Many bankers visited hundreds of high schools across the United States sometime this week. They were there in recognition of Thursday’s “Get Smart About Credit Day,” featured in Chase’s Calendar of Events and other publications.

Unfortunately, the bankers’ primary goal was to teach kids to use credit cards. What our kids really need to learn is how to use debit cards. Big difference.

With credit cards, many of us spend money we don’t yet have and sometimes can’t cover the bills when they come due. With debit cards, we can only spend money we already have earned and put in the bank, so our bills are covered.

Kids should learn about credit from the time they get their first allowance, rewards for their report card grades, or for assigned chores.

A portion of those earnings should be put in a bank account, with a parent as a co-signer.

To ensure the future financial success of our children, the earlier we start that process the better. Good in grade school. Helpful in high school. Critically important in college.

Fortunately, our college and university system is such that our graduates can compete in careers with their counterparts from anywhere in the world. Unfortunately, many of them are handicapped by being debt-laden for years with borrowings that parents might have avoided with more long-range planning.

One of our responsibilities as parents is to teach our kids and help them to understand the importance of not getting into major debt until our earnings meet or exceed our obligations.

Bankers and other financial leaders whose institutions have suffered during this prolonged recession have an obligation to put credit and debt in perspective for all of us–young and old, rich or poor.

Other views on teaching kids about credit and debit

“Asking bankers to teach kids about the virtues of credit is like asking cigarette manufacturers to extol the virtues of tobacco. Let’s teach kids the importance of saving, and the power of compound interest.”

–Ric Edelman, financial adviser and radio show host

“Having ‘the talk’–the money talk–might make you squirm. But it’s better to do it while your kids are under your watch, before they do things they’ll financially regret.”

–Dayana Yochim, personal finance expert, “The Motley Fool”

By John North,

Contributing Writer

3:13 PM Saturday, October 22, 2011

Debit cards have become a great alternative to credit cards, offering safety and convenience to people who dont like carrying cash or writing checks. Unlike credit cards, you can make purchases using debit cards without the worry of interest rates and over-the-limit and late payment fees. Unfortunately, that convenience may become more expensive.

On Oct. 1, Congress passed a bill capping swipe fees banks charge retailers for debit transactions. The average fee was 44 cents per transaction, but the new law caps the fee at 21 cents. While there may be little or no increase on merchandise cost as a result of the reduction, you could see more banking fees as financial institutions find ways to recover their losses.

Banks estimate theyll lose hundreds of millions of dollars a year in debit card transaction fees and are looking to recoup money from customers by modifying various checking account fees. In fact, some of the nations largest financial institutions already have announced flat monthly fees of $3 to $5 a month for debit card use.

Some financial institutions may charge per transaction fees every time your debit card is used. Rewards programs, such as frequent flyer miles, associated with debit card use may be modified or eliminated. And, financial institutions may require higher minimum account balances to waive debit card and other fees.

The Better Business Bureau advises you review your bank statements to determine what fees youre currently paying and watch for notices from your financial institutions about changes in account terms. If you dont understand a notice you receive or see an unexpected fee on your account statement, contact your bank and ask for an explanation.

You also may want to ask your bank if there are programs to waive fees for accounts with minimum balances. It also pays to shop around to find a financial institution with low or no-fee debit cards. Check out financial institutions with the BBB by visiting www.bbb.org or calling (937) 222-5825 or (800) 776-5301.

John North is president and CEO of the Better Business Bureau.

The amount of student loans taken out last year crossed the $100 billion mark for the first time and total loans outstanding will exceed $1 trillion for the first time this year. Americans now owe more on student loans than on credit cards, reports the Federal Reserve Bank of New York, the US Department of Education and private sources.

Students are borrowing twice what they did a decade ago after adjusting for inflation, the College Board reports. Total outstanding debt has doubled in the past five years — a sharp contrast to consumers reducing whats owed on home loans and credit cards.

