Hey Kids- Do You Still Want a Credit Card?

Aren’t we in such a wonderful age? Quickly pay for things with a credit card! Never again will you need to save to get something. Now you can buy it and THEN pay for it! Right? Wrong! Credit cards are the real thieves of the money world! People who don’t understand credit cards can go over 100,000 dollars in debt! You need to understand that one thing a credit card is not is free money. And they are also the jewel in the sand! When it comes to interest rates, that is.

Did you realize that credit cards can charge up to 28 percent interest? If you have 100,000 dollars in debt, thats 28,000 dollars you’re paying to the bank just because of your wild spending habits! Now I know that some people out there have good spending habits. Only buying things when they know they have the money. But it’s just plain old unfair for those who save before they spend. With all these rewards you get for using your credit cards, like air miles, or don’t pay until 2008. What rewards do people get for saving their money that aren’t self-earned? It’s kind of like how someone gets praised for quitting smoking, whereas the person who should be getting praised is the one who never started.

If you’re about to give a kid a credit card, you’ll be damned if you charge it to you’re account. As long as it’s not their money they’re spending, they don’t really care how much they spend, or how much more you have to pay then what they bought costs.

Turn 8,000 Dollars Into 20,000 Dollars!

So here we are again with John. Now John has just purchased a new house. He wants to pay off the mortgage quickly and effectively. What should he do? First off, check in advance to see how much money a year you would be able to spare on your mortgage. Then, according to that, see what plan you could handle. Remember, the fewer years possible, the better! Next, take out the mortgage for the house and purchase it. But before you buy a house, ALWAYS have a down payment of at least 10 percent. The more the merrier! But anyways, John manages to pay off 20,000 dollars a year. But unfortunately, mortgages accumulate so much interest that only 8,000 of that goes into the mortgage. The other 12,000 pays off his interest. But, lucky John wins 8,000 dollars in a lottery! Lucky John! He decides that money should go into his mortgage, although he’s already payed his 20,000 dollars. But wait- John has already payed off all his interest! That means that 8,000 dollars goes into paying off his house! So John just saved himself an entire year of mortgage tyrrany! So by managing to pay off that 8,000 dollars in the same year he already payed his interest, he just saved himself from paying 20,000 dollars in another year! Just call me Mr. Magician! So don’t buy that used car that you’ve been eyeing. Do yourself a favour, and buy a 20,000 dollar car instead when your mortgage is gone!

Kids- Earn up to 17 Dollars a Week in Allowance!

Hi there! I just made a power-point presentation to my allowance-givers, requesting that I get a raise from 5 dollars a week to an amazing 12 dollars a week! Pshh, you say. But they almost agreed! They’re still thinking about it though… It just required a little planning and a lot of know-how. Here are some extreme factors that you should use in your allowance pitch. Look around you at other kids allowances and see what chores they have to do to get it and what expenses they have to cover (buy there own presents and toys, or maybe their own clothes).

But remember, when talking about what other kids got, only use people who get a better deal than you! (VERY important) The new “hip” thing is to get an allowance that’s equal to your age. I can vouch for that that, along with my behind-the-scene buddy, Michael, and all his pals, except for the ones who get way more than that. And when asking for a raise, shoot higher than you want, and slowly work your way down. But it’s always nice if you get more than you want, too! Act professional, as in I did a power point presentation after doing a lot of research. Plan out what you’re going to do with your money. My friend said he’d bank 7 dollars a week and save 5 for expenditures. Also, it’s good to make a contract, so that way you’re parents can’t get out of it. But the MOST important thing to remember… DON’T SHOW THIS TO YOUR PARENTS!!!