Starting Young to Prevent Yourself From Debt
Piggy Banking For Adults
By Ajeet Khurana
We learn many lessons in the course of our lives. Some of these lessons are learnt in Chemistry class. Others are learnt just before the exams. Yet other lessons are learnt outside our classrooms. We learn to be less impulsive and more cautious. We learn to get more organized and focused. We learn the importance of being earnest. We understand the need to be honest and to be a person of integrity. We learn many lessons. Among these is the one where we learn about the value of money.
Remember how we all stored stray coins in piggy banks of various shapes and sizes? Birthday gifts from loving uncles and aunts went into the piggy banks, as did the earnings from different errands that we ran. Coins and notes that we found lying on the road also found their way into the piggy banks. After days and days, only when the piggy bank got heavy, did we muster up the courage to smash it. Then we spent hours thinking of the best way to make that money last. We wanted to get the most out of it. I think that is how a lot of us learnt about the value of money.
If you are trying to teach your child the importance of money, and he is a little big for piggy banks, get him a savings account. It is a great way of instilling in your child an appreciation of the value of money. Put some money in the savings account, give your baby a passbook, and watch him start financial planning at an early age. This will work a whole lot better than yelling at your child for having no idea of the value of your money. He will have no idea of the same if you do not give him a fixed budget. If you continue to complain, and simultaneously indulge him with the most expensive gifts, this is a lesson that your baby will not learn.
How do you find the best bank accounts for your child? Now, that is the easy part. Banks everywhere are keen to get younger and younger customers. “Get them young”, as they say. This is the age group that they would like to target so as to build brand loyalty. Simply look around for some high interest saving accounts for children and choose the best among them. Not only will a savings account teach your child the value of money, but it will also be great value for your money.
Get info on current accounts and sign up for one online.
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Loans Comparison - Which Offers Better Value
Variable Mortgages Offer ‘Better Value’
By Mark Dawson
Consumers looking to take out a competitively-priced mortgage product should act quickly, it has been advised.
The news comes after research conducted by John Charcol indicates that all of the variable rate deals with interest of at least half a percentage point below the Bank of England’s base rate were withdrawn over the course of last week. Meanwhile, the majority of fixed-rate products on a two-year contract are said to be staying level around the 6.3 per cent mark, some 0.55 percentage points above the current 5.75 per cent base rate set by the Bank of England’s monetary policy committee.
As a result, Drew Wotherspoon, marketing and communications director for the financial services firm, stated that the cost gap between the two types of borrowing has “shrunk” so much that consumers are now left with the choice of either opting for a secured loan which offers a low rate of interest but large fees or one with lesser attached costs but higher interest rates to pay.
Although he suggested that fixed-rate deals can offer homeowners payment “security”, Mr Wotherspoon claimed that variable rate loans could be a “better value” option. He said: “We do not anticipate bank rate rising beyond six per cent and even that is up for debate after reading the latest set of minutes from the monetary policy committee which recognise that most of the impact is still to be felt from the recent run of rises. We also believe that rates are likely to fall back in the second half of next year, so variables look to offer better value over a two-year period.”
Despite his claims, Mr Wotherspoon warned that choosing the right secured loan product “is far from an exact science”. Pointing to variables such as the size of mortgage consumers are wishing to take out, he suggested that taking the time to get the correct financial advice is “clearly key” for borrowers.
Meanwhile, figures recently released by the Motley Fool have claimed that mortgage provider Halifax has used the Bank of England’s historically low base rate over recent years as “a sly ruse” to steadily raise interest rates on its standard variable rate (SVR) products and so increase the pressure on homeowners to make secured home loan repayments. During the mid 90s, the Yorkshire-based lender was reported to have kept interest on its SVR deals “at much lower levels” than the Bank’s rate. However, following the base interest rate reaching a 58-year low in 2003 Halifax was said to have maintained its own interest at some two percentage points above official figures.
David Kuo, head of personal finance for the firm, claimed that other major mortgage lenders are likely to follow Halifax’s lead. He said: “Although the data is just a snapshot of interest rates over the past 12 years, the trend is clear. If we want to avoid getting stung by sly tactics like these, the simple answer is to opt for a home loan which isn’t directly linked to a lender’s SVR, such as a tracker or fixed-rate mortgage.”
Mark Dawson writes for the Loan Arrangers. Where visitors can compare loans online, and apply for the best secured loans rate available to them. To read more articles from Mark go to http://news.loan-arrangers.co.uk
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