The Learning Center

The question is not as easy to answer as you might think. Sometimes, having too many credit cards and loans is an indication of living beyond your means. Or, maybe you watch every penny but an event beyond your control, such as a major medical event, has brought you to this point.

How do you teach your children about the value of money? How to earn it? How to spend it? How to save it for the future? If the answer is, you don’t, here are some tips you may want to consider.

When you apply for a loan, banks evaluate how risky you are as a potential borrower. One of the mechanisms used is your credit report which is a snapshot of the bills you pay --credit cards, rent, student loans -- and how efficiently you pay them. Based on that report, and other information, a credit score is produced. The higher the number, the better. The universal score most commonly used by lenders is the FICO score, developed by Fair Isaac.

You would probably rather not think about it, but there is a fairly good chance that you might suffer some sort of disability during your working career. It could be just a short-term problem, but it might be more serious, and the costs could be devastating. Some statistics to consider: The Social Security Administration has reported that a 20-year-old has a 33% chance of becoming disabled before reaching the age of 65. The Insurance Information Institute has stated that the average worker, at age 40, has a 14% chance of dying before reaching age 65 — but a 21% chance of being disabled for 90 days or more. Disability protection, therefore, may be more of a concern than many of us suspect.