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My parents were some of the most thoughtful spenders I know, and they always got the most from their credit cards.
They taught me that credit cards can be valuable for daily use, but that paying interest essentially negates any perks you might get.
They also taught me how to treat credit cards as part of my emergency fund, and that credit card “hacking” is really only effective if you’re willing to put in the time and effort to do it right.
personal finance coverage.

My parents have always been some of the most thoughtful spenders I know: My mom knows when all the double coupon days are, and my dad prefers to get needed household items from deep discount stores. They aren’t brand-driven usually, and they are happy with whatever is on sale. This is why, looking back, I’m impressed with their ability to use credit cards.

Over the years, they taught me to have a healthy respect for the power of credit cards: the seduction of carrying a balance and ending up in over my head wasn’t a good thing to them, but the perks of credit cards when you pay the balance in full every month were quite nice.

Here are the lessons I took from my childhood watching their credit card habits.

1. There’s value in a daily-use card with no annual fee and modest perks

My parents primarily used credit cards that didn’t have an annual fee and came with some kind of perk: cash back, travel points, something they knew they would definitely use. My parents used this card for practically all their purchases and paid it all off every month. Without fees and without interest, they were essentially getting all the perks from the cards for free; they just had to keep up with the …read more

Source:: Business Insider


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