debt

7 Ways to Prevent Impulse Buying

Written by adminJune 28, 2018

We’re all guilty of impulse spending at times. We make a quick run into the store to buy a gallon of milk and come out with a cart full of goodies we weren’t expecting to buy, and probably shouldn’t have bought, but we saw it and tossed it in without a second thought.

Impulse spending can be fun at times, but it often leads to buyer’s remorse later on. This is especially true if your budget isn’t quite in great shape. The best way to decide if you have a problem with impulse spending can be to add up how much money you spend on frivolous things you really could go without.

The truth is, you were set up to fail before you even set foot in the store. There’s a concept called “The Power of Perimeter” that the vast majority of stores follow, which was designed to get you to impulse buy.

For example, there’s a very good reason why they put milk at the very back of the store. They know most people buy gallons of milk on a regular basis, so if you’re making that quick stop, you’ll have to trek through multiple aisles to get to what you really came for.

If you’re really hungry, they hope your eyes will spot the Little Debbie’s snack cakes on your way to the back. In fact, they put all the essential items people buy regularly (bread, dairy, meats), on the outside perimeter of the store, forcing you to walk by/through most of the store just to get the essentials. It’s not just supermarkets, but retail who does this also.

If you’re on a tight budget and you’re trying to save money, this can be dangerous ground for you to walk on. There are seven ways you can combat this and it involves you being fully prepared and ready for war before you walk in.

1) Write a list. The goal of most stores is to get you to spend as much money as possible and they hope you show up unprepared. But, if you write a list and are determined to stick ONLY to that list, you’ll have a lot more success.

2) Put a limit on the number of visits to the store you make. Plan your shopping trips around your pay schedule and buy everything you need for the week at one time. If you’re proactive and plan ahead, you’ll have much more success preventing impulse buying than the person who runs into the store every other day.

Calculate how much milk your family drinks in a week. Buy two gallons if you need to to stop yourself from going mid-week.

3) Use store apps. One of the latest tech trends that are super convenient for shoppers are store apps where you can shop online. Kroger, Meijer, Walmart, and most other major stores have this option. They will do the shopping for you and you just pick it up curbside. It completely takes impulse buying out of the equation.

4) Don’t shop while hungry. This is a big one. Most people who make a quick trip to the store do so right after work or midday on the weekend. If you’re hungry, your stomach might make all the buying decisions for you, and you’ll overspend based on what you’re feeling at that moment. Instead, eat before you shop.

5) Avoid window shopping, especially when you’re bored. A lot of people get bored and decide they’re going to go window shopping or even worse, hit the mall. But these stores are designed to peak your attention and get you to want to walk in and buy something. It’s like going to the grocery store hungry. If you’re on a tight budget, find something else to do!

6) Rationalize your spending. Before making a purchase, there are a series of questions you can ask yourself. Do you really need that item? Can you afford it? Can you wait to buy it? Do you have other bills or debts that are more important? Will this item go on sale (there are a lot of apps out there that will let you see the history of prices for various items)?

7) Set a budget. You should know what you can afford to spend each month. Set aside a portion for food and other necessities. If you know you will need new clothes that month, decide what you’re willing to spend ahead of time and stick to that budget.

Overspending is easy when they design stores to trigger you into impulse buying mode. By taking your time and planning ahead of time, you can save more money and keep your budget intact.

Written by adminJune 28, 2018

Credit & Debt Settlement

The Great Recession that hit a decade ago was a tough time for millions of Americans.

One of the reasons for the recession can be explained is how Americans spent their own money. Debt (and debt payments) grew so large that there was a steep drop off in consumption. The situation was much more detailed than that, but household debt reached a peak and the trouble flowed in every direction.

If people weren’t spending money to pay off their auto loans, mortgages, and other debts, then those industries struggled to keep their head above water. As foreclosures continued to pile up, Americans ultimately spent less and less money.

It required massive bailouts by the federal government to get us out of the mess, but that doesn’t mean Americans have made smarter financial decisions to prevent another Great Recession from happening.

In fact, our debt is higher than it’s ever been in the history of this country. Mortgage debt is lower than it was in 2008, but all other forms of debt, like credit card debt, auto loans, and student loans, are 45% higher! That’s an absolutely shocking number.

