Teaching Kids About Personal Finance

How money works isn’t the easiest thing in the world to pick up, especially if you haven’t had too much life experience.  And things like personal finance and money management aren’t taught in schools, so if parents don’t teach their kids these things, kids are forced to just pick it up on their own.

This might sound like an easy way out, but kids can easily pick up bad habits that can lead to some serious financial problems.

The best way to avoid this is to sit your kids down and teach them everything they need to know.  That doesn’t mean explaining the entire US monetary and banking system to a 5 year old but explaining how simple and important concepts work.  This knowledge can go a long way.

Credit

Getting started on building credit early can help your kids get great interest rates on important things like car loans and mortgages when they need them.  But the benefits of having good credit are nothing compared to how you get good credit and what good credit means. Continue reading

How to Use Payday Loans Properly

Today payday loans are essential. Quick loans will save you in a financial jam. You can borrow unsecured loans much easier than other loans, even if you have bad credit. According to the Consumer Federation of America (CFA), payday loans have reached $40.3 billion by 2011. Despite the growing popularity of payday loans, there are people, who consider these short-term loans dangerous because if used improperly, they can contribute to debt. But in reality these fast loans are great financial tools if you handle them properly.

Here are a few tips for using payday loans wisely:

  1. Payday loans were created for emergencies and extraordinary expenses like when you need to repair a car or pipe burst and you urgently need money. These loans are not intended for luxuries or things that are not necessary. You shouldn’t take out payday loans to use them on vacations or other non-essential expenses.
  2. Remember that you shouldn’t consider payday loans as an additional source of income; they should, instead, be used like an advance on your paycheck. Thinking of your loan as an early paycheck, you prevent reckless spending and will use it to pay for unforeseen expenses until you receive your salary. Continue reading

Learnvest: Empowering Women (and Men) by Helping Them Understand Money

They say that money is like water; no matter how hard you fight it, it just flows out of your hands.  But it doesn’t have to be that way.

We all have the tendency to spend money without thinking about it, ending the month with bigger credit card bills than we could pay, but this isn’t the way to go.  That’s how we end up with no financial safety net.

And it’s not like we intend to spend all of our money or make any big purchases or splurges, but somehow by the end of the month our entire paycheck has pretty much been spent.  If only there was something that could help up spend a little less by reminding us what he have already spent that month and what we have spent that money on. Continue reading

How to Spend Less

It’s really easy to just buy things.  You can rationalize away any concern, even a financial one, and you can pretty much talk yourself into buying anything, whether or not you need it.

Advertising, marketing, and creative and beautiful displays don’t exactly make it any easier to say no.

But the truth is there are other forces at work here.  Without you even realizing it, things at stores as arranged and presented in a way that encourages you to buy things that you don’t necessarily need.  In fact, there’s a whole branch of psychology dedicated to studying why people buy things and how to get them to buy more things that they might not necessarily need. Continue reading

Bankruptcy

Generally, people consider bankruptcy to be bad. Often time’s bankruptcy is more than an option, it’s a solution.  With the help of bankruptcy consumers can solve their financial problems.

The advantages of filing for bankruptcy:

  1. Bankruptcy is considered to be the most efficient way to cope with financial problems. When you declare bankruptcy, insolvency will give you the opportunity to do away with most your debt. Bankruptcy will provide you with relief while you get rid of this heavy burden that is debt.
  2. Often times bankruptcy is the only way to protect your house, car, or other property from unsecured creditors on the condition that you don’t pawn your property after. Filing for bankruptcy means not having to worry about creditors.
  3. Bankruptcy is intended to protect your income. And if your employer wants to lower your salary or your Social Security, bankruptcy will protect your rights.

Bankruptcy can help you to eliminate or transform secured debts. You can find different options in the Bankruptcy Code on how to deal with such loans and creditors. A lot of debt can be reduced or even eliminated and you can extend the time of payment and deal with defaulted debt.

In most cases, a debtor can maintain control of at least one property.

After applying for bankruptcy, people will stop trying to repossess your things.  Moreover, you can live in your home while the bankruptcy process and have enough time to find other accommodations in case of a negative outcome. If creditors don’t follow these rules, they will face fines or worse.

At times, with the help of bankruptcy you can escape arrest for nonpayment or debt default. Also with the help of bankruptcy you can regain driving license if your debt is because of a road accident.

After bankruptcy, you have a right to get small loans for reestablishing your credit. Actually, personal loans will improve your credit score. As a result, you could take advantage of this situation and draw conclusions about your failures and mistakes and start a stable financial life.

Some experts say that the number of bankrupts will increase annually. Contrary to their assumption, according to the Federal Reserve Research, people who file for bankruptcy have decrease from 2 million in 2005 to 1.5 million in 2010.

