Break These Bad Money Habits

The little decisions you make every day determine the health of your financial future. Following are three of the worst money habits – and how to break them.

1. Carrying a balance on credit cards. The average credit card balance last year was $6,576.¹ With an average interest rate of 17%, that adds up to more than $1,100 in interest every year!² Strive to live within your means and pay down your debt. Did you know that your Primerica representative can help you create a game plan for paying off your credit card debt? It’s true!
2. Ignoring your credit score. A shocking 56% of people have no idea their credit score is the most important factor when applying for a mortgage, car loan and new credit card.³ Do you know your credit score? If not, you should! Your credit score can also influence whether or not you are approved to rent a house or apartment, the cost of your homeowner’s and car insurance and in some cases, whether or not you are eligible for a job (13% of employers check credit reports for all candidates; 47% check them for certain positions⁴). Regularly monitoring your credit is essential to your financial health.
3. Saving for college but skimping on retirement. It’s great to make sacrifices for your child’s higher education – but if you’re doing this instead of contributing to your retirement accounts, you may have to work longer to make up for it. While your child can fund college through a variety of sources (scholarships, grants, financial aid, part-time work), you can’t borrow money for retirement.

Break these common money habits, and you’ll be on your way to a healthier financial future!

1. Yahoofinance.com, March 2, 2012
2. Ibid
3. www.economywatch.com, viewed April 4, 2012
4. Kiplinger’s, February 2012