Helping Kids Get Smart About Money

Archive for the ‘Credit Cards’ Category

Having the (Money) Talk Before College – Guest Post | Jean Chatztky Blog

August 15th, 2013 | Add a Comment »

Having the (Money) Talk Before College happening at your house?  No?  Well it’s time and should take place before your student leaves.  Consider the tips I offer in my guest column on Jean Chatzky’s blog this week!

Here’s the link:  http://bit.ly/17Nv9r5

 

Parents – Run from Justin Bieber’s New Prepaid Debit Card

January 18th, 2013 | Add a Comment »

No. No. No. Are we really having this conversation AGAIN?!?  I read last week that Justin Bieber is now promoting a prepaid debit card.  Seriously?!? 

Parents – step up here if this conversation comes up.  Run from products like these.  They only benefit Mr. Beiber – not you, not your child.

Here’s the article for those who are interested:

Justin Bieber Promotes Prepaid Debit Card By Renee Morad,Yahoo Finance

 

What’s good (and bad) about Suze Orman’s prepaid card

January 26th, 2012 | 1 Comment »

Suze Orman – thank you.  Your prepaid card is a good thing for the millions of unbanked adults out there who have no other palatable financial options.  Your fee is low and you give them an option to only using cash, and having to pay to have checks cashed. You are also doing a good thing by getting Transunion to gather data on these prepaid cards in the hopes that one day, this data could help get these cardholders some kind of credit score that could bridge them to the traditional world of credit.

BUT, Orman claims that her prepaid card is a good way to teach kids about money.  I disagree. It is not the best option for our kids.  Nope, not by a long shot. (more…)

Helping Teens Understand How to Build Credit

January 24th, 2012 | Add a Comment »

This week a teacher in North Dakota reached out to me regarding a question that was raised in her classroom about how someone builds a credit rating if they don’t apply/use a credit card.  A great question that not only teens have, but also many adults.  Here’s my response:

Establishing credit does not take a long time- so there is no real emergency to do so.

More important is to get it right – to use it wisely and understand it’s purpose and role in your life.  My suggested approach would be for students (teens) to get a checking account and tie a debit card to the account.  Manage that wisely for a period of time – don’t spend more than you have. (That will not establish credit – but it will give you some practice managing cash flow – and learning to live within your means.)  Next would be to apply for a student credit card with a $500 limit and manage that wisely. Choose the card wisely – all cards are not equal.  Increase your limit when you NEED to only for things you NEED.

This will help you and your students.

I thought the following story from The Wall Street Journal might be of interest as well:

“This Is a Credit Card—Use It Wisely”  - The Wall Street Journal

Martha Stewart Radio interview – Part 2: Allowance

September 8th, 2011 | Add a Comment »

Last month I had the opportunity to be a guest expert on the Martha Stewart Living Today Radio Show (Sirius XM Radio channel 110) to talk about kids and money.  There were some terrific questions that we got from callers during the show, so we have made videos from various segments in case you may have missed the show.  The first video I posted a few weeks ago covered the many reasons why it is important to start young when talking about money with kids.  (Click here to watch that first video.)  Below is the second video in the series where I fielded a caller’s questions about how to handle the topic of money and budgets with kids during divorce, how to approach an allowance, wants vs. needs, etc.


Have you had a similar situation?  If so, how did you handle it and what worked best for you and your kids?  Or do you do you need some advice for you and your family?  Please add your comments/questions below or send me an email: Susan@msgen.com

The “Shopping Barbie” Story (video)

June 24th, 2011 | Add a Comment »

It is amazing what mimics children are. Even as babies, they learn to smile and say their first words from our example.  So it shouldn’t come as a surprise that our children’s money management will generally reflect our behavior.  From Day One we are teaching our children our attitudes about money through our actions—as well as through the influences we allow in their lives.

Toys teach lessons, too.  As parents, we are the teacher who will most impact our child’s life. But watch out for interlopers—such as toys and advertisements—that will try to teach our children bad money habits.

Years ago, I was in our basement with my girls and spied two “Shopping Barbie” dolls. Each doll came with all the shopping essentials, including a Barbie-size credit card.  It was a tiny—but very realistic—MasterCard. Each time Barbie swiped her card through the cash register, you would hear: “Cha-ching. Credit approved.” (I guess credit cards are never rejected in Barbie’s world.)  It still gives me chills thinking about the message this “shop til you drop” doll portrayed.  I used one of these Barbies in a keynote I did a few years ago to make the point that marketers aren’t waiting to reach our kids with a message about spending, demonstrating how essential it is that parents begin a conversation about money early so the right message gets through.

Let me know if this message resonates with you and your family too.

Have a great weekend!

All credit cards are not alike – especially for kids.

May 11th, 2011 | Add a Comment »

All credit cards are not alike and first time credit users need basic information before they sign up.  Take a look at this for more information about the pros and cons of what is available for the first-time credit card user in your household. http://www.chicagotribune.com/business/sc-cons-0414-started-20110415,0,237885.story

A Christmas Letter to Kids – Financial Tips for the Future

December 20th, 2010 | Add a Comment »

This Christmas, I am taking pen in hand and sending the kids in my life a letter (not an email or text) about life.  I am writing to them about three things about their financial life that I want them to think about.  Hopefully, this letter format will give them time to stop and think and reflect – critical life skills when it comes to money.
 
Consider penning a similar letter to your children – edit in your life experience – as YOU are the most impactful teacher in your child’s life when it comes to money.
 
Merry Christmas everyone! (more…)

Kardashian Pre-Paid Card – A Short-Lived History

December 6th, 2010 | Add a Comment »

Kardashian KardHeard some good news last week – the Kardashian pre-paid credit card I mentioned a couple weeks ago has been pulled from the market.  With all the annual fees and other costs incurred just for the privilege of owning the card, it was a bad idea from the start!  On behalf of all parents of teens – I bid it good riddance!   

To read the full article “Kardashian Kard Gets Kut“, click here.

New Kardashian Prepaid Debit Card For Teens – Not Worth The Price!

November 12th, 2010 | 3 Comments »

KardashiansDebit cards have been around for a long time, but the Kardashians are throwing their hat into the ring with the Kardashian Prepaid Debit MasterCard.  Of course, it comes at a price ($99.95 for a year) just for the privilege of owning one – plus the usual ATM withdrawal fees.  What a waste!  My advice, don’t bother. 

Click here to read more about this latest Kardashian marketing scam that appears to target teens.