Tag Archives for " estate planning "

Odds are you’ve had financial stress at some point in your life. If you really think about
it, most of the financial stress we suffer is ultimately our own fault. We spend more than we should and save less. We buy things we don’t need and fail to give money the
respect it deserves. One big purchase on a credit card can result in payments that
never seem to end.

If you could go back in time and eliminate all of your financial errors, your life would
probably be very different. Though it’s never too late to make improvements, it’s much easier to prevent challenges than it is to solve them. You can help your child avoid such financial challenges.

You can give your child the gift of financial wisdom.

Consider discussing these ideas with your children:

1. Consider the real cost of what you’re buying. A $500 stereo doesn’t just cost $500. Invested at 10%, $500 could grow to almost $27,000. This is commonly referred to as opportunity cost.
   • If you spend your money on something, that money isn’t available for anything else, like investing.
2. Show your child how to use a simple savings calculator. These free calculators are available all over the internet and are a great way to show what can be accomplished by consistently saving a little money each month.
3. Teach them about debt. The average household has over $7,000 in credit card debt. When kids go to college, they’re inundated with credit card offers from the first day on campus. Imagine how much better your lifestyle would likely be if you were debt-free. Teach your child not to fall into the debt trap.
4. Start building their credit. Consider co-signing for a credit card, if they aren’t old enough to get one by themselves. Look for a card with a low rate and no annual fee. Teach them how to use the card wisely
   • An alternative is to take out a loan together. Banks will loan money to anyone if the loan is fully secured. With a small deposit in a savings account, a comparable amount can be borrowed easily.
   • Most young adults are unable to purchase a home for several years, often due
     to a lack of credit history. Get started early.
5. Pull their credit report. After some credit building activities, teach your child how to view their credit report and check for errors. The majority of credit reports have errors, typically not in your favor.
6. Teach them how to save. Most of us pay our bills, have a little fun, and then plan to save whatever is left. There’s rarely ever anything left with that approach. Teach your child to immediately save 10-20% (or more) of every dollar earned. Think about how much money you’d have if you had done the same since you were 18.
7. Teach them to be giving. Allow your child to choose a charity and contribute to it. For a young child, it might be just a few dollars. You child will ultimately come to see that giving affects them as much as it does the person or organization receiving the money
8. Make them work during the summer. All teenagers want more money. Give them the chance to earn it. Their perspective will change.

Money is an important part of life. Money provides security, opportunity, and a greater ability to help others. You have a lot of control over the financial habits your children develop. Help them to have a financially successful life.

Are you reaching your financial goals? Do you even have financial goals? Regardless of your current financial situation, there are several strategies you can use that can make you rich. There are no guarantees in life, but you can greatly increase the odds in your favor. Intelligent decisions and consistent behavior are all you need.

These strategies needed to create wealth are available to everyone:

1. Have multiple streams of income. One of the most important aspects of becoming wealthy is the avoidance of financial disasters, such as losing a job. It can take years to replace the savings you might spend in just a couple of months. The more sources of income you have, the more financial security you’ll enjoy. You’ll also earn more.
2. Live within your means. No one can outspend their income indefinitely. Bankruptcy is the common result. Regardless of your income, it’s necessary to spend less than you earn.
3. Invest in yourself. We’re not talking about purchasing a sports car. Spend money on education and self-improvement. Develop your talents and learn valuable skills. Money spent wisely on self-education and enhancement can provide greater returns than any stock you could ever own.
4. Set and pursue financial goals. While a few people luck their way into wealth, setting goals is a more reliable strategy. Do something to pursue that goal each and every day. Measure your results regularly.
5. Accept responsibility for your financial future. It’s your responsibility to create your own prosperity. After all, no one else is going to do it for you. 
6. Be patient. Unless you find a way to secure a very large income, wealth requires time and patience. You don’t have to do anything spectacular to amass a spectacular fortune, but it won’t happen overnight. Keep your eye on the long-term outcome and be patient.
7. Invest consistently. If you’re not saving a portion of your paycheck each month and investing it as well as you can, you’re limiting your ability to build wealth. Build to the point where you’re saving at least 15% of your take home pay. Learn about investing so you know how to invest those funds wisely. 
8. Consider taxes. Taxes have a huge effect. Whether you’re purchasing a home or thinking about selling a stock, taxes matter. Make investment decisions with an understanding of the tax implications. Make full use of tax-deferred retirement accounts, too.
9. Focus on needs and let go of wants. Before making any purchase, ask yourself if you need the item or service. How many purchases have you regretted in the past? Do you really need a larger TV or your own espresso machine? As much as possible, limit spending to your needs and invest the remainder. 
10. Know when to stay and when to go. Nothing lasts forever. There is a time to exit a job, an investment, or a business. Staying too long with any of these things will cost you financially sooner or later.

