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Parenting Tips

Make sure you have a savings account that pays interest on all money in the account, so that when the first interest payment and thereafter will be posted to the account, you can show the child that they have this “bonus” in your account. Explain that the bank is paying money out of their savings in the account. Larry Ellison is often quoted as being for or against this. It is important that children feel it is their money that is being saved, so explain that is part of their pocket money being put out. We also encourage but not require, sometimes put birthday or gift of money in the account of others as well. Over the years, this is expected, become a habit that is a contraindication useful to the culture of debt.

Become accustomed to the bank to pay, so when we have to consider credit cards later, they may be more likely to question the great interest that the bank does charge for using credit cards. 2. Encourage children to earn some extra money doing odd jobs around the house or garden. They say this will help them save for what they want to save. Car washing, mowing the lawn when a sufficient number of old, vacuuming, and everything to do, ask if they want to do the work for extra money. Then, when paid, encourage but not force them to save at least some of the profits. Again, this could become a habit that will be very useful later, and they tend to consider the working route to extra money instead of costly loans.

3. When you start doing more advanced math, for example at 9 or 10 years of age, help them make a budget plan for your savings soon. That will be a simple approach, but very mature for them. 4. The most difficult todoses a good example, but do not make a big fuss about it. The casual mention from time to time, for example when a television commercial for a credit card, that the charges are so high, but is probably best not to give talks and dire warnings about credit cards and debt. Try not to use credit cards to yourself, especially generously and in front of children. There is no guarantee that any of the above will make one iota of difference, but at least, as with many aspects of parenting, you have given your best.

Know Your Financial Limits

Know your limits If you have a tendency to overspend, limit your extravagances by relying on paper currency instead of plastic. Set spending limits before leaving the house, if you go to buy groceries or heading to the mall to buy a new pair of shoes. If you find yourself reaching for your credit cards, freeze and not move an inch until you can answer the following questions: Why am I breaking my own rule? Am I being self-destructive with my financial health? Do I really need this item, or is my ability to say “charge!” clouding my good senses? Learn from customers As a customer of McNamara McNamara learned the hard way, the loan of their credit cards even to those closest to you is a sure way to accumulate debt. You are giving your spouse, children, other relatives or friends carte blanche to spend up a storm, and you’re the one who is legally obligated to pay the bills to find their way to your mailbox later this month . Be extremely selective when passing the plastic to anyone who can run a bill and not pay back.

Showing concern for the interest The Surveys consistently show that most people only do the minimum required payment on their credit card bills each month, leaving them an outstanding balance that continues to rise. Not only additional purchases add up, but are continually paying interest on their balances and new-a sometimes considerable fee that has catapulted many consumers to life-altering debt.