Our Kids and Money

As with anything, the best way to learn — for people of any age — is through hands-on experience; I believe the best way for kids to learn how to manage their own money is by letting them taking control of it.

This doesn’t necessarily mean giving your child the rights to their university fund before they are ready, or even letting them take money when they want - as this would no doubt start a bad habit that is very likely to lead them into debt. Instead a good idea would be to set up a child account with a bank such as Nationwide or HSBC that gives the child a card to use with their account (a debit card, of course) with a monthly limit on how much they spend. This way they can see their savings grow over time - if they choose to save that is. Pocket money can even be added to this account monthly by standing order straight from your account.

As for schools, It is my personal opinion that ‘citizenship’ and the such should be kept out of schools as it interferes with the teaching of traditional subjects. However an introduction to Economics for children to young to study it may help the country out of the financial grave it is digging in future generations.

Light at the end of the tunnel

It is so easy to get into debt, but not as easy to get out of debt. The first thing you need to do is set a realistic household budget.

List all things you have to spend money on i.e. gas, electric, mortgage, then list all the things you want to spend money on. The goal is to separate between ‘Need’ and ‘Want’ for example you ‘need’ to eat or you ‘want’ that new CD. The idea is to look at your outgoings and see where you can make cut backs, as in setting yourself a shopping budget for food.

Some examples of how to save money on groceries, household bills:
1. Ask your supermarket what time they mark down their products, and purchase these when they are cheaper.
2. Grow your own vegetables and fruit - a lot cheaper than buying.
3. Use price comparison sites to check you are not paying too much for your gas, electric or mortgage.
4. Check with your energy supplier to see if you have an economy setting, do your washing etc in the evening as it is cheaper.
5. Take a shower instead of a bath, it’s cheaper.
6. Do you really need the heating on? Can you just put on another layer of clothing?
7. Hang clothes to dry on a rainy day indoors over the bath or use a clothes airer, it’s cheaper than the tumble dryer or radiators.
8. Use natural products for cleaning its cheaper and better for your health!! i.e. vinegar for cleaning windows.

Overall just think about ways to do things on the cheap, research and you will save money and get out of debt. Think pennies make pounds and pounds make rich men.

Communication will help debt problems

Living under the weight of debt is hard.So first we need to start savings in various ways. Living under the weight of debt when concealing it from your partner is hellish, and that applies whether you are hiding all the debt from them or merely reducing it to a size which will make their consumption of it more palatable.

If you recognise yourself in this, be warned. It can break families and relationships into pieces that may never get picked up again. Face up to the fact that although you may be trying to protect your partner/relationship/family by keeping the severity of the situation away from them, your deception will cause a stress of its own.

The short term relief of denial can very quickly bite you in the behind. This will happen when your situation compounds to the point when there’s no escaping it, because you’re maxed out on credit everywhere you turn and you face homelessness. This level of debt can’t be conveniently swept under the carpet; as the adage goes: “If you continually sweep things under the carpet, eventually you’ll get a crick in your neck from stooping to avoid the ceiling.” There’s also the possibility that your partner will blame you for not informing them of how bad the situation had become, or of not managing the money better.

But this is supposed to be a partnership and it the debt needs to be faced with your eyes wide open. Communication is the key, whether that’s with your partner or the bank, so stop covering it up and look it in the face. It’s the only way to resolve it. There are loads of solutons out there to help. Debt Management, Consolidation Loans, IVA, and hopefully not, but you never know, Bankrupty. The early you deal with it the less drastic the solution.

Make a saving budget

With the food and petrol prices constantly rising in the face of the global financial crisis, cutting unnecessary spending and saving money is of ever increasing importance. By cutting out some luxuries from our lives we can avoid debt and save money.

When shopping, keep a look out for special offers, sometimes you can even pick up top branded products cheaply if they are on offer. Otherwise, try to buy supermarkets own brand products and stay away from brand names. Often, the quality of the product is the same for a cheaper price. Buying things in multipacks can also help to save money in the long run.

Shop around. Try shopping at a different supermarket and see if you’re shopping works out cheaper. This could be especially helpful if this supermarket is closer to home. Look out for petrol vouchers with your shopping and find out which supermarket offers the best loyalty card system.

Create a budget for the week, month or even a year. Sit down and work out all your incomes and expenditures, this way you know how much you have to spend on yourself over a given period. If you have cash left over try and save it. This could be by having one less drink on a night out or not having a weekly takeaway, over the year this will add up to a big saving. Some financial advisers will help you budget free of charge so it’s worth arranging a meeting with one to see what advice they can offer you on saving money.

Around the house this winter, layer up rather than turning the heating up! Heating bills are ever increasing due to rising gas and oil prices so by wearing extra clothing you can save money on your heating bill. The same can be said for your water bill, take showers rather than baths and avoid using the dishwasher where possible. As for electricity, turn off lights when they are not being used and try to avoid leaving electrical appliances on standby.

The cost of petrol has risen massively and even a short journey now costs a substantial amount in petrol costs. Avoid driving when you can, walk or take a bike. Not only will this save you money but it’s great for your fitness! You may also want to find out how to drive more efficiently, i.e how to use less petrol. Guides as to how to do this can be found online.

