Credit cards and teenagers can be a potentially dangerous thing when mixed together. This is because giving a teenage a credit card might allow them to think it is actual cash they get. They might also think there are no penalties down the road. Yikes! To think this!
Educating your children on credit cards, and how they work might be beneficial, but sometimes they do not listen.

Having a credit card can be great for college, or other financial duties that they might have but they should know that sometimes the interest on the cards is not worth it.

Paying it back might also become difficult, and they might end up ruining their credit instead of building it. This is something that is happening to a lot of teenagers. ‘Mom, can I get a credit card for college, and to build my credit score?’ Mom says, ‘you have to be responsible with it, get a job, and pay it back when it is due.’ The kid gets a card, spends the money on it on a lot of electronics and games and fun stuff then come time to pay does not have the money.

Their credit is ruined even before they hit 20. This is not true of all teenagers, but the ones who might think it is free money, it actually is not. Safe guard your credit score, it might be the only thing that helps you through the recession. You want to make sure you get the information and the facts prior to getting a credit card.

Here are some tips for parents to keep their kids out of debt, and into the green:

1. Get only one credit card with a small limit. Then pay the monthly payments as they come.

2. Charge only one thing to the card, and pay it off before charging another thing to it.

3. Only purchase items that you know you can afford in the future using the credit card. This will ensure that you can cover what you purchased, pay off the credit card, and bump your credit up in the process.

4. If you’re in doubt about getting a credit card, then you shouldn’t. You should feel secure obtaining and using a credit card.

5. Remember that borrowing money from a credit card means you will have to pay the amount back with interest. You might be saying goodbye to some future paychecks.

About 5 months into my first credit card experience, I decided that it was time for a credit line increase. No, I wasn’t racking up debt and no, I didn’t have any large expenses that made the credit increase necessary. I wanted an increase because when you have $1,000 each month, it’s easy to have over a $2,000 balance right before the bill is due. With a credit limit of $5,000, that equals a 40% utilization rate, something I’d definitely prefer to stay below. Add in the fact that Bank of America mysteriously skipped a bill cycle and that rate jumps to around 60%.

Sure, it’s not always that high and only if my accounts are checked on those days would it be marked that high, but I’d like to avoid the worry altogether and assure myself that my credit rating is as good as can be. It’s not imperative now, but it’s always good to keep a good credit score.

We know that hard inquiries negatively affect your credit score, so I decided that while I wanted to increase my credit line, I wouldn’t do it if it meant a hard inquiry.

Also, I have great news. Bank of America has one redeeming quality: it makes increasing your credit line very easy.

After logging into my account, I clicked on the “Request a credit line increase” button, filled out the form, and requested another $2,500 in credit.

The next day, I received a call to verify my job, income, and reason for requesting an increase (I have heard that saying that you’ll be making some large purchases works well).

I was approved immediately with only a soft inquiry and suddenly my utilization rate dropped. That same 40% utilization rate suddenly turned into less than 27% on the worst days, something I can definitely accept.

It’s only a small part of my credit score, but every bit helps and good habits now will help when we need it.

Originally posted 2010-03-02 06:00:17.

Please Welcome Crystal, a brand new Sweating The Big Stuff staff writer. Crystal currently blogs over at Budgeting in the Fun Stuff, where she write about finding the balance between paying your bills, saving for your future, and budgeting for the fun stuff in between. Our shared passion for enjoying life while being financially responsible seem to be a perfect match, so please welcome her!

Home maintenance is not one of my strong suits. If something is broken, it gets fixed. That’s about it. Although I don’t succeed at following through on every great tip, I do actually carry out some of the following repairs listed in the Yahoo Finance article, 10 Home Repairs That Will Save You Money. Some of these are surprisingly basic but can save thousands of dollars in the long run.

1. Caulk

If you’ve lived in your house a few years, you probably noticed that the caulk along your sinks, countertops and bathtub is coming loose. These gaps may not seem like a big deal, but they can wreak havoc inside your walls. Moisture causes mold and even leaks – expensive repairs that can easily be prevented. A tube of kitchen and bath caulk costs just a few dollars, and you’ll avoid expensive repairs.

