Yes, it’s nearly the end of the summer and you might think it’s getting too late to think about it, but having a credit card could help you during the school holidays.
To some, the day the kids break up from school means one thing – spending three times the amount
you do every week. The little ones always seem to want something new and need to be kept
entertained 24-hours-a-day, but this non-stop fun and games all seems to cost money. One of the
ways in which a credit card can come in particularly handy here is by allowing you to spread the cost of this. Of course, it’s always wise to pay off the full balance every month, but it is nice to know you have your plastic around to come to your rescue.
Many of us will already have at least one credit card in their purse or wallet, whereas others will be the savvy types that compare credit cards online regularly to make sure they always have the one with the best deal. But some people may not realize the full range of benefits available to them with one. Not only do they provide an instant solution when you’re out at the supermarket, kids screaming to leave and you realize, oh no, you’ve forgotten to bring cash with you. No, a Credit card is also useful in helping to keep track of your expenses. Every month your statement will outline all the expenditures you used the card for – which can come in handy if you have certain budgets to stick to.
However don’t be completely sucked in to using a credit card. According to behavioural economics
studies, you’re likely to spend more money when using a credit card compared to cash, especially if there are incentives such as cashback credit cards or any other rewards to use credit cards regularly. The reason for this is that people see cash as a value and in their mind something they have worked hard and don’t want to part with it. This is completely different with a credit card, so be careful when spending this summer!
Travellers will also realisz it is helpful – and sometimes even vital – to have a credit card by your side when you are abroad. Some hotels require one to confirm a room reservation, but the card will also provide a financial backup if you need it. However, be aware of the hidden costs that can crop up for transaction fees and ATM charges when in another country – if you and your family travel a lot, it will be worth opting for a card that keeps these charges low.
Credit cards can be beneficial when used very, very cautiously. There was a time in my life when I racked up some big bills, regretted it, and eventually paid it all off. While I swore them off for a while, I’ve found if I’m responsible and pay the balance off every month, I’m rewarded with points and an ever-increasing credit score! Great article! 🙂