Financially successful people have left many clues for you to follow.

Adopting certain behaviors will all but guarantee financial abundance. Choose a few of
these strategies and begin applying them to your life. Continue this personal
transformation and be persistent and consistent. Building a fortune takes time.

Paying bills every month can be pretty monotonous, yet overwhelming. If you have the responsibility of taking care of your own bills, you can definitely relate! Unfortunately, managing bill payments is an essential part of adult life.

Paying your bills each month is essential so continue to have the services you need and the credit you’ve earned without interruption. However, that doesn’t mean you are always on top of getting those bills paid.

How can you best manage recurring expenses?

These five commandments for managing bill payments can help you stay on track:

1. Focus on necessities first. In many cases, the challenge with bill payments comes from trying to manage expenses. You have a limited income, so you want to ensure the money is spent most efficiently. To do that, ensure you’re paying for necessities first.
• Since utilities like electricity and water are most important, ensure you take care of those before anything else.
•  In order to keep the roof over your head, be sure to allocate the correct portion of your earnings for the rent or mortgage payment.
•  If you feel like you’ll lose your mind without cable, how about just adjusting the package you have? Instead of 100 channels, why not cut it down to 50?
•  Look into getting things done without taking on an additional payment. Use your community center gym instead of the expensive club in the city.
2. Review bills for accuracy. You’d be surprised how often billing companies make mistakes! In order to pay only what you’re supposed to, constantly review your bills.
• If printed bills arrive in the mail late, switch to electronic versions. Those are usually available as soon as they’re generated.
•  Call the billing company to clarify any charges you’re uncertain about.
•  Document when you request to add or remove services.
3. Setup recurring payments. Sometimes the challenge lies in trying to remember when to pay bills. If that’s the case, and if the bill totals are usually the same each month, setup recurring payments.
•  Setup direct deposits from your bank account to the account of the billing company. You won’t have to worry about remembering when to pay. Just ensure there’s enough money in the account to cover the bills!
4. Pay bills online. If time is a real issue for you, avoid standing in line to pay bills. Many companies facilitate online payments. Make use of it!
5. Know your due dates. Being able to keep track of due dates can help you manage bill payments.
•  If the dates for different bills vary, you can know how to use your money. It’s not always necessary for you to pay all your bills at one time. Put your money to other uses as long as you know the money will be available before the bill is due.

These are pretty easy commandments to follow to effectively manage your bill payments. Remember it’s your responsibility to maintain a positive history of payments. Use these strategies and you’ll be surprised at how easy it can be!

Do you feel like your credit card debt is insurmountable? The good news is that, no matter how high the mountain appears, you can climb it and pull yourself out of the metaphorical hole you may find yourself in.

Here are some ways to tackle that debt and bring it down to size:

1. Only buy what you can afford. The best way to keep debt from becoming a problem is to avoid the problem altogether from this point forward. Rather than splurging on a fancy piece of electronic hardware, just wait and save up for it.
•  By staying within budget and paying off your bills every month, you don’t need to worry about debt piling up on top of you.
•  You can still get out of debt and feel the sweet relief of being debt free by changing your mindset from “having it now” to one of enjoying it even more when you have the money.
2. Pay off the lowest balance first. Financial advisor Suze Orman often advises people in debt to take care of the higher interest debts first. In general, this is a good way to go, however, if you have a credit card with a balance of only a couple hundred dollars, it would also be beneficial to knock that one off right out of the gate.
•  You can eliminate a whole payment, save on interest charges, and put that money towards another bill.
3. Prioritize bills by interest rate. In the long run, paying off the higher interest cards first will save you the most money. It’s usually the interest that keeps knocking you back. By taking out the higher interest cards, you’ll feel a greater sense of progress when paying your bills every month.
4. Consolidate. One of the more overwhelming aspects of being in credit card debt is constantly being reminded of it with so many bills from different cards. One way to fight back is to consolidate your debt. You can do this by either taking out a loan from a bank or transferring the balance to another card.
• If you recently got a new credit card, you can transfer a portion of the balance to that. This will save you a bit of interest since most cards will put that balance under the introductory rate.
• If you take out a loan, you can pay off several of the cards and reduce the amount of mail you receive. It’s less daunting psychologically to receive one big bill as opposed to a bunch of tiny ones.
5. Convert to cash and debit only. One of the best ways to keep yourself in debt is to keep using your credit cards. They’re convenient and it’s easy to justify their occasional use by saying that it’s only a soda or a tank of gas.
•  Those tiny charges add up quick! A dollar here, a few more there, and you’ll negate the payments that you’re making in a very short amount of time.
•  Paying with cash will help you develop new spending habits. By the time you get your debts paid down, you’ll have disciplined yourself to the point where you no longer put yourself in that situation. Debt is a problem that happens to nearly everyone at some point.