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Student Loans Are A Must

I see student loans as a simple necessary part of being a student. It is completely acceptable among students to get the biggest loan possible in the knowing that you will just have to pay it back someday in the future. Its no big hassle, as most of us expect to be working in our desired fields on graduation. The rates are favourable and you dont have to pay it back all at once, you can literally pay it back at your leisure when your circumstances warrant being able to pay it back.

I spend my student loans on bits and pieces I need for my course, books, pens, pencils etc. It helps me with my rent and to a certain extent it subsides my rent sometimes and my student lifestyle which may or may not involve drinking on a school night. Student loans are there to give you an easy ride so why not enjoy it while you can.

No magic wand to cure debt

There are no genies or fairy god mothers to wave a magic wand on our debt problems, so do not fall prey to debt management companies who promise to remove all of your debt worries in a flash. Many debt management companies will make these exaggerations without even looking at your financial status.

If you have run up debt, it needs to be repaid. All advertisements that claim they can ‘clear your debt, without you having to pay a penny’ are a complete farce. Unless, you opt for bankruptcy or an alternative debt solutions such as an IVA, there is no way that your debt will disappear unless you do something about it.

Do not rush out and sign up to the first debt management company that you find as there are many organisations out there waiting to take advantage of your desperation. Keep a cool head when looking for a suitable company and do not be sidetracked into believing that your debts can be wiped out overnight, even if some debt management advisors tell you otherwise.

What should I look for in a debt management company?

A good debt management company will require you to submit all of your outstanding accounts within 45 days so as they can work out a suitable repayment plan. This will include how much you should repay each month, how long it will take to settle your debt and by how much you can reduce your current repayments.

If anyone gives you a quote without asking for detailed information regarding your creditors, run as fast as you can as these companies usually require a hefty upfront fee. In return, they will do very little to resolve your financial situation.

Best Savings Account Interest Rate

There are many different types of savings accounts available. Choosing one that is right for your financial situation is an important part of your future. The biggest consideration is the rate of return on your balance. So we are going to take a look at several types of accounts and their benefits so you can get the best savings account interest rate.

Standard savings accounts

These are the accounts you can open at your local bank. The deposits are made by either through direct deposit manual deposit. The usual interest rate is around 5% or so annually, or per year. Currently as of 10/12 2007, the interest rates are ranging from 4.17% to 5.5% depending on the bank you choose.

Watch the minimum deposit and minimum balance requirements. There may be a minimum balance requirement to even receive the interest return. One bank has a 1$ minimum deposit but you need to hold a balance of $10,000 to receive the interest! This is a safe investment as your cash is secured and the interest is guaranteed but the interest accrues slowly.

Money market accounts

Basically a money market account (MMA) is a high interest savings account. MMA's are available at just about any bank. The cash you keep in an MMA will be invested, but the banking institution manages the investing and thus collects the returned interest.

Your money is usually put into low risk, short term investments like CDs (certificates of deposit), Treasury bills or other safe investment vehicles. The institution rewards you reward for letting them use your money by offering you a premium interest rate that may be significantly higher than a normal passbook account.

As of the writing of this article, the offered rates were between 4.55% and 5.84% A money market account is a decent low risk savings strategy but there are certain restrictions associated with it. Unlike a passbook savings account, a money market account usually has a minimum deposit and minimum balance. Withdrawals can be made but you cannot go below the minimum balance. If you do, there are stiff penalties.

Health savings accounts

An HSA or Health Savings Account is available to people who purchase a high deductible health plan. The money is deposited either on a pre-tax (tax deferred) basis or post tax (after tax) and is to be used for medical purposes. These deposits can be made up to the age of 65. Withdrawals can be made for medical purposes without tax liability.

Basically, this is another way to save for retirement and help with medical expenses along the way that are not covered by medical insurance. This could be dental care, eyeglasses or vision and chiropractic care.

As of 2007 plan years, deposits are limited to $2850 for individuals and $5650 for families. Those over age 55 can add another $800. Since the deposited money may be invested similar to IRA's and 401(k)'s, the interest earned is dependent on the options offered by the HSA plan you choose.

IRA accounts

Individual Retirement Accounts or IRA's are another savings vehicle. The money deposited cannot exceed $4000 per year and can be placed in any number of investments of your choice. This could mean money markets, CD's or other interest bearing instruments. Thereby you can determine the rate of return your cash receives.

A little research is all it takes to choose the highest yielding option. Hope this information will help you to find the best savings account interest rate.

Consolidating Student Loans Made Easy!

If you’ve had preceding or newborn enrollee loans then you’ll most probable been receiving a clean deal of accumulation most how you crapper consolidate your enrollee loans. At prototypal the give covering impact module seem arduous specially if you’ve had more than digit give with a some assorted lenders. However it’s a ultimate impact and here’s a some tips on what to wait when you end to consolidate your enrollee loans.

Consolidate Student Loans

Step 1
Select a beatific pledgee with a substantially ingrained business institute. You crapper avow if they are substantially ingrained because the hit a actuality of enrollee loans plans and reduction schemes. If you consolidate your enrollee loans with a beatific pledgee they module be inferior probable to delude your give to added pledgee in the future.
You should not hit to clear a gift or some charges when you consolidate your enrollee loans and there is no requirement for a assign analyse because “Federal Student Loans” are secure by the dweller government.

