College and credit cards

August 13, 2009

httpv://www.youtube.com/watch?v=iRFwnktkHLY

The Money Minute-Debit who?

March 3, 2009

httpv://www.youtube.com/watch?v=vqCf1aIGtUU

Life's Lessons in today's nutty world!

February 16, 2009

With the present day economic situation, many people are in panic mode. All the doom and gloom is making even the most optimistic people a bit fearful. With this state of mind, decisions are being made, that may or may not be best.

While we are reacting to the day’s events, our kids are watching us closely. They are observing our behavior, our decisions and our attitudes. Although this normally happens everyday, it is especially important to be aware of this during these challenging times.

Some kids are asking their parents “are we going to lose our house”, “do we have enough money”, “why can’t we buy this, we never had a problem before”. The very core of their stability, their security and their safety is being rattled. For some, especially younger kids, this can be very traumatic.

So, what are we, as parents, to do? In my opinion, we have two choices: One, we bring our kids into the fear, panic and uncertainty mode that seems to be running amuck, or two, we capture an amazing opportunity to empower our kids with money and life skills. I choose the latter.

First, change your attitude. Take control of your fear and panic and step back for a moment. Ask yourself, “what can I do today to change this predicament?” “How can my lifestyle choices be adjusted so that I now prioritize my expenditures?” “What type of resources, skills and talents do I posses that would help me start my own company?” Be creative, look for opportunities (they are everywhere) and know that ‘this too shall pass’.

Whether you realize it or not, this is a perfect opportunity to teach your kids, whatever their age, invaluable life lessons. They should start to evaluate the way they spend their money, especially teens. How much of their money is being spent on fast food or coffee houses? Do they really need that $100 pair of jeans or would a pair at half the price be just as nice?

What percentage of their money is put into a savings account? This is a great opportunity to show them how that savings account may someday get them out of an unforeseen predicament.

Do they have credit cards? If so, show them how credit card abuse has created this environment of debt gone wild. Teach them the correct way to use a credit card and how misuse will cost them dearly.

I encourage you to involve your kids, age appropriately, in the present day circumstances. Let them realize they have control over their destiny by the choices and lifestyle habits they create for themselves. Once they realize they have this power, much of that fear will disappear. My hope is that you realize the same.

Teen Checking Account – Part Three

January 23, 2009

Is A Debit Card A good Idea?

Attaching a debit card to your teen’s checking account can be quite convenient. That and an ID will get them just about anything they need – from food to gas to books, items, and clothes. If you haven’t figured it out already – this can be a good thing or not so good; depending on how well you teach your child to manage this responsibility.

Here are the basics…

A debit card looks and is used very much like a credit card. However, instead of drawing on a line of credit, the money is moved automatically from your teen’s checking account to the merchant.

Generally you can’t use a debit card to spend more money than you have in your account. The card will usually be declined if your teen tries to make a purchase that exceeds the available funds. Of course, some transactions are allowed where the merchant runs the card at a later time. Beware! If these transactions are made for more than the amount of money available to pay for them, it can cost you big bucks in fees – especially if they try to run the card more than once before you are alerted!

Some banks may have age restrictions on issuance of debit cards, and in addition, may charge an annual fee or have fees associated with use of the debit card. You’ll want to check before you open an account to be sure the services offered meet your needs.

Five Reasons to Give Your Teen A Credit Card Alternative

January 12, 2009

Handing your teen a credit card may sound like a good idea. As a parent, you can feel safe that he has something to fall back on in an emergency. It also makes it easier for him to purchase food or other needs when away from home.

But placing the card into the hands of a child without the maturity or experience in money management may get both of you into deep water.

You can have the best of both worlds by using a Credit Card Alternative.

Here’s how…

First – what exactly is a Credit Card Alternative? It’s a prepaid reloadable card your child can use to learn credit card management without having to worry about dire consequences of over spending, etc.

These reloadable cards provide teens and college-age students the financial independence that is so important, and at the same time teaches responsibility.

Your child has the privilege of carrying a card with her name on it.

This will make it easier to present for payment with proper I.D. so that they can pay for necessities at school and otherwise without having to have you there to help.

You won’t have to cringe before opening your monthly statement because she’s spent too much. She can never overspend because when the money runs out, it runs out.

A reloadable credit card keeps parents informed, involved and in control of part, or all of your child’s spending.

The best part is that you determine the amount to be loaded onto the card. Your child learns to live within his means, and you have peace of mind knowing that he is learning independence as he meets his own needs.

Warning: Parents – The Downside to Teen Credit Cards

January 5, 2009

There are definite advantages to giving your teen or college aged child using a credit card. There’s also a downside.

Read on…

Credit cards provide protection against theft of cash. Having a credit card also ensures that your child can purchase items and services they need, when they need them, even if they don’t have enough cash. Credit cards can be lifesavers for paying for gas, car repairs, emergency phone calls, etc.

The Downside –

Credit Cards make it easy to buy things out of a teen’s price range. Often times they don’t have the resources to pay the bill when it comes due.

It can be tempting to buy on impulse. Young people forget they are actually spending money when they use credit cards. They don’t always realize they are spending future income they don’t (and may never) have.

When only paying the minimum balance each month, takes years to pay off the balance. Interest can force them to pay back many times the amount of the original cost of the items they purchase.

When falling behind on paying the bills, it damages their credit history and makes it harder to get loans in the future. This can drastically impact their good credit for years to come.

So if you’re considering allowing your teen to use credit cards, please keep these things in mind. Responsible behavior today can create a brighter financial future for your child tomorrow.

Credit Card Usage and Your Teen – The Upside

January 2, 2009

Plastic. What would we do without it? Credit cards are easy to use – sometimes a little too easy – but not all that simple.

Without proper skills and information, improper management of credit cards can get most people into deep financial trouble.

When used incorrectly, credit cards can get most people in over their heads. When it comes to your teen, things can go from bad to worse pretty quickly.

There’s definitely an upside to using credit cards. Here are some Credit Card Basics to share with your teen or older college-age child:

Theft Protection
Credit cards provide protection against theft of cash. If your teen carries a backpack, it’s likely at some point they’ll put it down. They may leave it at their seat at the library, or when they use the restroom at a restaurant. Most of the time, this is probably safe, but thieves thrive on just such opportunities to steal. Cash cannot be replaced. Use of a stolen credit card can be stopped dead in its tracks.

Safety Net
Having a credit card ensures that your child can purchase items and services they need, when they need them, even if they don’t have enough cash. If your child gets hungry, or if they need to pay for a service, a credit card provides security. Credit cards can be lifesavers for paying for gas, car repairs, emergency phone calls, etc.

Credit History
When managed correctly, credit cards can build up a solid credit history for the future. In these times especially, good credit is essential, and starting early helps your child move responsibly into the future.

Money Management Tool
When used responsibly, teens can end up a smarter money manager. They can learn how to spend wisely. Using a credit card can be a part of overall education as your child moves into adulthood and independence.

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