8500 Keystone Crossing, Suite 555 Indianapolis, IN 46240 317-726-1714 EagleAndFein.com
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
Overcome Your Financial Fears INSIDE THIS ISSUE 1. 2. 6 St. Patrick’s Day Fun Facts
Government Updates to Retirement Savings
3.
Do You Know Your Credit Score?
Irish Pancakes
4.
Tips for Avoiding Credit Card Debt
These days, media ads teach kids to spend, spend, spend. Sit down to watch cartoons with your children or grandchildren and you cannot make it five minutes before an ad for LOL Surprise Dolls, a Paw Patrol Playset, or Disney World pops up. No wonder the average American had more than $6,000 of credit card debt! Credit card debt can cripple a young person’s opportunities. So how can you teach your kids and grandkids to use their plastic wisely? In honor of Credit Card Reduction Day (March 21), we rounded up three expert tips. 1. Treat your credit card like a debit card. This is the easiest way to stay out of credit card debt, courtesy of the pros at USBank.com. Instead of teaching the children or grandchildren in your life that they are free to use the entire limit of their credit card each month, explain that they should never spend more than one-quarter of their bank account balance. This will ensure they build credit, but can always pay off their balance at the end of the month … which leads us to our next tip. 2. Pay your full balance on time each month. It can be tempting to keep your bank account flush by paying only your minimum credit card payment each month. But, in fact, this is the easiest way to end up in a debt spiral as interest compounds what you owe. Teach the kids you love to avoid the spiral by paying their entire credit card balance on the due date. This is another USBank.com tip and a great rule for everyone to live by. 3. Follow the 30% credit utilization rate (CUR) rule. Even if you have plenty of money in the bank, personal finance reporter Elizabeth Gravier recommends never using more than 30% of the available credit on any of your credit cards. This conservative approach prevents overspending, builds credit, and looks appealing to lenders. When the kids you love get their first credit cards, tell them about the 30% rule.
KEEP YOUR KIDS AND GRANDKIDS OUT OF DEBT!
3 PROACTIVE WAYS TO AVOID OVERSPENDING
As you teach these lessons, consider passing on this excellent quote from finance whiz Dave Ramsey: “You will either learn to manage money, or the lack of it will manage you.”
4
EagleandFein.com
Published by Newsletter Pro • www.NewsletterPro.com
Made with FlippingBook Ebook Creator