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Our friends at WalletHub have put together helpful information on how to achieve success in teaching your kids about finance. Odysseas Papadimitriou is CEO of the personal finance websites WalletHub and CardHub.

Financial literacy is no joke for U.S. families. Only Bosnia has a lower percentage of young people who know their financial A,B,C’s, according to global survey of parents conducted by VISA. It certainly doesn’t bode well for the future when the folks who overspent their way into a recession and have continued to rack up debt throughout the recovery have such a low opinion of their own offspring’s preparedness for financial independence.

But while financial literacy is clearly no laughing matter, it is overlooked far too often. Only 17 states require the topic in public high schools. Parents and teachers across the rest of the country often look to one another to fill the void, only to allow the subject to slip through the cracks – if it’s ever on their radar to begin with.

The burden, ultimately, is all of ours to share. We all certainly have a vested interest in the financial know-how of all of our fellow citizens, regardless of age. And while there has been some debate regarding the effectiveness of formal financial literacy programs, a new study from the education company HigherOne found that “students who received financial literacy education in high school scored significantly higher than their peers on financial knowledge questions and are significantly more responsible when it comes to money.”

Attitude and behavior, the study indicates, are just as important as knowledge of specific facts. That’s where well-informed parents can make the biggest impact. With that in mind, here are a few tips for grooming a financial whiz kid.

1. Make Sure to Get a Nap In: A recent study from the University of Arizona not only found a direct link between napping and early cognitive development, but also showed that children who napped were better able to apply previous lessons learned to new situations than non-nappers. That is a crucial aspect of critical thinking and, by extension, financial literacy. The details may change, but problem solving is timeless.
2. Make It Fun: The Trojan Horse technique works wonders when it comes to teaching kids. If you make something fun, they’ll engage with it and maybe even learn something along the way. In that vein, the assortment of money-related apps and games that are available can be a great way to introduce responsible financial values to young children.
3. Lead By Example: Academic research has also shown a direct link between the spending habits of parents and those of their children. That should come as no surprise. Kids are notorious mimics and they study everything their parents do. But it does mean that one of the biggest favors you can do your kids is to be financially disciplined yourself. If you need some pointers, there are plenty of great resources online. You could even enroll in a Massive Open Online Course (MOOC) if you’re really gung-ho.
4. Get Their Hands Dirty: People learn best when they can actually do things themselves. Mistakes are also an inevitable part of the process. As a result, it’s best to give your kids practice when the stakes are still low and while you can still oversee the learning process, offering pointers all the way.
   
   The best approach is to provide your kids an allowance while requiring that they foot some of their own bills. You can gradually dispense the allowance in larger amounts and at longer intervals, while adding to the list of expenses your kids have to cover as well as introducing an assortment of financial products. We recommend starting with a prepaid card before moving to an all-cash allowance, a checking account and, ultimately, a student credit card.
5. Focus on Tradeoffs: Responsible money management is all about managing trade-offs: risk vs. reward, more rewards vs. lower fees, higher salary vs. better experience – just to name a few. That means critical thinking and a reasonable outlook are the keys to financial security. So stoke your kids’ curiosity, teach them to never take things at face value, emphasize hoping for the best but planning for the worst, and they’ll be just fine.

At the end of the day, you’re already ahead of the curve with our youth and teen accounts Money Musketeers and Dinero programs to help your kids save and plan for the future.

Laura Edgar is a senior writer for NerdWallet.com, a consumer finance comparison website.

In some ways, credit cards have a competitive advantage over cash and debit cards. They’re safer for online and overseas purchases, and, when you make your payments in full every month, they’ll help boost your credit score. They may even give you rewards for the purchases you make every day. However, before you get one, it’s essential to know how credit cards work and which card fits best with your lifestyle. For people who are already struggling with debt, the best choice might be no credit card at all. Here’s what you need to know before you fill out that application.

Credit cards – the basics

Most people have a vague idea of how credit cards work, but not many people understand the details. Essentially, credit cards offer a revolving line of credit, letting you “buy now, pay later”. You are responsible for paying the card’s balance off in full, on time, every month, otherwise you’ll have to pay interest. If you only make the minimum payment every month, or don’t pay anything, your incur debt, and using your card can become very expensive, very fast. Credit cards are different from other payment cards because they make it easy to spend money you don’t have. A debit card deducts money from the existing balance in your checking account. A prepaid card only lets you spend money you have already loaded on the card.