We’ve been cranking up our debt at a rate of 3.4% each year and set to cross $15.7 trillion in total debt by the end of this month, which is a $1 trillion increase from what it was back in 2008.

Americans have always been in debt, and if often requires the government to take drastic actions to prevent us from entering another scary phase where millions struggle to make ends meet. So, while the Obama Administration helped us take care of a large chunk of mortgage debt, that freed us up in pursuit of other debts.

While jobs were laying off workers, many decided to go back to college and get a degree, leading to a shift in the type of debt Americans are accumulating. Currently, student loan debt is about 42% of the total amount of debt consumers have. Credit card debt is at about 27%.

The numbers have reversed in the last decade, as credit card debt was 42% and student loans were at 27%. 10.3% of our disposable income is going towards student debt alone, which is up from 6% a few years ago, a 130% increase since 2008.

75% of millennials today say they’re stressing big time over their student loans as they struggle to pay them back. They’re graduating college with all this debt, but not finding adequate work to help them pay off even the basic minimum they’re required, often throwing their loans into default.

The battle now within the government is how much they’re willing to help students overcome this massive burden. The Obama administration instituted several programs that are still available to this day, but the Trump administration has targeted their removal to help cut federal spending.

Trump has agreed to leave these programs alone for now, but no one knows what will happen when the 2019 budget is formulated. That leaves students with a short amount of time to get the help they need to pay down their student loan debt.

Written by adminJune 14, 2018

Credit & Debt Settlement

We previously wrote an article about how much Americans are taught about their finances, either in school or from their parents. As it turns out, most of us don’t get good advice, as there’s no real standard in how we’re taught.

This lack of education is what has led to the debt epidemic we have right now. As we go about life, we have a need to figure things out for ourselves, and that includes overcoming mistakes we’ve made that may hurt us down the road if we don’t get them under control.

One of those is the almighty credit report. Yes, the thing that gets pulled every time you want to buy something. Need a loan? Want to buy a car? Is it time for a mortgage? Well, your credit report is probably the single-greatest factor debtors use in determining if you’re eligible to receive help.

The ‘problem’ with credit reports is, if you made a financial mistake when you were younger, it’s going to follow you around for a very long time. If you have several bad hits on your report, you will either be offered loans with extremely high interest or be denied altogether.

If you find yourself struggling and want to know how to fix your credit report, there are four ways to do it.

1) Get Your Credit Repaired

Sometimes, the mistakes on the credit report aren’t yours! Go through the items listed and make sure everything can be verified. If it’s not, you can dispute the charge and the credit bureau has 30 days to verify or it will be removed. This is because law requires all information on your credit report be verified.

Other mistakes can include your report stating you made a late payment, when it was on time. Everyone makes mistakes, so this is something you can clear up. The process is called ‘credit repair’. Once they can’t verify you missed that payment, it will be removed from your report.

Even if you know you owe the debt, you can still find a way to get it cleared from your report. A lot of times, these debts are bought and resold, going from one debt buyer to another. In this case, one of your debt buyers may not have complete information. If this is the case, you can have that debt removed because they can’t verify.

2) Re-age Your Account

A lot of your credit score is determined by active accounts. If you’re not paying a debt and it becomes delinquent, that’s a huge black mark on your record. But, you have the power to change how the debt gets reported to the bureaus.

By contacting the creditor and working out a deal, you can tell them as part of the negotiation process that you’re willing to make payments if they report that your account is current. If you’re faithfully making payments on time, that debt won’t be as bad as a mark and can raise your score higher.

3) Get It Deleted

Debt companies love to negotiate. Each attempt will be different, but you can talk a company into agreeing to remove your debt from collections if you pay a certain amount. As long as they get their money, they’re happy and willing to work with you.

It’s not guaranteed they’ll go through with it though, so this is a risky move. It’s just another weapon in your arsenal that can help you at the negotiating table.

4) Wait

This isn’t the quickest option in getting your debts paid off, but in the credit world, nothing lasts forever. In most cases, your debts will be wiped out within 7 years. If you’re not in a rush and you plan on working on your score, you have the option to wait it out. If you’ve filed for Chapter 7 bankruptcy, that will stay on your record for 10 years.

