivated and engaged!

Teach the “Save, Spend, Share” Method

A simple way to introduce financial balance is the “Save, Spend, Share” approach. Encourage kids to divide any money they receive, whether from allowance, gifts, or small jobs, into three categories:

Save for long-term goals
Spend on immediate wants
Share for giving or charitable causes

This method not only promotes saving but also helps children develop thoughtful spending habits and encourages generosity.

Open a Shooting Star Savings Account

One of the best ways to reinforce savings habits is by opening a dedicated savings account. The Shooting Star Savings account at SouthStar Bank provides a safe place for your child’s money to grow while introducing them to real-world banking.

Having their own account helps kids feel a sense of ownership and responsibility. It also opens the door to conversations about interest, deposits, and financial growth, all key concepts for long-term success! As the parent or guardian on the account, you can also access their accounts and track their progress.

Celebrate Milestones Along the Way

Saving for a big purchase can take time, especially for younger children. Celebrate milestones to keep motivation high. Whether it’s reaching the halfway point or sticking to their savings plan for an extended period of time (like a full month), recognizing progress reinforces positive behavior.

Small incentives, like matching their savings contributions, can be a great way to motivate your child and encourage consistency!

Turn Lessons into Lifelong Habits

Helping kids set and achieve savings goals builds confidence and a feeling of financial independence. They learn that with planning and persistence, they can reach their goals on their own. Offering these lessons early sets them on a path toward financial stability and success.

At SouthStar Bank, we’re proud to support families in teaching smart financial habits. Ready to get your child informed about finances? Visit or reach out to your local branch today and get your child’s financial journey started today!

Long-Term Wealth Building with a Self-Directed IRA

Building long-term wealth requires a well thought out approach, a Self-Directed IRA (SDIRA) can offer you powerful tools to help you reach your goals! At SouthStar Bank, we believe in helping individuals take greater control of their financial future, and a Self-Directed IRA can be a key part of that journey.

Why Use a Self-Directed IRA for Wealth Building?

Greater Investment Control
Unlike traditional IRAs, a Self-Directed IRA gives you direct control over your investment decisions. This means you can leverage your knowledge and expertise in specific markets, whether it’s real estate or small business investments, to build wealth more intentionally.
Diversification Beyond the Stock Market
Diversification is a cornerstone of long-term wealth building. With the freedom to invest in alternative assets, you can reduce your reliance on the stock market and create a more balanced portfolio. This can help mitigate risk while positioning your retirement savings for steady growth.
Tax Advantages
Like traditional and Roth IRAs, Self-Directed IRAs offer valuable tax benefits. Depending on the type of account you choose, your investments can grow tax-deferred (traditional SDIRA) or even tax-free (Roth SDIRA). Over time, these tax advantages can significantly increase your overall returns.

Popular Investment Options for SDIRAs

A Self-Directed IRA with SouthStar Bank allows you to explore a wide range of investment opportunities, including:

Real Estate (residential, commercial, raw land)
Private Equity/Companies
Precious Metals (gold, silver, and other approved metals)
Tax Liens

These alternative assets can provide consistent income streams and long-term appreciation, helping you build wealth over time.

Key Considerations

While Self-Directed IRAs offer flexibility, they also come with important rules and responsibilities. The IRS has strict guidelines regarding prohibited transactions and disqualified persons. Working with a knowledgeable financial institution like SouthStar Bank can help ensure compliance while maximizing your investment potential.

How SouthStar Bank Can Help

At SouthStar Bank, we provide the tools, guidance, and local expertise you need to confidently manage your Self-Directed IRA. Our team understands the complexities of alternative investing and is committed to helping you navigate your options with clarity.

Whether you’re looking to diversify your portfolio, invest in real estate, or explore new opportunities, your local SouthStar Bank team is here to support your long-term financial goals.

If you’re ready to take the next step, connect with SouthStar Bank today and discover how a Self-Directed IRA can help you build lasting wealth for the future. Contact with our IRA experts today at 512.384.3948 or IRA@southstarbank.com!