Types of credit cards
All credit cards work the same way, but they offer different benefits. Most credit cards fall into one of four categories:

Low APR
The main advantage of low APR credit cards, as the name suggests, is their lower-than-average interest rate. A card’s interest rate doesn’t matter if you always make your payments on time, but for many people, that’s just not realistic. A low APR credit card will help you pay less if you overspend.

Balance transfer
Balance transfer cards let you transfer your balance from a different credit card and make your payments with 0% APR for a limited time. These cards make it easier to pay off your balance, because during the 0% introductory APR period, your debt will not accumulate any additional interest.

Rewards
Rewards credit cards give you money, miles or points for your purchases. On the flipside, they typically have the highest interest rates, and the cards that offer the best rewards may come with an annual fee. If you have good credit and can make your payments on time, they offer the most bang for your buck. If you don’t make your payments on time, the interest you pay will easily cancel out the rewards you earn.

Secured
If you’re just starting to build credit, or can’t qualify for a regular credit card, you’ll probably be eligible for a secured card. Instead of using your credit score as “proof” that you’ll make your payments, you submit a deposit, which is refundable when you cancel your card and upgrade to a better one.

Other important things to remember:

• Don’t apply for more than one credit card at the same time. When you send in multiple applications in a short time frame, this looks suspicious to credit bureaus.
• Keep your credit card information private to prevent identity theft.
• Most of the time, it’s best to keep your credit card accounts open.
• Older accounts will positively influence your credit score.

Learn more about Advancial’s Visa Rewards Plus credit card with low APR’s and no surprises!

Q: Tax forms have started rolling in and my mailbox looks like a can of alphabet soup exploded in it! What do I need and where do I start?

A: This is a tough time of year for people who don’t like paper. Starting at the end of January and continuing through March, taxpayers start drowning in paper. Sorting out what’s important and finding a place to store it is a big challenge, and it becomes harder if you don’t know what’s what. Fortunately, it’s easier to tell these forms apart than you might think. There are only a few types of forms you’ll need to deal with, and most of them don’t even need paper. Here are the four most common tax forms you’ll see and what to do with them!

1.) W-2
This is the most common informational form you’ll receive.It’s a statement from your employer that contains your yearly wages, how much tax you’ve had withheld and how much you’ve paid (pre-tax) for things like health care premiums. If you have one job, this may be the only major tax form you get.

It’s also one of the most important forms. You’ll want to keep it with other tax documents until it’s time to file your taxes. This information – your yearly earnings and the amount of tax you’ve had withheld – are the most important factors for determining what your tax bill will be (or how big a refund you’ll get).

2.) 1099
This is a series of forms identifying income from sources other than a contract job. Most common is the 1099-INT, which lists interest income. You may get one of these from any financial institution where you have an account.

If you freelance or work as a contractor, you’ll probably receive a 1099-MISC. If you received unemployment or another source of government income, you’ll get a 1099-G. If you had debt canceled this year, you’ll get a 1099-C. There are a few other kinds of 1099 forms, but they all do basically the same thing.

You’ll need to hold on to these forms, too. They document income that you haven’t yet paid any taxes on. You’ll need the amounts on these forms when you get ready to file.

3.) 1095
These are relatively new forms that deal with health insurance. Form 1095-A is a statement about insurance purchased through a marketplace exchange. 1095-B is for private health insurance. 1095-C is for employer-sponsored health care coverage.

These forms are important if you get a health insurance subsidy through the Affordable Care Act. If not, you can go ahead and put this form into long-term storage. You’ll be asked when you file if you had health insurance all 12 months of the year. The IRS receives a copy of this form to check your work, so you’ll only need it if issues come up regarding your coverage.

4.) 1098
Two forms, the 1098 and the 1098-T, report tax deductible expenses. The 1098 form lists mortgage interest and points on your primary residence, while the 1098-T itemizes tuition and other expenses paid to an institution of higher learning. The 1098-T is used in a variety of places, including claiming the Lifetime Learning Credit and the Hope Credit.

