As you know, the provisions from the Credit CARD Act are taking effect. Some of these changes definitely offer better protection, but it doesn’t mean that you can just ignore the letters that come through the mail. When it comes to credit cards, you will always need to read the fine print. Credit card issuers still have a lot of leeway, and you need to be on your guard. But good news first, let’s talk about the positive changes.
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Is personal finance a subject parents should “teach” their children?
With Sara’s imminent arrival, her upbringing is naturally a very hot topic these days. I’m getting way ahead of myself, but I’m already thinking about how we are going to share our values and money habits with her. On the finance side, I know that our biggest gift to her:
- is not a large inheritance but an environment that allows her to grow into a competent individual capable of generating her own income.
- is not just to lead by example but show her the mistakes too and the consequences of those actions.
- is not a bunch of parenting lectures but to show her the beauty of financial freedom.
This takes communication, care, the occasional embarrassment and most importantly, time. This is going to be a journey, but the effort required will most definitely be worth the troubles. I admit that I don’t have a completely comprehensive plan yet, but here are three approaches I will definitely pursue.
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The price of a college education is going up so fast it is hard to keep track of the expenses. Between tuition, room, board, supplies, texts, and other activities, the final price tag can overwhelm most families. If you have more than one child, the burden is even higher. You really need to find the best money management strategies and ways to reduce costs, and here are a few suggestions that will give you a good start.
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Welcome to our reader question series where we feature an inquiry submitted by the MoneyNing community, along with our answers.
Today’s question touches on so many subjects we discuss here on the blog: Marriage and finances, credit, and paying off debt. Show her some support by letting her know how she can handle this delicate matter.
Things would be different if I knew 10 years ago what I know now.
Whether it’s related to issues concerning our finances, career or even relationships, we tend to look back and wish we could do things differently. Opening a Roth IRA as soon as we got a job? Check. Not ever going into credit card debt? Double check.
But what if you were never in debt? Would you hate spending as much if you weren’t a debt slave for years? Would you still max out your Roth IRA if you already have $100,000 in the account? What if you had $100,000 saved by the time you were 25? I bet your appreciation for savings and borrowing is a little different than others around you.
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Many people have a plan to deal with accidents, but where they fail is in actually testing them to see how well they work.
If you built up an emergency fund, that’s great. But, do you actually go through the process of simulating an emergency so you know what to expect when you actually need the money?
Let’s say you need $10,000 in a hurry. How fast can you get that cash, and do you really have the patience and nerve to logically pick out which account to deplete first in times of crisis?
By now, I think you see the need to figure everything out before disaster strikes. Little details like how quickly you can get the funds, whether there are little gotchas like minimum balances all play a role when you actually need to withdraw money.
If you haven’t yet, no worries, but today is a good time to start thinking about the order in which you should deplete your funds. To help, here’s a guide that offers a good starting point as well as some additional information about each account at the time of withdrawal.
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