Step 2
You’ll requirement to modify discover your covering modify and attain trusty you hit every needed aggregation most some of your enrollee loans. The covering modify requires a individualized meaning so attain trusty you hit one. Last but not leat you’ll hit to clew the modify but before you do feature the dustlike indicant (terms & conditions) and communicate most the incentives and discounts that become with the loan. Most lenders who consolidate enrollee loans module hit a estimator so you undergo what your repayments module be.

Step 3
Once you’ve clew and posted your consolidate enrollee give covering your newborn pledgee module beam every your preceding lenders a “Loan Verification Certificate” to avow the turn turn of your preceding enrollee loan. It should verify around 30 life to convey the give substantiation certificates. Interest rates module be finalised along with the revealing statements.
Then apiece pledgee module obtain a analyse of the turn you owe to as a clear out. Once every your preceding lenders are stipendiary soured you hit successfully complete your enrollee give consolidation.
This whole impact crapper verify anywhere between 30 life to 180 life and if you hit not filled discover your covering aright or you hit absent aggregation it module verify modify individual to consolidate your enrollee loans.
Remember to ready stipendiary soured your underway loans until your newborn pledgee and complete the process. A beatific pledgee module hit client representatives that module be in occurrence with you with some updates.

Now before you go soured and move consolidating your enrollee loans you should undergo that newborn welfare rates are premeditated every assemblage on the 1st of July. You crapper easily encounter beatific lenders to consolidate your enrollee loans by doing a hurried see in Google or MSN. There’re plentitude of beatific lenders discover there but attain trusty you hit a analyse itemize of what you are hunting for. Good phenomenon and I wish you savor the rest of your studies with lowercase business worries.

Consolidate your enrollee loans today and spend up to 60% on your monthly repayments. Find discover how you crapper move action money and encounter discover more most consolidate enrollee loans.

Should You Consolidate Your Student Loans

Spending instance in college effectuation feat to classes, composition papers, studying for exams, and enjoying the college undergo of fun, food, and frolic. Oh, if it exclusive were that easy! Chances are you are painful up whatever earnest debt in the modify of students loans. If you hit already graduated, then you are belike in the impact of stipendiary your loans back. Are you bright yet? Maybe not, especially if your enrollee loans are more of a charge than you originally had expected. Read on, please, for whatever structure you crapper assist the charge and springy a chronicle that goes beyond stipendiary soured debt.

For whatever students, it isn’t every that exceptional to correct with a bachelor’s honor and encounter yourself owing 10, 30, modify 60 cardinal dollars or more in enrollee give debt. How did every of this happen? High tuition, that’s how. Likely your prototypal employ discover of college isn’t stipendiary you a strike meet still either. Car payments and assign game bills connected with routine experience expenses crapper encounter you dig a full that exclusive gets deeper. What should you do? Perhaps you should study hunting into a polity enrollee give consolidation.

So, meet what is a polity enrollee give consolidation? For starters, it is a identify of a give that allows you to verify binary enrollee loans, clear them off, and attain monthly payments to meet digit lender. For example, if you hit threesome loans cod to threesome assorted lenders at threesome assorted nowadays of the month, you crapper ready meliorate road of every of it if you had meet digit ultimate commercialism to attain every period to digit lender.

In addition, a polity enrollee give compounding haw modify your welfare rates, accept you to defer your defrayal schedule, and earmark for you to verify discover whatever added player money to clear backwards another creditors including assign bill providers.
Some things to ready in nous before you superior a enrollee give compounding include:
Amount Borrowed. Will the give compounding clear soured every of your enrollee loans, or meet a proportionality of what you owe? Your consolidator haw poverty to wager clear stubs and another proofs of income before approbatory your loan.

Annual Percentage Rate. Will the give evaluate be immobile or module it be adjustable? You haw poverty to hair in your evaluate to attain trusty that your monthly payments rest constant.
Your Loan Term. Can you care with stipendiary backwards a your polity enrollee give compounding for as daylong as note years? Take into kindness you haw poverty to acquire a home, intend married, move a family, acquire a newborn car, etc. It crapper be arduous to look the future, but module the give command you with debt individual than necessary?
A enrollee give compounding is definitely not for everyone. Make destined that you see the cost of your commendation with the give consolidator and clew null until you crapper hit the lessen reviewed independently. It is your life; matter every of your options carefully.

Matthew Keegan is The Article Writer who writes on a difference of topics including: advocacy, automobiles, aviation, business, faith themes, family, news, creation reviews, travel, writing, and more. Samples from his portfolio are acquirable correct online.

Money Market Savings Account

Many individuals are starting to discover that a money market savings account is a very beneficial type of account. This particular account is basically a savings account that many credit unions and other types of banks offer to individuals. It is quite similar to a basic savings account. However, the money market savings account is a little bit stricter when it comes to the guidelines it has. Here, you will receive an introduction to the money market savings account.

With this type of savings account, an individual is normally permitted to have a total of three checks on average to be written each month. In order to maintain this type of savings account, an individual must usually have a minimum balance that is quite higher than that of a standard savings account. Normally, a basic savings account will require anywhere from $25.00 - $100.00 as a minimum balance. However, with a money market savings account, it is not uncommon to have to maintain a minimum balance of at least $1000.00. In many cases, the minimum balance may be as much as $2500.00.