Even wealthy people find themselves overextended by debt.

Even if you’re working on a shoestring budget, it’s possible to pull yourself out of debt. With discipline, focus, and hard work, you can find yourself relieved of the mounting pressures

The information in your credit report can affect many areas of your life, so it's important to keep track of what's in it. If you find information that is incorrect for any reason, it's your job to dispute that information in order to have it removed from the report. Only you are looking out for your own credit rating, so it's to your advantage to pay attention to your report. 

There are actually three credit reports: from Experian, Equifax, and Trans Union. Monitoring all three of these credit reports is essential because the information can differ from report to report. 

Follow this process to ensure your credit reports are accurate:

1. Request your credit report. The fastest way to get a copy of your credit report is to visit AnnualCreditReport.com, where you're entitled to receive a copy of each of your three reports for free once per year.
   • If you haven't been following what's in your credit reports, start out by requesting all three reports at once, because the information they contain can actually vary quite significantly, depending on who has reported what to them. The differences from one report to the next can amount to a significant credit score difference.
   • Once you've obtained and corrected past information in your reports, you can stay updated by spreading out your credit report requests to every 4 months. Simply request your report from one of the credit reporting agencies every 4 months, and over the course of a year, you'll have received all three.
   • Of course, correct important mistakes in all 3 of them if you find an error.
2. Verifying information accuracy. Comb over all three credit reports carefully in search of incorrect or inaccurate information. Any detail that isn't right should be changed, even if it's just a wrong address, because these pieces of information can have an impact on how lenders view you.
3. Contact the credit reporting agency. If you find information that needs to be changed in your credit report, the next step is to contact the agency in charge of that specific report. It can take some time to dispute incorrect information, so the sooner you begin, the better.
4. Writing a dispute letter. You can find sample dispute letters online that will give you a good starting point for writing this letter. Be professional and include all of the necessary proof that the information is incorrect so the credit agency can make the change.
   • Include copies of any documents that support your position. Do not include the originals.
5. Disputing an item. Typically, the credit agency (Experian, Equifax, or Trans Union) will contact the company that reported the false information, and an investigation will follow to determine whether or not the information is inaccurate.
6. Add accounts to your file. If not all of your credit accounts are being reflected on your credit file, then you may want to ensure that missing information is added. You can achieve this by contacting the companies that aren't reporting your credit history and asking them to begin reporting for you.
   • Not every company is going to want to report this information for you, so it can take some time for you to have this information added to your account. However, if you're diligent, you should be able to have the information added.
7. Following up. Follow up on your requests if you don't hear anything from the credit reporting company within 30 days, as this is the normal length of time for an investigation

The power is in your hands to keep your credit report in good standing. If there is inaccurate information in your credit report, or if important information is missing, then take the steps to get the information corrected. Your next job, home, or loan may depend on it.

Your credit score not only determines whether or not you can get a credit card, mortgage, or auto loan, it’s also a critical factor in determining the interest rate you have attached to those items. A low credit score can cost a lot of money over your lifetime. 

Not everyone is aware of the many factors that determine a credit score. It’s easy to make assumptions that seem logical, but are actually false. Acting on incorrect beliefs is a sure way to make a critical mistake.

