Auston Woods Apartment Homes Blog

When is the best time to educate our children about money and finances?
$2 + $2 = $4 “If you can count Jr. then it’s time to learn money management.”

Educating Children on Money

We can all use more understanding where money is concerned.  The best time to begin learning about money is when we are children.  In school there is hardly any talk about money and in the home it should be spoke of more.  Why is it that as valuable as money is when it comes to talking about it this area seems to be taboo?  Teaching our kids to learn about money is one of the most important lessons they can learn from us.

David Bach, Financial expert and best selling author, sits down with Denise Richardson on Howdini.com.  In this short interview, the importance of teaching our kids about money is emphasized with smooth clarity.  The odds are we and our children will use money for the rest of our lives.  So lets empower the generations to come by educating our children and their financial intelligence.

David Bach Finish Rich

Many of us receive coupons in the mail to our favorite store which gives us a 15% or 20% discount on purchases in a given time period. While it may be very tempting to run right out to the store to get a “deal” on the latest style, gadget, etc., there are a few questions that you should ask yourself.

1. How much do I want this item?
2. Do I have cash to pay for the item(s) and
3. If I put this on my credit card, how much will I pay in interest to get this “deal”.

For example, a new laptop retails at XYZ store for $1250. You purchase this laptop at XYZ store using your 20% coupon and charge the purchase on your credit card. The discounted price is $1000 and you are feeling pretty wonderful about the deal on your laptop. If you just make the minimum payment on your credit card with an interest rate of 18%, you will end up paying $923.12 in interest over 113 months (9.4 years). In this example, the total to purchase this laptop was actually $1923.12 which is definitely NOT a “deal”!

Knowledge is power and it is so important that you make informed decisions when making a purchase, especially when purchasing with a credit card. Check out this online credit card interest calculator!

By Jennifer Moran