It turns out kids in wealthier homes have higher IQs, not because of genetics but because of environment. Surely you can be frugal (or just plain poor) and raise a smart one? A psychology professor suggests you focus on praising effort over achievement, and teach delayed gratification—something that also helps when it comes to financial responsibility, so it’s a win/win skill. You should also explain that IQ is expandable, not inherent: “Students exposed to that idea work harder and get better grades.”
tips
Free iPhone App Improves Paypal And EBay Security
By 4.16.09
We’ve posted before about security keys—those little digital keyfobs that generate expiring security codes over and over and make it incredibly hard for someone to gain unauthorized access to your account. They’re a great idea, and now if you own an iPhone you can install a Verisign app that will work with Paypal and eBay, as well as about two dozen lesser known sites. It’s probably the easiest step you can take to vastly improve security on those accounts.
Got Allergies? Try Pouring Liquid Up Your Nose
By 4.16.09
A couple of years ago, I was complaining to my friend about my allergies and she suggested I try a neti pot—she said she had one and it really helped her. I nodded politely but assumed she was crazy, because we were in Brooklyn and because she works in theater. I also didn’t like the idea of irrigating my nose, because the only reference point I have for that sort of thing is diving incorrectly at the public pool, and it’s never pleasant. But the New York Times says neti pots really do work, and several recent studies indicate that they can be effective, and cheap, treatments for nasal allergies.
Hit With A Credit Card Rate Hike? Try Freezing The Account
By 4.9.09
Rosemary writes that Bank of America just increased the interest rates on her two credit cards by 12% and 15% because the balances were too high, after slashing the credit limits on both cards a month before. She’s frustrated, of course, but like everyone else who’s been hit with these increasing fees, she’s sort of stuck with their decision. But Mary Schwager at Examiner.com suggests you try placing your account on hold for six months or so, at which point your creditor may be less terrified of the economy and willing to work with you.
Reader Receives Three Phishing Attempts In One Week
By 4.8.09
DoomNasty tells us he’s been hit three times in the past week with phishing attempts. The first two were text messages from Alarion Bank, asking him to call 1-877-240-6149 “to find out why my debit/atm card was blocked. I do not have an account, and Privacy Assist shows no account was created behind my back.” The third was from 201-968-0007, but no message was left. He traced the number to Liquidity Solutions, Inc., who told him that “one of their numbers got hijacked and the hijacker is phishing for banking info.”
The Consumerist Hive Mind Helps You Buy A Diamond
By 4.7.09
I’d love to know what to look out for when buying a diamond. Do dealers change the grades of diamonds, lie about carats, etc? Where can I buy reasonably priced diamonds? There may be a huge mark-up in store, but am I going to get scammed online? Maybe just pointing in the direction of reliable user reviews of local or online retailers, since it’s so hard to know which reviews are genuine and which are the retailers inflating their stock these days.
Consumer Reports Health Blog Debunks 6 Medical Myths
By 4.1.09
Today’s “April False” post on the Consumer Reports Health Blog looks at six commonly held medical and health misconceptions. The only one I must take issue with is the one about baldness, because I am balding and I am not only a better lover, but probably the best lover. Otherwise, take a look and learn something new.
How To Easily Remember A Different Password For Every Site
By 3.31.09
Everyone knows that one of the best ways to protect yourself from online security disasters is to use a different password for each account. But do you do it? Probably not, because at first glance it looks like an unreasonable burden, having to either remember dozens of unique passwords or having to keep them all written down somewhere (which in itself is a security risk). The website ideashower.com offers a simple way to create a unique, easy to remember password for every account.
Make Sure Your Replacement AmEx Gets Overnighted
By 3.23.09
Traditionally, AmEx will send you a replacement credit card via overnight, but an insider tells us that as a cost-saving move, they’ve been trying to cut back on this. If you have low-balance, low-usage or are not an annual fee payer, they might not offer the overnight right off the bat, or may even deny it. Our tipster says there are some key phrases you can use to make sure you get your card lickity-split:
How To Teach Children To Manage Money
By 3.20.09
The “Dollars & Sense” column in the Milwaukee-Wisconsin Journal Sentinel has an interesting list of ideas for how to instill some financial competence in your child. It starts with the basic skill of learning how to delay gratification, then moves on to increasing levels of personal responsibility, so that by the time you’re dealing with a teenager who craves independence, you’re handing out a full year’s allowance in January and tasking him with managing it properly.
Suze Orman Says Build Up Emergency Cash As Much As Possible
By 3.19.09
In Suze Orman‘s most recent book, “2009 Action Plan,” she urges people with credit card debt to pay off their balances as quickly as possible using the high interest first method. “The fact that you pay just the minimum is a huge warning signal to your credit card company,” she writes, “that you may already be on shaky ground.” Now she’s changed her mind and says you should just pay the monthly minimum and put the rest of your money toward building an emergency cash stash. Based on the way credit card companies have been behaving, we think she has a point.
High Credit Limits Encourage Consumers To Spend More
By 3.17.09
The more credulous you are, either because you’re new to the whole line-of-credit experience or because you’re uneducated, the more likely you are to mistake a high line of credit for an indication of your future earnings potential. You can see how this can lead to bad things, as noted by the researchers who studied this unfortunate problem earlier this decade. Luckily, the savvier you get about credit cards, the less influence your credit limit has on you, which is yet another great reason to make financial literacy education mandatory.
Your Credit Card Limit Can Be Reduced Below Your Current Balance
By 3.16.09
We’ve seen how available balances can disappear when lenders cut credit card limits, but SmartMoney points out that lenders can cut your limit below your current balance, causing all sorts of problems. They’ll send you a notice, of course, but you may not receive it for several weeks. Your best bet is to set up your own alert system. A web-based financial service (like Mint) will send you an email or SMS alert if your available balance drops below a specified threshold.
How To Delete Your Online Accounts
By 3.10.09
PC Mag has assembled a list of instructions on how to wipe your account from a long list of websites, including Classmates.com (you’ll have to call), Windows Live ID (it’s complicated), and Friendster (ha ha ha). In many cases, canceling is as straightforward as clicking a link and authorizing the cancellation, but it’s nice to see all the phone numbers and tips collected in one spot.
Save Money On A Funeral
By 3.6.09 — Updated: 5.29.13
Someone wrote to us this week that a person in his family is terminally ill, and that he was told “that the cost of the casket, funeral, viewing, and burial would possibly exceed 12,000 dollars.” He thinks that’s an “exorbitant amount of money,” and so do we. There is no reason to pay that much money for a kick-ass funeral that people will be talking about for years to come. You don’t need to be a cheapskate to manage this, either—you just need to be aware of your rights and know what traps to watch out for. Here’s our list of what to do the next time you have to plan a funeral.
By 2.27.09
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Great idea from reader CumaeanSybil: “One thing I’ve been doing lately: every time I buy something on sale, I take the difference from regular price and put it in savings. It keeps me motivated to seek out sale prices and coupons, because I like seeing that account grow.”
Budget Slaps Customer With $500 Repair Fee Months Later
By 2.23.09
When Sean returned a rented truck to Budget Truck Rental nearly a year ago, he went through the standard inspection with an employee, who then signed off on the return. Now the company has sent a $500 bill to collection for damage they refuse to provide evidence of.
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Our reader Hank Scorpio, while taking a break from plotting to take over the world, suggested an awesome web tool earlier today: Readability. Drag the bookmark to your browser’s bookmark bar, then click it when you’re on a badly cluttered page and watch magic happen. [via Hank Scorpio]