Your relationship with money is often the result of how your parents treated their own money. Some young adults picked up bad habits and never learned to understand the downsides of using credit cards. For those of you seeking help from your local payday loan provider, you are probably experiencing one of the side effects of not understanding how credit cards will affect your personal finances.

*Credit cards play an important role in credit scores. Good management and longevity are two key factors.

– Pay creditors on time.

– Leaving less than 30% of the credit limit as a balance transferred to the following month.

– Do not cancel old accounts unless absolutely necessary.

– Use all cards in rotation. Make a small charge and pay it. Use a different card each month to keep them active.

These lessons are rarely learned until it’s time to get out of a pile of unaffordable debt.

* Know the interest rates. If you have a purchase to make and you know you won’t be able to pay it off right away, use the credit card with the lowest interest rate. This action will save you money in the long run.

* Every time you apply for a credit card, creditors perform a thorough investigation of your credit history. This action leaves your business card for any other company that has permission to see your credit to know. Too many calling cards make you look desperate for cash. A thorough inquiry will also take a point or two off your credit score.

* Have a usage plan. Will you dedicate one card to gasoline and another to food? Will you set charge limits to keep payments at the end of the month?

* Don’t do minimum payment affordability banking if you charge large or multiple purchases to rack up your debt.

* Credit challenges create many personal finance problems.

– Increase in interest rates

– More income used to pay interest charges and less toward principal

– Decreased chances of help from banks, credit unions and other creditors

– You are more likely to need payday loan providers or car title lenders when money emergencies occur.

When a child sees their parents use credit cards for all their shopping and restaurant dining, they don’t get a proper introduction to money management.

They rarely see actual cash. Household budgets often go unexplained and living within your means is a strange topic. Children who always got what they asked for or never heard an explanation of why their parents said ‘no’ may not have the best understanding of wants and needs.

Payday loan lenders see a lot of people every day, some have kids next door. They come looking for quick money to do their shopping, buy gas for the car or even pay the rent. These are the lessons taught to some small children.

It doesn’t matter if you pay cash, use credit, or find an alternative loan, kids should start learning the basics of income versus taking out money.

We need our younger generation to grow up respecting the value of money and have the tools to secure their finances from the start. Don’t you want your child to have low-interest money opportunities when he really needs them? Don’t you want her income to cover your basic needs instead of relying on a payday loan provider or credit cards to make ends meet? Start talking about money early on. Teach your children the difference between wants and needs. Most importantly, don’t forget to include:

– Credit cards will cost money if not paid off right away.

– Examples of good money choices.

– Correlation between income and lifestyle.

– Poor money management increases the cost of borrowing and limits lenders’ options.

– Real life examples of how they can turn around a bad money situation no matter how difficult it is.