The most common types of bankruptcy:

  • Personal bankruptcy for individuals is Chapter 7 and Chapter. 65% of Americans choose Chapter 7.
  • Organizations and companies file for Chapters 7 or 11.

In ancient times when the bankruptcy hasn’t existed yet, if a debtor couldn’t pay, he with his family would be taken away in “debt slavery” for 5 years. After appearance of the term “bankruptcy” in some eastern countries, the obligor, who was declared bankruptcy more than 3 times would be sentenced to death.

In fact, the first Statute of Bankrupts was adopted in 1542 by the British. In the United States bankruptcy pertains both to people and companies, whereas in the Unites Kingdom, only individuals can be declared bankrupt because firms acquire other legal forms, such as liquidation or administration. However, according to The Consumer Credit Counseling Service (CCCS), numbers of insolvent individuals has beaten the record and increased by 0.7% compared to 2009, reaching 135,089 in 2010 in the UK. In the United States the term “bankruptcy” refers to companies and people.

People come to England because they want to be declared bankruptcy there because of English “soft” laws. The British government has created favorable environment to grow the economy and for entrepreneurs or small businesses to quickly overcome financial difficulties.

Reasons to declared bankruptcy in the UK:

  1. Bankruptcy saves you time. So, in less than 12 months, you will be liberated from your debt in the UK.
  2. Your property won’t be confiscated to repay debt. In reality, you have the possibility to keep all your household items, regardless of their value.
  3. English bankruptcy laws (particularly England and Wales) are less harsh than in Ireland and other countries in the United Kingdom. It’s no wonder that a vast majority of people go there to file for bankruptcy.
  4. Since May 29th 2000, if you are declared bankrupt, your pension fund will be secure and won’t be impounded. State pensions are safe as well.

In spite of its bad reputation, bankruptcy can help you to eliminate most of your debt. The number of people who have filed for bankruptcy has surpassed the record in the UK. Most people find that bankruptcy is the most efficient and the cheapest solution of their problems, so they consciously choose it.

Post by Anna Lia.

A Look at Debt

Debt is a bad thing; there is no question about it.  Debt means owing money to a person or an institution that you have to pay off.  Until your debt is paid off, your money is not truly your own.

These days we associate debt with people who earn less money.  After all, it stands to reason that people who make more money don’t need to take out loans and would be able to pay off their credit card bills every month.  But this kind of thinking isn’t necessarily accurate or true. Continue reading

Making Money With Social Media

Nowadays, social media is an integral part of our lives, not just for relationships, but for business too. More and more firms use social media as their most important marketing tool because of its efficiency, convenience and prevalence.

The influence of social media continues to grow, and that’s why you should understand how it works and how to use it correctly to obtain success and financial stability.

Andreas Kaplan, Professor of Marketing at the ESCP Europe Business School classifies social media as: Continue reading

How to Start a Business

Nowadays more than 70% of Americans are considering starting their own businesses. Entrepreneurs and small business owners create jobs and improve the economy. According to the American Express Open Small Business Saturday Consumer Pulse 2011, 93% of US consumers consider it vital to support small businesses owners and 89%-deem independent business positively impacts on jobs and taxes. 73% of clients deliberate purchasing from or using the services of small businesses or firms in order to support small businesses.

Unfortunately, many small businesses have failed, as business owners enter this field unprepared.  Because of the amount of failure, people consider starting their own business to be very risky.  But if done correctly, a small business can have a great chance of succeeding.

Continue reading

Is your identity safe online?

As we spend more and more time online buying, selling, dating and sharing, more and more of our personal information can be found floating around in cyberspace.  It’s on a hard drive sitting in a warehouse; it’s floating on a puffy cloud, or it’s being extracted by a cyber-criminal who wants nothing more than to use the information illegally.

The more you use the internet the more vulnerable you are to having your identity stolen.  So, how can you increase your safety?  We have a few tips.

Increasing your online security
1.    Visit reputable websites.  If you want to order/buy something from a website, make sure they’re reputable.

2.    Look for updated privacy policies and third party verified sites.
Don’t buy from sites sites that are not third party verified (TRUST-e and GeoTrust, for example).  Also, do not buy from sites that do not have a posted privacy policy and or have an out of date privacy policy.  If that date on the policy is from five years ago, proceed with caution. Continue reading

How to Fly for Less Money

Air travel is great.  You get to go to interesting and exotic places that you’ve never been before or get to visit loved ones who live far away from you, and you get to do it in way less time than any other method of travel.

The whole experience is encompassed with a great sense of adventure.  Air travel lets you go literally anywhere you want in the world.  But the one thing that can rain on this parade is the expense of air travel.

Air travel is expensive to begin with.  Plane tickets are rarely cheap.  But when you factor in tax and additional airline fees, travel can be downright unreasonable.  And it’s getting even worse.  New fees are constantly being introduced, and the more expensive fuel is, the more expensive. Continue reading