(Business website templates) Parents Should Pass On Effective Money Management Skills To Their Kids

November 21st, 2008 admin Posted in finance |

By MIKE SELVON

Every caring parent wants to be able to give the world to their kids and do all in their power to make sure they are set on a course for a great life in every way. One of the best and most important things a parent can do that will be enormously helpful to their children at every stage of their lives is to give them money management tips and teach them sound money management principles.

Often, when parents endeavor to give their kids a good childhood filled with all of the wonderful, educational and interesting toys and games that are popular, it can actually backfire in terms of teaching children responsibility with money. During the formative years, if children are often given $20 toys without understanding personal finance money management, soon their “toys” turn into $20,000 cars when they reach adulthood.

There are many parents who seem willing and almost eager to help their offspring out with the various financial challenges and crises that they encounter, even far into their adult years. However, these well-meaning parents also need to take pains to be sure that they do not overextend themselves and end up causing financial problems and stress for themselves and that they plan for proper money management to carry them through their retirement years.

Parents can help their children learn about personal financial goals and money management principles at any time. While it is always best to start early in life to learn about managing their finances, about how to prioritize their purchases, how to balance their needs versus their wants, and how to stay within their budgets, these are all financial concepts that people can learn about any point in time.

Parents who are too lenient early on and who lavish too many gifts and goodies on their young children can still get things back on course by simply saying no when the requests continue past the age when they should stop.

While it can be difficult, and even traumatic for both the parent and the child, when a parent starts putting limits on the financial help they will offer to their children, in the long run it is best for both parties. The offspring will gain a sense of self-assurance and self-confidence as they take their personal financial management seriously and begin to handle their own financial emergencies, as well as their own financial self-indulgences.

At the same time, parents will feel that their children will be able to get along without them long after they are gone. They will not be worrying about how in the world their progeny will deal with finances as they themselves move toward the retirement years. Starting a money management plan early is always the best approach, but it is never too late to learn personal financial management principles and skills.

Educate yourself about money management from Mike Selvon portal. We appreciate your feedback and welcome your comments at our financial money management blog.

Car Loan Refinancing - Refinance your loan at lower interest rate
By John Needles

Car Loan Refinancing is the God send option for those feeling bogged down with the heavy interest rate payment every month. Simply put, Car Refinancing means to refinance your car again with some other lender who offers you low rate of interest compared to the previous one.

Many times people accept automobile loans on a higher rate due to their poor credit history. However, they soon start experiencing the pinch of paying higher interests. Through Car Refinancing people can relieve the pressure on their pocket and save thousands of dollars on their automobile purchase!!

At Carmoneyrealfast, we realize the troubles faced by people who have to manage monthly expenses along with a heavy interest rate. For this reason, we have made our Automobile Refinancing process extremely simple. Regardless of credit history, we provide Car Loan Refinancing facility to our customers.

Through a simple online process, one can apply for Carmoneyrealfasts Auto Refinance option. We guarantee complete privacy and instant approvals on our Auto Refinancing service. Thus, you can get same day car loan at a guaranteed lower rate of interest! Besides refinancing of new cars, our Automobile Refinancing service includes used car loan refinancing service too for your benefit. So, hurry and lower your interest rate burden today with Carmoneyrealfast!

Article Resource : www.carmoneyrealfast.com

JhonNeedles is the Finance executive working with CarMoneyRealFast - America’s leading auto title loans service provider company offers gmac car loan and used car loan at low interest rate.

Owner Builder Credit Scores and the Effect On Financing Fees
By Chris Esposito

Owner builder construction loans have become harder to find as the mortgage industry has all but done away with these highly specialized products. The owner builder programs that remain strong are using the industry titan, Fannie Mae, for rates and pricing. How does this affect you? Your loan will have higher financing fees (discount points) wrapped into it if your credit score is not strong.

In the world of owner builder construction, the borrower already expects to pay more for the loan than he would expect to pay for a typical construction loan or certainly than a simple purchase or refinance mortgage. In fact, these higher costs are not of utmost importance, because they are offset against the hardy amount of savings that an owner builder will earn by cutting out the costs of a general contractor during construction of the new home.

However, every little bit helps. And, if an owner builder can avoid additional fees that come with lower credit scores, then it will help to maximize the amount of sweat equity that gets built into the home. Obviously, the borrowers with FICO credit scores above 740 will have nothing to worry about. It is the borrowers with credit scores that fall below 700 especially that will need to be prepared to wrap additional discount points into their loan. So, let’s take a look at why this is happening, and then determine if the construction is still worth the extra fees.

The bulk of the remaining owner builder construction loan programs across the country are selling their end products to Fannie Mae, the mortgage industry titan who stimulates lending by purchasing bundles of mortgages from banks. This is not unusual. In fact, it’s the typical outlet for most lenders in the U.S. The issue for owner builder loans, though, is that Fannie Mae has set some strict pricing guidelines that correspond directly to the borrower’s FICO credit score and loan-to-value ratio.

With owner builder construction, the borrower typically builds his home for less than 80% of the house’s appraised market value. Therefore, when looking at Fannie Mae’s guidelines for pricing, it is very helpful that owner builders don’t have to concern themselves with any loan-to-value ratios above 80%. This truly saves them from a lot of the higher pricing tiers.

However, it is the credit scores that must be closely observed. For example, using the 80% loan-to-value ratio, a borrower who has a credit score below 700 can expect to wrap one extra discount point into their loan. If your credit score is below 680, wrap an extra 1.75 to 2.25 points into the loan. One point is equal to one percent of the loan amount. Therefore, if your loan amount is $200,000, then wrapping an additional 1.75 points into your financing will mean a loss of $3,500 in equity in your home when it is completed.

So, is it worth it for an owner builder with a lower credit score? The answer to that question depends on the amount of equity that he plans to save during construction of his home. For example, on a $200,000, you may save $40,000 by eliminating the costs of an owner builder and managing the project yourself, perhaps even doing some of the minor parts of the labor. In this case, the extra $3,500 wrapped into your loan amount shouldn’t make a big difference to you.

It is important to note that these owner builder construction loans make allowances for a borrower to wrap these fees and closings costs into the loan amount, so you won’t have to pay them out of pocket. In the example above, the extra $3,500 in discount points that occurs due to a lower credit score will not mean that you must pay an extra $3,500 at closing. It simply means that an extra $3,500 is being financing for you. In the long run, you can equate this to $3,500 less equity that you get to build into your home by being an owner builder.

In addition, the extra fees may be well worth it to you if the owner builder construction loan has a one-time-close feature, meaning you won’t have to go through a second round of closings once your home is built. If you can convert straight to your permanent financing without having to worry about a second round of closing costs, then the extra fees in the one-time-closing are not overly troublesome. For an owner builder about to save a lot of money during construction, the financing program that allows him to do so will still be well worth it.

Therefore, if you are considering applying for an owner builder construction loan that will allow you to build your own home without requiring a general contractor, be prepared to have higher costs associated with the loan than you would have if you were buying a house or using a fully approved builder for construction. However, remember to look at the big picture and calculate the overall reward of the substantially lower construction costs for owner builder projects.

Chris Esposito provides owner builder construction loans through the Owner Builder 101 program, designed to help you build your home without paying the costs of a GC. For more info about the process and financing for an owner builder, go to www.OwnerBuilder101.com, or call (877) 876-3688.

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