2. Insulate The quickest way to save money on your energy bill is to insulate, yet so many of us overlook this simple home improvement project for its benefits. Sure, your walls are insulated, but what about your basement, your attic, and your garage? Just in case the energy cost savings aren’t enticing enough for you, check with the IRS – there are current credits that allow you to deduct this energy-saving expense from your taxes.

3. Change Filters

When was the last time you changed your furnace’s air filters? It’s an oft-overlooked chore, but one that keep your furnace running efficiently, and improves the air quality inside your home. Change your filters at least every three months to keep your furnace working efficiently for years to come.

4. Install a Thermostat
Does your home have a programmable thermostat? If not, invest in one; it’ll earn its money back in no time. By programming heating and cooling, you avoid paying to keep an empty house at a comfortable temperature. Manage the heat appropriately in winter to avoid burst water pipes; in summer, draw your curtains during the day to keep the house cool. Buy a programmable thermostat and you can save big on monthly bills.

5. Fix Leaks
That leaky faucet or runny toilet is draining your water bill, and in most cases it’s a cheap and quick fix. Replace the washer on your faucet, and while you’re at it, consider installing a faucet aerator if yours doesn’t already have one. Faucet aerators reduce water flow from your faucet to save on your water bill; check your home improvement store for this inexpensive fix.

6. Install Dimmers
Dimmers aren’t just for romance; they can save you big bucks on your energy bill. They’re cheap and easy to install, so look for rooms that could use a little reduction in harsh lighting. While you’re at it, replace your light bulbs with energy-efficient ones. They’re big money savers.

7. Clean Carpets Clean your carpet lately? With proper care, carpets can last a long time and look great, but everyone needs to clean them sometime. You don’t need to hire an expensive service either – if you can vacuum, you can clean your carpets by yourself. Rent a carpet cleaner at your local supermarket or big-box store for a modest fee. Make sure you vacuum thoroughly before cleaning, and pick a dry day so your carpet dries quickly. With regular cleaning your carpet can last a long time, saving you big bucks on new flooring.

8. Clean Siding and Windows
Windows and siding get a beating in most climates. Wash your windows and siding with a simple hose and water first, and with a cleaning solution as needed; your home improvement store sells specialty products for just this kind of job. Rent a power washer for very dirty jobs. Keep an eye on cobwebs, wasp and bird nests to ensure your home’s exterior stays in good shape. Touch up with paint as needed, and your house will look like new at little or no cost.

9. Fight Pests
Those spiders and ants at your foundation, that mouse nest in your crawl space? Take care of it – pests can destroy a home in a hurry. Hire an exterminator, or for small pests, combat with pesticides. Even if you don’t think you have a problem, inspect every part of the interior and exterior of your home regularly to avoid small pest problems getting out hand.

10. Clean Ductwork If your home is older, your ductwork likely has dust, grime, and other unwelcome residue inside. For big jobs, pay a professional; a simple cleaning can easily be done yourself. Simply remove the grates from your air vents, and clean the inside with your vacuum.

Okay, so here’s where I stand:

1. Caulk – We caulked like crazy people when we first bought our house in 2007, but I haven’t picked up the dried out tube since then. Oops. It’s probably about time for us to do a little caulk check-up since water that gets into the floor of our second story bathroom could cause a hole in our bottom floor ceiling.

2. Insulate – Thankfully our home came very well insulated. Our electricity bill is never higher than $200, even in the summer, which is great for Houston, TX. I do think we need to add some more weather-stripping to the back door and the one leading to the garage since I can see light in the tiny opening left by worn away stripping. We could probably eek out a little more savings on our electricity bill. I’ll put it on our ever-growing to-do list.

3. Change Filters – We don’t have a furnace, but I change our air conditioner filter every month or two. We just bought a 90 day filter that should help decrease the pet dander from our dogs. I’ll let you know if I can ease up on my Claritin addiction.

