Credit Cards 101 & How to Live Well on Less

This infographic has some cussing but I think the info is too good not to share with my kids.  I think this is one of the biggest lessons we need to teach before we send our kids out into the world, because bad moves can have such lasting consequences.

(Sorry it seems to have snipped off the ends of the graphic!  I can’t seem to make it small enough to fit but big enough to read.  Go here to see the whole thing and read a bit about the history of credit cards.)

This is why we have no credit cards or loans (not even for our home or van).  This is also why we have a Freecycle couch and thrift store clothes.  The freedom feels better than any shopping spree (and I know, because I learned the hard way!).

Here’s 10 ways we save money and keep from relying on credit.  I think these are some of the most important lessons for me to pass on to my kids, and it helps us live well and have time together.

What works for you?



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3 thoughts on “Credit Cards 101 & How to Live Well on Less

  1. I think the biggest one is save out of your paycheck and if necessary use the envelope system. It’s just a budget with envelopes, mark one food, clothing, gas, house, utilities, etc. Divide the cash among them and spend it. When you run out, that’s it, or you can ‘borrow’ from another envelope. Maybe you need more gas money and less clothing money, so the next month you would fix that in the system.

    It helped us out a few years ago.

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  2. Good idea! I like that, since you can make sure everything gets paid and see where you’re spending too much.

    A little trick that my hubby taught me is to also always round check/debit card amounts up to the nearest dollar. It makes it easier to balance your checkbook and over time you slowly build up a cushion of invisible money. 🙂

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  3. That’s an interesting difference between Canada & the US. Here the minimum payment has to be more than the interest. If you stop using a card here, the minimum payment will pay it off in less than 20 years (although it’s still a crazy amount of interest).

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