Of course, the best option is always to stay on top of your debts and pay the off. That will ensure you have a good credit score when you need it. If you don’t, then obtaining credit will be extremely difficult without a cosigner.

Written by adminJune 11, 2018

Credit & Debt Settlement

If you’ve ever struggled with your finances, you know how emotionally draining it can be. That emotional stress can lead to physical problems down the road if they aren’t cleared up within a reasonable amount of time.

There’s an old saying that goes, “the rich get richer and the poor get poorer”. That might not have anything to do with the rich tearing down the poor to make them worse off. A lot of it has to do with mindset and allowing yourself to fall into this pit of self-perpetuating misery.

According to research, conducted by the National Academy of Sciences, has found that this cycle of financial troubles and debt impacts the brain in a negative way. It causes stress, their memories suffer, and they end up performing worse at tasks that might allow them to break out of the cycle.

This, in turn, impacts how they view life and alters their financial thinking. Rather than working out long-term solutions, they get laser focused solely on how they’re going to make it next month. If you’re constantly focused just on next month and in a constant state of worry, you’re probably not going to think about months or years from now.

That’s the problem. Fewer and fewer Americans are preparing for retirement, paying for health insurance, and neglect other necessities. They get into this cycle, add debt upon debt, and get so behind that saving money doesn’t even enter their minds.

It gets worse. These stresses transfer to overall health. When someone is constantly stressed, they run to unhealthy habits to make them feel better. They sacrifice their future just to survive today. They turn to drinking, drugs, stop exercising, overeat, and their health takes a hit.

It’s not a coincidence that a new report was also released this year that more Americans were becoming alcoholics and even drinking themselves to death at record rates. Financial struggles directly lead to unhappy people who compensate every way possible. The inability to get out of the cycle due to short-term thinking takes them down the rabbit hole of stress and disease.

Click Here For Student Loan ForgivenessDebt and Depression

If you’ve spent any time counseling with couples or individuals who are struggling financially, they don’t seem to have a grasp on the situation. They aren’t eager to fall into a plan because they don’t think it will lead anywhere. They become melancholy, even when shown a proven way to become debt free.

Even when you show them there’s a way out, a light at the end of the tunnel, it doesn’t always work to get them active in pursuing those methods. And that’s the major crux of the issue. There ARE paths to financial freedom and to live a debt-free life, yet it almost seems as if people get ‘comfortable’ in their misery and think life simply can’t get better than it is.

If you’re in debt and struggling to keep your head up, don’t give up! It’s never too late to take control of your finances. It will take some work, but you have to decide right now that you won’t live this way anymore. Once that black cloud stops hanging around, life does get better.

That means you need to start thinking about your future and stop neglecting your health. There are government programs out there designed to help you by cutting credit card payments, consolidating debts into smaller payments, and even debt forgiveness. Don’t sit around and mope and let the situation get the best of you.

A much happier future is right around the corner. All it takes is a phone call to get started.

Click Here For Debt Relief

Written by adminJune 1, 2018

Credit & Debt Settlement

One of the main reasons why people push off debts until a later time is they aren’t sure they can afford it AND keep up with their many rituals and lifestyle choices.

For example, if you go to Starbucks every morning, is that a luxury you’re willing to get rid of to save money? You can save $140/month by brewing your own coffee. If that’s a luxury you don’t want to abandon, that’s your right, but being in debt isn’t just a small problem you can push off until later.

Saving money should be your highest priority. You don’t have to give up all the things you love, though. There should be a happy medium where you get to enjoy life while handling your debt masterfully.

Here are 5 things to consider:

1) What does this indulgence mean to me?

Does it sincerely help you in some way? Maybe that morning coffee is a ritual you’ve been doing since college and it helps you get on your feet the right way. That’s great! But you’ll have to weigh the financial risk versus the reward.

The reality is, coffee in the morning can be done much cheaper and you can find a new way to wake up and be energized for the day that doesn’t involve coffee at all. If you’re unwilling to sacrifice this indulgence, then you’ll have to cut corners in other ways to make up for the pricy decision to stick with expensive Starbucks.

