Bloggy Business Today

For most of us who have already experienced how it feels to have a credit card in tow, chances are you would be getting negative feedback. The only thing that credit cards provide is death sentences to deeper debt and apparently this is what most credit card aspirant fail to consider. For people aching to have a credit card, it is not a privilege; it is a curse to which you may find yourself in a deeper bind to where you are actually now.

Credit cards are nothing more than plastic cards for the status symbol aspiring consumer. They can help you as far as making purchases as you wish. Sadly, when your bill comes out, settling them becomes a problem, especially if you choose to pay via the minimum payable amount that is usually located on the billing. If you want a piece of advice, don’t fall to the trap of constantly paying the minimum due amount. It only brings a smile to your credit card company since you are paying only for interest and not for the actual amount you have used.

Using a credit card is easy. You can just swipe it as often as you wish and charge everything to your account. But while you feel you are getting past the financial issues as far as you needs are concerned, it is always the time where you have to settle your account that many dread. Normally you would get that before the month ends and if you fail to settle it on time, be ready for some additional costs in the form of penalties which start to accumulate if you don’t pay on time.

These days, don’t be surprised if the credit investigation people become lenient. For one, the decline in business affects them as well. Majority of the credit card applicants are first time potential card holders. This is the target of most credit card companies since technically; they lack the proper knowhow as far as owning a credit card is concerned. If you don’t believe me, just pause for a while and check out why most people end up on the black list as far as credit investigation bureaus are concerned.

So if you feel that your ego has been deflated when you have a declined credit card application, head the other way. Be proud since it is one headache you can do without. Credit cards are indeed a curse and not a privilege. They are easy to use but definitely hard to settle. Do not add to your debt problems since a credit card can really ruin not only your reputation but also your finances.

This is basically a post aimed at the younger generations to start wising up with the financial management in their everyday chores. The current situation we are in right now is perfect to show them how hard life is and if they are not wise in managing their finances, they may as well find themselves scampering for financial aids and burdened with debt in the process.

“Youngsters have no real concept of where money comes from and many college-age children can’t even balance a checkbook. While students continually learn and relearn American history, few are educated about its financial systems. With these severe limitations, it is important that parents start early in teaching their children the basics of financial literacy”

Here are some financial tips for parents:

1. Lean to say “no.” There is no need for you to buy your children everything they want. If you do, they will never learn the value of a dollar. If you need an excuse, tell them that your financial advisor advised against the expenditure. It’s hard to argue with an outside advisor.
2. Cash, not credit. According to the 2007 Charles Schwab Teens & Money survey, one teen in three (33%) would prefer buying things with a credit card than cash. This represents a 61% increase over last year (18%). In a world that hypes credit cards on TV and makes getting credit sound easy, it is often difficult for parents to teach their children that “cash is king.” Teach your children that if they don’t have the money for it right now, then they can’t really afford it. Teach them the value of paying off the full credit card balance each month so as not to accrue high monthly fees.
3. Make them work for it. If your children get an allowance it shouldn’t be just because they exist, it should be for their contribution to the household. Explain the differences between household chores that are routinely expected of them, like clearing the table and making their beds, and services for which they can expect to be paid, such as bathing the dog or helping their sibling with homework.
4. Refrigerator finance. In her book, It’s All About The $Money, Honey!, Ms. Woods advises to let your children know what paid-for chores they have been assigned for that week and what the monetary value is for each one. Then, post the list of chores on the refrigerator and let your child check off each chore as it is accomplished.
5. Cash, please. Pay your children immediately for their work in one dollar bills placed in their “pay envelope.” They will value the lesson of actually counting out the dollars they earned.
6. Open a savings account. Try to make savings fun for your children. Each time they deposit either birthday money or allowance, show them their statement and explain how they are accruing monthly interest. By making the process interactive your children will feel like they have more responsibility, which will make savings more fun and appealing.
7. The rule of 3. Once your children are paid, now it is your responsibility to educate them on how to divvy up the proceeds. It is important to teach them the “rule of 3″ — first they give 10% to charity, then they should save 10% in a savings account and what’s left over, they spend. It’s a powerful life lesson.
8. Enter the stock market. It’s never too early to learn about the stock market. What’s their favorite company? By virtue of their lifestyle children are already familiar with some of the biggest and most successful companies on Wall Street. How about McDonald’s, Apple or Nike? On each birthday, buy your children one share of their favorite stock and check the prices monthly so they will see how their investments are doing.
9. Encourage part-time summer jobs. Taking that first step into the job market can be scary, but with a little parental guidance, it could be the first step towards financial freedom for your children. A part-time job will not only help your children learn the value of money, it prepares them for understanding the real financial world. They will learn that Uncle Sam is their partner and that FICA is more than just a silly acronym.
10. Learn the basics. Since most of our school systems do not teach financial literacy, it is up to us to go elsewhere to learn the basics. The www.themint.org is packed with fun financial literacy activities, games, challenges, quizzes and tests for students and teens, tips for parents, and entertaining programs and lesson plans for teachers. The Internet and library provide great teaching tools; you can find helpful information on financial web sites such as www.finance.yahoo.com and www.money.cnn.com/pf as well as books such as It’s All About The $Money, Honey!, available at www.Amazon.com .

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