In this day and age, it seems that everyone uses credit cards for everything. For us adults, it makes sense because of the rewards and benefits, but is giving plastic to a minor the best choice? Let’s weigh the benefits and drawbacks.

Safer than cash – If cash is lost or stolen you (or your kid) is out of luck. With credit cards, you will be legally protected against unauthorized charges. By federal law the most you can be held accountable for is $50 but most credit cards don’t even charge that and instead, give you zero liability.

Know where the money is being spent – When it comes to cash, you have to take your kid’s word for how it is spent. One benefit of a minor using a credit card is that their spending can be broken down by transaction – you as the parent or guardian can see which stores and merchants your teen is spending money at. Most creditors will even allow you to track spending by category, too.

Limits to control spending – With prepaid credit cards for minors, they will only be able to spend up to whatever the balance is on the account. With regular

Read more…

• 0 Comments

Walmarts is an important part of the Syracuse community for consumers, employees and investors alike. And so news about the financial affairs of Walmarts is always of interest here. Matt Egan has reported for FoxBusiness News “Wal-Mart Posts Another Drop in U.S. Sales”, .

On Tuesday Wal-Mart (WMT) posted a 27% rise in fiscal fourth-quarter profits, but the retail firm’s stock took a hit as its sales and guidance left shareholders wanting more. Walmarts, which is the world’s largest retailer, said it earned $5.02 billion, or $1.41 a share, last quarter, compared with a profit of $4.82 billion, or $1.26 a share, a year earlier. With the exclusion of one-time items, Walmarts earned $1.34 a share, exceeding projections of $1.31.

But, WalMart said its sales grew just 2.5% to $115.6 billion, which was behind the Street’s view of $117.7 billion. Domestically same-store sales slid 1.8%. CEO Mike Duke said in a statement “We are pleased with Walmart’s strong earnings performance for both the fourth quarter and the full year across our three operating segments. At the same time, we are disappointed by Walmart U.S. fou

Read more…

• 0 Comments

Industry experts have recently warned consumers who are heading abroad over the coming months to hunt around for the right credit card in order to avoid costly charges whilst using the card abroad. Many cards charge excessive fees when cardholders use their cards abroad, and this can really bump up the cost of the holiday or trip.

Ian Coles from Santander Credit Cards has said that it is vital for consumers to do their research into which credit card they opt for before they head abroad as this could make all the difference to the amount that they end up paying whilst they are overseas. With the cost of holidays getting higher, especially during the school holiday, where they are said to cost around 53 percent more, it is vital for families to look at other ways of reducing costs, and using the right credit card is one way of doing this.

Mr Coles said: “The price of the hotel and flights is only a fraction of the overall holiday cost, particularly for active families and those with children, but there are ways to reduce everyday spending and cut out unnecessary costs whilst abroad. A

Read more…

• 0 Comments

The CARD Act of 2009 was designed to protect consumers from unfair credit card practices. The rules changed the way credit card companies could profit from their cardholders. The Federal Reserve isn’t too happy with the way some companies have side-stepped the law and is proposing clarifications in the language that will prevent companies from circumventing the intent of the law. Here are the loopholes they intend to close:

Card Act Loopholes:

• Promotional offers that prevent interest rate increase notifications: Some card issuers have gotten around the 45 day notice required when a cardholder’s rate is changed by applying a ‘promotional rebate’ which can be revoked at any time, resulting in an increased rate without the 45 day notice. For example, an agreement with an interest rate of 29.9% that includes a rebate of 70% of the finance charges can be discontinued at any time – in effect increasing their rate without advance notice.
• Harvester fees charged during the application process are not included in fee cap: Currently the CARD Act caps fees that can be charged during the first year of an account at 25% of the credit limit. Thus, an accou

Read more…

• 0 Comments

Fidelity has just opened up a new can of worms in the exchange traded fund .

Chris Flood for The Financial Times reports that the provider now offers customers on a total of 30 iShares ETFs. It’s taken by some to mean that iShares is playing a role in the price wars, even if it’s just behind the scenes.

Hannah Glover for Ignites reports that the provider is also taking the price war to the retirement mat, as the 401 platform will start seeing dissolving fees.

The new share classes targeting retirement plan sponsors should roll out soon. This is going to get good for investors – they can’t lose either way. In the end, the plan participants win as the fees are lower, regardless if they’re index funds or ETFs.

• 0 Comments