Take stock of the things you love and be willing to part with some of them, while keeping others. You’re going to have to figure out ways to save money for a little while until your debts are mostly paid off and you become financially free. You’ll have a lot more money to spend on the other side of debt mountain.

2) What are the benefits of this luxury?

When you sit down to write a list of all the things you buy throughout the month, whether it’s coffee, Netflix, expensive cable channels, unlimited phone plan, etc, you should be able to tackle each one and ask a simple question: what do I really get out of this? Do I need it? Is it THAT important to have?

3) Would I really miss it that much?

You might find that a lot of your spending is on frivolous things that you really can do without. There are alternatives, such as keeping Netflix and Hulu instead of cable, which will save you a massive bundle. If you think you’ll miss your local stations too much, get a TV antenna and those channels will come for free.

Again, it’s okay to keep a few indulgences, but really look to see where you can cut some of your monthly payments down as far as you can.

4) Look for bundled deals.

Right now, my phone plan offers Netflix and Hulu free. That’s a great bundle deal that saves me a bit of money each month. Let’s say you take a little more time to clip coupons for grocery shopping and go on days that offer 10 for $10.

Becoming financially free is all about making better decisions. You can do it, even if you have Champaign taste on a beer budget. Pick your battles. Eat out with coupons while cooking at home more often. Using a Kroger card at the store can save you $.10/gallon on gas, which adds up.

5) Add up your total potential savings.

After making your list and writing down the cost each of each of those things, you’ll start to see the big picture. Simply removing costly cable and eating at home will save you as much as $3,000 in a single year! I bet there’s a lot you could do with that extra money, which includes paying off debt and/or putting it away for a rainy day.

The secret to financial freedom is not getting caught up in thinking you need this or that and splurging at a time when you can barely afford it. Many Americans have debt up to their eyeballs, but don’t know how to say “NO!” to themselves when the next shiny toy comes out. This is why debt is at its highest levels in history.

Sacrificing some now will create a more successful you in the long run.

Written by adminMay 7, 2018

Saving

As we continue to recover from the last recession, there’s a lot of optimism for the future. We see unemployment numbers going down and the economy buzzing.

While optimism is strong, there’s a storm brewing. Something massive is forming out in the Atlantic, and this time, it just might be the storm of the century. No one knows when it will strike, but when it does, it will push millions of Americans over the cliff.

That storm is the next recession.

A lot of it has to do with the record high amount of personal debt we have. Almost every category you can count in the trillions of dollars.

-$1.02 trillion in credit card debt.
-$1.4 trillion in student loans.
-$1.22 trillion in auto loans.

What’s worse is a lot of us have debt in more than one of these categories, so we’re paying high interest all the way around.

What’s Going on With Our Budgets?

It’s not just debt we have to worry about. Consider the amount of money we have saved. It was recently said that most Americans don’t even have access to $400 if they really needed it in the event of an emergency. So, what happens when, not if, the economy fails?

The University of Chicago released a new study that revealed 44% of Americans avoided going to the doctor when they were sick/injured last year. That’s almost half the country! The reason? The high cost of health care!

If we can’t afford to take care of ourselves now when the economy is on a massive growth-spurt, what happens when the next recession hits? No one will be ready for the storm, which may cause a health crisis in the near future.

That brings me to my next point. When the economy is showing signs of upward trends and people are optimistic, that makes them feel safe. Of course, we all want that brand new shiny car sitting in the driveway of our beautiful home, but these are luxuries we can barely afford when things are going well.

We have to put ourselves in a heavy amount of debt and pay interest that’s tough to afford. As the economy continues to churn in an upward fashion, so do the interest rates. During the last recession, they might’ve dropped to 3%, but it wouldn’t be out of the question to see the rates rise to as much as 7%.

Over the next few years, that increase will make their almost unaffordable car loan definitely unaffordable, killing whatever savings they might have.

Doom and Gloom

The point of this blog isn’t to be a doom-and-gloom preacher who screams from the street corner that the end is coming. No, I want to encourage everyone who reads this to take the opportunity to get their debt under control before taking on new debt.

Yes, the signs point towards high optimism, but we just don’t know when the next storm will hit. If you’re going to survive the next recession, you will do it because you were prudent, have all your ducks in a row, and valued saving your money over buying the latest shiny toy.