• MORE: For-profit colleges focus of student loan issue
• STORY: How to avoid defaulting on your student loans

Taxpayers and other lenders have little risk of losing money on the loans, unlike mortgages made during the real estate bubble. Congress has given the lenders, the government included, broad collection powers, far greater than those of mortgage or credit card lenders. The debt cant be shed in bankruptcy.

The credit risk falls on young people who will start adult life deeper in debt, a burden that could place a drag on the economy in the future.

Dear Dave,

I love your plan, but I think my husband is attached to eating out. Budgeting is very hard for him, and the cost of his fast food lunches is making it difficult for us. Hes also taken a salary cut recently, and Im working a part-time job to help us get by. Can you give him some tough love from a male perspective?

-Valerie

Dear Valerie,

It sounds to me like youve been way too nice. Youre acting like a mother dealing with little kid, and thats not a good way to relate to a husband. Plus, if you guys are having money problems, the only time either of you should see the inside of a restaurant is if youre working there!

A man has several jobs in life, and one of those is to take care of his wife and children. Youre wife shouldnt have to work so you can stuff your face with fast food. When you married him, you didnt want a little boy. You wanted a man. He needs to grow up and start acting like one!

That being said, my perspective probably wont help. Theres a saying that goes, Those convinced against their will are of the same opinion still. He needs a serious change of heart. You said you love my plan, right? Then sit down with this guy, and show him the numbers. Show him where all the money is going, and tell him its just plain wrong for him to eat out all the time while you have to work just to make ends meet.

People can do all kinds of things when theyre stressed out because of money problems. Im sure taking a cut in salary was a blow to his self-esteem. However, its time for a strong wake-up call when these behaviors start to have a negative impact on family and finances!

-Dave

Dear Dave,

Im a sophomore in college, and I earn about $1,500 a month at my job. My rent is $500 a month. I dont really have a credit history, but Ive saved $20,000, and Im thinking about using it as a down payment on a $140,000 home. Would this be a good idea?

-Gil

Dear Gil,

I wouldnt do it. I love the fact that youre working while youre in school. Saving that much money is fabulous, especially for someone whos not even 20 years old!

I almost did the same kind of thing when I was in college. I was into real estate, and I really wanted to test my wings and buy something. Looking back on it, though, Im glad I didnt. It would have been a huge mistake.

College can be a bumpy enough ride, even for the most responsible student. If you lost your job youd be in a real mess, and with your stated income you wouldnt have a lot of breathing room. Plus, the two years following graduation have the potential to be the most permanently life-changing period youll ever experience. You could move across the country for a new job, get married, or decide to attend graduate school. In any of these situations, a house would turn into an anchor around your neck.

Being a renter is a great thing while youre still in school. In the meantime, keep piling up cash until youre ready to settle down!

- Dave

For more financial help please visit daveramsey.com.

BATON ROUGE, La., Oct. 22, 2011 — /PRNewswire-USNewswire/ — The Louisiana Federation for Children (LFC) today commended the efforts of Gov. Bobby Jindal, the GOP Victory Fund, Sen. David Vitters Louisiana Committee for a Republican Majority PAC, and the PACs of Louisiana Association of Business Industry for their instrumental role in electing school reform supporters. #xA0;

In addition to these critical efforts, the bipartisan LFC PAC played a crucial role in dozens of legislative and Board of Elementary and Secondary Education (BESE) races, supporting both Democratic and Republican candidates. These efforts combined to defeat school choice opponents and elect school choice supporters, while raising the profile of education reform and school choice throughout the state.

With the recent release of school letter grades, nearly half of Louisiana public schools are failing, while more than one-third of the states students are below grade level, said LFCs Lauren Perry. Now, more than ever, we need policymakers who are committed to solving these problems through bold education reforms, including school choice.

With K-12 education at the top of his 2012 agenda, the re-election of Gov. Jindal, along with other school choice champions, sets the stage for meaningful reform of education in Louisiana. #xA0;

One effective model of reform is the Student Scholarships for Educational Excellence program. The private school voucher program allows qualifying parents to send their children to the participating school of their choice. Currently limited to Orleans Parish, expansion of the program is needed throughout the state.