4. Install a Thermostat – Again, we got lucky and our house came with a programmable thermostat. It’s awesome. Not only does it help keep our bills low, but I never sit shivering for an hour before realizing I lowered the A/C two hours ago and just got too involved with the tv or laptop to adjust it again. Yes, that happened to me all the time in our last apartment…

5. Fix Leaks – I fixed a few leaks last year, but I do have a guest bedroom toilet that’s been runny…time for another quick fix. Our water bill has stayed the same, but no reason to waste if we don’t have to, right?

6. Install Dimmers – We would never actually dim the lights, so we haven’t bothered. BUT, we do replace bulbs that go out with the energy-efficient ones. I have no idea if it is saving us money, but I’m counting on them lasting longer. We had one energy-efficient bulb die on us right out of the box, but the company sent us a replacement at no cost. If an energy-efficient bulb gives you problems, keep the bulb and call the phone number on the back of its box. Each bulb is individually numbered and they’ll want that before sending you a new one.

7. Clean Carpets – We replaced the carpets downstairs with wood laminate, which has made me VERY happy. I hate the cream-colored, cheap Berber that our house came with and cannot wait for it to completely wear out upstairs. Then I can justify the expense and hassle of getting the stairs and second floor recarpeted. In the meantime, most of it gets vacuumed every two-three weeks now.

8. Clean Siding and Windows – I keep an eye out for wasp nests, but I do need to clean a little green stuff off our back siding. I don’t see it often, so it’s a case of out of sight, out of mind. I’d do it right now, but I’m lazy and it’s dark outside. I haven’t actually thought about washing our windows…do any of you do that often?

9. Fight Pests – We actually pay Terminex $80 every three months to spray all around the outside of the house and inside the garage. Ants only annoy me, but fleas and cockroaches really creep me out. Even though my dogs are flea-free, I don’t trust my neighbors. I even put out that lawn care stuff with bug killer twice a year.

10. Clean Ductwork – Our house was built in 2004. Is that considered old yet? Needless to say, I haven’t checked our ductwork ever…now I feel like a slacker.

How do you add up on these money-saving maintenance tips? Are there any others you think should be added?

This is a guest post by Forex Traders. Before opening a forex account, make sure you understand the risks!

The foreign exchange market or forex market can be an interesting way to invest money. Forex Trading occurs when an investor trades currencies from two different countries in the hopes of profiting from this exchange. An example of a foreign exchange transaction occurs when a person sells the Euro and buys the US dollar. These types of trades are usually completed via a broker or market maker.

That said, it was not until quite recently that individuals could trade currency as this type of trading was generally the domain of large banks, financial institutions, hedge funds and the very wealthy. Thankfully, the advent of the internet allowed everyday investors to take part in forex trading through the use of internet-based brokerage accounts.

With respect to currency itself, on a day-to-day basis, currencies rarely fluctuate over one cent – and these currency changes are largely based on supply and demand factors. Currency trading does come with plenty of risk as due to the availability of leverage. Leverage is a loan that is given to an investor from the broker that is in charge of that person’s forex account. In forex trading, this leverage is one of the highest that is available to investors.

As the forex market is highly liquid, forex investors can also take part in very large trades. In fact, in many cases, an investor can control $250,000 by putting down $2500 and borrowing the remainder of the cash from her or his foreign exchange broker. While an investor can make a significant amount of money when there is only a small favorable change in currency rates within an extremely short period of time, a person can stand to lose a tremendous amount of money if the currency decreases in value in that same short period of time as well. In the example mentioned above, an investor can stand to lose $250,000 even though he or she only originally invested $2500. However, despite this significant risk, many people engage in forex trading as the availability of leverage in currency trading is extremely appealing.

Moreover, many people are drawn to currency trading as the forex market is the only market that is available to people twenty-four hours a day. For instance, when a market closes in the United States, other markets in different parts of the world will just be opening for the day. Thus, traders can trade currency at various times throughout the day and night. As many people work during daytime hours, these types of investment hours can appeal to this demographic.

Investors are also drawn to forex trading as there is little capital required to start engaging in trades. Other people are drawn to forex as the one-click trading is simple and instantaneous. This feature is beneficial as investors can make trades as soon as they see an opportunity. Many online forex trading sites also offer charting tools that help traders to determine when they should exit or enter a certain trade.

