According to recent news, kids as young as 3 years old can learn about the basic concepts of money – or how to spend it and save it. The following tips have been offered by financial experts and educators.
#1 – Teach Kids about a Coin’s Value
Show kids how much they can save by showing how much is saved by filing up a two-liter bottle with dimes. Usually, the amount ends up being around $500. This visual demonstration shows kids the value of a coin and how to set savings goals.
#2 – Pay Kids Interest on Savings
To promote saving, parents can offer to pay interest on the savings kids keep in their piggy banks. Usually, giving them about 3% interest should suffice. This learning example will help kids learn about the concept of interest and help them control any impulse to spend.
#3 – Use Meal Planning to Show Kids How to Budget Money
Planning meals and shopping is a hands-on approach that shows kids how to shop with intelligence as well as eat healthy. Demonstrate to your kids the value of saving by encouraging them to find the best prices at the grocery.
#4 – Spend A Day Concentrating on Activities Where You Don’t Spend Any Money
Get everyone in the family to find ways to spend a day without spending a dime. For meals, find recipes that you can make with items that are already in the pantry. Visit the library and attend free events in the community.
#5 – Clear Away the Extra Clutter
Research shows that kids who do not have as many toys show more in the way of creativity and take better care of their personal possessions. They also enjoy reading and writing more than kids with too many toys and games. Clearing away the clutter then can show kids how to spend time without having to spend extra money on these accessories.
If you have a good credit rating, you might consider taking out a personal loan before you buy a big ticket item. According to recent statistics from TransUnion, lenders issued a total of $30 billion in personal loans to borrowers with prime and near-prime scores in 2015. A survey by Discover Personal Loans also showed that 60% of personal loan borrowers have top credit scores.
Currently, borrowers are using personal loans for various reasons. For instance, Discover found that 33% of the borrowers took out a personal loan to purchase a car while 17% received the funding for medical costs. Eleven percent of the loans went to consolidate debts.
According to Greg McBride, a senior analyst at Bankrate.com, “. . . [A] personal loan [can] be advantageous.” He added, “You want to cast a wide net and know what your options are.”
Right now the benefit of taking out personal loans bad credit is the low rate, especially for those consumers who are burdened by credit card debt. For instance, APRs begin at 5.95% – 6%. By comparison, the average credit card carries a rate of almost 17% while lower-rate credit cards average around 12%.
A second benefit of taking out a personal loan is speed and convenience. Applicants can receive their cash in as little as 48 hours. On the other hand, a home equity of line of credit can take a month to process while obtaining a new credit card can take about a week. As a result, many consumers like the quick turnaround time.
However, a personal loan is not your only choice if you need additional funding. If you have good credit, you might want to consider a transfer card with a zero balance or a home equity loan or HELOC with its tax-deductible interest rate. While a $30,000 home equity line of credit incurs interest at 4.74%, a $30,000 home equity loan’s interest is around 4.47%.
Potential borrowers should look at the loan choices from online lenders, credit unions and banks. According to TransUnion, online lenders issued around $10 billion in loans during the first part of 2015, which was approximately $2.90 billion more than what banks issued during the same time period.
If you do opt to take out a personal loan, financial advisors recommend that you carefully assess the terms of the various loan packages. While some personal loans feature variable rates, others necessitate putting up collateral or charge up-front fees. Also, caps are featured on the amounts that can be borrowed.
In order to pay off a credit card debt effectively, you need to pay down the balance as quickly as you can while paying the lowest interest rate. According to a recent report on the AOL platform, carrying a card balance can be likened to a patient who rushes into an emergency room and is heavily bleeding. The first thing medical professionals will do is stop the bleeding. That is also the way a spender must attack a balance on his credit card. Instead of stopping the bleeding, you have to stop the charges related to high APRs or interest rates.
In order to do this, financial experts suggest finding a card that offers a 0% introductory APR and transferring your current balance. Try to find a card with a longer 0% intro period. Once you have completed this step, you need to capitalize on the interest-free period to break away from your debt. Therefore, during this time period, make the same payments you made when you had to pay the additional interest on the higher interest cards.
The whole idea of using this approach is to pay off your credit card balance. If you don’t transfer the balance, you can make little progress as, basically, you will fall back two steps for each step you take. That certainly is not a desirable way to manage your budget.
Financial experts recommend the use of a no-balance transfer card, such as the Chase Slate credit card. The card offers 0% intro APR for 15 months and features no annual or balance transfer fees. In addition, the card does not charge a fee for any balance transfers that take place the first two months and removes the interest on balances that are transferred for the full 15-month 0% introductory period. Therefore, financial advisors consider the card an ideal tool to use to regain control of your debt or use of credit.
Financial advisors suggest use of the card for those who wish to pay off their credit card who enjoy a good credit standing. However, the card is not recommended for consumers who pay off their balances early each month. Instead, these credit card users would be better off to choose a rewards type credit card.
One item to note – the Chase Slate card features the most lenient requirements of popular top balance transfer credit cards to-date.