Perry pointed to the success of the voucher program in New Orleans, where nearly 2,000 children participate with a parental satisfaction rate of 93.4 percent.

When parents are engaged and given access to a school that works for their child, parental satisfaction and student achievement rise, she said. Louisiana voters have spoken, and now its time to give parents and children in New Orleans and other cities around our state the additional educational options they are desperately seeking.

The Louisiana Federation for Children PAC is a bipartisan political action committee whose mission is to ensure that every child has access to a quality education. The Louisiana Federation for Children (LFC) and LFC PAC not only advocate for policies that transform education in our state, but stand strong in support of candidates who share the belief that every child should have an opportunity to attend the best school possible. For more information, visit www.Louisiana4children.org.

SOURCE Louisiana Federation for Children

The flood of television, radio and print ads for small business credit cards might lead you to believe that these newfangled pieces of plastic are a revolutionary advancement for business owners, a saving grace in a time of economic woe.

But theyre not. When it comes to saving graces, small business credit cards are anything but.

In fact, they often put consumers at even greater risk for debt and financial ruin than regular credit cards.

Heres why:

• They Capitalize on a Catch. When the Credit Accountability, Responsibility and Disclosure Act was passed in 2009, consumers were finally granted protection from the sudden interest hikes, steep penalties and suffocating contracts that credit card companies used to maximize their profits. Small businesses, however, were not. As a result, the credit industry discovered that if they added business to their cards title, they were free to exploit and penalize their cardholders just like they did before such practices were deemed illegal.

• You Dont Need to Own a Business to Own a Small Business Card. Perhaps the dirtiest trick up the credit industrys sleeve is convincing private consumers to sign up for these business cards. According to a Consumerist article published in May, over 2.6 billion small business credit cards were sent out to private citizens. Their purpose? To woo consumers who believe theyre still enjoying the protections levied by the CARD act into signing up for what appear to be very low interest, high limit credit cards. Of course, once someone signs on the dotted line the card provider is likely to jack up interest rates without any notice whatsoever and begin penalizing consumers for any infractions.

• Youre Locked In. When a credit card company changes the terms of a consumer credit card contract, the card provider has to inform their cardholders at least 45 days in advance and give anyone with an account the ability to opt out of the new rules. This isnt the case with business cards. If you read the fine print of a small business credit card contract, youll find that most of these contracts grant the company the ability to change the terms at any time, without notice. By signing, cardholders have legally waived their right to opt out.

• Theyre the Only Option. You might be wondering why, if these small business credit cards are such a scam, there are currently over 14 million small business accounts open across the country. The answer is simple they might be a bad option for business owners, but theyre often the only option. With the economy in the tank, its harder than ever for a start-up to get a loan or any venture capital whatsoever. Therefore, many businesses depend on these cards to cover their expenses.

Although some creditors, like Bank of America, have changed their business card terms after the truth about these innocuous little pieces of plastic started to circulate, many card providers still use them as a means to prey on the unwitting.

If youre a small business owner who needs a business credit card, the best thing you can do for yourself is to take your time going over all the fine print in your contract. Even if you cant help what youre getting into, youll be able to take steps to protect yourself when you know exactly how these cards work.

This post originally appeared at Credit Card Assist.

Credit Cards Can Offer SMEs Convenience says ICAEW
Small Business News

6^th October 2011

Credit cards can offer SMEs convenience, says the Institute of Chartered Accountants in England and Wales (ICAEW)

Credit cards can be seen as an expensive and risky way to borrow but they are often a convenient and flexible option for Small and Medium size Enterprises (SMEs) to fund expenses. Providing debt is controlled, credit cards can be a good way to make purchases and finance day-to-day outgoings. Clive Lewis, ICAEWs Head of Enterprise, explains:

With difficult economic conditions and constrained access to finance, many small businesses opt for forms of finance that offer quick and easy access to cash. Besides being secure, credit cards offer flexibility and can help businesses to monitor and control expenditure. With a wide variety of company or corporate payment cards on the market it is easy to find one best suited to your business.