However, when the foreign exchange market are compared to the equity market s, the risks involved with forex trading are indeed higher. As mentioned previously, losses can have a tremendous negative effect and in some cases due to the leverage involved, these losses can decrease most of the money in your brokerage account in mere minutes. This information is important to keep in mind as when news that may affect the value of currencies are released, experienced traders will react quickly which in turn can have an effect on the value of the currency that you, the beginner investor, is currently holding. Thus, it is important to evaluate the risks that are involved with the amount of leverage you are willing to take on. Conversely, when one invests in the equities market, the majority of the investors do not use leverage and thus the loss would be much less if the value of your investment moved against you.

While you do not need much capital to start trading on the forex market, this fact does not necessarily mean that you should begin to trade on the forex market with little capital. Often many beginner forex market traders fail due to a lack of capital.

Still interested in trading on the forex market despite the risks? Well, then you should understand that you must be both knowledgeable and disciplined when it comes to trading forex markets.

In fact, many professionals recommend that you spend months on a forex demo account before you begin to invest real money. After you are profitable on a consistent basis for a long period of time, then you should then start to invest real money.

Other experts suggest that you also determine your profit goals and loss boundaries ahead of time – and stick to these figures. Along similar lines, experts suggest that you should also set your stop losses to risk no greater than three to five percent of your total capital per trade – in order to ensure that all of your capital will never decrease in mere minutes.

Thus, while forex market trading can prove to be a profitable venture, it is important to be an educated investor if you decide to partake in this type of trading.

Disclosure: I like money more than I dislike forex accounts.

This is the second part of my Credit Series, where I explain the most important aspects of credit, credit reports, and credit scores. Each installment focuses on one factor influencing credit, tools to monitor and improve credit, or an explanation of a specific credit concept.

The most significant factor in your credit score is your payment history, which accounts for 35% of your score. This information can be found on your credit report and includes each of your credit accounts and details about how you have paid.

The payment history section of your credit report contains the following information:

• The name of the institution reporting the information. This is often a bank or credit card company.

• The date opened as well as the date of reporting.

• The type of account (revolving account, educational loan, auto loan, mortgage loan, etc.)

• The credit limit or loan amount and the highest amount ever charged on the credit account.

• The balance as of reporting and the amount past due (if any).

• The account status (current, past due, charge-off, etc.) and the monthly status for previous months.

• The terms of repayment (for loans) or “revolving” (for credit accounts)

• The Account number, which may be shortened or scrambled.

• The Adverse public records (bankruptcy, judgement, suits, liens, etc.), collection accounts, and delinquency accounts.

While FICO keeps secret how they score exactly, we do have some information about factors on the payment history section that affect your credit score. The more recent your transgression, the more your score will suffer. Negative information can stay on your report for up to 7 years and could have a serious negative impact on your credit score.

In order to earn the maximum number of points in this category, you must make all payments on time and avoid collections or public information from appearing on your account.

Originally posted 2009-12-08 09:00:18.

As you may have guessed, I am crazy about negotiation stories. I like hearing people who helped themselves, I like knowing that people can get a better price without sacrificing anything and in the end of the day, it comes down to one thing:

I like helping people save money.

So, today I have a perfect example of how to negotiate.

I’m a regular person. I don’t have any secrets, I don’t think I’m naturally charming, and I’m not the kind of person who just runs into luck at every corner. I’m normal, just like you.

On Thursday, I went to sign a lease on a new apartment. Everything was pretty straightforward: $1,500 monthly rent (combined with my roommate), with all utilities included. I would move in August 1st, and I expected it to be a quick process of signing some papers.

We checked out the apartment to make sure there weren’t any surprises. Everything looked the way I wanted. THere were a few minor issues that needed to be taken care of, but there was a week left before the move in date, so I wasn’t worried.

The leasing agent wanted to go through the paperwork with me, which I thought was a waste of time, and for the most part, I just listened as he told me that we shouldn’t break down any walls, leave the place trashed, or start a retail business out of our apartment. Pretty basic.