Many individuals do not mind the fact that they are required to maintain a higher balance than that which is required of a standard savings account. This is because the money market savings account normally pays a higher amount of interest on the balance than similar accounts. In addition to this benefit, individuals with this type of account also benefit from having their money insured by the FDIC, or Federal Deposit Insurance Corporation. This means that regardless of the losses that the financial institution incurs, the money in a money market savings account is always available.

Money market savings accounts are extremely important to the overall functioning of the financial institution. This is because the business actually earns money on the amount of money that you have in your account. While your money is always available, the money in these accounts is what the bank uses to loans to others. They charge others interest on the loan, and in turn, they are able to pay you interest on the amount that you have. Furthermore, the interest, or free money, that the financial institution pays you is also compounded. This means that they also pay you interest on top of the interest that they already paid you.

Having a money market savings account is a wonderful way to not only save money, but actually make money as well. When you open your account, you are given a register. This is the paperwork that you will use in order to keep track of all the money that you deposit in your account, and all the money that you withdraw from your account. If you open this type of savings account, you should use it for saving money only. This way, you can maximize the potential of return that you have on the account as a whole.

Many individuals ensure that they make regular deposits into their money market savings accounts to ensure that they make as much money as possible. This is one of the few bank account types that will allow you to earn a large amount of money in a short amount of time. If you are interested in saving money, a money market savings account is the best possible choice!

High Yield Savings account

You've heard of a regular savings account that a bank offers, but just what is a high yield savings account? Well, to tell you the truth, it is just like a regular savings account only wrapped up in a few little perks!

Usually banks will only offer these high yield savings accounts to a limited number of their customers. In order to even be considered in the running, you probably have to meet at least one of the following criteria:

- You must be able to make a large initial deposit
- You must also maintain other banking relations
- You must be able to keep a high balance over the life of the account
- You must be able and willing to limit transactions both in and out of the account

As you have probably already guessed, banks only want to offer these special savings accounts to their valued customers.

Internet Bank Accounts

Now comes another exception to the rule. You can always shop around on the Internet and get the most bang for your buck! These accounts offer higher interest rates with your account size being as small as one dollar. The only trade off in having an account online is that you are going to have to do more of work yourself rather than some bank teller doing the work for you. You will have to be able to use the internet, link account, and manage transfers.

Finding High Yield Savings Accounts

If you are comfortable with banking on the Internet, perhaps you should look here to find an account. You will probably have fewer restrictions here that going with an ordinary bank on the street. All you have to do is a Google search to find some reviews of some of the most popular accounts on the Internet. You may also want to utilize the banking blogs and communities for the most recent additions to the Internet marketplace.

A very prominent online bank offering is the High Yield Savings account that is offered by Capital One. This is much like many of the online bank accounts except for some unique features.

Capital One does not offer just a High Yield Savings account. A High-Yield Money Market Account is now being offered in its place. The main difference with this new account is that you now get free checks along with a debit card so that may easily access your cash. Bear in mind that there are some money market accounts that limit your withdrawals during every statement cycle so plan accordingly.

If you are thinking of using a certain bank's services, you should always go online and visit the bank's website to make sure that you read all of the fine print.

Capital One's High Yield Savings account is much like other Internet bank accounts. The main attraction here is the Annual Percentage Yield or APY. You can usually earn much more than your typical bank on the street. Also, there are no fees for the service nor are there any minimum balance requirements. You can open a High Yield Savings account with as little as $1.

When you open an account with Capital One, you are able to keep the checking account you already have and link it to your new High Yield Savings account. To move money back and forth from account to account, you just have to login to your new High Yield Savings account and merely request a transfer.

There you have it, the scoop on a High Yield savings account. Feel free to check it out further to see if this might be a sweet deal for you!

View our current accounts here
http://www.totagit.com/bookmarks/monicaw

Best Savings Account Interest Rate

There are many different types of savings accounts available. Choosing one that is right for your financial situation is an important part of your future. The biggest consideration is the rate of return on your balance. So we are going to take a look at several types of accounts and their benefits so you can get the best savings account interest rate.

Standard savings accounts

These are the accounts you can open at your local bank. The deposits are made by either through direct deposit manual deposit. The usual interest rate is around 5% or so annually, or per year. Currently as of 10/12 2007, the interest rates are ranging from 4.17% to 5.5% depending on the bank you choose.

Watch the minimum deposit and minimum balance requirements. There may be a minimum balance requirement to even receive the interest return. One bank has a 1$ minimum deposit but you need to hold a balance of $10,000 to receive the interest! This is a safe investment as your cash is secured and the interest is guaranteed but the interest accrues slowly.

Money market accounts

Basically a money market account (MMA) is a high interest savings account. MMA's are available at just about any bank. The cash you keep in an MMA will be invested, but the banking institution manages the investing and thus collects the returned interest.

Your money is usually put into low risk, short term investments like CDs (certificates of deposit), Treasury bills or other safe investment vehicles. The institution rewards you reward for letting them use your money by offering you a premium interest rate that may be significantly higher than a normal passbook account.

As of the writing of this article, the offered rates were between 4.55% and 5.84% A money market account is a decent low risk savings strategy but there are certain restrictions associated with it. Unlike a passbook savings account, a money market account usually has a minimum deposit and minimum balance. Withdrawals can be made but you cannot go below the minimum balance. If you do, there are stiff penalties.

