Credit Card Use Is On The Decline

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Holiday shoppers say they'll use debit cards and cash this Christmas season. According to Britt Beemer, chairman of America's Research Group, a retail polling company. His polling reveals that a remarkably low number of people will be using credit cards this season. If consumers follow this strategy, your going to see much lower sales at retail stores.

Beemer states that when people use cash their average purchase is $41. With a credit card, they spend an average of $87 per transaction. According to the National Retail Federation 27.6 percent of shoppers said they will use their credit cards as primary payment for their holiday gifts, the lowest percent since 2002. According to Beemer, only 12 to 15 percent say they will be using their credit card.

When they have cash they only have so much money they can spend, when using credit cards, they are not under that control. Also a growing number of people are switching to cash, debit and check cards as their main source of payment.

The main reason to use cash is to avoid accruing more debt and staying within a budget. This change of financial habits is because of the Great Recession we are going through. It seems the new frugality is becoming a long term trend and not a fad.

Some shoppers say they are using credit but for other reasons. With credit cards they feel they are getting certain guarantees. If you have any trouble with the purchase at least you can go to Visa or MasterCard for some help. These shoppers say even though they use their cards, they will be paying the bill of in full.

Some retailers are joining the bandwagon with a resurgence of their layaway services. Also an increase in the use of membership points, coupons, and reward cards to keep the shopper happy.

If seems that this holiday season will be very different from anything we have become used to in the past. Credit card use is going down and cash use is going up. This can only be a good thing for the overall economy and our own personal economies.

How Do You Help Your Grown Kids Financially Without Hurting Yourself?

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When our kids are young they are such darlings that it's hard to say no to them. With to much indulging, we sometimes end up spoiling them. Their impact on our finances are minor. Then comes college and cars, the costs start to rise. Then finally they are gone and the costs go down. Now you put that money toward retirement, savings and paying off the house. Whew. You are done.

But wait, your not off the hook yet. Your grown children are coming to you for money. One wants help with a down payment for a house. Another wants to start a business. Maybe another is going through a divorce and needs money for a lawyer. Ouch.

Remember when I started this post I said how hard it is to say no to your kids?  Your kids need money, some are in trouble and some just need money for their life. How do you help them without hurting your own finances. There are a few things to keep in mind. Is this help they want a need or a want. How will your actions help their life? Maybe by helping them you're really hurting them or enabling them.

Children view their parents in different ways.  Some see Mom and Dad as a bottomless pit of money. They never seem to get it that they should be on their own. Some understand that finances are finite and it's best to leave the parents alone. They know it's time for the parents to not bare the financial responsibility for their grown kids any more. The parents have done more than enough.  

So it's a balancing act to know if you should say yes or no. We can all agree that in an emergency we are not going go let our children down. Keeping in mind that by helping them we are careful to not harm ourselves. It's quite possible we will turn down our children's request in a situation, but may help instead in a non-financial way.

The type of situation is important to the decision of giving help. If my child comes to me for a down payment for a car or or house; I will say it's not an emergency or a necessity. I will tell them as adults they responsible for their own finances  Now if you have the money because you are well off and can afford giving them the money, that's a different situation.

On the other hand if your child is going through a divorce or needs money for an operation, your obliged to help them. But only if you aren't going to harm yourself financially. It goes without saying, staying out of debt is paramount.

These black and white examples show what to do in a non-emotional way. But with your children, it's hard to to keep it that way. Your feelings toward them will weigh on your decision. Bottom line, decide if your help will be a help to them long term or just enable bad behavior.

Black Friday Survival Guide

If your like most people your getting ready to hit the malls today. It must be what running with the bulls is like. You may be getting a late start, but its never to late to go through a checklist of great shopping tips. I am including a broad array of tips from shopping to shipping and warranties to rebates. Here we go.

Avoid Debt

If you spread grocery purchases for holiday meals over several weeks, freezing perishables and storing staples; it can leave a lower impact on your food budget.

Make a budget and stick to it. Get the whole family in on it. You will be saving money and it's a great chance to teach the kids about money management. Most of all pay cash this season for all purchases.

Shop Safely

Shop only at reputable brick and mortar retailers.

If shopping online be sure to read the return policy and make sure the website is has industry seals of safe shopping like Verisign and the Better Business Bureau.