Written by adminApril 17, 2018

Taxes

Today is the day. Tax Day. The bane of every American’s existence.

Every year, 80% of the population manages to get their returns in on time to receive their refund. It’s such a complicated and frustrating experience that most Americans wait until the deadline to get it done.

According to Ted Kurlowicz, tax professor at The American College of Financial Services, the best plan of action is to pay your taxes right away. People often miss the deadline because they didn’t have the money to pay by the deadline or they just ran out of time, an error that can get quite expensive.

“You should do the least harm and file as soon as possible and pay the tax as soon as possible,” said Kurlowicz during an interview with Fox Business. “The late-filing penalty could actually be higher than the late-tax-payment penalty so you should file as soon as possible to do the least harm to your personal finances.”

The amount you can pay if you’re late is 5% of what you owe each month, up to about 25% of the total. Moral of the story: if you don’t want to pay more than what you owe, don’t procrastinate!

What about the 20% of people who don’t file on time? Will the IRS come pounding on your door and threaten to haul you off to tax prison?

The simple answer is no. It’s okay to miss the deadline, but there are a few things you must do to stay compliant.

1) File an Extension.

If you need more time to get your taxes in, the government understands. Not everything works perfectly, even if you were 100% prepared to have your taxes prepared by the 17th. Maybe there was a problem with filing and they’re waiting for assistance. Sometimes it takes a little longer to get all your sources of income identified so you can complete your taxes on time.

Either way, the IRS has graciously offered an extension, giving you until October 15th. To take advantage of this, you must submit Form 4868 the moment you realize you might miss the due date.

While you have until October to send in your proofs, that doesn’t mean you have that long to pay what you owe. The due date to pay is still April 17th and they will expect you to pay at least 90% in order qualify for the extension or you will probably get hit with nasty interest and late fee charges.

2) Take the Situation Seriously

If you know you’re going to be late, the best thing you can do is be proactive. You know the tax man is going to come. They will not just forget you owe them money and leave you alone. They WILL come for you, but if you want to lessen the penalties/burden of paying late, then do everything you can to show you’re trying your hardest to remedy the problem.

Again, the IRS understands the things happen. Hardships come and go. As long as your open and honest about what’s going on, pay as much as you can, file an extension as early as possible, you can usually negotiate a settlement.

3) Get Help

Tax time is stressful for everyone, but it’s especially true if you’re unsure about whether you can pay on time. You might even have April 17th with skull and crossbones marked on your calendar drawn with a black Sharpie. If there’s any question or stress over filing (especially if you’re working a new job or started your own business and just aren’t sure), get help!

Yes, it will cost you a little bit, but not paying on time will cost you a lot more in the long run. There are thousands of amazing tax advisors out there, along with new software that makes filing easier than ever.

Happy Deadline!

Written by adminApril 11, 2018

Credit & Debt Settlement

When Americans with more than $20,000 of credit card debt call (833) 693 4090 and speak with a debt counselor, they may be surprised to learn they qualify for a large Debt Relief Program.

U.S. debt has exploded to over $12.73 trillion¹, ruining peoples’ lives with high fees and endless collection calls. A little known program is currently happening right now allowing U.S. citizens to potentially reduce thousands of dollars of credit card debt.

“I was so embarrassed. They called my boss at work demanding I pay $10,700! I felt like I was in a black hole, drowning and they were calling my job and now I’m worried they’re going to fire me because of my collection calls. I just can’t take the stress of knowing that if I lose this job I don’t have a back-up plan for my family.”² – Hannah Daley, Milwaukee, WI

QUICK VERSION: Smart Americans are seeing if they qualify to settle their $20,000+ credit card debt. There is absolutely no cost or credit check to see if you qualify for a phone consultation. Call this toll free number to speak with a qualified debt negotiator (833) 693 4090.

Our Mission and Who We’re Fighting Against

This is unknown to many, but if you or a loved one have $20,000 + of unsecured debt (credit cards, medical bills, and utility bills), then you may qualify for debt relief. This is a huge problem for large banks and creditors.

You see, banks don’t want you to know debt is negotiable. It’s in their best interest to keep you trapped making minimum payments so they can line their pockets with your hard earned cash.