Health savings accounts

An HSA or Health Savings Account is available to people who purchase a high deductible health plan. The money is deposited either on a pre-tax (tax deferred) basis or post tax (after tax) and is to be used for medical purposes. These deposits can be made up to the age of 65. Withdrawals can be made for medical purposes without tax liability.

Basically, this is another way to save for retirement and help with medical expenses along the way that are not covered by medical insurance. This could be dental care, eyeglasses or vision and chiropractic care.

As of 2007 plan years, deposits are limited to $2850 for individuals and $5650 for families. Those over age 55 can add another $800. Since the deposited money may be invested similar to IRA's and 401(k)'s, the interest earned is dependent on the options offered by the HSA plan you choose.

IRA accounts

Individual Retirement Accounts or IRA's are another savings vehicle. The money deposited cannot exceed $4000 per year and can be placed in any number of investments of your choice. This could mean money markets, CD's or other interest bearing instruments. Thereby you can determine the rate of return your cash receives.

A little research is all it takes to choose the highest yielding option. Hope this information will help you to find the best savings account interest rate.

Should we still bet on growth?

Euro lower against the U.S. dollar 1.52 and then 1.51. Jean Claude Trichet maintains the rate of the ECB and the markets are beginning to worry. For Asian analysts is "a first step towards a trend to lower its interest rates" is a sign that the economy of the euro zone go wrong.

It is surprising that info found in the gallery, as many economists serine us not long ago, and our president will echo that needed to make it go better than the rate of the ECB decline and when we start to consider that decline indicates that it is going badly. Should know when lower rates that go wrong or not ... It displays in the presence of a herd of Dr. Knock "the lower rate it tickles you or that you gratouille."

According to Trichet the ECB risks identified some risks to growth. Some materialize "and many economists predict a recession by the end of the year.

So we rely Question 5 of the contribution social emergency: Is there still any bet on growth?

Top 10 lessons in personal finance

What do you think of when you hear the word 'ISA'? While most would know immediately that it's a tax-free savings account, an astonishing 15% of 18-to-24-year-olds think it's an iPod accessory, while 10% believe it's an energy drink, according to a recent survey by
Scottish Widows.

Given this lack of financial awareness, it's not surprising that many young people find it hard to make the right decisions when it comes to their finances. But it's not just youngsters who are guilty of making mistakes with their money. Most of us, at some point in our lives, have squandered money on a pointless insurance policy, made a dud investment or been hit with a surprisingly large tax bill.

So, in the interests of better financial education, and to help you protect yourself from making some of the most common money mistakes, Moneywise takes your finances back to school with its top 10 lessons in personal finance.

Lesson one: Learn to live within your means

According to uSwitch, a mind-boggling 4.8 million adults in Britain currently spend more than they earn, and another nine million only just break even at the end of each month. While it's nice to treat yourself to a weekend away or a new car, living beyond your means is not sustainable - and this will become even more apparent in the coming months as household bills continue to rise.

"We're about to go through a recession, so people will have to start saving and pay off their debts. If they don't do that, they'll be in for a shock," warns Mark Dampier, head of research at IFA Hargreaves Lansdown.

If you find yourself going overdrawn every month or your credit card bill is growing bloated, it's time to go back to basics and write a budget. Once you know how much you have coming in every month and how much you need to shell out on regular expenses like food, mortgage or rent, and bills, you'll have a better idea of how much you can afford to spend on enjoying yourself. And if you're tempted to borrow, stop and think first about how and when you'll pay it back.

Lesson two: Don't save when you have debts

Saving money can make you feel good. But if you've got a big credit card bill hanging round your neck, pumping all your spare cash into a savings account is unlikely to be the best use of your money. Even if you're earning 5% or 6% on your savings, with interest rates on credit cards typically around 15% to 20% (or 30% if you have a store card) it doesn't take a mathematician to see that you would be better off clearing your debts first as they'll be growing at a faster rate.

Take a typical credit card balance of £1,812. According to uSwitch, if you just paid the minimum balance of 2% each month, with an APR of 18.33%, it would take you 29 years to clear the bill and cost you £2,857.55 in interest. So it makes sense pay off as much as you can every month. Even by stepping up your repayments to just 3% you would cut the repayment time and your total interest cost almost by half.

Of course, it's sensible to have a small emergency fund, but once you've put that away, you should concentrate on paying off your debts.

Lesson three: Financial advice isn't as expensive as you might think

There are many areas of financial planning that are easy to do yourself, but there will always be some areas, such as tax, pensions and mortgages, where professional advice can be incredibly useful. But while a lot of consumers assume they can't afford to see an IFA, this needn't be the case.

All IFAs offer a choice of payment options. This will either be a fee or they will earn a commission based on the products they sell, so you don't have to pay a penny. The rules regulating IFAs mean they do have to justify every product they offer you, nonetheless many consumers are more comfortable paying a fee as it guarantees that their IFA won't factor his or her commission into the advice.

