14 Jun, 2011
Youve chosen your purchases, or youve finished your meal, or youve filled up with gas, and now its time to pay. You open up your wallet, and scan the different plastic products you can choose to use. Which are you going to pick?
Credit card use trends up
The chances are notably higher now that you select a credit card rather than a debit card than they were a year or so ago. Credit card use is picking up again (see Fantastic plastic! Credit cards come storming back), though its still not as popular as it was during the heady days before the Great Recession.
New research that covers credit card trends in May was published last week, and reinforces the message of other studies.
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14 Jun, 2011
Overdraft Fee Settlement
Late last month, Bank of Americas $410 million settlement of a class action lawsuit concerning debit-card overdraft fees received preliminary approval from a Miami federal judge. Thirty five banks were named in a class-action litigation and Bank of America was the first to settle. The final approval hearing will be November 7th.
Remember a few years ago when it was revealed that banks were (allegedly) playing games when it came to the ordering of various transactions? Fifth Third Bank settled in April on something very similar. Well, the lawsuit charged that banks were processing charges days after a purchase was made, they were reordering the processing times, and doing all sorts of other chicanery in order to maximize fee income.
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14 Jun, 2011
Care Care Fsas
We have some friends that have been looking at day care centers in the area and its mind boggling how expensive child care can be, at first glance. Its no surprise when people say that its often not even worth it to be working if you have to put two or more kids into daycare. One particular school charges about $1500 a month, which is more than what I paid in rent the first few years I lived in Maryland!
Fortunately, there are a few tax credits and employer benefits that can mitigate some of those costs. One of those employer benefits is a dependent care FSA. Dependent care FSAs are designed to allow you or your spouse to continue working while supporting a dependent, which is typically going to be a child (but doesnt have to be).
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14 Jun, 2011
Kids Overburdening Kids
Teaching your children about money is important. Indeed, money management is one of those really essential life skills that your kids will require later in life. However, it is important not to rush ahead before your children are ready for certain concepts. Additionally, while you want to talk about money and get your children used to the idea of money, it is important not to overburden them with financial worries that are too much for them.
As you teach your children about money, keep a few things in mind. That way, learning about money will be a more positive experience, rather than turning into a nightmare for your kids.
My eight year old isnt exactly ready to grasp the ins and outs of the stock market.
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14 Jun, 2011
Card Credit Card
Last week, while I was away on vacation, I received a call from Citibank about my credit card. Since I wasnt keeping up to date on the latest financial news and gossip, I wasnt aware that Citi had been hacked. Normally, when systems get hacked like this, Ive dodged the bullet. This time, I wasnt so lucky because my Citi mtvU card was a victim, part of the lucky 1% of North American credit card holders. While on the phone with Citi, they agreed to ship out a new card to me as soon as possible, which is standard procedure.
What gets a little annoying is that replacing a card, especially one so intertwined in my financial network map is time better spent elsewhere.
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14 Jun, 2011
Card Credit Card
It can often be easy for credit card holders to push the interest rates that they will end up paying to the back of their mind, so that they don’t have to feel guilty about making a purchase. Yet, the fact is that credit cards are expensive and any borrower who knows how to add up exactly how much their Visa or Mastercard is costing them, including the interest and fees, is going to be ahead of the game, and make better informed buying decisions.
The first type of cost that consumers should consider is their annual fee. This is usually a small, token amount, but should not be overlooked. A
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