If you have children, teaching them about how to manage their money is not an option. Teaching them about money is just as important as teaching them how to read or how to drive a car. It’s a necessary skill for anyone to function in society. Unfortunately, most of us drop the ball in raising our children up in a manner where they are ready to manage their financial situation when they head off into college or enter into the business world.

You don’t have to teach your child about derivatives trading or specific tax deductions, but they should have a solid foundation and understand the importance of giving, saving and spending. One tool that is extremely helpful to teach their kids to save is a savings account. By teaching your child to save up for something and pay for it, you are teaching them the concept that delayed pleasure equals success.

Perhaps the best savings account for children is SmartyPig. SmartyPig allows its customers to create savings goals and then develop a savings plan in which they save a certain amount of money each month to meet that goal.

Once the goal is met, SmartyPig will transfer your savings amount back to you or provide you with a gift card (with a bonus) to the retailer that you want to make your purchase at. If you opt for the gift card option, you are also teaching your children the value of being intentional and savvy about their finances. If they do research and figure out how to do things the right way, they can get even more money than they had to begin with.

Bet setting your child up with a savings account, you will also teach them the power of compound interest .Watching a saving account grow via compound interest can help teach a child the importance and benefits of saving and investing at an early age.

Perhaps the most important lesson that your child will learn with a SmartyPig account is the power of setting and achieving goals. They will see the direct correlation between the amount of effort that they put in and the results of their success.

At SmartyPig, your savings are FDIC insured and there are no monthly fees. The initial deposit is just $25.00 and you’ll earn a 2.15% APY on balances under $50,000– one of the best rates available for an FDIC insured savings account.

In a new book named ‘Lifecycle Investing: A New, Safe, and Audacious Way to Improve the Performance of Your Retirement Portfolio,’ Yale professors Ian Ayres and Barry Nalebuff, alleged economists at the University, recommend that people borrow money to invest for their retirements.

It just shows you scoring good on test doesn’t guarantee you have and common sense or knowledge.

Of course since being an economist has nothing to do with knowing how to invest, that fact is irrelevant to their suggestion, as the suggestion itself shows.

Anyone with a tiny bit of common sense knows this is a ridiculous idea, and it won’t work for the vast majority of people, and in fact, would cause them more harm than good financially.

The bottom line in their recommendation is that in the early stages of a person’s life they don’t invest like they should, so they’ll have to make up for it by borrowing money.

The very first fallacy of that argument is the idea you’re behind in something and so you have to catch up by taking even more risk. It doesn’t matter what area of life it is, when you develop that mentality, you’re setting yourself up for failure, as the increased risk of course means you’re increasing the possibility of failure.

In essence they’re saying you have to buy back time, but that is also not that impressive, as the extra cost of buying back that time, is partially eliminated by the cost of the capital to invest in the first place.

While we know in the U.S. money is about as cheap as you can get, it still takes away from your overall investment, and increases the cost before you have a chance to win or lose.

At a young age, it’s best to simply put as much as possible into your 401(k) accounts to get the top match from your employer, and to invest as much as possible in any IRA you have that is sheltered from taxes.

Probably most important, is there is so much discipline and knowledge required to make this happen, that the average person can in no way make it work, and so it should be thrown aside as a legitimate way to prepare for your retirement.

I don’t care what their arguments or logic is, this is just a really bad idea, and when you’re young the last thing you need to do is use a margin account of some sort to invest over the long term.

If you have that type of discipline and knowledge, you already are ready to invest in the usual retirement vehicles without the added expense and risk of borrowed money. Don’t waste your time, energy and money on this foolish advice.

If you’re an existing credit card member of Bank of America, you can still get a $75 bonus for signing up for a Free MyAccess Checking account through March 31, 2010.

There is a minimum initial deposit of $125 to gain access to the free account and get the $75 bonus.

Even though there is that minimum requirement, there is no minimum balance required to be maintained, although you do have to keep the account opened for at least 90 days to receive the bonus offered.

There is also no  monthly maintenance fee associated with the offer or the requirement of a direct deposit.