Even if you do pay a fee for your IFA, you could still save money in the long run. Peter Chadborn, principal of IFA CBK Colchester, says that nine out of 10 of his new clients come to him having bought the wrong product. "I had a couple who came in with two life and critical illness insurance policies, for example. Only one was a guaranteed policy [if you have a reviewable policy your premium is likely to increase with time] and both of them only covered 13 critical illnesses. The monthly premium for both was £45. We found them a new policy, which offered a guaranteed premium and covered over 30 illnesses, for a total of £28.74 per month - a saving of 36%."

Lesson four: Tax planning isn't just for the rich

UK adults will pay more than £9.3 billion in unnecessary taxes this year, according to IFA Promotion's latest Tax Action report. Given how much we all hate paying taxes, Alan Phillips, divisional director for financial planning at Brewin Dolphin, says, "it's surprising how many people don't look at what they can do to mitigate their tax burden".

While tax planning may sound daunting, there are plenty of things the average person can do to reduce the amount of tax they pay. If you have savings, you should make sure you use your ISA allowance as all interest will be paid tax-free. If you're a couple, remember that you have two allowances that you could use.

If you aren't a taxpayer, double-check that you aren't paying tax on your savings. If you discover that you are, HM Revenue and Customs or your bank can provide you with a form (R85) to complete to rectify the situation. It's also worth checking that your tax code is correct and you're receiving all the tax credits you're entitled to, as well as making sure your home is in the right council tax band.

If you suspect you might be above the inheritance tax threshold - that is, if you have assets, including your property, worth more than £312,000 (married couples and those in civil partnerships have a combined total of £624,000), it's worth speaking to an IFA about what you can do to prevent your beneficiaries being hit with a whopping tax bill. This might include re-drafting your will or taking advantage of the annual gift allowance - each year you can give away £3,000 to any individual tax-free.

It also pays to make sure that any life insurance policies are placed in trust so that death benefits don't form part of your estate.

Alan Phillips adds: "Everyone should tax-plan to ensure they make best use of any allowances, and their estate is best positioned to reduce any potential IHT liability."

Lesson five: Is a savings account the safest home for your money?

A savings account is safe in so far as you won't physically lose any money, but it doesn't necessarily follow that it's the best home for your cash. Not only is its growth potential limited, making it tougher to achieve your financial goals, but you could find that its value is eroded over time as inflation continues to rise.

Whether or not a savings account is the best option for you depends on what you're saving for - and for how long, says Annabel Brodie-Smith, communications director at the Association of Investment Companies. If you expect to need your money in the next five to 10 years, a traditional savings account will usually be the best place for it. However, if you have more time to play with, equities could be a better option.

While many savers see equities as high-risk, if you have time to ride out short-term market wobbles, your money should grow much faster than it will in a savings account. Brodie-Smith says: "Over the 10-year period ending June this year, a £1,000 investment in equities in the average investment company would have seen a return of £1,980. With a UK high-interest savings account, a £1,000 investment would only have given you £1,118."

If you have more than 10 years before you need to get your hands on your money, the gap between cash and equities is even wider. During an 18-year period, a UK savings account with £1,000 would have given you a return of £1,650, while money invested in equities would have risen to £4,456.

Of course, investing is never risk-free and you could end up losing some money, but if you choose your investments wisely (see lesson six) and build up a broad mix of funds, you can get better returns without taking too much of a gamble.

Lesson six: Don't follow fashion when investing

Scanning the Sunday papers you might well see an article recommending a great new fund, and wonder if should you invest in it. No, warns Paul Dickson, head of financial planning and wealth management at the accountancy firm Armstrong Watson.

"You shouldn't follow fashion when it comes to investing, because by the time an investment becomes popular it's usually time to sell," he explains. "Look at the property market, for example. Many UK investors followed the trend of thinking 'bricks and mortar' was the perfect investment, and they carried on investing in residential property even as the real returns from this kind of investment fell."

The best way to invest is to first work out your goals, how long you want to invest for, and your attitude to risk. You also need to make sure your portfolio is as diversified as possible - put all your eggs in one basket and you'll take a much bigger hit if that particular investment falters.

It's also important to be committed to your investments and to take a long-term view. When the market falls many private investors tend to panic and cash in their investments. But this is one of the most costly mistakes you could make as you could be cutting your losses at the worst possible time.

Peter Hicks, executive director UK retail at Fidelity, explains: "It can be tempting during times of stockmarket uncertainty to delay making investment decisions or to sell existing holdings in the hope of buying back in when values are lower. In theory, this is an attractive idea, but it
seldom works in practice."

According to Fidelity, for example, if you had invested a £1,000 stake in the UK stockmarket in June 1993, it would have been worth £3,260.58 at the end of June this year. But if you had dipped in and out of the market and missed the best 10 days during this period, your investment would only have been worth £2,147.09. And if you had been unlucky enough to miss the 40 best days, your investment would be worth just £885.32- leaving you with a loss of £114.68.

Lesson seven: Ignore pensions at your peril

According to Met Life, a whopping 2.8 million homeowners are risking their retirement income by treating their property as their pension. Whether you have a buy-to-let or are planning to downsize, falling house prices could mean you get much less than you bargained for when you come to sell. Or if you were considering releasing some of the equity in your home, you might not be able to release as much money as you thought you would.

In the worst-case scenario, you could even find yourself unable to sell your property, leaving you with a house that no longer suits your needs and with no income to support you in retirement.

