To get you started, we’ve listed some methods that will ensure your child is not just learning about money, but learning about the value of money:

Teach By Example

When you spend money frivolously and fret at the end of the month to repay bills that are due – your child picks up on this behavior. The most important way that we teach our children about money is to teach by example. From an early age it’s important to establish guidelines when it comes to spending. This will help them determine the difference between wants and needs, leading to the creation of more well-rounded mind that can prepare for their financial future.

Make them Earn It

When children learn to earn the money that they’re spending it suddenly becomes something of value. Ideally, we’re trying to teach the children the mindset of “I will have to work x amount of hours at doing x, to buy this item – is it worth it?” Teaching this mindset allows the child to determine the true value of money and how to spend it accordingly.

Establish a Savings Account

When you’re trying to teach children the value of a dollar it can be helpful to establish a savings account. Children and teenagers will be amazed to know that if they simply save up to 100$ per month from the ages of fifteen to sixty-five they can have nearly one million dollars saved for retirement! Ensure that a third of the money that the child receives from a variety of sources such as birthdays and gifts is sent to their savings account.

Including the child in the opening of the account as well as any depositing or withdrawing from the account is a great way to remind them about their money. Teaching them the banking system from an early age can develop responsibility when it comes to finances.

Plan for the Future

Have you prepared for your financial future? Planning for the financial future of your children is an essential way to teach your children the value of money. Monthly contributions to a savings account or an education fund from the parents can demonstrate financial responsibility.

Open the Dialogue

Money and finances can be a confusing issue – especially for those that have little experience with the subjects. When teaching your children about money it’s important to open the dialogue and share your experiences and knowledge with them. This allows them to fully appreciate and feel for what is being taught.

Check Your Credit Ratings

In order to secure the lowest interest rates you need to know what your credit rating is. Once you know what it is, you can very easily start working to increase it. Increasing your rating will eventually lead to getting the lowest interest rates and this in the long run means less debt and fewer charges on your purchases. If you know you’re going to carry a balance on your card then you have to get the lowest interest rates possible.

Take Advantage of Balance Transfers

If you carry a balance then taking advantage of balance transfer offers can save you massive amounts of money. Not only can you pick up zero percent interest on your purchases but in many cases it also covers the balance. With these special offer periods lasting as long as 18 months, it’s highly recommeded that you find an offer and do the move. It’s probably one of the easiest and quickest methods of repaying the principal on your credit card. As long as the balance is paid within the introductory period you’ll be laughing all the way to the bank.

Pay for Purchases Within The Grace Period

The grace period for each credit card differs but is often included for up to 28 days of purchase of items using the credit card, with the average being 20 days. When purchases are paid for within the grace period you can save the interest on these purchases. The best way to save money using credit cards is to avoid carrying a balance and ensure that all purchases are repaid within the grace period offered by the credit card company.

Take Advantage of Rewards Cards

There are many types of rewards which are available through credit cards. From cash back rewards, to travel rewards, every day we see more and more reward opportunities offered with cards. Cash back rewards can be earned for purchases on most cards at the rate of up to five percent on regular purchases. There are special purchases in which the card holder can earn up to twenty percent! Taking advantage of these rewards, combine them with introductory offers and you’ll end up saving hundreds of dollars every year.

Choose a Card with No Annual Fee

It’s amazing how many people still have cards with annual fees. If you’re paying an annual fee it’s time to switch over. In fact there are pleny of cards that work on a reward scheme basis where if you spend a certain amount you’ll earn back points which can be used to pay the annual fee. Either way annual fees are a thing of the past, so switching is a great way of saving even more money.

Final Words

Credit cards can really ease your cash flow and help you to buy more than you’re worth, but you have to be smart, and using the above tips will help you take your spending even further. Just remember that monitoring your credit score is the key to getting the best rates and offers so if you haven’t signed up to a credit reporting company, it’s something you should consider.

How is the national average calculated ?

So lets look at the numbers, well the national average credit score in the first quarter of 2009 was 676 – which according to the FICO scoring system is classified as average to good. How this number was generated was by taking the good and the bad credit scores from every city, all over the country. Once you’ve got all the numbers take the average and you have your national average. Minneapolis and Boston are cities that have the highest collective credit score of 705 and 704. Houston and Dallas came in at the other end of the spectrum with credit score averages of 650 and 652.

How to increase your credit score ?

Now that you know the national average, the question is, how does your credit score compare ? If it’s higher than 676, then congratulations you’re a lucky person. However if you’ve scored lower or if in the future your score drops below the average there are still things you can do to increase and build your score to position it above the national average. So lets take a look at some simple examples of how you can build up your credit score over a period of time.

• Ensure that all monthly bills are paid on time. This can increase your credit rating because positive history is being established with the companies you have contracts with. Paying credit card bills on time is essential, failing to do so can cause an unwelcome increase of the interest rates that you’re paying and when payments are missed your just going to sink deeper into debt.

• Reduce the amount of debt that you have, we cannot stress how important this is. The optimal amount of debt that should be present on your credit report is around thirty percent. When your debt levels are under this level you’ll be in good standing and your credit score will increase. Any amount over thirty percent and you’ll be penalised, so be sure to stay under the thirty percent limit.

• Avoid collection accounts. Collection accounts can deplete your credit score very quickly because of there associated with defaulted accounts. The problem is that even when a collection account has been paid it can remain on your credit history for some time, giving any lender an extremely bad impression on your credit track record.

To remove these strikes from your credit report negotiations can be made with the collection agency. The negotiations may involve you paying some money which isn’t exactly great but in the long run it will seriously benefit you and help you to drop that credit score even more.

Final Words

Using the above tips you can not only increase your credit score but hopefully bring it up to and above the national average. Any score above the national average will guarantee you better rates and terms on any lending you go after, be it credit cards, mortgages or even vehicle loans. So get start on improving your credit score because all of us can benefit from these savings in our current economic climate.