Think about all the Americans stuck in massive debt because of medical bills or a relative taking advantage of their kindness. Don’t they deserve a chance to start over?

This is why it’s really a no-brainer to jump on this now. Collection calls and arguments over money could be a thing of the past.

But I Don’t Want to Take Out Another Loan or Ruin My Credit Forever!

Many people falsely assume they have to take out additional loans or ruin their credit forever using debt settlement. This is not only untrue, in fact it’s the opposite.

Debt settlement counselors use their negotiating expertise to get collection companies off your back. All of your outstanding bills are lumped into one small monthly payment that you control.

This often overlooked secret to solving your debt could have a massive impact on your family’s future. Imagine being able to finally provide your family with everything they’ve always deserved.

Thousands of Americans with more than $20,000 of credit card debt could take advantage of a free debt relief consultation, but sadly most of them think it’s too good to be true. Remember, if you or a loved one have outstanding debt and/or receiving collection calls you may qualify for life-changing debt settlement. Instantly see if you qualify today.

Act Now Before Your Window of Opportunity Closes

It’s 100% free to see if you qualify for a phone consultation.

Here’s How:

Step 1: Simply call (833) 693 4090.
Step 2: After you we ask a few questions about your case, a debt specialist will find the program that fits your debt situation. It’s very important to call right away to reserve your spot for this program before it’s too late! Many Americans report being shocked discovering how much debt they could settle.

Written by adminFebruary 12, 2018

Uncategorized

Saving money is hard. It’s a reality most Americans have to contend with. In a perfect world, we’d all love to have a nice nest egg in case we need it. The problem is, the cost of living is way too high! It’s so high, that more than half of us don’t even have $1,000 in savings.

When asked, 36% of Americans claim their biggest regret in 2017 was not saving money, and they blame the high cost of living as the number one reason why. 20% blame their low salary as the reason why they don’t save. 15% don’t even budget, essentially throwing their financials together with duct tape and sawdust.

Everything Changes Except Salaries

The biggest culprit behind people not being able to save is how much things change from year to year. With every turn of the calendar year, it would seem as if prices continue to rise. The cost of rent goes up. The cost of food goes up. Gas prices fluctuate, but most often, go up. Insurance rates go up. Interest rates go up. Taxes go up.

While all these aspects of everyday living continue to grow more expensive, our salaries stay the same. If you’re lucky, you might get a $.50 raise, but that doesn’t go far compared to the other bills that keep stacking on top of each other. It’s no wonder more Americans are finding themselves struggling with debt.

Despite the Struggle, Saving is Key

No matter what our circumstances might be, we cannot afford NOT to save money. It’s crucial, essential, and may even be lifesaving! How would you be able to afford a major crisis happening? Most of us go through life as if nothing bad can touch us, so we don’t even worry about it.

Maybe we can get through until our golden years relatively untouched, but what happens then? We lived at or above our means for so long, did you have time to plan and save for retirement? This is one part of life that just has a way of creeping up on us. Americans are now working longer than they ever used to before due to the lack of financial planning.

You Must Become Debt Free

As difficult as it might sound, the only salvation for rising costs is to get out of debt, especially if you don’t anticipate your salary rising. Americans get caught in the trap of turning to credit cards and getting loans when they want something they can’t afford. But that’s the thing! They try to pay for things they can’t afford and it costs them in the long run.

Just assuming you’ll get things on track before retirement isn’t going to cut it. You need real change and to get ahead of the snowball running downhill. It will only grow larger and larger until you can no longer manage it. Having an emergency nest egg, saving for retirement, and ensuring you can live comfortably below your means is MUCH more important than buying that brand-new car or doing anything that incurs new debt.

If you’re burdened with lots of debt, the best course of action might be to consider debt consolidation. That will allow you to put all your loans and debts into one neat package to make the repayment process simpler, saving you money verses not getting a consolidation.

You can also try to do a debt settlement, which may even lower the amount you owe and can save you thousands of dollars. Whichever you choose, getting out of debt (and not adding on more) is the best way to improve your financial situation.

The best rule of thumb is to not pay for anything you can’t afford. If you’re in a dead-end job and you don’t see your salary going up anytime soon, there’s no reason to make your circumstances more difficult than you need to.

