If You’re Off on Holiday, Consider Prepaid Credit Cards

Filed Under (Finance) by admin on 05-12-2011

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The most innovative and socially responsible financial product of the decade has come of age as finally there are prepaid credit cards out there that seriously undercut the overseas charges levied by their “real” credit card counterparts.

This time a year ago the best of the UK prepaid credit cards reduced their charges for things like cash withdrawals of your own money, but the move to suspend the 2% to 3% charges levied for foreign transactions on some cards comes at a great time for those off on holiday in the next few weeks.

Many people aren’t aware that just using your ordinary credit card abroad means a “fine” from the card issuer of usually around 2.75% on all your holiday spending. Credit card comparison websites have been recently highlighting these charges to their followers so people can look for alternatives, and to put pressure on the card issuers to reduce costs, but these changes couldn’t come at a better time.

The first commentators to compare prepaid cards gave them a cautious ‘thumbs up’ when they first appeared in the UK late in 2006, but many people couldn’t really see where they fitted in. In the early days, many financial journalists billed prepaid credit cards as “an expensive way to spend your own money”, and an option only fit for people with a poor credit rating.

However like many financial products, prepaid credit cards have evolved and can now been seen as a Twenty First Century alternative to cash and traveller’s cheques.

Section 75 of the Consumer Credit Act means that in the event of a problem with goods or services abroad, you’re protected in the same way as you are at home. Prepaid cards are now available to anyone over 13 years old, and many teenagers are turning to them as a safe and cool place to park their pocket money and spare cash.

Some of the prepaid credit cards for under 18’s are smart enough to not work on online gambling websites or in sensitive locations like adult only stores or off-licenses.

Add all these benefits up, and take into account that there’s no risk of running into debt as these cards offer no credit or overdraft facility, and suddenly their position in the market becomes clear.

Key advantages of prepaid credit cards?

* No chance of spending getting out of hand – with prepaid cards you’re limited to the amount you load on your card, a maximum of £15,000 with the best prepaid cards.

* Control – prepaid cards are a good way to budget for you or your kids. Like a normal credit card you get an online breakdown of spending on the card so you can see the date, amount spent and location of transactions. There are even ‘family cards.’

* Excellent for overseas travel – prepaid cards are a great option if you’re off abroad. They’re popular with students heading off on gap years and children on school trips as parents can reload them from home. Recently reduced charges make them an even better deal.

* No credit check and easy to obtain – although there maybe a small initial set-up fee, most of the prepaid cards are available very easily whatever your credit history.

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How to Educate Your Children to Save Money in 2009 With 5 Simple Tips

Filed Under (Finance) by admin on 18-06-2011

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A lot of kids and teenagers nowadays do not recognize the cost of earning and spending money. They are not oriented that investing is necessary even if they are still pretty young or students. As parents, we play a critical responsibility in this subject, especially in today’s global climate, the importance of this cannot be stressed more.

You must be able to tutor your kids on how to save money. They ought to be able to understand the idea of money and investment as early as childhood. This will prepare them to be trained true money management, as they grow up

Here are 5 very simple yet effective tips on how you can teach your children how to save money for 2009 and beyond starting today;

1. Your children should be skilled of the significance of money. Once your children have learned how to calculate and count, that is the ideal time for you coach them the true meaning of currency. You should be dependable and clarify to them in simple ways and do this regularly so that they are able to remember what you trained them.

2. Always teach them the importance of saving money. Make them appreciate its importance and how it will influence their lives. It is important that you consider questions from them about this subject and you should be able to answer them with wise words of wisdom.

3. When giving them their pocket money. You must give them their allowances in denominations. That way you encourage to keep a certain bill for the future. You can inspire them to do this by telling them that the money can be saved and they can buy their materialistic wants such as iPods, fashionable clothes and games consoles once they have saved money to afford them

4. You can also teach them to work for money. This can begin from the comfort of your own home. You can pay them small allowances towards household chores such as cleaning their rooms, taking the garbage out or even helping out with the washing up of dishes. This simple yet effective method of earning money will make appreciate how it takes effort to gain money in the first place, and hence should be spent wisely.

5. You can give them small piggy banks to encourage save money and wait until it fills up. You can also open children and teen bank accounts for them and let them save away some money from their allowances. Which will keep them motivated and see there small financial wealth accumulate. Bank accounts normally have very competitive and attractive interest rates specifically for young children and teen saver bank accounts.

The subject of money and financial intelligence is not something that is learned by children in just one single session. Instead you should be patient in teaching them and linking the value of money in all of their daily activities. Children will learn easier when you are patient and consistent in mentoring and encouraging them in this endeavor.

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