Teens and Credit Cards - Parents Too

Parents could learn allot from the following information written and meant for teens.

Credit Cards are convenient, easy to use, and provide the ability to buy now and pay later. But using a credit card means you have been loaned money to make your purchase and that money has to be repaid. If used appropriately, credit cards can help you establish good credit, which will provide you access to financial resources for major purchases in the future.

A few things to remember in order to build good credit:

• Manage your debt.
• Keep your debt levels manageable.
• Keep track of your purchases and avoid large impulse buys.
• Don’t use a cash advance to pay for normal, daily expenses or to make a payment on another card.
• Never borrow more than 20% of your annual net income.
• Never let your monthly card payments be more than 10% of your monthly net income.

• Choose your card carefully.
• Don’t choose a card just because there’s no annual fee or to get a free T-shirt.
• Shop around for a card that suits your borrowing habits.
• If you’re able to pay in full each month, choose a card that offers a rewards program.
• If you expect to carry a balance from month to month, which means you’ll be charged interest, look for a card with a generous ‘grace period’ (the amount of time before your payments are due) or a card with a low interest rate.
• Read the card agreement carefully and understand the grace period, annual percentage rate (APR), all fees and charges, repayment terms and credit limit (the maximum amount you can borrow).

• To avoid or minimize interest charges, always pay as much as you can.
• Pay your bill in full each month regardless of the ‘minimum amount due’ listed on your bill. This will avoid unnecessary finance charges and/or other fees, and improve your credit score.
• By paying the minimum payment due each month, it will take longer to repay the debt and cost you more in interest charges. The amount you pay in interest and fees could exceed your original purchase amount.

• Pay your bill on time.
• This will help you avoid a late fee of about $35 or more each month.
• One late payment may cause the interest rate on your card to default to a significantly higher rate.
• Continued late payments may be reported to the 3 major credit bureaus as a sign that you have problems managing your finances. It can also affect you when you apply for a job, housing or a future loan.
• If your credit rating gets downgraded, your card company could raise your interest rate, reduce your credit limit or even cancel your card.

From First Bank of Ohio

Teens and Online Banking - Security Tips

• Never share your User ID and Password with anyone.
• Protect your account information, account numbers, card numbers and PIN.
• Immediately contact your Bank if you believe your User ID and Password have been compromised.
• Don’t have your computer ‘remember’ your User ID and Password.
• Be careful when using a computer in a public area where someone could watch you enter your User ID and password.
• Do not respond to e-mails or pop-up windows asking you to provide, verify or update personal information such as password, PIN, Social Security Number, etc., even if they appear to be from a reputable source.
• Never go to a link you receive within an e-mail, even if it appears to be from a reputable source.
• Be cautious of emails that warn you that your account may be at risk, notify you that fraudulent activity or charges exist on your account, or convey a sense of urgency. These often include details of the suspicious activity requesting you respond to the email or ‘click here’ to visit their site to update your information. By First Ban of Ohio
  

Teens and Debit Cards

Are you tired of having to run to the ATM every time your children need money? Do you want to provide some financial education to help your kids be more prepared when they are on their own? Or do you just want to ensure that your children have access to cash in an emergency situation? First Bank can help. Parents can open a joint checking account with children under the age of 21 that offers the child their own debit card – their First Card.

Our First Card works just like our standard First Bank Debit Card, with some added benefits:

• Daily limits are lower to align more closely with your childs spending habits.
• First Card is a MasterCard® debit card, so it is accepted anywhere MasterCard Debit is accepted.
• First Card can be used with a PIN to get cash back at participating merchants and at more than 900,000 ATMs worldwide. There’s no fee to use a First Bank ATM.
• And as the joint owner of the checking account, you can monitor the account and card usage online and even request that an email notify you if/when the account balance falls below a threshold you determine.
• If your child’s First Card is lost or stolen, report it immediately to First Bank and benefit from MasterCard’s zero liability promise.

MasterCard® SecureCode™ provides added peace of mind when making purchases online. Just like using a PIN at the ATM, a private code is required when using a First Card at participating online merchants. Once the cardholder’s identity is confirmed by First Bank, the purchase is complete. It's that fast, easy, and that much more secure! From First Bank of Ohio, Tiffin, Ohio

Teens & Money

People are more likely to make smart decisions that affect their finances and future if they understand how to manage and save money. Saving money may not be as much fun as spending it, but it’s still important to do.

Since teens are becoming more responsible for handling money and making decisions from everything to everyday purchases to paying for college or buying a car, it’s important that they understand how to make good decisions about their money.

The following is intended to assist parents in educating their teens on the basics of responsible money management. These sections provide information on budgeting, college costs, buying a car and more!

Financial Planning:

Financial planning is the process of defining goals, developing an action plan to reach those goals, and then putting that plan in action. It includes all aspects of your money: spending, credit, savings, and investments. With good financial planning you can live a better, more secure, life than someone without good financial planning that has to live pay period to pay period.
Some things you can do to help with financial planning are to figure out a budget and save money.

Next Blog, "Figuring Out Budget"

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