Other benefits include: 

• Manage your accounts easily with free Online Banking service with free Bill Pay

• Access to Customer Service 24/7 online or by phone

• Free Bank of America Visa Check Card with Total Security Protection Package

• No Bank of America charge for using non-Bank of America ATMs located in the U.S.

If you’re looking for a checking account that bears interest, this won’t be the one for you, as it’s not an interest earning checking account.
 
Remember that you must be an existing Bank of America credit card customer to take advantage of this offer, and is only applicable to the new MyAccess Checking accounts. If you have another checking account with the company but don’t have a credit card, you don’t qualify for this particular offer.

We need all the help we can get during these difficult economic times, and the latest offering from Citibank for those who currently own an AT&T Universal Credit Card delivers just that, as they’re giving away a $100 checking account bonus for those who open up a new checking account with them.

Now if you already have a checking account with Citibank and also use an AT&T Universal Credit Card, unfortunately you won’t qualify for the $100 bonus.

Among what are called the ‘qualifying activities’ to receive the $100 bonus, is to make a minimum deposit in the checking account, after you open it, of $1,000 by January 31, 2010. That’s not the only qualification, but it will be the major one for most of those looking to participate in the program and receive the bonus from Citibank.

Other activities you must participate in to receive the bonus would be to make a minimum of five signature debit card purchases for three straight months, or one direct deposit for three consecutive months, or make two electronic bill payments for three months in a row.

Understand that you don’t need to do each of the above, but you do have to perform one to qualify, along with the $1,000 deposit required by the end of January.

This offer is made to AT&T Universal Credit Card, and so you’ll receive the offer via your AT&T Universal Card statement. That’s the best place to look for it, although you can call the company or visit a nearby Citibank branch to sign up for it.

Remember that this deal ends by January 31, and if you’re interested in making an extra $100 over a relatively short period of time, this is a good chance to do it.

Earlier in December 2009, Electronic Arts gaming company announced it was getting into the prepaid debit card business via its sporting game division.

Branded under the Visa debit card umbrella, the card allows you to build up points which you can then use toward acquiring an Electronic Arts sports game.

With young males being the primary, targeted demographic of sporting game divisions of gaming companies, it could be a real boon to them in that they offer something they don’t have access to with a bank.

Of course adult males also enjoy sporting games, so it then generates the question of whether this is a good deal and if it’s helpful in your finances beyond making it easier to acquire a sporting game to play.

First with kids who have no other means to pay than cash, this could be helpful in that it and an enforced and built-in limit in that you can’t spend beyond what’s on the card. So if it’s parents doing this for their children, or a child taking some of their own cash and investing it in the card, it does have the value of limiting the purchase to what is on the card.

From the standpoint of making it easier to buy games this is a good deal, as many of the things to generate those actions are included with the card. Things like building up points to use toward purchasing more games, and young kids without access to a bank account can use the cards to pay for game subscription fees on the Internet or to buy a variety of virtual products offered by Electronic Arts.

So if you want an easy way to conduct business with more options, a Visa debit card from Electronic Arts could be the right thing for you.

Now the problem. Since we’re a savings Web site, the problem with a prepaid card like this is it’s just too good, and it offers you absolutely so many ways to spend money more easily, that it could get you to spend far more than you normally would, defeating the purpose of the usual use of a debit card, which is built-in restrictions which keep you on budget and limited in your spending.

In other words, you’re going to be spending more money with a debit card created for the purpose of acquiring products from a company, and which offers you the carrot of rewards to get you to spend more than you had planned to.

It’s a great business move which will generate more sales, and will also add more loyalty to Electronic Arts.

The card itself, like most debit cards, will be re-loadable, and can be filled from a direct deposit of your payroll check, your regular checking account or even another debit card, among other ways.

Again, you can only decide if this will do you any good. When a company makes it easier for you to spend on their products, they’re making it easier for you to spend. If you have self-control and can manage the debit card responsibly, it’s a good idea. If you can’t you’ll find that this really isn’t a financial tool but a marketing ploy which will take money away from you rather than help you save it.