Save money and make your financial life easier by avoiding these seven credit destroyers:

1. Carrying a big balance on your credit cards. While having a lot of debt is never a good idea, using more than 30% of the available credit on your credit cards hurts your credit score.
   • For example, if your credit limit is $10,000, your score drops if your balance is over $3,000. This is commonly referred to as the “utilization ratio.” Keep yours under
2.  30%. Paying late is a huge factor in your credit score. Experts estimate that 35% of your credit score is determined by your payment history. Any late payments will lower your score.
3. Closing credit cards is a credit score killer. This is related to your utilization ratio. By closing a credit card, you lower the amount of credit that’s available to you. Your credit score is also sensitive to the length of your credit history.
4. Defaulting is an obvious credit score mistake. When you fail to pay back a loan you owe to a lender, you can lose as much as 100 points from your credit score. Make every effort to pay back your loans. 
   • If you’re struggling, contact the lender and attempt to make other arrangements. They can be very flexible if failing to do so means not getting their payments.
5. Applying for too much credit. Everyone needs to have some credit, but applying for too much has a negative effect on your score
   • Each time you apply for more credit, your potential lender makes an inquiry of your credit history.
   • Each of those inquiries lowers your credit score.
   • Avoid sending in every credit card offer that shows up in your mailbox.
6. Not having a credit card at all. Many people are getting rid of their credit cards in an effort to avoid debt. Unfortunately, this does nothing to help your credit score. 
   • Experts believe that the ideal credit score includes 2-3 credit cards. Credit diversity can account for as much as 10% of your credit score. 
   • Credit cards help to keep your credit history current.
7. Co-signing for someone else can be a mistake. Putting your credit on the line by co-signing for someone else is a huge risk. Their failure to stay current with the payments can destroy your credit score.
   • You’re equally responsible for that debt, so any late payments or defaults will show up on your own credit report.
   • You can even be subject to collections and lawsuits. If a lender won’t do business with them, you might want to reconsider before co-signing.

By simply avoiding these common mistakes, you can’t help but have a great score that will guarantee you the lowest interest rates, even if your credit score is poor now. It may take time to boost your credit score, but it’s definitely possible.

Give your credit score the amount of attention it deserves. It makes life a lot easier!

When you’re newly married, you’ll probably face some new challenges and might not feel that you’re ready for these new responsibilities. A lot of young couples don’t anticipate how different managing their finances can be once they get married.

It’s important to understand how merging your finances will impact the way you spend and manage money. There are common mistakes most couples make, and you can avoid some difficulties by being aware of these errors. 

These are the five most common money mistakes young couples make:

1. Not communicating about money. It’s crucial to talk about money and agree on how you wish to spend and save money as a couple. You’ll find yourselves fighting over money issues if you avoid this for too long or if one spouse isn’t upfront about money.
2. Failing to build your savings. You might feel that you’re not earning enough to save money, but most couples can find at least a little to save by cutting back on the more flexible expenses. Cover your bases and prepare for a brighter future by saving for these events: 
   • Starting a family. Going through a pregnancy and raising a baby is expensive!
   • When you’re ready to settle down, you’ll need a down payment to buy a home.
   • Children’s education. College is expensive and it is never too early to start 1saving.
   • Health expenses. Open a health savings account if you don’t have a comprehensive health insurance policy.
   • Retirement. Being young means you can take more risks when you invest and saving up early will help you retire more comfortably. It also gives your savings time to grow from the interest you’ll earn over many years.
3. Failing to effectively manage debts and credit cards. Some couples encounter challenges because one person wasn’t upfront about how deeply they’re in debt or because they use their credit card too often. Even though both spouses still have separate credit scores, both should be responsible for managing debt and credit: 
   • Set some goals and strategies to raise both your credit scores.
   • Decide what your credit cards should be used for and how much you can charge on them.
   • Make paying off your loans or outstanding credit card balances a priority.
4. Buying a house before you’re ready. You’ll see benefits in waiting until you’re financially stabile before purchasing a house. There are still some costly mistakes to avoid once you are ready to buy a home:
   • Buying a house that is too expensive to fix or maintain.
   • Applying for a mortgage you can’t afford.
   • Not making a down payment that is large enough to lower your mortgage.
   • Failing to take advantage of the help available to first-time buyers.
   • Buying a house before taking the time to raise your credit score.
5. Not looking for ways to strengthen your financial standing. You can set some financial goals and do your best to save money, but most young couples eventually need to find a way to earn a higher income to meet their goals.
   • You could, for instance, make some plans for your career, move to a city where you can get better jobs, or decide to go back to school.

