The ELEMENTS of money

But I want my free smoothie now!!!

Being the money-saving person that I am, I've been collecting "rewards" cards for some time now. You know, those cards that say: "Buy 7 mochas and get 1 free," or "Buy 9 frozen yogurts and the 10th is on us." I totally get that these cards are designed to get you to buy stuff, but in my defense, if I'm going to buy these things anyway, it makes sense to get at least one for free.

However, I just got a card that was a little different. I went to Jamba Juice and bought my favorite: Mango-go-go. They asked if I wanted a card for a free smoothie (uh, yes!). I got it stamped and looked forward to one day getting a free Mango-a-go-go. Here's where the story gets a bit sad. A week later I bought another smoothie and got another stamp (hurray!). But when I looked closely, I noticed that there was a time limit. I had exactly three weeks to purchase 5 more smoothies or the card would expire. Well that's more smoothies than I would normally buy, so I had a decision to make: do I spend more money than I planned just so I can get a free smoothie, or do I stop "chasing" the free smoothie?

My decision: don't buy things that I don't need just to save money (or get something for free). Now this doesn't mean that I'm not going to buy anymore smoothies. As a matter of fact, I'll probably buy one in the next three weeks (but definitely not five). So the moral of this story? Reward cards are great if:

1. There's no time limit.
2. You're going to buy the items anyway

Otherwise, it's just like buying something that you don't need just because it's on sale. OK, I gotta go now. I have a free burger combo to collect.

Catie

Holiday Gift Card Safety

So why am I posting on the eve of Christmas eve? Well, I've been busy with the holidays, and to be quite honest, this is the first time I've had to actually sit down long enough to write something. I actually thought when school finished, I'd have loads of free time, but it turns out that all this other stuff had been piling up.

Anyway, I just finished wrapping all my gifts and I'm pretty proud that I stayed within my budget! I started shopping pretty early this year, so I was able to take advantage of sales and avoid the typical chaos that ensues.

Unfortunately, I'm sure there will be plenty of people doing last minute shopping in the morning. And a majority of last-minute shoppers typically choose the easiest gift of all ... A Gift Card.

After all, gift cards are quick and easy. However, when you're buying gift cards, there are a few things to keep in mind to make sure your card isn't a dud.

1. When you buy a gift card, make sure the security code is concealed and hasn't been tampered with.
2. Once you buy the card, immediately ask the cashier to show you the balance. This will make sure that money has been applied.
3. Save the receipt, or give it to the recipient. If the card is drained before using it, you may be able to get a refund.

That's it for tonight. Just a few quick tips. Hope everyone has a great holiday.

Catie

The World's Worst Credit Card

I recently read an article on Digg about the the World's Worst Credit Card. In all fairness, I won't disclose who offers the card (it's a bank, not a credit union), but if you ever see a credit card like this, run for the hills. First off, your available credit is only $53 after all the fees. What? I'm not even quite sure what you can buy with $53. If you think that's bad, keep reading.

Here's the other shocking "features" of the World's Worst Credit Card:

• Account setup fee: $99
• Program participation fee: $89
• Annual fee: $49
• Account maintenance fee: $120
• Purchase APR: 19.92%
• Authorized user fee: $30
• Credit limit increase fee: $25
• Internet payment fee: $4 for each authorized internet payment.

As you can see, this credit card is really exist for one reason ... to make some bank money. So who would use a credit card like this? It's designed for people with really, really bad credit. Basically, people who can't get a credit card anywhere else. It's pretty much the last house on the block. This is just another reason why it's important to have good credit. When you have good credit (make payments on time and don't carry high balances), you really get to call the shots when it comes to carrying a credit card.

Catie

Will that be credit or debit?

Someone asked me the other day, "if you have to use plastic to buy fast food, should you use a credit or debit card?" I thought that was a great question so I checked around and here's what many financial experts say:

1. If you're using plastic for convenience, it's better to go debit. With a debit card, there's no chance for late fees or interest charges.
2. When you use a debit card, you erase the risk of racking up your credit balance, especially if you use plastic often. Just think, if you spend $5 at lunch everyday, that's $25 a week (during the weekdays), and $100 a month.
3. If you use a credit card, pay off your balance each month.
4. There may be a small fee for using the debit feature at a fast food restaurant. Be sure to check before you swipe.

If you don't typically pay off your credit balance every month, use your debit card. You don't want to pay interest on things like hamburgers and fries. That's probably not the best way to use a credit card.

Catie