It may be better just to get a regular prepaid debit card than a specialized one like the Electronic Arts one, which is almost guaranteed to cost you more than you would save.

We recently started talking about prepaid debit cards and the value they can add to you in a variety of ways. One of the better known prepaid debit card companies is MetaBank, which offers several options for those interested in using a debit card. MetaBank offers both MasterCard and Visa debit cards to consumers.

Prepaid debit cards are desirable for a number of reasons. For those who have bad credit it’s a great way to control your spending without fear of overdraft fees which can hit you hard. Some consumers also don’t qualify for a regular bank card, so a prepaid debit card would fit right in with the options available to you.

You also have no need to fear a credit check to obtain a prepaid debit card, as approval isn’t based upon that criteria, and you can find out immediately if you qualify in a quick online application process.

As with any financial product, there are some fees associated with using a debit card from MetaBank, and below I’ve included several debit cards the financial institution offers that would best meet your needs. Review each one carefully as they have different fee points which could affect the monthly cost of the card.

Don’t be put off by some fees, as the fact that there are fees prove it’s a legitimate business you can trust in. If someone were to offer you anything for free, you would know there is something wrong, as no one can offer something for free and remain in business. If they could, it would have to be a scam of some sort.

What a prepaid debit card in the end offers someone is flexibility, and that’s what you’re really paying for.

Like anything else, know why you want a prepaid debit card and read all the information associated with using it, as there can be terms and conditions which may cost you unexpected fees if you use it in a particular way.

With that in mind, here are three debit cards offered by MetaBank.
AccountNow Vantage Prepaid MasterCard
With the AccountNow Vantage Prepaid MasterCard from MetaBank, you can have any type of credit rating and still qualify for the card. There are also no security deposits required and there is instant, guaranteed approval. There are also no activation fees or costs upfront. For zero activation fees that applies if you load the card via direct deposit.

What is a very desirable and beneficial feature of the card is it can be used to help rebuild your credit if you have that as a goal, as all transactions you use to pay bills with are reported to PRBC.

The card is also reloadable up to a limit of $10,000.

Where you could be hit with fees is if you use the card to withdraw funds from an ATM. If you do it domestically it would cost you $2.00 for each transaction, while internationally it will cost you $4.95 per transaction. You are also provided with a monthly paper statement which you’re charged $2.95 for. If you cancel the card it will cost you $15.95, and if you lose it and need to replace it you will pay $10.00. Overall it’s almost free if you stay away from the ATMs.

You do have a limit of $500 a day for withdrawing from the card, while deposits have limits of $950 daily.

The company claims the monthly mainenance fee is low, but I wasn’t able to find out what it was with this particular debit card.

SilverCard Prepaid MasterCard

with direct deposit loading of the card doesn’t include any fees, and you also have the added advantage of not needing to pay any more check cashing fees. You are guaranteed to be approved with the SilverCard just like you are with the AccountNow mentioned above.

The difference between the SilverCard and AccountNow seems to be additional options to transact your business with. For example, you can get email and SMS text message alerts with the SilverCard, while also being empowered to pay bills by using your phone or with a automated billing payment service.

Fee differences with the SilverCard versus the AccountNow debit card are the monthly fee of the SilverCard is revealed as $3.95, and there is also an activation fee of $9.95, something the AccountNow card doesn’t have.

Domestic ATM withdrawals are slightly less with the SilverCard, costing $1.95 per transaction. International ATM costs remain the same at $4.95 a transaction. To cancel the SilverCard costs you $14.95 and card replacement is much less at $4.95.

Cash withdrawal limits on a daily basis are $500, while daily deposit limits stand at $1,000.

 Facecard Prepaid MasterCard 

The primary differences between the Facecard Prepaid MasterCard and the SilverCard and AccountNow are you can receive what they call prewards on the card, which are automatically put on the card and operate similar to coupons. You can also transfer money for free using the card, if you’re sending it to other Facecard members.

There are no activation fees associated with the Facecard Prepaid MasterCard, and domestic ATM withdrawals cost you $1.50 per transaction.

