It’s refreshing to leave the office now and again, especially on a sunny and 65-degree day in Washington, D.C. in the middle of winter.
In January, I had the opportunity to be a guest on local ABC affiliate WJLA’s NewsTalk show to chat about credit cards. Specifically, the importance of keeping your financial information secure, using your card as a budgeting tool, and even why and when you should get a credit card for your adolescent child.
In the clip above, I mention how a credit card can be a natural budgeting tool. Now using credit cards to budget might sound strange, but there can be many benefits as long as you pay the balance off each month.
Here are the benefits of using a credit card as a budgeting tool:
- Helps you monitor daily spend through your financial institution’s mobile app*
- Gives you the ability to set up alerts so you’re notified when your account reaches a certain amount of spend each month
- Allows you to set up automatic payments for monthly household expenses (e.g., cell phone, insurances and utilities) therefore reducing the risk of late payments or overdraft fees from your checking account
And while most of these benefits are also offered through debit cards and checking accounts, the rewards programs associated with most credit cards can help you save on everyday items. For example, the average American consumer spends over $20,000 a year on key household expenses. Moving this spend to your credit card can help you earn $300-$500 per year back depending on which card(s) you use.
Some other helpful tips you’ll see in the clip above:
- Credit reports – when was the last time you looked at yours? Go to to sign up for free credit reports. It’s always a good idea to know where you stand.
- Add your son or daughter as an authorized user to your credit card and set individual spend limits. Almost like an allowance, your child can learn to manage their card, make payments, and stick to a weekly budget. It’s an excellent financial training tool.
To view the full segment, please click here.
*Message and data rates may apply. Visit navyfederal.org for more information.