If you think you’re making any of these mistakes, it’s a great time to schedule a money discussion. Make plans to bypass these mistakes and get started on the right track for a bright financial future together.

It’s possible to raise your credit score with some simple changes. Credit scores affect insurance rates, loan interest rates, and other important financial products. A higher score can lead to a brighter financial future.

Consider using these ideas to raise your credit score:

1. Piggyback on good credit histories. You can use a family member’s or friend’s good credit history to help you.
   • If you add yourself to an account in good standing, your credit score will go up.
   • Most credit cards allow users to add family members and distant relatives to their accounts.
   • You’ll be an authorized user on the account and able to make purchases and pay the bills.
2. Keep old accounts open. It’s important to keep older accounts like credit cards open because they influence credit scores. Credit scores can decrease if you close accounts.
   • Account age also matters. Scores are affected positively by older accounts because they show a history of maintaining credit.
   • Plus, these old accounts add to the amount of credit you have access to, thus lowering the percentage of available credit you’re using, which raises your score.
3. Set up auto-payments. Automatic payments are a convenient way to pay bills every month. They’re also an easy way to avoid a late payment and a fee. Auto-payments can help improve your credit score by preventing these issues
4. Pay credit card bills more than once a month. Credit scores rely on a debt utilization ratio. This ratio compares how much debt you have to the size of your credit limit.
   • One way to improve credit scores is to lower the debt utilization ratio.
   • Paying your credit card bills more than once a month can help you improve the score by decreasing the ratio. Extra payments lower your debt while increasing how much credit is available during the month.
5. Ask for good-will deletions. It’s possible to ask credit reporting agencies and lenders for good-will deletions. 
   • Late fees, late payments, or unpaid bills can affect credit scores. A good-will deletion is a request to remove these items based on a prior good history. This method works best if you’re a long-term customer with few issues.
6. Avoid pre-approved offers. The pre-approved offers that come in the mail usually require a credit check, and multiple credit checks affect your credit score by lowering it.
   • It’s also beneficial to avoid creating too many accounts. It’s easier to manage a smaller number, so you’re less likely to make mistakes.
7. Avoid new utility accounts. Utilities like gas, electricity, and phone services require credit checks that lower scores. It’s better to transfer utilities to a new address instead of opening new ones.
8. Remember library fines. Did you return all of your library books? Unpaid fines can decrease your credit score, and libraries can send unpaid bills to collection agencies
9. Avoid online quote comparisons. Online quotes for insurance or loans count as inquiries on your credit score. These credit checks affect the score each time you ask for a quote.
   • Getting quotes from multiple websites can lead to many credit checks. It’s best to narrow down the options before getting a quote, so your score isn’t affected.
10. Establish long-term credit. Instead of switching to a new company that promises lower rates for a few months, consider staying with the previous one.
    • Credit scores go up based on positive, long-term relationships with lenders.
    • It may be tempting to take the lower credit card offer from another company to move balances, but your score may suffer.

It’s possible to raise credit scores with several strategies. Careful planning is an important part of getting a higher score.

College is expensive! Sixty percent of those who graduate from college with a bachelor's degree also graduate with around $26,000 worth of student loans. For those who go on to pursue a postgraduate degree, the debt can be significantly higher. 

Luckily, there are some ways to reduce, and in some cases eliminate, this debt.

Loan Forgiveness Programs 

There are several programs you may want to consider that can eliminate part or all of those loans:

1. Volunteer for community service. If you apply to the AmeriCorps program, you can help people in your community while also reducing your debt. The program will repay part of your loans based on your service. 
   • The Peace Corps and Volunteers in Service to America also offer loan forgiveness programs.
2. Military service can help you pay for school. If you enlist in the military before you start college, you can get help paying for your schooling. 
   • There are some loan forgiveness programs available if you enlist after you’ve graduated.
   • Speak to a military recruiter about a plan that could work for you.
3. The profession you choose may help you pay down your debt. If you pursue a career in teaching or the healthcare field, speak to your employer or Human 1Resources Department about programs to reduce or pay off your debt from student loans.