Websites and Shopping Online

Be sure to check out websites like Blackfriday.com, Blackfriday.fm, Tgiblackfriday.com, and Theblackfriday.com. These websites should give you a broad look at all the online and brick and mortar stores. When comparing prices be sure to check out Amazon and Ebay. It's always good to be signed up for email from Target.com, Walmart.com, and your own favorite web stores.

Gift Cards

When you can't find that special gift for that hard to shop for person, why not get them a gift card. They are available for all major retailers in town and online too. If you receive gift cards as a Christmas gift be smart and take precautions. Its always good to photocopy the card so you have all the pertinent information in case you lose it. Also keeping the receipt as proof of purchase whether you are are giving or receiving. But the best advice of all is, if you receive one as a gift, use it as soon as possible. This way it won't get lost or maybe expire.

Rebates

This is the most troublesome aspect of modern shopping. Retailers know we like to get a good price with the rebate incentive. But they know most of the time we won't follow up on the rebate process. We either forget, lose some forms and file it wrong.

If you have to use a rebate follow these steps. Check the expiration date of the rebate and mail it way before then. Don't throw away receipts or product packaging in case you need to resubmit. Make photocopies of all paper work you send in. Consider sending your paper work by certified mail. So you will have proof you made the deadline. Lastly be patient because it does take a few months to process it. Make a note of the web site or phone number where you can check on the progress of the rebate.

Green Shopping

Buy gifts that are made with recycled materials and are energy efficient. Bring reusable shopping bags and avoid plastic bags. When wrapping presents try to use any left over or used packaging from last year. Shopping online is a very efficient way to shop. Lastly when decorating use energy efficient led bulbs in your decorations.

Warranties and Returns

Returns can be a headache if you have no receipt or do not know the rules that your retailer has about returns. Save yourself the hassle and familiarize yourself with these rules before making that purchase. Also keep that receipt in a safe place and for at least a year.

Warranties and expiration dates are different for different products and for different stores. Again familiarize yourself before the purchase to save you headaches after.

Package Shipping

Be sure to ship your gift packages early enough to use standard shopping rates, by Dec 15-17 will be the last days. After that you will have to use the more expensive shipping rates to get it there on time. Other deadlines are Dec. 20 for first-class mail, Dec. 21-22 for priority mail, and Dec 23 for express or over night.

These hints will get you started on this seasons coming events. Remember the holidays are only a few weeks away. Don't put things off to the end. Get a head start tomorrow and it get done.

Happy Thanksgiving To All

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Today we give thanks to God for all our gifts we receive. We take a moment to say a prayer and reflect  on all the things we have. Whether it is our family's, our health or what we have. Today is a day of gratitude. 


The original Thanksgiving was first observed by the pilgrims long ago in 1621. The tradition was eventually permanently established by the highest office by President George Washington in 1789. The following proclamation by President Washington was signed October 3,1789 and entitled "General Thanksgiving"

"WHEREAS it is the duty of all nations to acknowledge the providence of Almighty God, to obey His will, to be grateful for His benefits, and humbly to implore His protection and favour; and Whereas both Houses of Congress have, by their joint committee, requested me "to recommend to the people of the United States a DAY OF PUBLIC THANKSGIVING and PRAYER, to be observed by acknowledging with grateful hearts the many and signal favors of Almighty God, especially by affording them an opportunity peaceably to establish a form of government for their safety and happiness.

NOW THEREFORE, I do recommend and assign THURSDAY, the TWENTY-SIXTH DAY of NOVEMBER next, to be devoted by the people of these States to the service of that great and glorious Being who is the beneficent author of all the good that was, that is, or that will be; that we may then all unite in rendering unto Him our sincere and humble thanks for His kind care and protection of the people of this country previous to their becoming a nation; for the signal and manifold mercies and the favorable interpositions of His providence in the course and conclusion of the late war; for the great degree of tranquility, union, and plenty which we have since enjoyed;-- for the peaceable and rational manner in which we have been enable to establish Constitutions of government for our safety and happiness, and particularly the national one now lately instituted;-- for the civil and religious liberty with which we are blessed, and the means we have of acquiring and diffusing useful knowledge;-- and, in general, for all the great and various favours which He has been pleased to confer upon us.:"

And also, that we may then unite in most humbly offering our prayers and supplications to the great Lord and Ruler of Nations and beseech Him to pardon our national and other transgressions;-- to enable us all, whether in public or private stations, to perform our several and relative duties properly and punctually; to render our National Government a blessing to all the people by constantly being a Government of wife, just, and constitutional laws, discreetly and faithfully executed and obeyed; to protect and guide all sovereigns and nations (especially such as have shewn kindness unto us); and to bless them with good governments, peace, and concord; to promote the knowledge and practice of true religion and virtue, and the increase of science among them and us; and, generally to grant unto all mankind such a degree of temporal prosperity as he alone knows to be best.

