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Is There A Credit Gender Gap?

In the US, Moms are 3.6 times more likely than dads to give their kid a credit card, according to a new WalletHub survey released today. Parents can make their child an authorized user on their account and give them their own card tied to the parents’ credit line.

Making a child an authorized user can be good way to teach them responsibility and help them build a credit history before they are old enough to have a credit card account in their own name. However, not all parents decide to give their kids a card. Below are a few key stats from WalletHub’s survey:

Is There A Credit Gender Gap? - teens and credit card image

Key Stats

  • 2.4X more daughters have credit cards than sons.
  • Kids in private school are almost twice as likely to have a credit card.
  • Dads are 3.4 times more likely than moms to monitor their kids’ credit card spending.

Q&A with Odysseas Papadimitriou, CEO of WalletHub:

What is an appropriate age to give one’s child a credit card?

“It’s a good idea to give your child a credit card for emergencies when they are in high school,” said WalletHub CEO Odysseas Papadimitriou. “That’s when young people start to exercise their independence more and more, making access to funds for emergencies increasingly important. Plus, adding your child to your credit card account as an authorized user can help them build some credit history, making it easier for them to get their own account after they turn 18. When they’re eligible to get their own account, set your child up with a secured credit card, and have them fund the security deposit themselves. This will give them good practice without too much risk. But it will be their own money at stake, which is important.”

What explains 2.4X more daughters having credit cards than sons?

“My guess is that parents tend to see their daughters as being responsible enough to handle a credit card at an earlier age than their sons,” said Odysseas. “However, the need for financial literacy is gender-agnostic. And the kids who are least responsible may actually need the most hands-on training.”

Should parents closely monitor their kids’ spending?

“Parents should monitor their kids’ spending, both to keep them safe and because it can provide some valuable learning opportunities. But they shouldn’t try to be sneaky about it,” said WalletHub CEO Odysseas Papadimitriou. “Rather, parents should discuss spending decisions with their children in order to help calibrate how they think about money and improve their financial literacy. Credit cards make this whole process a lot easier than cash.”

A copy of the full report can be found at https://wallethub.com/credit-cards#survey.

The Best Money Saving Apps for Kids

Wherever you stand on the too much screen time debate, mobile phones have changed the way we live. The amount of information and computing power available in our hand on demand would have been unimaginable just a few years ago.

This article looks at some of the great money savings apps available all designed to help kids save and manage their money.

Kid-Friendly Allowance Apps

4 Things to Remember When Organising Your Will and Child’s Inheritance

One of the most essential documents you’ll ever make throughout your life is your will, and this is never more important than when it comes to your family. When your time comes, it’s critical to make sure your assets are being distributed in the right way and to the right people, especially when your children are involved.

We’re sure you want to give your children the earnings and benefits of your life to help them make the most of theirs. However, you need to make sure you’re doing this in the right way and minimizes the risk of problems and issues down the line, or even jeopardize your children getting their inheritance at all.

There are several things you’ll need to know to get the best results, four of which we’re going to explore today. Remember these when organizing and creating your will and you can be sure everyone in your family will have the best experience during one of the hardest times; helping to make things a little easier.

4 Things to Remember When Organising Your Will and Child's Inheritance - last will and testament image
  1. Naming a Guardian

The first thing you need to do is name a guardian who is going to look after your child, especially if they’re underage in your country and not legally an adult. This is typically around the 18 years old mark. This is so important because this is the person or family who will be looking after your children.

If you don’t name a legal guardian, things can get very complicated with parties like social services having to get involved. After you’ve passed, you don’t want to make things even more complex for your children; so name a guardian to make things easier for everyone. Be sure to talk to this guardian first.

2. Use a Financial Test

Sometimes, you might be in a position where you want to give your children their inheritance, but there are many concerns parents may have when it comes to actually giving your children that money. This is where a financial test comes into play.

With a test, you can see how your children will spend the money they’re giving and then you can see how to provide them with their inheritance which best suits them. Whether you want to give them a lump sum, or you’d instead give them monthly installments, so they don’t blow it all in Vegas.

3. Start Using and Set Up Trusts

Trusts are one of the best ways to keep your inheritance assets save and to ensure your children can access their inheritance safely. With a trust, you’ll be able to appoint your children and anybody else in your family or other loved ones to be trustees who can then access these assets.

With regards to your children, it’s best to set up a trust per child and then give them access to their own trust and not each other’s, while making sure everything is kept fair and how you want it. This is also important to think about for lots of reasons, especially if you have an IRA from a parent you want to give away, or money or assets from a business.