Essentially, credit cards:

• Allow purchases up to a specified limit
• Offer an interest-free period
• Allow a minimum repayment each month, but charge interest on the balance
• Incur no interest if the bill is paid in full by the specified date
• Can be issued to employees, with an approved spending limit, allowing owners to effectively manage and monitor staff purchases

Clive continues,

Business owners who use credit cards typically have an interest-free period of up to 56 days before they have to settle the bill, which can help with the companys cash flow. It can also help to cut administration. With a company credit card you pay one bill each month, no matter how many transactions you make. Itemised monthly statements help with administration and accounting.

Using a credit card means business owners do not have to carry large amounts of cash or a company chequebook and can keep close track of expenditure. They are also convenient for paying everyday company expenses over the internet or by phone.

Making purchases using a credit card also offers protection if any items are faulty. If you purchase a faulty item on a credit card, under the Consumer Credit Act 1974, the credit card company is liable along with the trader for any breaches of contract or misrepresentations. The goods must have cost more than pound;100 and no more than pound;30,000.

For start-up small businesses, using a credit card can help build up a credit record which could help secure better rates on other forms of finance, such as bank loans or overdrafts. Most lenders are reluctant to lend to businesses if there is no payment history in settling bills.

Clive adds:

A bad credit history may not exclude using credit or debit cards but it may be that you need to trade as a business for 18 months to 2 years to establish a trading history and a credit track record before applying for a card. Ultimately, it is important that you choose the right card for your business. Interest rates, charges, interest-free periods and benefits can vary a great deal and it is advisable to shop around and negotiate to ensure you get the right card to help finance your business.

The use of credit cards for start-ups and SMEs are just one of the subjects an ICAEW Chartered Accountant can help with. The Business Advice Service (BAS) is a scheme that gives small businesses a free consultation with an ICAEW Chartered Accountant with no further obligation. See www.businessadviceservice.com for further information.

By Joy Pullmann

-

Iowa’s governor has just provided a prime example of an education policy other states might pursue in looking beyond No Child Left Behind’s notorious failures and cover-ups. On Oct. 3, Gov. Terry Branstad, a Republican, announced his initial reform “blueprint” for a state that in 1992 led the nation in academic achievement but has since slipped to the middle of the pack.

Branstad’s administration has caught what a wave of new studies demonstrates: The nation’s top school systems rate at best mediocre internationally, though US workers increasingly must compete globally.

Branstad has called for “systemic” reform. The first reform item entails attracting and retaining the best teachers and principals. Central to this is a tiered teaching system in which new teachers and principals must meet higher bars to enter the field but will receive greater starting pay and intensive mentoring. Current teaching pay schedules reward “butt in seat” time rather than excellent track records. A shift to performance-related pay is proposed. It also shifts inflexible teaching contracts to “at-will” agreements typical in the private sector.

The second reform element would raise Iowa’s education standards and revise state assessments to fit them. It requires exit tests for core high school subjects such as US history and algebra, and it ends social promotion for third-graders. Branstad’s plan also uses student test scores to measure how specific teachers affect each child’s education.

The blueprint’s third component is innovation — establishing competitive grants for pilot programs and waiving state requirements for districts that want to try something different that might work better. It also would encourage creation of charter schools by sending them the same per-pupil funding as traditional public schools, establish a state network for online learning, and grant academic credit to students who demonstrate competency rather than merely putting in seat time.

All these ideas have surfaced in recent policy studies. Branstad’s approach is unique, however, both for his intent to implement as many as possible and for the low-key public relations sell he has taken. It appears Branstad has learned from the slash-and-burn circus in neighboring Wisconsin and from Iowa’s stalemate in the last legislative session: Getting anything significant out of his statehouse will require delicacy. Let’s hope his cautiousness is a result of cleverness, not cowardice.

Joy Pullmann is managing editor of School Reform News and an education research fellow at The Heartland Institute. Comments: jpullmann@heartland.org

LPL Financial Retirement Partners has rolled out the next iteration of its portfolio of tools for retirement plan advisors working with plan sponsors.