Make new goals and be smart with your finances. Then, you can celebrate being one of the few Americans who are debt-free and without the worry of having nothing to fall back on in case the worst were to happen.

Written by adminJanuary 16, 2018

Credit & Debt Settlement , Personal Loans , Saving

It happens in a blink of an eye. We spend our childhood getting just about everything we could ask for. Our parents worked very hard to give us a good life and to make us smile. If you were like me, you had a room packed full of toys, most of which you didn’t even play with. No matter what toy I had, my mind was always on the next thing. Then one day, it all changes.

Kids have virtually no concept of money. If they want or need something, it’s often provided for us. As we get older, we start to pick up a little more responsibility. Whether it’s your job to clean up after dinner, take out the trash, or vacuum the floors, we start to learn about work for the very first time.

A lot of parents will teach their kids that if they want that new toy, then they must earn it. But often, the biggest lessons of all are rarely taught. We all know as we get older that we must work for our money, but the concept of saving is seemingly lost on younger generations. Whatever they get in, they must spend immediately.

Spending Less than You Earn

According to Forbes, most 20-year-olds aren’t saving their money. They live right at where they can afford, opting for the more expensive car or apartment rather than living under their means and saving that money for later. Forbes also suggests, in their article 20 Things 20-Year-Olds Don’t Get, that young adults should learn how to spend 25% less than they make.

This is especially important when you consider that teens and young adults hop from job to job. They don’t have a steady work or credit history, yet they are at risk of making their financial life much more difficult if they don’t get spending under control earlier in life.

Here are several ways to help your child prepare for adult by teaching them financial responsibility.

1) When they’re younger, buy them a piggy bank.

A lot of kids already do have a piggy bank, but not a lot of parents use it as a method of teaching about savings. Once they start being able to help out with chores around the house, having them earn an allowance. When it’s time to get paid, it would be beneficial for you to sit down with your kid and go over their ‘budget’.

Yes, give your kids a budget! Do they want that new toy? Find out how much it costs and create a goal for them to save at least half of its value. When it’s ‘payday’, show them the money they earned. Discuss with them about how much they want to use right now (let’s say, for the ice cream truck? To get a dessert after dinner?), and how much to put in the piggy bank for the toy.

2) Offer a bonus for extra work.

The idea isn’t just to teach them how to save money, but how to have a good work ethic. Reward them for doing extra work around the house. If their only job is taking out the trash and keeping their room clean, but they start helping do the dishes and taking initiative, don’t be afraid to give extra.

In the real world, they’re going to have to hit the ground running. There will be no laziness on the job or slacking off. Once they know the value of hard work, they will be prepared to go to the extra mile for what they want in the future.

3) Show them how to budget for expenses,

A lot of kids love to go shopping with their parents. You can use this to your advantage by getting them involved in the shopping process. Disclose to them what the budget will be for that particular shopping trip. Sit down and go over what you need to buy. Show them how to clip coupons and find the better deal on items.

4) Teach them how to balance a checkbook.

This is one lesson that rarely gets taught to children. It can be a good way help them understand the importance of having good math skills. When they decide what they want to do with their allowance money, teach them how to keep track of the amount of money they have in their piggy bank and how much they’ve spent on junk.

It can be quite eye-opening for them to see how much money they wasted on things that could’ve gone to better uses. Not to mention learning a basic skill everyone will need to know.

5) Don’t forget about credit.

At every college around the country, credit card companies line up ready to get your kid to sign up. In fact, one of my closest friends told me about how he got into major credit card debt. It started the same way it does for a lot of students. His first year in college, they had tables everywhere for students to sign up.

Of course, he didn’t know a thing about credit cards, minimum payments, interest rates, or building credit. He was young and all he knew was he had a card with a certain limit on it. Before he knew it, he was thousands of dollars in debt and now in his 40s still trying to pay that off. It’s a warning to every parent who sends their kid off without knowing how credit works.

When Americans with more than $20,000 of credit card debt call (833) 693 4090 and speak with a debt counselor, they may be surprised to learn they qualify for a large Debt Relief Program.

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But I Don’t Want to Take Out Another Loan or Ruin My Credit Forever!

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