4. Don’t Forget Inheritance Tax

Inheritance tax is unavoidable, and you’ll need to consider this when writing your will. You don’t want to give your children a large payout of assets only to find they’ve been heavily taxed and left in an even more stressful situation. The rules of this will depend on your individual State or Country.

You will need to talk to a professional will service who will be able to talk you through the details of your individual situation, and how it will affect your children, so make sure you’re booking an appointment to talk through everything, so everyone is clear.

Summary

As you can see, there are several things you’re going to want to think about when it comes to organizing your child’s inheritance and sorting out your wills. The more you can be prepared, the easiest the legal side of the process will be for the ones you love; the importance of which can never be understated.

6 Easy & Pain-free Ways you Can Cut Your Spending

Budgeting. It’s one of those things that we all know is good for us. Yet committing to a budget can be a lot easier said than done.

One of the hardest things about budgeting is that you’ll have to make a handful of compromises. This means that you can’t just buy everything you want without thinking about it. Instead, you need to decide what you really need to buy, and what you can live without.

If you’re concerned about how difficult it can sometimes be to reduce your spending, don’t fret. We’ve got a handful of easy ways you can spend less, without feeling the pinch.

6 Easy & Pain-free Ways you Can Cut Your Spending - coin and purse image

1.    Only Buy Store Brands

Human beings are creatures of habit. We tell ourselves that we need to buy the same make of cheese and toilet paper time and time again. However, the truth is that most of the products you buy in the supermarket today are the same as the own-brand options you can get for a much cheaper price.

When you pay for more for fancy brands, usually, you’re paying for the cost of their advertising and packaging, not for a product that’s any better than you’d get elsewhere. Stick to store-brand only, and you’ll save a fortune.

2.    Plan your Meals

Have you ever been searching through your kitchen cupboards and found a bunch of old, outdated sauce mixes and meal packets in there? You’re not the only one. It’s easy to get inspired and buy something at a shop, then forget all about it when you get home. To make sure that you’re not wasting your money on un-used food, make sure that you plan your meals.

Set aside an hour or two each week to think about the kind of recipes you’ll look forward to eating. This will make it less likely that you’ll be tempted to order in. If you can, try to make multiple meals using similar ingredients, as this will cut down the amount you need to spend too.

3.    Always Keep Snacks Handy

Snacks might not be the best thing for your diet (depending on what you eat), but they’re great for your budget. When you’re out and about, it’s easy to spend a fortune on an expensive lunch when you’re starving and far away from home. However, if you’ve got some snacks in your glove compartment, or your bag, then you can save yourself some hard-earned cash.

To keep things healthy, carry a bottle of water with you at all times, as well as some non-perishable foods like nuts, or a granola bar. When you’re tempted to eat out, even a bottle of water can be enough to fill you up until you get home.

4.    Use Things Up

Most consumers today are more wasteful than they realise. The chances are that you’ve thrown away plenty of “almost empty” bottles of cleaning substances in the past. However, the amount of cash you waste on not using those items until they’re empty is more significant than you may realise.

Whether it’s a bottle of makeup or something that you regularly use around the house, focus on trying to use everything before you buy something new. This will help to stop you from making frivolous purchases on items that you don’t necessarily need. It should also stop you from ending up with excess clutter in your home too.

5.    Make it a Challenge

Budgeting can be boring – so why not have a little more fun with it? Every time you’re shopping for something new, challenge yourself to save money. This could mean going online and finding out how much cash you could save on a new loan if you go with a different provider. It could also mean downloading apps that automatically add discounts to your cart when you’re checking out with an online store.

If you focus on making sure that you’re always on the lookout for a bargain, you’ll be less likely to make passive purchases that take you over your limits in your budget.

6.    Ask for Better Deals

Finally, don’t be afraid to haggle with your service providers. Whether it’s the company that provides your car insurance, or the brand you’re paying for utilities like gas and electric, make sure you’re always paying the lowest price. If you can’t find a better deal online, you can always call the company customer service desk and ask for a discount.

Many businesses will be happy to go above and beyond to keep you on their team. That means that you can find plenty of great deals.

Small steps for sizeable savings

When it comes to saving money for your next family holiday or trying to set a good example for your younger children, it’s important to get into good habits. So, whether you’re opening your first savings pot or already an experienced saver, putting money away is something everyone can get into the habit of doing without making it feel like too much of a chore.

While there’s various ways to save your cash, it can often be easier said than done. So, why don’t you challenge yourself? Become a habitual saver by trying the 52-week saving challenge. Save £1 in your first week, £2 in your second week and so on. By the end of the challenge, you’ll have saved an impressive £1,378 plus any interest!

Sainsbury’s Bank Visual Guide to Habitual Saving