HUNTSVILLE, Ala., Oct. 11, 2011 /PRNewswire via COMTEX/ –
ARC Advisory Group, the leading research and advisory firm for industry and infrastructure, has again ranked Intergraph® as the world’s No. 1 software provider, this time in its recently released “Process Engineering Tools (PET) Market Analysis and Forecast through 2015.”

The ARC study provides an in-depth analysis of the PET market for process manufacturing by industry segment and geographic region. The tools and applications covered in the PET study include a large portion of those necessary to manage engineering activities that create or use engineering data throughout the life cycle of a plant or marine asset. Profiles for major suppliers servicing the PET market are also listed.

In addition to ranking Intergraph as the overall global leader, the ARC Advisory Group study also places Intergraph first in numerous individual categories, including the No. 1 provider of engineering design tools and engineering design 3D software. ARC ranks Intergraph as the top supplier to many industries, including chemical, mining and metals, oil and gas, pharmaceutical and biotechnology, and refining. Intergraph is also ranked No. 1 geographically in all three of its regions: North and Latin America; Europe, Middle East, India & Africa; and Asia-Pacific.

“Intergraph has a large and comprehensive product portfolio that provides users with a compelling value proposition,” said Janice Abel, principal consultant with ARC Advisory Group and the study’s co-author. “Intergraph has established itself as the premier enterprise engineering company by understanding that engineering data is a valuable corporate asset and must be properly managed at the enterprise level.”

Gerhard Sallinger, Intergraph Process, Power & Marine president, said, “The ARC Advisory Group’s PET analysis validates what we see and hear in the marketplace each day: Intergraph provides the best and broadest solution portfolio through our SmartPlant® and SmartMarine® Enterprise suites. Our solutions are the most advanced and productive ones available to the process, power and marine industries, allowing our customers to increase safety, quality and productivity, while shortening project schedules.”

Intergraph SmartPlant and SmartMarine Enterprises offer a powerful portfolio of industry-leading, best-in-class design and data management solutions, enabling companies in the process, power and marine industries to capture integrated engineering knowledge at the enterprise level for the competitive advantage needed in today’s and tomorrow’s markets. Intergraph enterprise solutions enable proven productivity gains, improving engineering efficiency by up to 30 percent.

About ARC Advisory GroupFounded in 1986, ARC Advisory Group is the leading research and advisory firm for industry and infrastructure. Its coverage of technology extends from business systems to product and asset life cycle management, supply chain management, operations management, energy optimization and automations systems.
www.arcweb.com

About IntergraphIntergraph is the leading global provider of engineering and geospatial software that enables customers to visualize complex data. Businesses and governments in more than 60 countries rely on Intergraph’s industry-specific software to organize vast amounts of data to make processes and infrastructure better, safer and smarter. The company’s software and services empower customers to build and operate more efficient plants and ships, create intelligent maps, and protect critical infrastructure and millions of people around the world.

Intergraph operates through two divisions: Process, Power & Marine (PP&M) and Security, Government & Infrastructure (SG&I). Intergraph PP&M provides enterprise engineering software for the design, construction, operation and data management of plants, ships and offshore facilities. Intergraph SG&I provides geospatially powered solutions to the public safety and security, defense and intelligence, government, transportation, photogrammetry, and utilities and communications industries. Intergraph Government Solutions (IGS) is an independent subsidiary for SG&I’s U.S. federal and classified business.

Intergraph is a wholly owned subsidiary of Hexagon AB, (nordic exchange:HEXA B) and (swiss exchange:HEXN). For more information, visit
www.intergraph.com and
www.hexagon.se .

© 2011 Intergraph Corp. All rights reserved. Intergraph, the Intergraph logo, SmartPlant, and SmartMarine are registered trademarks of Intergraph Corp. or its subsidiaries in the United States and in other countries. Other brands and product names are trademarks of their respective owners.

SOURCE Intergraph

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