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Helping Your College-Aged Kids Build Their Credit Score

A good credit score is important in determining whether you’re eligible for loans with affordable rates and higher lines of credit. When it comes to helping your kids understand the importance of building their score, the earlier you start the better. In an interesting study, CreditKarma found that the average score for those between the ages of 18 and 24 was 630. This is considered poor credit; just 20 points lower than a 650 credit score which is considered fair. Even so, college students will have a greater opportunity to improve on financial discipline before entering the workforce. Yet, with tuition and other college related expenses, it can be difficult to stay above water and not enter a spiraling cycle of debt. Teaching them to live within their means, paying credit card balances in full each month and applying for scholarships will assist in reducing the amount of debt they carry once graduated. A few ways to guide them on proper financial management include: 1) Let them Piggyback Allowing your child to become an Authorized User on your credit card account will help improve their score. You’ll be able to keep track of their charges and assist them in building a solid credit history. This ...

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Should You Open a Bank Account for Your Child?

Should You Open a Bank Account for Your Child?

Shortly after I was born, my parents opened a savings account for me.  They didn’t deposit money into it regularly over the years, but occasionally they did add to it. Once I was old enough to have a checking account too, I had at least a few hundred dollars already set aside in savings. But, not everyone follows my parent’s example. Some people open an account shortly after their children are born and save thousands for their future. Others wait until the child is a teenager and able to make and control money themselves. Still others do neither, preferring to let their child handle it on their own after reaching adulthood. Clearly there is some controversy over the matter. Should you open a bank account for your child? 3 Reasons to Open a Bank Account for Your Child 1. Teaches Good Financial Habits One reason you should open a bank account for your child is to teach them good financial habits. Keeping records, balancing a checkbook, and paying bills on time are not skills each of us is born with. These habits must be learned. Teaching kids by example and hands on training is one of the best ways they ...

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Pros and Cons of Buying Life Insurance for Your Kids

Pros and Cons of Buying Life Insurance for Your Kids

The cost of raising a child doesn’t decrease, it only increases. Knowing it takes so much money to raise a child these days, it makes sense that people don’t want to spend extra money unnecessarily. In fact, frugal living has become something many parents are constantly working toward. Obviously, it’s a good goal to have. But, to achieve it, parents are cutting their budgets where ever they can in order to save the most money possible. This makes me wonder where life insurance fits into the picture. Should you buy life insurance for your kids? This is something my parents and I were discussing the other day as they took out insurance on my brother and I when we were little kits. Here are some of the pros and cons of buying life insurance for your kids. Pros: 1. It Can be Inexpensive You can purchase a term insurance policy for a child for only a few dollars per month. For instance, if you put a rider on your own life insurance policy it may only cost you around $5 to $10 each month. 2. You Will Have Funeral Expense Coverage Having life insurance is not a guarantee that all ...

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Should You Pay for Childcare if You Work from Home?

Should You Pay for Childcare if You Work from Home?

Many people who have outside jobs as well as kids dream of having their own business and working from home instead. In their imagination it would be a perfect, utopia where their children happily play, making very little noise in a clean, well-kept home. Meanwhile, they would work in an efficient, relaxed environment free from the corporate machine and difficult bosses who dictate their every move. In addition they would rake in amazing amounts of money and save even more by eliminating their childcare expenses. But the reality is somewhat different.  It’s not easy trying to be both a full time stay-at-home parent and a breadwinner for your family at the same time. You may wonder if you should pay for childcare even though you work from home. Family Dynamics Whether or not you can or should work from home and take care of your children simultaneously depends partly on your unique family dynamics. For example, how many children do you have and what are their ages? If you have only one child who is still very small, you might get along just fine working from home around your little one’s schedule of naps and meals. However, if you have ...

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Lessons for a First Time Mom: The Voice of Reason

Having a baby is one of the most joyous moments of anyone’s life because it’s an amazing life-changing experience. If you’re a first-time mother, you might be a little lost when it comes to shopping and planning for your new arrival. With so many baby products on the market, it can be hard to know exactly what you need. Since babies can cost a lot of money, it’s important to know what items you definitely need and what items you could really do without to save money. Don’t Hesitate To Buy Used One of the most common mistakes first-time parents make is that they buy everything new. When it comes to buying brand new items for your new bundle of joy, things can get pretty expensive. One thing you can do to save a decent amount of money is to buy used. You can buy adorable baby clothing and accessories on www.swap.com for a fraction of the cost of new clothes. Other items besides clothing that are okay to buy used include: Baby toys Shoes Playpens Changing table Rocking chair Strollers When buying used furniture, always make sure there are no loose or missing parts on them. It’s also important ...

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