Where Should You Put Your Tax Refund?

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Tax season can feel like a financial reset, especially if you are receiving a refund. While it may be tempting to spend that extra cash, making a strategic decision about where to place your tax refund can help you build long-term financial stability. At SouthStar Bank, we encourage customers to think of their refund as an opportunity to strengthen their financial future.

Here are some of the best places to put your tax refund, and how each option can support your goals:

1. Money Market Account: Flexibility with Growth

If you’re looking for a balance between accessibility and higher returns, a money market account is an excellent option. These accounts offer competitive interest rates and limited check-writing, making them ideal for those seeking both growth and flexibility.

2. Certificates of Deposit (CDs): Lock in Higher Returns

If you don’t need immediate access to your refund, consider placing it in a Certificate of Deposit (CD). CDs typically offer higher interest rates than standard savings accounts in exchange for keeping your money deposited for a fixed term (e.g. 3 months, 6 months, 12 months, etc.).

A great option for customers saving toward a specific future goal that does not require immediate funds, such as a home down payment or a large purchase.

3. Retirement Accounts: Invest in Your Future

Your tax refund can also be a powerful tool for long-term growth. Contributing to an Individual Retirement Account (IRA) or boosting your retirement savings can provide tax advantages and help build wealth over time.

Even a one-time contribution can make a meaningful difference thanks to compound growth!

4. Health Savings Account (HSA): Tax-Advantaged Savings

If you are eligible, consider contributing to a Health Savings Account. HSAs offer triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. These features make HSA accounts a highly efficient place to store part of your refund.

5. Split Your Refund for Multiple Goals

When weighing your options for where to place your refund, remember that the IRS allows you to split your refund across multiple accounts, making it easy to allocate funds toward savings, investments, and everyday needs all at once.

For example, you might place a portion in savings, invest some into retirement accounts, and keep a small amount for immediate expenses.

Your tax refund is more than just extra cash; it’s an opportunity. Whether you’re building an emergency fund, saving for the future, or exploring investment options, choosing the right place for your money can have a lasting impact.

At SouthStar Bank, we’re here to help you make the most of every dollar. Visit your local branch or connect with one of our banking professionals to find the right account for your refund today!

Welcome Jeremy Kimbrell! New Branch Executive & Senior Vice President of Lending

Jeremy Kimbrell has joined the SouthStar Bank Bee Cave branch as a Senior Vice President of Lending and the Branch Executive. Jeremy received his Bachelor of Business Administration degree from the University of Texas at Austin. Holding nearly two decades of experience in the banking industry, Jeremy is well-versed in several lending specialties, including single-family construction, land development, and commercial lending. Throughout his career, Jeremy has established himself as a trusted source for multiple builders and investors across the Austin area. He enjoys community banking because it lets him work with his clients on multiple fronts, helping them succeed both personally and professionally.

As the Branch Executive of Bee Cave, Jeremy looks forward to helping clients accomplish their goals, whether that is helping them purchase a new home or a new office building for their expanding business. He strives to be the community banker that his clients can come to for all their needs.

Outside of work, Jeremy works with Adults Independent and Motivated (AIM), a local group that supports young adults with special needs, helping them achieve independence. When he finds time to himself, Jeremy loves to spend time with his wife and children, accompanying his kids to dance competitions and attending UT football and baseball games whenever they get the chance!

Welcome to the team, Jeremy! NMLS# 1035315

Congratulations Keely McCarthy! New Vice President of Marketing

Keely McCarthy has been promoted from Marketing Manager to Vice President of Marketing. Keely graduated from Sam Houston State University with a degree in Public Relations and Advertising and a minor in General Business in 2020, receiving Magna Cum Laude honors. Beginning as an intern at SouthStar Bank six years ago, Keely has thrived at every step of her professional journey. She excelled in her initial full-time role as Marketing Coordinator, receiving the Rising Star Award in 2021. Her performance led to her promotion to the Marketing Manager role in 2023. Her exceptional leadership and expertise in the Marketing Manager role have been recognized on multiple occasions, receiving the Rising Star Award in 2023, the Trail Boss Award in 2024, and the President’s Award in 2025. Keely looks forward to continuing to provide creative marketing solutions for both the loan and operations teams, as well as creating unique initiatives and campaigns to support the Bank’s overarching goals.