Then he got to the utilities portion, which showed that all utilities were included – except for electricity. I told him that when I spoke to Stephanie, who showed us the apartment, she said that all utilities were included. Marc, the leasing agent, said that they don’t do that for any of their properties.

Then we had an awkward silence. I sat there, contemplating my next move. I was stuck in a corner. Paying for electricity wouldn’t be the best thing because I thought I knew what I was getting myself into, but I didn’t really have many options.

I stared at the piece of paper a bit longer. It had maybe been 15-20 seconds since either of us had said anything. And apparently that was enough for Marc to break the silence.

“I can’t pay that for you because the bill goes straight to you, but I can give you half off the 2nd month’s rent.”

Um, hell yah! Are you kidding me? $750 back? We know some other people who live in that building and their electricity bills average around $30 per month.

So $750 comes out to $62.50 a month, meaning we’ll actually be saving money on this miscommunication.

I didn’t even ask. I just sat there. And I saved nearly $400. That is pretty damn awesome.

So the next time you’re in a tight spot and aren’t sure where to take the negotiations, try waiting for the other person to make the first move. Just because I was in a tight spot doesn’t mean the other party wanted to sit in awkward silence any more.

Happy bargaining!

I love my ING account, it makes everything easy, but why isn’t the American Express 1.70% High Yield Savings Account been advertised more? In online bank aggregators, they list the best savings accounts and rarely is this one mentioned. I am very curious to know why people aren’t talking about it. Ally is mentioned a lot, with their 1.55% rate, but it’s not the best. I’m temped to open an account to find out the advantages and disadvantages. Has anyone had any experiences with them, positive or negative?

Originally posted 2009-12-02 08:56:51.

Owning a blog is amazing and I definitely had no idea what I was getting myself into when I started, but I love every minute of it. So when someone offered to buy my blog this week, I had no problem saying no.

However, the one thing I don’t like is the pressure of coming up with posts! So I’ve decided to take two actions to try and reduce the pressure I feel. The first is to slow down posting in the near term. Instead of 5 posts a week, I’m going to shoot for 4. It’s not a huge deal, but it should help me get ahead of my posting and increase the quality of each piece. I’d much rather produce 5 great posts than 10 mediocre ones.

Also, I’m going to be getting some help. I’ve decided to bring on a staff writer. I’m not ready to announce who yet, but in the coming weeks you’ll see someone new every once in a while. Stay tuned for more details!

Don’t worry, I’ll still be here and writing the majority of the articles. But having a fresh perspective will be really great for everyone and I hope you agree!

On to the best articles from my fellow bloggers this week:

How Long Do I Have to Act Poor Until I’m Rich? from Planting Dollars

This definitely resonates with me as I’m going to be moving from a windowless room with no air conditioning in a crowded apartment to a nice open, bright room with windows and air conditioning this week. I lived like a college student for a year, was able to increase my net worth dramatically, and it’s time to spend a little more for something I most definitely will appreciate.

Can You Count on Social Security? from PT Money

PT does a great job breaking down the information and showing us that if you are 40 or older, you will get your full benefit. His argument is that we shouldn’t count on it and if it get it, great. To me, it sounds like while the full benefit might not be there, there will be something to count on. And for those who are just starting out their careers? I can’t imagine the government making us pay into social security for too long if they know there will be no benefit later on!

Online Credit Card Statements Can Lead To A Bad Credit Score from Own The Dollar.

Hank breaks down the pros and cons, but I don’t think the paper bill is an important factor in remembering to pay a bill. Different things work for different people. For some, paper bills don’t help because they get filed away for later and then never looked at again. I don’t think that paper billing helps more than online billing. If anything, I can set reminders online for when my bill comes out and then another reminder a few days before it’s due.

Saving For Retirement Til It Hurts! from Bible Money Matters

I love the idea of making retirement a priority and then ramping up savings each year. If you start out at 5% and increase by just 1% each year, you’ll have saved a lot by the time you’re ready. The higher you start out, the better off you’ll be!

Have a great Sunday everyone!