More Than Finances

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Debating Credit vs. Debit for Teenagers

Why do Teenagers Need Plastic?

As your children grow older, there might come a point when it becomes really inconvenient for them to pay for everything with cash. Sure, paying with cash means that they can’t spend more than they own and they see the clear connection between buying more stuff and having less money. But, it also means that you need to find the right change for them to buy their bus ticket or pay for their lunch, which isn’t always so easy.

Older teens also start to carry around more cash, either from a bigger allowance or a part-time job. Carrying a large number of dollars bill can be both awkward and dangerous; you don’t want your teen attracting attention by flashing their cash. Of course, once you choose to move to plastic, you’ll have to choose between credit cards vs. debit cards.

How is a Debit Card Similar to a Credit Card?

Before we discuss how a debit card differs from a credit card, remember that both are different from cash. A debit card is like a credit card in that it seems bottomless to many teens. It’s hard for them to see the connection between the things they buy and the money they’re spending. At least with a debit card that’s linked to a checking account or a prepaid debit card, your teen will run out of money in the account if they overspend, reinforcing the link between plastic and cash. This is one of the ways that a debit card differs from a credit card. It’s harder to teach your kids the connection between credit and cash, especially if you are the one who is paying the bill.

Are Debit Cards Safer than Credit Cards for Teens?

If you give your teen a pre-paid debit card or one linked to a checking account, you might feel that debit cards are safer than credit cards because your teen will have to stop spending when he/she runs out of money. But, regarding identity theft and credit card fraud, credit cards are actually safer as they usually have better consumer protection than debit cards. If someone steals the card, then the money that needs to be recovered belongs to the card issuer and the merchants, not you. With both debit cards and credit cards, your teen will have to learn to be responsible for keeping their card safe.

Credit Cards Teach Financial Skills

Another way that a debit card differs from a credit card is that credit cards carry annual fees and interest rates if you don’t pay off your bill. This might seem like a good reason to give your teen a debit card so that you won’t have to pay the costs or risk your teen overdrawing the card. However, your kids have to learn financial life skills at some point. Giving your daughter or son a credit card is a prime opportunity to teach them the importance of paying off a bill in full each month before they can run up a huge debt. Remember, that if he/she overdraws a debit card, there’ll also be a hefty fee to pay.

Build Credit History Early

While you debate credit cards vs debit cards, remember that giving your older teen a credit card that is linked to your account is a great way for him/her to start building credit. Although a debit card is similar to a credit card in many ways, debit cards don’t report to the credit bureaus. By adding your teen as an authorised user on your credit card account, your child can start building his/her credit history while you’re still able to educate them about budgeting and restraint.

The Convenience of Credit

Another way that a debit card is similar to a credit card is that both types of plastic are more convenient for the child to carry than wads of cash. Every parent wants to feel reassured that their child won’t be stuck in an emergency without any way to get home or get to safety. A prepaid debit card doesn’t let your teenager exceed the card limit, but it carries the risk that your teen could spend it all on luxuries and then be without the fare for a cab home. The flexibility of a credit card can be dangerous for overspending, but at least you know that your child always has funds to pay for an emergency.

Credit Cards vs. Debit Cards: Conclusion

The real deciding factor is your teen. If your teen is responsible about money and isn’t the type to easily lose or misplace their card, you might choose to get them a credit card so they can start building credit history and learning to manage credit. On the other hand, a younger teen could be better off with a debit card to help them learn that when they buy with plastic, they are still spending real money.

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When Emergencies Pop Up: Having an Emergency Savings Could Save You Some Headaches

It’s a good idea to have some savings on the side in case of an emergency. This is pretty much common knowledge, but still, it’s hard to believe how many people choose to completely ignore this aspect of their lives. Ultimately, this comes down to a personal choice, but if it’s at all possible, you should definitely think about putting some of your money in an emergency savings fund, and we’ll try to do our best to convince you why.