Financial Hardship Programs 

If you don’t have a job, earn very little, or your loans are a large percentage of your earnings, one of these plans may be able to help:

1. Income Contingent Repayment Plan (ICRP). This program applies specifically to Federal Direct loans that aren’t PLUS loans. 
   • ICRP bases the amount of your monthly loan payments on how much money you earn. The payments can be as little as a few dollars per month. Even better, once you’ve made these small payments for twenty-five years, any debt remaining on the loan is forgiven.
2. Income Sensitive Repayment Plan (ISRP) for your FFEL loan. The amount of the loan, your income, and size of your family all determine how much you will need to pay each month.
   • The payments you make have to be at least enough to cover any interest that accrues, and the loan must be paid off within 10 years.
3. Income Based Repayment Plan (IBRP). This plan is available on both FFELs and Federal Direct loans. IBRP offers flexible payment options for twenty-five years. After this time, the rest of the loan is forgiven.
   • In order to qualify for this plan, you can’t be in default on your loan payments.
4. Hardship Repayment Plan on Perkins Loans. This plan has a minimum payment of $40/month. There are also extensions under certain circumstances, such as if you’ve been without work for a while or if you have a long illness.

More Programs - No Financial Hardship

These options can also help you, even if you’re not having hard times financially:

1.  Loan consolidation. Combine several high-interest loans into just one, lower-interest loan. This option allows you to get a lower interest rate and cut down on multiple payments.
2. Defer your student loans. If you're experiencing economic hardship, a period of unemployment, or if you’re going back to school, you may be allowed to defer your student loan payments until a later time.
3. Get a loan forbearance to give yourself more time to pay off the loan. A forbearance is a temporary reduction in payments.
   • A lender may grant you a forbearance if you’re unable to pay off your loan after a certain number of years. They may also grant a forbearance if your payments on your student loan are greater than 20% of the money you earn each month or if you run into a number of other unforeseen problems.

These tips and payment plans can help you manage and pay off your student loans. Consulting with a financial expert can bring to light additional ideas that can help, too.

As the world becomes more complicated, you have the responsibility to guide your children the best you can. One of the most trying subjects to teach your kids about is how to appropriately manage money.

More specifically, teenagers develop great interests in the almighty credit card. Credit cards are not to be taken lightly at any age, but especially during adolescence. How can you educate your teens about the use of credit cards? 

These strategies will help them learn to use credits cards responsibly:

1. Ask where the money will come from. Insist your teens know specifically where they’ll get the money to pay off the credit card charge before they charge anything. 
2. Encourage responsibility. Explain that your teens are responsible for paying their credit card bill on time. In addition, require them to pay off their credit card balance within 30 days. Discuss how interest charges and other fees work and that paying such fees is like giving away their money for nothing.
   • Take care to listen to how your teen takes part in this discussion. If you determine your teen requires more maturity or understanding of the information, avoid giving them a credit card and explain briefly how you arrived at your decision.
3. Consider starting with a limited balance credit card. Have your teenager save money until a certain amount accumulates, like $100.00. Then, accompany them to your banking institution or a store to obtain a pre-paid card for the $100.00.
   • Even though your teen paid for the card with their own money, it’s a good 1idea to tell them to make every effort to stretch out their use of the card. A benefit of this method is that your child saved the money upfront before actually charging items. 
   • They can, therefore, understand that the credit card balance is tangibly their own hard-earned money. The downside of this method is it may not teach your child the responsibility of charging only what they can pay off within the next month. 
4. Provide a credit card to replace weekly allowance. Consider converting their allowance to a monthly credit card balance. This method allows them to learn about credit card management. Consider this example:
   • You normally pay your teen $30 cash weekly allowance. When they turn 16, state you’ll now provide a credit card rather than the $30 cash weekly. Explain that they can charge up to $120 per month (4 weeks times $30 equals $120) as you'll pay up to that amount monthly to cover their credit card purchases.
   • Stress that if they charge over $120, they must come up with the difference to pay off any balance over the $120 when the statement arrives.
   • If they charge over $120 for the month and are unable to come up with the difference, they must surrender the credit card until they pay you the difference owed (even though you’ll go ahead and pay it off to avoid monthly fees).
   • Using this method to teach your teen how to handle credit cards is a helpful lesson in managing their money with limited funds. Your teen learns to limit spending to stay within their means.

Teaching teens how to handle credit cards is challenging.

The good news is that if you start early with your kids about how to earn, save and spend money, they’ll easily progress to understanding the above concepts with your help and guidance.

Praise your teens' efforts when they manage their finances and credit card issues well. You’ll build their confidence for the future when you teach them how to handle credit cards wisely