Teach Your Children The Financial Skills They Need
By Mike Wayman
Children do not understand how credit cards work. When parents use a credit card to pay for something it can appear as magic to a small child and the concept of what money is can be beyond their grasp. As a parent, teaching kids at even a very young age about money can help them to understand and make good choices as they grow older.
Explain to your child how a bank account is something that you have to put money into as well as something you can take money out of. Show them that even though you pay with a credit card at the store, the bill doesn’t come until later for what you paid for.
Make the experience fun. Show them how you do your grocery shopping. Teach them comparison shopping and explain how you pay for it. This will make grocery shopping fun for them, and they will want to learn more about it.
Giving an allowance is an excellent way to teach kids how to save for something, rather than buying it now. Show them how they can save half their allowance for something, and spend the other half. Showing the benefits of saving money and how they can buy bigger purchases in the future will help them get past the need to buy something right now.
Good Purchases For Your Credit Card
By Mike Wayman
Credit cards are tempting for me, as is the mall. For some reason the second I see a pretty dress or great shoes I think I need to own the specified items. And, possessing a credit card just makes it worse. I know I should leave my credit card at home when I go to the mall. Maybe even put it in the freezer. However, there are some good things to use your credit card for.
First of all, a credit card is a great item for buying things that you actually need. It is important to determine the difference between needs and wants. Many times they are different.
Secondly, when determining whether you “need” that item, keep in mind that you probably do not need to use your credit card for items you cannot afford. You also do not need it for everyday items like food or clothing. Those can be purchased with cash. Basically, look out for the situations that arise when there is a need to pay for something that does not happen everyday. When that happens, put it on your credit card. And, when you charge those items to your card, make sure to pay your monthly payment on time!
5 Tips To Get Your Credit on the Road to Recovery
By Mike Wayman
I love lists. It is nice to know there is a guideline for me to follow – some sort of path to help me to get things accomplished. When it comes to improving my credit score, the first place I would look for guidance is a list of instructions. A list is functional, and it makes the most sense when it comes to planning the steps I need to take to improve my credit. Here are five of the most important things you can do to help improve your credit.
1. Look after your payment history. Make sure that you are paying your bills on time. If you have missed payments, try to get them current. And, if you did pay of a collection debt, it will not remove the amount from your credit report.
2. How much do you owe? Try to keep the balance low and pay off your debt. Also, do not close unused credit cards in an effort to raise your credit score.
3. Length of your credit history. Avoid opening a lot of new credit cards over a short period of time.
4. Tips for new credit. Check and see what your credit score is. And, work to re-establish your credit history with new accounts that you will pay off on time.
5. What type of credit to use? Use only the amount of credit that you need. You should own a credit card, but use it responsibly.