Paper statements cost you $2.95 a month and if you cancel the card you’ll pay $9.95, and you’ll pay the same if you must have the debit card replaced.

Limits on the card are $100 on a daily basis, while you can deposit up to $2,500 a day on the card.
These are several of the many debit cards offered by MetaBank, and keep in mind things can change on a consistent basis, so use the figures included above as a guide to what is offered, and not necessarily the exact fee.

The point is a prepaid debit card isn’t just a prepaid debit card any longer, and they can target exact purposes and needs you have to take best advantage of them. Keep it in mind when checking out any type of prepaid debit card when you’re in the market for one.

Prepaid debit cards are becoming a booming business as consumers tired of the high banking fees associated with checking accounts flock to the increasingly popular alternative to having bank accounts.

One great feature of a prepaid debit card is you can recharge when it when it runs out of money, so you don’t have to go through any type of process over and over again, other than that one.

The strength checking accounts in banks for some is a weakness for others; the reason the use of prepaid debit cards is growing so quickly.

For example, many banking customers like overdraft protection, because they have a handle on their finances, and they don’t want to go through the bother of being sure they’re covered to the penny if they do some spontaneous spending. So they understand they’ll have to pay for that privilege, and so don’t mind doing it.

On the other hand, those that don’t want to be hit with these fees can opt out of overdraft checking programs if they want, but then they have the issue of stopped payments if they run out of money. So they have to deal with taking care of that on the other side of the issue.

Depending on the lifestyle of consumers and the terms related to using an ATM, that can be an additional expense and headache, driving more people to go the prepaid debit card as their financial tool of choice. There are other elements connected to this, but you get the idea.

In a recent report titled “Prepaid Debit Cards: A Credible Alternative to Checking Accounts,” author Gwenn Bézard revealed that approximately 14 percent of those that now use checking accounts could save from $350 to over $1,800 by switching to a prepaid debit card.

Another interesting practice is people are moving from store cards to prepaid debit cards as well, saving more money because of no interest.

In another report, the savings aren’t near as significant as stated by the first report, as a Britton Woods prepaid debit card study found that savings for replacing a checking account with a prepaid credit card is between $96 and $146 annually.

The reason the figures are so far apart is the Britton Woods study only included basic debit card and checking account use, and didn’t include the numerous services which could add a lot of cost do using a bank checking account. That’s also the case with a prepaid debit card, which could have costs increase depending on what you used it for.

If you’re a good manager of your money and use basic banking checking account services, it’s probably not worth the time and effort to change. If you use a lot of bank checking services which generate a lot of costs and fees, then it could definitely be a good choice for you.

Some people even use both, designating certain types of spending on their prepaid debit card, ensuring they’re saving money by managing their checking account better through using it for specific items and bills.

I’m going to get a lot more into prepaid debit cards, but one nice feature to consider, is an answer to probably the first question in your mind, and that is how troublesome is it to get the card and get your money on it. The answer is it’s very simple, and all you have to do is have your pay check direct deposited into your prepaid debit card account. That will avoid any type of activation fees, while also being able to use them to make online transactions and other business.

For those that don’t know, a money market account is a form of savings account offered by a bank or credit union. The major difference is for the most part and under most conditions they offer better interest rates than a regular savings account. With Ally Bank that’s the case, and their solid interest rate and other very competitive parameters for their money market account make it a great place to put your money you want to keep safe or build a nest egg and protective moat around.

A money market account isn’t to be confused with a money market fund, which is a mutual fund that invests in low interest rate securities.

Anyway, as far as the Ally Bank money market account, you can even open an account with $0.00, and of course once you make your first deposit, start earning its high interest rate of 1.55 APY (as of this writing). This makes it a great money market account for new customers as well as old, along with those just starting out in their savings strategy as well. Many other banks require a much higher deposit to meet their best interest rates, which for the most part, are lower than Ally Banks at this time.

