Tag Archives: CNBC Make It

How To Spend The Money From Your First Job

**How To Spend The Money From Your First Job**



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“The first thing you need to do is pay yourself first,” says co-founder of AE Wealth Management and best-selling author David Bach. For Bach, this means you …

Kevin O'Leary: The Biggest Gen Z Credit Card Mistake

**Kevin O'Leary: The Biggest Gen Z Credit Card Mistake**



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“The biggest mistake teens make is the assumption that debt is free,” says Kevin O’Leary, financial expert and star of ABC’s “Shark Tank.”

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“People use credit cards in a way that’s really extraordinary. They assume that it doesn’t cost anything to put anything on credit.”

The truth is, however, most credit cards carry hefty interest rates if you don’t pay off the balance every month. In October, CNBC reported that the average credit card interest rate spiked to 17.01 percent from 16.15 percent a year earlier and 15.22 percent two years ago.

“The fact is, the interest rates on credit cards are astronomical. The returns there are so high, even I can’t make that when I invest,” he says, “which is why I invest in credit card companies.

“Don’t let me make money on you.”

Paying so much interest “is crazy,” says O’Leary.

Instead, “Don’t spend more money than you bring in. Very simple concept,” he says.

And instead of giving a teen a credit card, give them a debit card. “That way, they can buy things with a card — they don’t have to carry cash — but they can constantly check online how much money is left in the bank account. When there’s no money left in the account, they can’t buy anything, and that’s a good thing,” says O’Leary.

“That’s how you start to understand: Don’t spend more than you have.”

A 2017 T. Rowe Price survey found that 44 percent of parents are extremely reluctant to discuss money with their kids. But talking about money and teaching kids the basics should start way before their teen years, O’Leary advises.

“I think kids should be taught at the age of 5 onward where money comes from,” O’Leary says. “We do a very poor job in North America telling kids about finance. We teach them sex education, geography, math, reading, all kinds of learning skills, but we don’t tell them about debt. No wonder they get into trouble as soon as they get a credit card.”

“Debt is a bad thing. Understanding where money comes from is important,” O’Leary says. “Make money a part of the family at the dinner table. Talk about where it comes from, how you make it and how hard it is to have.”

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#CreditCards

This is why teens should avoid credit cards, according to Kevin O’Leary | CNBC Make It.
the biggest mistake teens make is the assumption that debt is free people use credit cards in a way that's really extraordinary they assume that doesn't cost anything to put anything on credit the fact is the interest rates and credit cards are astronomical paid twenty one percent interest is crazy don't spend more money then you bring in very simple concept if you do spend more than you bring in it ends up on your credit card and you pay sometimes over twenty percent interest I would never let anybody charge me 20% interest on anything maybe it's not a good idea to give a teen a credit card here's a better idea give them a debit card that way they can buy things with the card they don't have to carry cash but they can constantly check online how much money is left in the bank account when there's no money left in the account they can't buy anything and that's a good thing that's how you start to understand don't spend more than you have

The Points Guy: This Is The Best No-Fee Credit Card

**The Points Guy: This Is The Best No-Fee Credit Card**



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Brian Kelly, founder and CEO of The Points Guy, recommends the Chase Freedom Unlimited if you’re looking for a credit card with no annual fee. With this card, he says, you can maximize rewards and minimize costs.

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Kelly, who has 25 credit cards himself, typically steers clear of no-fee cards. They “generally offer less perks,” he tells CNBC Make It. Compared to cards with a fee, they “may not be the most lucrative in the long-term.”

But “if you’re dead set on a no annual fee card, I would recommend the Chase Freedom Unlimited,” he says.

The Freedom Unlimited offers 1.5% cash back on all purchases, which is “a decent earn,” says Kelly. It also offers 120-day purchase protection and extended warranty protection.

What Kelly particularly likes about the card, though, is that you can also earn your rewards on this card in the form of points. That will come in handy if you ever upgrade to a premium Chase rewards card that has an annual fee, like the Chase Sapphire Preferred or Chase Sapphire Reserve, because you’ll be able to pair them.

“Here’s the deal,” explains Kelly: “If you get a card like a Chase Freedom Unlimited, those points are technically cash back, but, if down the line you get a Sapphire card, you’ll be able to transfer those cash-back points into your Sapphire points … and you can get a ton of value.”

If you end up combining your points across your Chase cards, you’ll have great redemption options, says Kelly: First, you can use them to book travel through the Chase travel portal. With the Chase Sapphire Reserve, every point you redeem on travel is worth 1.5 cents. That means its 50,000-point sign-up bonus can have a value of $750.

With the Sapphire Preferred, points redeemed on travel are worth 1.25 cents.

“In either case, you’re already getting more value per point than the 1 cent each you’d get by redeeming them for cash back,” TPG explains. Chase also offers 13 transfer partners, so you can trade your points in for United MileagePlus miles, for example, and find a seat in business class.

In general, if you’re new to points and miles, Kelly says, “starting off with a no-annual-fee card from one of the big banks, like Chase, is a good way to at least get your foot in the door.”

You can build up valuable travel points with the no-annual-fee card, and then, he says, if you switch cards, you’re going to be able to “upgrade those points to get as much value out of them as possible down the line.”

Whatever credit card you settle on, make sure you pay off your balance in full every month. Otherwise, the interest you end up owing by carrying a balance could negate the value of any points, benefits or cash back you earn.

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The best no-fee credit card, according to The Points Guy | CNBC Make It.
So for starters, if you're
dead set on a no annual fee card, I
would recommend the Chase Freedom Unlimited. It offers 1.5 points on everything you
spend, so you don't have to worry about
all these categories and that's a decent earn. But here's the trick:
when you see the light down the road of
getting a card with an annual fee, if
you have Chase Freedom Unlimited points and then later
on you get a Sapphire, you'll be able
to transfer those cash back points into
your Sapphire points, which can then transfer
out to airlines and you can get a
ton of value. It's good to build
a relationship with the big banks and then
later on have those points that you can then
upgrade to the more valuable points program
within that same bank. When it comes to no
fee cards, I know they're easy to get, but there's
a saying, "Cheap is expensive." And what I mean
by that is the no annual fee cards
generally offer less perks and less
valuable earning. So sometimes you have to
look at your spend and how much you're going
to spend in a year and look at the annual
fee and see if you're gonna get value
from those perks. And there's no easy way
to do it, but look at the card and
there's a lot of unadvertised perks that can
save you tons of money. So whether that's
saving money on checked bags, free in-flight
Wi-Fi and also purchase protection, use a
card that offers purchase protection. I bought a expensive winter
coat and lost it in Iceland. Long story, it was
an accident, but AMEX, because I used an
AMEX platinum card, immediately took the
two thousand dollars right off of
my statement. Sometimes it may make sense
to use cards for big purchases that
offer purchase protection over earning a couple
extra points per dollar. So it takes a
little bit of time to look at what your goals
are and what you're going to spend money on
and make sure you're aligning it to cards that
offer you the most value back. I'm not saying that cards
with no annual fee are bad. I'm just saying they may
not be the most lucrative in the
long term.

Why This Law Firm Bought A Private Jet To Save Money

**Why This Law Firm Bought A Private Jet To Save Money**



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Patterson + Sheridan LLP bought a $3 million private jet to travel from Texas to California at least once a month to meet with their clients. They explain why the …

This Is Kevin O'Leary's Financial Deal Breaker In Relationships

**This Is Kevin O'Leary's Financial Deal Breaker In Relationships**



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This one thing will make or break your relationship. » Subscribe to CNBC Make It.: For Kevin O’Leary, finance guru and star of ABC’s “Shark …