I would like to be the first to remind you that the holidays are just around the corner and with retailers pushing out holiday goods earlier and earlier you have already been reminded, countless times. With that being said we want to change it up a little, go flip-mode and recommend some wealth building holiday gifts you aren’t going to see at your local mall. These gifts are gonna be relevant a lot longer than a new iPhone or even the Wii.

Savings Bonds—I know you think bonds are boring (unless you’ve read The Beauty of Bonds) but in reality bonds make great gifts. You can purchase bonds in several different denominations and you can hold them in electronic or paper form. Savings bonds can be purchased from most local banks or through TreasuryDirect.gov. The two most common types of savings bonds purchased are Series EE and Series I. Series EE bonds are secure savings products that pay interest based on current market rates for up to 30 years. Series I bonds are a low-risk savings product that earn interest while protecting you from inflation. For more information check out http://www.treasurydirect.gov/indiv/indiv.htm

529 Plans—Raise your hand if you think college is a good thing. The best 5 ½ years of my life were spent there. The personal growth… the opportunities…the women’s studies classes that I never officially enrolled in, but tried my best to master….Who wouldn’t want their child/niece/nephew/cousin to take part in everything that college has to offer, well maybe not everything. 529 Plans are easy to set up and contribute to, if you need a refresher check out our article on college education here.

UGMA/UTMA – These are essentially trust accounts set up for minors. The person that establishes the account remains custodian of the assets in the account until the minor reaches 18 or 21 depending on the state laws. These accounts are a great way for the youngin’s  to start building wealth but be advised that the income generated from the investments is taxed at the minor’s tax bracket and these assets may effect their ability to get financial aid for college.

Shares of Stock— This is a great way to give the gift of ownership. Those new Jordan’s or those Titleist clubs aren’t going to appreciate like the stock does. These websites give you the chance to give the gift of ownership AND make the gift look good.

Hey young world, how have you been?  I know it’s been a while since we last spoke, but I’ve been busy trying to make Urbanmoneyonline.com a powerhouse in the urban finance industry.  I hope you’ve all been making good use of the in your best interest columns, because it’s your money and your future were planning.

If you’re like the majority of urbanites who failed to start a 2007 holiday savings fund you’re probably feeling the pressure of using credit cards to finance your holiday purchases.  First let me say this, I am NOT a proponent of using credit cards for anything other than emergency’s, however if you must use them to finance your holiday spending I understand.  With that being said I want to give you my top five tips for managing your credit card borrowing over the holidays.

Drum Roll Please…………….

5. Contact your credit card provider and request a lower or introductory rate.  This will give you the opportunity to borrow the funds at a much lower rate.  This is my favorite line for the credit card provider “I’ve been a customer of yours for over 6 years, but I’m being wooed by another credit card company.  Now I plan to make a significant amount of purchases on your card throughout the holiday season, and I just wanted to know what you can do for me interest rate wise.”  This will be followed by, “cricket, cricket…..please hold while I get my supervisor.”  Exercise your cool with the gate keeper, because that’s the person who will get you to the decision maker.  If you don’t get your way, no need to go Frank Lucas on them, just ask to speak to the next person in command.

4. Make a list.  Credit card purchases are so easy to execute because no cash ever changes hands.  Cash makes people really think about what’s going on and the consequences of their acts.  If your making purchases with a credit card this holiday season be sure you have a shopping list to hold yourself accountable.  Also, it pays to shop earlier than later.  It’s been said that retailers are getting the Christmas season going early this year, and because of that it generally means big discounts for the early bird shoppers.      

3. Do not advance cash.  This is one thing you should never, ever, ever, evvveer do.  Cash advances are mucho expensive and not worth the headache.  If you’re ever in a situation where you need to take a cash advance it should be life or death, and you’d better like the person who’s dying.  Remember that cash advances generally carry an interest rate that is twice as expense as your normal rate for purchases.  Ex: You can charge a Nintendo Wii @ 16%, or you can advance cash @ a rate of 32% to buy it.    

2. Stick with one card with the lowest rate.  Often time’s people think just because they have a particular department store card that they should use it.  Not true, in fact department store/retail cards are typically the most expensive cards you can use.  Unless the card is offering you an excellent promotional rate that fits your repayment schedule, I would avoid it.

1. Remember, credit card debt is not extra income.  Practice responsible habits when using your credit cards this holiday season.  Be sure to have an executable action plan for paying off what you use, and stick to it.    

This chart should give you an indicator of where you credit card rates should be right now.  If you don’t fall into this category and your not severely credit challenged then you need to shop for a new credit card company.

*Information provided by Bankrate.com; http://www.bankrate.com/brm/search/story-credit-cards.asp 11/13/2007