Rebuilding Credit and money mngmt

[mjones1213]

Any advice will help. I am a single mother in California and I just filed BK. I now want to get on the road to money management so I never travel this road again. I also want to teach my child about money too. So what do I need to do to start re-establish my credit? I moved in with my family for starters. And I have a steady job. And websites will help too.

[jakeslim]

I started my path by learning to pay cash for everything. "Everything" needs to be only things you need to survive...housing, food, clothes, transportation etc. Once comfortable with living this way, it becomes much easier to resist to using the "card" for impulse purchases.

I'm sure much more info around, but you've found a good place to start. You'll teach your child by example...the best way!

[radi8]

Money management is pretty simple- spend less than you make, and save part of what's left over.

Gingerly's posted a good list, Charicharchar and several others in this forum, with links to money management sites and budgeting tips and sites.

Good stuff.

 

As to rebuilding your credit, the basic formula is to get the negatives off and put positives on. There's constant discussion of those things over in the credit forum.

 

There's a wonderful opportunity here which you've recognized- to teach your DD that credit isn't something evil that is to be feared, nor something to be overdone- but something to use with discretion when advantageous to you.

 

You might start with a modest secured card, paying it off in full monthly.

I'd even explain to DD (depending on her age) "remember those things we charged last month? Here is the bill for them- let's pay it now". An explaination of interest charges, why it's cheaper to not let them accumulate might be a natural extension of this.

Also, an explaination of basic credit reporting- that other people can see your payment history, and use that as a basis for deciding so many things....

 

I guess the point I'm trying to make is, DD will learn from seeing you do things right. Explaining to her the *why* part of it will give her the tools she'll need one day as well.

So many of us grew up without that. *sigh*.

 

Hats off to you for wanting to teach DD. It's an important life skill, one that's too often ignored.

I'm sure you'll do well.