While pensions have had a bad press in recent years, Matt Pitcher, a wealth manager at IFA Towry Law, says: "A pension is still the most tax-efficient way of saving for retirement, as the government tops up your contribution by 20% or 40% depending on your tax rate. No other type of retirement saving gets this kind of overnight growth." If you're a part of a company scheme, you also have the added benefit that your employer may make monthly contributions on your behalf.

Lesson eight: It could happen to you

One in four women and one in five men will suffer a serious illness, such as cancer or heart attack, before they retire. Yet, despite these worrying statistics, few of us even stop to think about how we'd cope in that situation.

"Imagine the emotional state you would be in if you lost a loved one," says Peter Chadborn. "Then imagine on top of this that you could face financial ruin. Obviously, you can't prevent the former from happening, but you can prevent the latter."

Worryingly, half of the population would not be able to survive financially for more than 17 days after the loss of an income, according to research by Combined Insurance. And with household bills and personal debts continuing their upward march, people will find it even harder to cope. Policies like critical illness, income protection and life cover might not be the sexiest types of financial products, but they could offer you lifeline if disaster strikes.

It's worth protecting your mortgage and your income from the risk of death or illness - a good financial adviser will be able to recommend the right cover for you. Fully comprehensive protection may be expensive, but in this case something is definitely better than nothing.

Lesson nine: Loyalty doesn't pay

When it comes to personal finance, if you stick with the same products over the years, all the evidence shows you'll end up paying for it. Take savings accounts: Halifax, for example, is currently welcoming new savers with a tempting 6% on its Web Saver account, but those with older Halifax accounts don't get nearly such a good deal. If you have money in Halifax's Liquid Gold account, for example, you will be earning just 0.5% on a balance over £50.

The same goes for mortgages - stick with your current lender after your fixed or discounted rate runs out and you could see your interest rate rise by up to 2%. Likewise, the cost of your home and car insurance will go up each year whether you've made a claim or not. The key is to review all your financial services on a yearly basis, and switch if you're no longer getting a good deal.

Lesson 10: Read the small print

Reading the small print on any of the financial services you buy is unlikely to be the most enjoyable use of your time, but it could be the most valuable. Chadborn warns: "The consequences of not reading the small print could be greater than you could handle. What would you do if your insurance policy didn't pay out or your monthly mortgage payments turned out to be more expensive than you originally thought?"

Even with more straightforward products it's still important to know what you're signing up for. Some of the highest-rate savings accounts, for example, are likely to have strings attached, such as penalties for withdrawing your cash.

And while it's great that you can use your mobile phone while you're abroad, unless you read the small print and check the charges before you jet off, you could be hit with a surprisingly large bill when you get home.

savings account

Understanding the new ISA route map

Since they arrived in 1999, individual savings accounts have been an integral part of the UK's financial landscape. Millions of Brits have saved thousands in tax by putting their money in ISA wrappers, whether in savings accounts or seek further growth by investing in the stockmarket.

So it seems strange that, until last month, it wasn't possible to directly switch money from a cash ISA into a stocks and shares ISA without losing the tax benefits.

However, an overhaul in the way ISAs work now makes it easier for savers to dip into the world of stocks and shares. Many of the changes included as part of the government's revamp of ISAs have been reported in great depth, such as the increase in the amount you can put away in a tax-free ISA to a total of £7,200, up to £3,600 of which can be held in cash.

But perhaps the more important change is that savers who have been stashing money away in cash ISAs can now transfer this money into a stocks and shares ISA. Crucially, this can be done without the money leaving the safety of the ISA wrapper or affecting the annual ISA allowance - as long as the money isn't physically withdrawn.

It was possible to transfer cash ISAs before, but only from one ISA provider to another - for example, if you found a bank offering a better interest rate - and not from cash to stocks and shares.

Under the latest changes, however, you can now transfer some - or even all - of the cash saved into an ISA in previous tax years into a stocks and shares ISA, without fear of using up that year's ISA allowance. You can even transfer across cash that you deposited in the current tax year - but you have to transfer the full amount. Once you've done so, it's as if that cash ISA never existed.

This means that if you saved £2,000 in a cash ISA this year, then transferred it into a stocks and shares ISA, you could still put another £5,200 into ISAs that year: up to the full amount into a stocks and shares ISA or up to £3,600 into a cash ISA.

But beware - it doesn't work the other way around; you cannot move money in a stocks and shares ISA back into a cash ISA if you change your mind again, although many in the industry are lobbying for that to change.

Liz Hogbin, director of savings and investments at Lloyds TSB points out that another change taking effect: people who have child trust funds (CTFs) will now be able to roll the proceeds into an ISA when they mature, without incurring any tax penalties. However, the benefits of this are unlikely to be felt until the first CTFs mature in around 15 years.

Only the names have changed

As part of the government's ISA spring-clean, it also decided to sweep away all the confusing terminology that surrounds them. What were known as mini-cash ISAs, Tessa-only ISAs and the cash part of a maxi-ISA will now all be called, simply, cash ISAs. Mini stocks and shares ISAs, as well as the stocks and shares part of the investment vehicle formerly known as a maxi-ISA, will all now be called stocks and shares ISAs. To top it off, Personal Equity Plans (PEPs) are to be rebranded as stocks and shares ISAs too.