You could lose your job at any time

Gone are the days of job stability, unless you’re one of the market-leading experts in your field everyone is looking for. Even if you do a good job, the company you work for can run out of business within a single day, leading to all of the employees being let go and having to look for a different job position elsewhere. Having some emergency savings on the side can keep you afloat until you find another job.

Your health is your most valuable asset

Health-related emergencies can cost a lot of money and they’re impossible to predict in advance. But you can certainly plan for them by having enough money saved up to cover the emergency expenses. If nothing bad happens (and let’s hope that it doesn’t), great! That money is still yours to keep. But if you need an expensive surgery all of a sudden during a certain point in your life, you’ll be able to cover the costs without having to compromise on your health.

It’s impossible to tell when your car is going to break down

This is especially true if you drive an older model. Things could get even more complicated if you use it as your only means of commuting to work, leading to further monetary problems, as if the original problem wasn’t enough. In the best case scenario, the repair costs can be minor, but you shouldn’t be counting on it. Also, if you’re living on a shoestring budget, you may not even be able to afford to repair your car, which is why you should start putting some money on the side as soon as you are able to.

Unexpected travel costs can be quite high

Suppose you live in another state than your relatives, and one of them gets terminally ill. Chances are, you’re going to want to find a way to spend as much time with them as possible, which unavoidably involves having to travel to wherever they live. The travel expenses can reach mind-numbing heights pretty quickly, so having some emergency savings available should definitely make things a bit easier.

If all else fails, get a loan

Sometimes all the planning in the world won’t help you, and if the situation calls for it, you’re going to need to get a loan. If you want to seek out one of the best service providers in the loan industry, go to kingofkash.com right now to see what they’re all about.

Conclusion

The concepts we’ve covered today are just the beginning of a long list. By starting to plan in advance, you can avoid many unforeseen headaches in the future.

 

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Buying Your First House – Are You Ready?

Most people are more motivated to work hard when they think about their goals in life like buying their own house. This is especially true for people who are planning to settle down soon and start their own family. So are you ready to buy your first house? This article will help you assess your situation and eventually help you determine if now is the right time to buy a house.

Buying a house is such a major decision thus you need plenty of time to think about it. You should be logical and truthful to your situation or else you might ruin a supposedly happy phase in your life.

Here are guidelines to take into great consideration:

 

  • Do you have a stable source of income – first of the things that you must consider is your source of income. Are you working in a company or do you run your own business? What matters is that you have job security and that your income will be enough to cover your mortgage expenses along with other expenses that comes along in owning a house. It is advisable to ensure that your company is stable as well as your tenure in the company. You should be in the company for at least 2 years before you make any major decisions like buying a house. It is also best to find extra source of income to have a back-up plan.
  • Do you have money for down payment – yes, there are numbers of housing loan to assist you but it is still a must to have the money for down payment. Saving up for the down payment should be your first goal before entertaining further thoughts about housing loan.
  • Will there be anything left as your emergency fund – you should also make sure that you still have funds for emergency situation. Do not spend all in the down payment. If you find your bank account almost empty after the down payment, then it is best to wait for a few more months until you save up for emergency fund.
  • What type of loan will you avail – you must choose the best and most suitable home loan for you. If you are unsure what to avail, it is recommendable to seek experts’ opinion. Know more about premium variable home loan and see if it fits you right. You should look at the payment terms, rates and other requirements.
  • Are you ready to live in your own house – lastly, you must ask yourself if you are indeed ready to own a house. It is a beautiful goal to achieve but it is important that you are ready in all aspects be it financially, emotionally and mentally.

 

You need to find the perfect timing when it comes to buying a house or any other major expenses really. It is very important that you are financially ready for initial and future expenses. Buying your own house will be a lot sweeter when you do it when you are 100% prepared and responsible.

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I Love My Morning Coffee More Than Finances

Almost every morning I wake up and make coffee for my wife and I. When we don’t have anywhere to go right away I get to sit and watch the news, read, or binge some Netflix while drinking my coffee.

