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Managing Money Info
-Financial Strategies

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-Financial Emergencies
-Money Issues

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-Teaching Kids Credit

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-Cut Grocery Store Costs
-Avoid Wasting

-Why You Should Budget
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One of  the biggest problems kids face when they go to college is a lack of financial knowledge. Most parents will send their child off to school with a brand new checking account, credit card and/or debit card. Parents think that just because their child is prepared academically, that they how to use and manage their finances wisely. Unfortunately this is not the case.

It is very important that you educate your child about financial responsibility as best as you can. Below are some tips that will help you achieve this.

Checking Accounts
When opening your child's first checking account, do not sign up for overdraft protection. Although it may seem like tough love, there are some very powerful lessons to be learned by means of bounced checks and fees associated with such. Learn more about checking accounts.

Credit Cards
Before you grant your child the use of a credit card, lessons must be taught and guidelines must be established. You must make it clear to your child that if they abuse the credit card, that they are going to lose use of the credit card.

Set strong rules about using the card. For example, you may want to limit credit card use for 'emergencies' only. However, adults and children have very different interpretations of what an emergency is. That being said, it may be a good idea for your child to begin their credit card experience by using a secured credit card. A secured credit card will only allow money to be spent that has been placed in the credit card account. Meaning, there is no revolving credit line to be use. Therefore, a secured credit card will eliminate the possibility of spending money that they do not have, thus falling into debt. Wired Plastic™ + Rewards Stored Value MasterCard®  is our choice for a secured card.

If you decide to allow use of a regular credit card for your child, teach them about credit card balances. Make it clear to them that it is very important that they pay-off their credit card balance, in full, on time, every month. A credit card is a great means of building credit. However, a credit card is also easy to use abuse. Falling into debt via a credit card will hurt your child's credit severely. The Orchard Bank Mastercard® is our choice for a credit card for building credit.

We feature two calculators that depict the impact of credit card debt. A good idea would be for you to have your child try both of these calculators:

  1) Credit Card Interest Calculator - Lets you determine how much interest you will pay for your credit card debt.
  2) Pay-Off Goal Credit Card Calculator - Figure out how much you will need to pay for your credit card debt every month if you want to eliminate your debt by a certain time.

Bailing Your Child Out
No matter how hard you try and teach your children to be fiscally responsible, there is still a strong likelihood that your child is going to fall into debt. Should you help your child out if they get in over their head? This decision is going to be up to you. Your child may learn a valuable lesson as a result of having to pay off the debt that they have inadvertently incurred. However, there is the chance that by the time your child starts to take control and responsibility of their debt, that the damage is irreversible. Therefore, it may be the responsibility of the parent to step-in before it is too late. No matter what your final decision is, a learning experience for your child can come out of it.

*** Once your child starts utilizing credit, getting a copy of their credit report regularly is very important. You can learn more about credit reports and how age plays a factor in your ability to obtain credit and loans.

** Auto Saving Tips! - Learn how to save while driving, from buying a car, purchasing auto insurance, buying gas to commuting!

Building Credit for College Teens
Student Auto Loans
Loans for Students with No Credit
Spring Break Loans

Tips for Parents:
Buying Your Child Their First Car
Co-signing a Mortgage



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Managing Money Info: Financial Strategies | Financial Emergencies | Money Issues | Allowances
Teaching Kids Credit | Saving Money | Savings/Investing Calculator | Trimming Expenditures
Cut Grocery Store Costs | Avoid Wasting | Why You Should Budget | Developing a Plan
Mistakes to Avoid | Money Spending Challenge | Checking Accounts Money

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