HM Revenue and Customs says PEP investors will get a wider range of investments to choose from under the ISA banner. However, the interest earned on uninvested cash held in what was formerly the PEP will now be taxed at 20% in the ISA, a rule that has always applied to stocks and shares ISAs. Investors may also want to consider merging existing stocks and shares ISAs with their newly rebranded PEP to help keep costs down.

It's the new ability to transfer money from cash ISAs into stocks and shares ISAs that has been most warmly received by the experts. "I think it gives people some added flexibility," says Bob Perkins, technical manager at Origen Financial Services. "In the past if they wanted to move their money from a cash ISA to a stocks and shares ISA, they would have to come out of their cash ISA and reinvest the money. Of course the problem with that is that they're using some of their ISA allowance," he says.

So, what's the big deal about it becoming easier to invest in equities? Jason Britton, co-fund manager at fund of funds specialist T. Bailey, points out that as ISAs have been around now since 1999, savers could have some serious funds stashed away in cash.

"Many cautious investors may have subscribed substantial amounts into their cash ISAs - as much as £27,000. But this may not necessarily be the best thing," he says.

History shows that over the long term, equities - or stocks and shares - tend to give you a better return than cash, Britton says. Within equity ISAs you can invest in collective investments like unit trusts for example, as well as in shares listed on a recognised stock exchange and other investment vehicles such as bonds.

"So if you want growth, you are generally advised to have some money in equities. Remember too that cash is not as risk-free as many people think. Inflation can erode the value of your cash and it looks like inflation is rearing its head again, so this is relevant."

"With interest rates set to continue in a downward trend this year, savers need to seek an alternative approach if they wish to achieve returns greater than inflation over time," agrees Philip Pearson, a partner at Southampton-based IFA firm P&P Invest. "Using the equity ISA allowance can achieve this by creating a balanced portfolio designed to minimise risk whilst achieving returns better than cash over the medium term."

But, as Britton says, there are going to be many people who think it's mad to buy equities now, as the effects of the credit crunch are felt. But he believes investors should be undeterred.

"The first rule of investment is: buy low, sell high. It sounds obvious and simple, but it isn't," he says. "When equity prices are low it's because fewer people want them. It can be quite uncomfortable to buy when everyone around you is panicking and saying 'sell!' But professional investors will be out there picking up bargains galore at the moment."

Tread carefully

That said, it is important to understand the risks associated with investing in equities before you take the plunge. As they say, with stocks and shares the value of your investment could go down as well as up. There are also lifecycle considerations to factor in - taking a risk on equities close to retirement may not be such a good idea.

Martin Bamford, joint-managing director at IFA Informed Choice, predicts there will be a lot of "aggressive" marketing from fund managers keen to get a chunk of the new money potentially flowing across into stocks and shares ISAs. "It is important that investors aren't swayed by the hype and rush into a decision about moving from cash to stocks and shares, particularly in the current market conditions, which are quite volatile," he says.

Perkins points out that the rationale for investing in equities is quite different to that for cash. "You invest in cash because you want to have access to the money in the short term and you can't afford to lose it," he explains. "Whereas you invest in stocks and shares through collectives because what you want is the benefit of greater potential medium to long-term growth and you don't actually need access to the cash," he says.

"You don't buy collective (investments) on a whim, or to hold for 18 months to two years. You generally buy them on the basis that you're going to hold them for at least five to seven years," Perkins adds.

"Whether or not we're actually going to see an awful lot of people moving from what was known as the mini-cash ISA into stocks and shares I think is highly unlikely," says Phillip Wood, director of wealth advisory at accountancy firm PricewaterhouseCoopers. "I think most people who have invested into cash ISAs have done it because they want a low-risk tax efficient investment vehicle. They've clearly made the decision that they want cash and they don't want stocks and shares," he says.

Transferring your allowance

But if you do want to transfer money from your cash ISA into stocks and shares, you can do this in just the same way as you would shift your cash ISA to another provider. That is, you don't withdraw the funds and move it across yourself - or this will count against your current ISA allowance. You select who you want to have your new stocks and shares ISA with and they will arrange the transfer for you.

There is no recommended minimum amount to transfer but, according to Bamford, collective funds typically look for a minimum investment of around £1,000, although some will take as little as £500. "But obviously, the more you can move across, the better you can create a more diversified portfolio - then you're not reliant on just picking one or two funds," he says.

Britton suggests that those people with more than they need sitting in cash that are keen to try out the world of equities - but also a little hesitant - should consider a cautious managed fund. T Bailey's own cautious managed fund, for instance, has no more than 60% in equities, with the rest sitting in less volatile assets like cash, bonds and property.

"Funds like this are a useful half-way house between cash and pure equities," he says. Meanwhile, Pearson suggests making use of a platform such as that offered by Skandia Selestia. This ISA gives an investor access to more than 900 individual funds from 60 different companies, all within a single plan.

However, whatever you do, getting advice from an IFA before taking the plunge is always a smart idea. (To find one near you, visit unbiased.co.uk or call 0800 085 3250.)

"There are so many collective investments out there to choose from that will accept you into an ISA," says Perkins. "Do you want income or do you want growth. Do you want a mixture of the two and what other investments have you got? It's not cut and dried - there isn't a one-size fits all."

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