Credit Cards...to use or not to use?

Let's face it, we all have them. Credit Cards are everywhere. They call to use at those moments of impulse. They remind us that we can have the larger items from time to time. They even will whisper in your ear..."we are the same thing as money"..."you can afford it" ..."just this one time."

Credit card companies have lulled us to sleep about what money actually is, and what it is not. Having money is not the same thing as having credit. Credit is access to money that belongs to someone else. Credit is ones ability to borrow and nothing else. So when we purchase on credit cards we are borrowing money. In most cases that ability has a price tag called an interest rate. How many of us today are paying the price for borrowing too much and allowing the interest rates to overtake our ability to pay off our debts?

Let me offer one simple rule that will keep your kids from falling into the same trap. Rule #2 for Kids: "If you do not have money then you can't spend money." If you want something then you need to have the available CASH to purchase the item. If you need something we should budget so we have CASH to purchase the necessity. Borrowing money should always be kept to a minimum and only when absolutely necessary. Teach your children that to be independent they cannot ever become slave to the lender. Teach them to use cash.

Sincerely,

Grant Magers
CEO
Moola Monsters, LLC
www.moolamonsters.com