In her role, Keely will head several tasks, including ad management, event execution, social media management, email marketing, and just about everything in between! Keely’s diverse skill set and expertise have prepared her for any challenge thrown her way.

Outside of work, Keely is a big sports fan and follows several teams, her favorite being the San Diego Padres. She also enjoys reading, sewing, doing puzzles, and discovering new TV shows and movies with her fiancé.

Congratulations, Keely!

IRA Tax Filing Guide: What You Need to Know for Tax Season

Tax season can be confusing, especially if you have retirement accounts like an Individual Retirement Account (IRA). Understanding how IRA tax filing works can help you avoid costly mistakes, maximize potential tax benefits, and stay compliant with IRS rules. Whether you have a Traditional IRA or a Roth IRA, knowing how contributions, withdrawals, and reporting requirements affect your taxes is essential.

At SouthStar Bank, we believe financial education is an important part of planning for a secure retirement. Here’s what you need to know about filing taxes when you have an IRA.

How IRA Contributions Affect Your Taxes

One of the key benefits of an IRA is its potential tax advantages.

With a Traditional IRA, contributions may be tax-deductible depending on your income and whether you or your spouse is covered by a workplace retirement plan. If you qualify for the deduction, your IRA contribution can reduce your taxable income for the year.

For example, if you contribute $6,500 to a Traditional IRA and qualify for the full deduction, your taxable income may be reduced by that amount when filing your federal tax return.

A Roth IRA, on the other hand, works differently. Contributions are made with after-tax dollars and are not deductible. However, the major benefit comes later: qualified withdrawals during retirement are generally tax-free.

Understanding these differences is key when preparing your IRA tax filing each year.

Reporting IRA Contributions on Your Tax Return

When you file your taxes, you may need to report your IRA contributions. Traditional IRA contributions are typically reported on Form 1040 and may require Form 8606 if you made nondeductible contributions.

Your IRA provider will send you Form 5498, which documents your IRA contributions for the year. This form is often sent after the tax filing deadline because you can contribute to an IRA up until the tax deadline for the previous year. Even if you receive it later, it’s important to keep it with your tax records.

How IRA Withdrawals Are Taxed

If you took money out of your IRA during the tax year, you will receive Form 1099-R, which reports the distribution to both you and the IRS.

For Traditional IRAs, withdrawals are generally taxed as ordinary income. If you take money out before age 59½, you may also face a 10% early withdrawal penalty, unless you qualify for an exception.

With Roth IRAs, qualified withdrawals are typically tax-free if the account has been open for at least five years and certain conditions are met.

Required Minimum Distributions (RMDs)

Another important part of IRA tax filing involves Required Minimum Distributions, or RMDs. If you are age 73 or older, the IRS requires you to take a minimum amount out of most Traditional IRAs each year.

These distributions must be reported as taxable income on your tax return. Missing an RMD could result in a significant penalty, so it’s important to stay on top of these requirements.

Plan Ahead for a Smoother Tax Season

Keeping detailed records of your IRA contributions, withdrawals, and tax forms can make tax filing much easier. Proper documentation also helps ensure you avoid errors that could lead to penalties or double taxation.

At SouthStar Bank, we’re committed to helping customers understand their retirement savings options and make informed financial decisions. If you have questions about IRAs, retirement planning, or managing your accounts during tax season, our dedicated IRA team is here to help guide you every step of the way!

You can contact your SouthStar Bank IRA experts today at ira@southstarbank.com or 512.384.3948!