This doesn’t really cost me much (coffee is pretty cheap if made at home) but has a huge impact on my life.
An impact that is far more important than finances.

Starts The Day Off Right

My morning coffee starts my day in a relaxed comfortable way. I don’t feel rushed to get to work, nor does it make me feel like I have all day to get things done.

Many times I use this time to plan out my day. How many articles do I need to work on, do I have podcast interviews, should I go sourcing for Amazon FBA?

This morning routine of drinking my coffee allows me to put myself in the right frame of mind and actually accomplish more that day than I would otherwise.

Gives Me Time To Myself

On my “work days” my wife leaves first thing in the morning and I get to drink my coffee all by myself.

I love my wife and spending time with her, however, sometimes I need to be by myself with enough time to relax.

For me, if anyone is around me I can’t get work done. I like people, I like talking to them, hanging out, or just watching TV together.

Put simply my morning coffee allows me to set up my day in a calm relaxed way all to myself.

Find Your Morning Coffee

Do you drink coffee? If you don’t what’s wrong with you?

Seriously though, maybe you don’t have enough time to spend your morning drinking coffee and relaxing. It’s possible that all the time you have is to grab a to-go cup and hit the road to work.

But, do you have something that you do that relaxes you and puts you in a good mood?

Can you spend a portion of your lunch break reading or listening to music, or doing anything that is simply there to help you focus and relax.

Maybe you don’t have time until the evening and you prefer a scotch and a book, or tea and a book. Maybe just binge-watching your favorite television show is the most relaxed you can be.

Whatever the case is, find your “morning coffee” and make sure that it isn’t taken away. Hold on to it, treasure it.

Because there are so many things more important than finances, and having time to yourself to get things you want to do done, is definitely one of them.

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How Saving $10,000 A Year Is Possible

How does an extra $10,000 sound to you? Well unless someone is going to hand you that much money, it may be better for you to start saving $10,000 in a year.

Break It Down

Step one would be to find out exactly how much money we are talking about. I know it seems like a simple question, $10,000, however that sounds too large.

Instead cut it down smaller.

Saving $10,000 a year would take $833 a month, $192 a week, or $27 a day.

Depending on your income even those numbers can seem a bit overwhelming, so let’s see how we can make even these numbers easier to attain.

Cut Costs And Save The Difference

Saving money seems the same as losing weight. We all know we need to eat less and exercise more but doing it seems impossible.

The same is true in saving money, we know we need to spend less but how do we do it?

Start small. Don’t try to do everything at once, if all you can do to start is have one less coffee a day do that.

Those small victories become larger ones. Then cutting coffee out altogether isn’t too much, moving to a smaller apartment becomes the next step. Bringing your lunch every day is common, and eating in instead of going out to eat seems normal.

You know those things will help save money, but doing all of it at once is difficult, try to start one good habit a week.

With each new habit still spend that money, just not on things. Put that money in your savings account. The first week may only be $3 (one less cup of coffee) but by week 5 your saving $15 a week.

Increase Income And Save

You can either view this as your next step, or something to do at the same time.

Increase your income by asking for a raise, starting a side hustle, or selling things you already have.

A raise can be difficult depending on your job and what the company has to spend, however, if you spend some time gathering statistics as to why you are worth more it will help.

If you want to start a side hustle it can be something as simple as driving for Lyft or Uber. Or you can start freelancing, create a business around your skills, start a blog, the list is endless and has been discussed many times.

What’s important though is that you not spend that money. The goal is saving $10,000 in a year, if you have a side hustle that makes your $27 a day that alone can accomplish your goal.

Increasing your income while increasing your savings can make it that much easier.

Conclusion

It will require sacrifice, but it is achievable.

You may have to move somewhere smaller, where you don’t want to live. Or eat food that isn’t as good but provides the needed nourishment. You may have to work the majority of weekends in order to save.

But, at the end, saving $10,000 in a year won’t feel that hard and you’ll have quite the nest egg.