Unfortunately, in order to take advantage of deductions relating to mortgage expenses, you’ll need to itemize your deductions. Claiming the deductions listed on the 1098 requires you to forgo the standard deduction, which for most people turns out to be a bad idea. Unless you have a host of other deductions, or you bought or refinanced your home this year, claiming the standard deduction and filing the 1098 away for later will serve you best.

The bad news is you can’t file your taxes and be rid of the whole mess until you get all of your forms together. You’ll need to keep any W-2 forms, 1099 forms and your 1098-T form together until all of them arrive. Get a manila folder or a document envelope to keep them all in the same place. Keep that folder somewhere safe, and as soon as possible, file your taxes so you can put it into storage. Keep your returns for at least 3 years after you file. A paper copy of last year’s tax return in your filing cabinet can make a world of difference!

Good news! Advancial members receive a discount on TurboTax. File your taxes online and get your biggest refund, guaranteed.

Perhaps you may have had good credit in the past, but are now experiencing a much lower credit score due to choices or life circumstances. Or, you may be building your credit for the first time as a young adult or as a newly single adult. Whatever the reason, you can rely on Advancial to provide you with products that can help reestablish your payment history.

Here are a few tips to help improve your credit rating:

Savings Secured Loans – A savings secured loan allows you to borrow money and build your credit without an extensive credit history. You may use your own money as collateral from your saving account or a Certificate of Deposit. If you are establishing or building credit, sometimes using a family member’s collateral may be a better option for you to borrow the money at a more affordable rate. Once the loan is paid off, the collateral is released.

Savings Secured credit card –Enjoy the benefits of a credit card even if you have less-than-perfect credit. Secured with your Advancial account deposits, you can qualify for limits of $500 to $3,000. Just use your card responsibly and, since the card is reported to the three major credit bureaus, you’ll be able to improve your credit score in no time.

Rent payment reporting – Make sure your rent payments are tracked and reported to Experian RentBureau, the only major credit reporting agency to include on-time rental payment data on its reports. Use of timely rent payments to build and boost credit scores is relatively new, and many people don’t know about it yet.

If you’re already leasing a home, or looking to find a suitable property to lease, ask your management company if your payments are reported to Experian RentBureau. And if you pay rent to an individual rather than a management company, you can still take advantage of a service that collects your rent payments electronically, pays your landlord and reports to Experian. It may be possible to include your excellent rent payment history, too.

Here’s the important thing to remember – to use your timely rent payment history for building or rebuilding your credit, you’ll need to be proactive about it. There are a handful of services that will collect, disburse and report for you, but of course, you’ll pay a small fee for the service each month. You must contact them to pay the small fee, but it can be a valuable investment in building your credit score, along with credit builder loans and secured credit cards from Advancial.

Planning for a good credit rating is just as important as planning for major purchases and life transitions. The importance of a good credit rating means it can’t be an afterthought and it shouldn’t be left to chance.

You’ve made the decision to become a credit union member, and that’s a step in the right direction! Give us a call at 800.322.2709 to apply for one of these products today.


*Advancial is not a credit counseling agency, credit repair organization or similar service provider.

Credit cards are an important financial tool, but they need to be used responsibly.

Here’s how to know you’re okay:

1. You can easily pay more than just the minimum payment each month.
2. You don’t rely on your credit card for everyday purchases.
3. You are using less than 30% of your credit limit.
4. You never take out cash advances.
5. You use it mostly for large, necessary expenses.
6. You read all the fine print in every letter you receive from your credit card company.

Ready for a better credit card?

The Visa Rewards Plus credit card is a dream come true. There's no annual fee*, no balance transfer fee and you'll earn unlimited reward points on purchases. Best of all, we offer 0% introductory APR for the first 12 months, after that your APR will be 8.90%-14.90% based on credit worthiness. Apply today!

Need to build your credit?

Advancial offers a Savings Secured Visa® credit card to help you grow your credit responsibly. Secured with your Advancial account deposits, you can qualify for limits of $500 to $3,000. There's no annual fee**, you'll earn reward points on purchases and enjoy 0% introductory APR for the first 12 months, after that your APR will be 16.90%. Call 800.322.2709 to get started today!