Here are the guidelines of Ally Bank’s money market fund as listed on their web site:

• Open with $0
• No minimum balance
• No monthly fees
• Check card and first 50 checks are free
• No ATM fees — if another bank’s ATM charges you a fee, we will refund the first four, up to $6 per month
• Daily compounded interest for maximum earnings
• FDIC insured Maximize your coverage
• Six transactions per statement cycle with no fees. Why only 6
• Your actual variable rate will go into effect when you make your opening deposit

Do keep in mind that by law you can only withdraw or transfer from your account six times in a statement cycle (monthly), so you could get charged a fee if you go beyond that with most banks, including Ally Bank.

But the point of savings in the form of money market fund is to save, so it shouldn’t be a problem for anyone to keep under that figure. After all, that’s the reason we should have a checking account.

Still, this is a really good way to save, and the Ally Bank money market account is one of the best in the country at this time.

Now that economic reality has hit many of us, and we’re scrambling for places to put our money which offer good interest rates and rewards, banks and financial institutions like U.S. Bancorp are responding to the new trend of cutting back on spending and putting more of our money into savings.

To that end U.S. Banccorp is offering an incentive of $50 in the form of a Visa gift card for customers to deposit a minimum of $1,000 into a special savings account created for that purpose. Another part of the deal is customers must agree to transfer funds to their savings from their checking account on a monthly basis.

Customers who participate in the savings account with U.S. Bancorp, which launches in December 2009, will also receive another $50 if they maintain a balance of at least $1,000 for a twelve-month period.

This is of course a great deal. No matter what the actual interest rates offered in the program are, you already receive a 10 percent return on your money guaranteed if you keep the $1,000 in the account for a year. Not bad at all. Add to that the interest you get and it’s a super deal in these difficult times, even if the 10 percent is offered in the form of two $50 gift cards.

Another good service being offered to help us save by U.S. Bancorp, along with other banks, it to give customers the option of having an automatic transer fo $1 from their checking to their savings each time they use their debit card; a very good service for those who have trouble putting money away for savings, or always forget about it.

This is a win/win for everyone involved, as consumers want to put away more money, and offering reward programs is a good incentive to get people to participate in that. Automating the process is also another proven method to help us save, and that should be a great service to offer while consumers continue to focus on the need to build up a nest egg to financially defend against the tough economic conditons that exist now, and in preparation for the long haul and the uncertainty concerning keeping a job will continue for some time.

Keep your eyes open for deals like the one offered by U.S. Bancorp, as not only does it help you build up a good nest egg to protect in times of trouble, but pays you a significant amount that is definitely worth the time and effort to take advantage of.

One great way to save that we tend to forget as we look for the best interest rates on savings accounts, money market accounts, money market funds and CDs, etc., are the ways we can save money through lowering our cost of living. With that in mind, Wells Fargo (NYSE:WFC) is offering an extremely low mortgage refinance rate of 4.66 percent. This is a 30-year fixed rate.

To understand what that really means, the all-time low, as far as it relates to a weekly average (not a one-day low), that number is 4.61 percent. So Wells Fargo is just over that rate at this time.

All of this is subject to fairly rapid change, but the ballpark figure should remain around these numbers, even when they fluctuate.

With these low mortgage refinance rates being at optimal levels, if you’re in the position to and are thinking in terms of refinancing, you many not get another chance at low interest rates like this for some time.

In order to manage your expectations properly, keep in mind that these rates are offered under the assumption of good credit and the amount of equity you have in your home.

If you’re ok in those areas, the lowest interest rates will be of great benefit to you. But even if you’re not qualified for the absolute best rates, it’s worth checking it out and applying, as the interest rates you would normally get when taking into consideration your credit score and equity in your home should be lower than it would be anyway.

In other words, your situation can’t be changed, and because interest rates are low at this time, if you qualify for a refinance your rates should still be better than you would have received from past period of higher interest rates.

Of course if you have significant equity in your home and a strong credit score, you’ll get the very best refinance interest rates out there to have, and probably the best rates that will be available for years into the future.

Don’t wait for refinance to become popular in order to benefit from these great interest rates for refinancing your mortgage. This is a great personal finance tool to make your cost of living decline, while at the same time freeing up more money to invest if you choose. It doesn’t get much better than that for the average person.