GIVEN under my hand, at the city of New-York, the third day of October, in the year of our Lord, one thousand seven hundred and eighty-nine."

(signed) G. Washington

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I would like to wish a happy and healthy Thanksgiving to all. I will be spending my thanksgiving at home with my wonderful wife and children. My best to you. God Bless. Happy Thanksgiving.

Essential Money Management Tips for Kids.

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Author Bio : This is a Guest Post by Marc Brown, a Financial Writer, associated with Oak View Law Group. Besides, he also maintains his own personal finance sites & advice people to lead a debt free life.

Debt is crucial concern to many people irrespective of rich and poor, which necessitates them to preserve money and manage their budget. It is even essential to teach your kids about how to plan their budget, save money thereby. As It would help them to properly utilize their financial resources in future. However kids are too innocent to understand the importance of money and budgeting. Therefore, parents should take the responsibility in their own shoulders to make their financial future secure.

Here are some tips which can help you to make your kids acknowledge the value of money:

1.  Budget Planning : Teach your kid to make a weekly or monthly budget. Ask them to allot their money to different areas. They should divide it as X% of the total money goes to the savings account, Y% to something else. Advice them about how much they must allot for each area and arrange them a depository where they can reserve their money.

2.  Playing with your kid : Play games with your kid that includes dealing with money. This will teach them to count money and will compel them to learn how to save it.

3.  Discuss family budget : Involve your kid in the family budget discussion. Give them a knowledge as to where the money goes, how you save, how much you afford to spend.

4.  Shop together : Take your child with you while you go for a shopping. Ask him to assist you by finding sales on items. Involve him while making a list of things to be purchased. Also tell him to keep a instant record of the total expenses.

5.  Live indication : Give your kid a new or a fresh storage box so that they can visualize the increment when they save and the deduction when they spend. This will help them to value savings.

6.  Training kids on real things : Kids remember the visualized things more than what they hear. Practical teachings are more effective where they can apply their own brains. Beside the weekly allowances that you give them, tell them that you would pay them an incentive if they do certain work for you. This way they will learn to value their own earnings.

7.  Teach them to have patience : Once your kid starts understanding more about money, he might hurry in getting what they like. So incorporate in them to have patience. Buy things what he likes but delay the purchase. This will help him having a control on his own desire of buying things.

8.  Teach them to compare price : It is very important that they learn to compare prices before buying something. Tell them that doing this will increase their savings.

Following these simple but important tips you can help your child to make a money management at an early age, which will be definitely prove to be very helpful in his future.

New Frugality Hurting Corporations Bottom Line

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The recession has taken it's toll on American culture by making us think before we spend money. Never before, besides the financial devastation of the Great Depression, has America taken the time to really think about the money they spend. Money market accounts are awash with cash just sitting on the sidelines waiting for a better economy. Our friends and neighbors are thinking twice about spending their cash because they are worried what tomorrow will bring. Many people have sworn off the use of credit cards and are paying down their debt and vowing to never to borrow again. We are seeing a new frugality developing in our country.

Some of this frugality has already been a part of many peoples lives. But today it's on the rise. The money we spend and what we spend it on is affecting many businesses. The economy is reflecting this frugality in the bottom lines of business.

Ketchup maker H.J. Heinz has made some noise about how this new frugality has hurt it's bottom line. They state in a press release that this new found "funk" in spending has shaved a few pennies of their profit for the quarter. Don't feel sorry for them their profit for the last quarter was only $251.4  million dollars. To make it worse the company has complained that coupon use has increased by 5%.

This is the kind of news I love to read about. Proof that we are making good decisions with our money. It makes sense to the public, but executives at Heinz find themselves confused. Even with ketchup we are frugal.

In what other ways does frugality effect the economy? If ketchup frugality makes it to the news what other results are on the horizon. Will the increase in savings and the reduction in debt help or hurt the economy. I believe it will benefit and and help heal the economy. Deficits and limitless debt has proved to be a blessing so far, so let's try something else. What's your take? Will saving and frugality help save the economy?