It is okay to splurge every once in a while. After all, life would not be very enjoyable if we could not let ourselves loose every once in a while. We also need some form of reward for all the hard work we have been throwing ourselves into. We have pointed out some time before that splurging is very different from overspending. If you find yourself compulsively shopping more often, buying something not because there is a need but simply for the sake of buying it, than you had better watch out especially if you use a credit card as your main payment option. Excessive overspending can lead to credit debt. And as we always say, credit debt is a nasty trap we do not want to get ourselves pulled into.

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The Credit Card Act of 2009 introduced major changes to the credit card industry. These changes are meant to benefit consumers and set conditions for what credit card companies can and cannot do.

One big change that went into effect on February 22, 2010 was new stricter rules for consumers under the age of 21. Under the new law, if you are not yet 21, you either have to show that you are able to make payments or you will need a cosigner in order to open a credit card account. Some parents may be reluctant to cosign on a teen credit card account and take on responsibility for any debt acquired on account.  Also, cosigners must agree in writing to any increase in the credit limit of the young cardholder.

Credit card companies have long targeted college students for credit cards with on campus applications and few barriers for acceptance. As a result, many students racked up substantial credit card debt by graduation or before their first job.

Prepaid debit cards are an attractive alternative to credit cards for students seeking the buying power, safety, and convenience of plastic, because most merchants including online merchants accept them. A Prepaid MasterCard or Prepaid Visa give students an option that does not involve credit checks, cosigners, or finance charges.

Photo by World Economic Forum

Speaking at a recent event on the prepaid card industry, Former U.S. President Bill Clinton said prepaid cards were “an example of the technology available that can help solve some of the nation’s thorniest problems.”

He went on to list several ways prepaid cards can help address the nation’s problems of economic inequality, financial instability, and reduced sustainability.

Photo by kirstiecat

It’s only the start of spring, and already people are looking at matters meant for the fall. That’s when a new semester of college starts anew, and when people start thinking about how they’re going to pay for it. An estimated 70% of all students in the United States are able to study in college thanks to various grants, student loans and scholarships. These people end up becoming the future workforce of the nation, and some rise to become captains of industry.

Yet, the future is not always bright for these students. The average cost of a college education for public colleges is about $4,081 annually. For students who enroll in private schools, the figure is steeper: $18,273 a year is what students need to pay.

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photo by Markies

Yes, it may sound strange, but we know there are some people who have never tried shopping online. This is in the face of numbers from the United States Census Bureau from 2008 indicating how e-commerce accounted for $93,280,000,000 of all total retail done in America, equating to around 2.5% of all major sales transactions. There are also figures from Nielsen that estimate that over 875 million shoppers worldwide go online, and that number is pegged to rise sharply in the future.

This rise in popularity is owed to the benefits that shopping online provides people with, especially those who are looking for very specific kinds of items or gifts. Yet there are still thousands who have not engaged in online shopping, and they have their reasons. Identity theft, money security and credit card fraud all come to mind when discussing the perils of buying online. This doesn’t include worries over shipping and product damage, or items that no longer suit their owners, such as clothes or shoes with sizes that don’t fit.

Never bought anything online? Here are a few points for people to remember:

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There are a lot of people who whine about their work. We don’t. It’s not because we have lots of assets or the best jobs. It’s because the best asset you can possibly have today is your job. If the events of the past few years have taught people anything, it should be this: Your home, car or bank account could all disappear one day. One day, your health insurance may not cover everything you need, or the business you set up may suffer great losses amidst a climate of fear and uncertainty.

Of all the things you ought to fight to keep, we have learned that people should keep their employment. Gainful employment helps people keep their health insured, assists in obtaining high credit scores and helps put money in the pocket. These three reasons alone make work worthwhile. This does not even mention the psychological rewards of being employed – a sense of security, a feeling of accomplishment at the end of a month or week, and the overall variety of a day in contrast to being unemployed.

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Once you have stepped into the stage of adulthood, life becomes much less carefree. Your responsibilities tend to multiply and you realize just how much the people around you depend on you and your capabilities. It is when you come to the point of starting your own family that is the best time to think about getting life insurance. More than a guaranteed pay-out option for unfortunate events, a life insurance plan is a good investment that makes sure you and your family can have a financially stable future no matter what happens.

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photo by Ryan Yessman

The cold winter months are finally over and its time to celebrate. For schools and universities across the country, the arrival of spring means it’s almost time for one of the most highly anticipated events in a college student’s life: Spring Break.

Before you spring for that all-inclusive hotel package or special Spring Break travel deal, plan ahead and look around at your options. One of the biggest party poopers is learning too late that you spent too much on a vacation that wasn’t worth the splurge. It takes a lot of diligence and discipline to save up your money. A post-break hangover is fine, but coming home flat broke is another matter entirely.

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Nothing can unleash your hidden creative and mushy tendencies more than Valentine’s Day. Every year, as the Day of Hearts draws near, you along with couples from all over the world start racking your brains for the perfect date ideas for you and your special someone. It would have to be romantic. There should be no slip-ups. And it should always end with the sweetheart more in love with you than ever. So you free up your schedule for the day and make a mental list of ideas. And then you hit a slump. The reality of the matter is that a budget must be allotted. Now the question is how can you plan the perfect Valentines date, without burning a hole in your wallet?

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Oh look, it’s February already! It has been one whole month since the New Year started. Allow us to ask you a simple little question you may or may not want to hear: Have you started fulfilling your New Year’s resolutions yet? Don’t worry, this is not a scolding, and we won’t judge you if you answered ‘no.’ As always we are here to help. If you are part of the majority of New Year’s resolution makers who have vowed to shed some pounds or save more money by the end of the year, here are a few simple tips that can help you do both. The only effort you need to take is discipline.

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