October 2022 – ViSiT Or

Those with children are probably well aware of the added costs of having a family. However, there are currently a number of economic and social factors that drive some of these parents deep into debt to try and please their kids.

Buying your kid’s happiness can break the bank A number of experts say they can’t blame these parents, since all they want is what’s best for their kids (as determined by advertisers). To keep from breaking the bank and regularly utilizing a payday advance loan to cover your monthly expenses as a result, Bankrate.com has some advice on a few financial missteps you can make with your kids.

Buy Name Brands Rather Than Generic Items

According to the website, “the nag factor” can have a major influence on the spending habits of parents. The nag factor is known to advertisers as the degree to which parents’ decisions are influenced by the opinions of their children. While you may think you are pleasing your child by giving into their demands at the grocery store, it’s important to remember that name brands cost an average 30 percent more than their generic counterparts. This may not seems like a big difference for a single product, but fill a whole shopping cart and you could be spending way more money than you need to.

Keeping Up With Trends

Peer pressure is a regular part of childhood, and if your child can resist this influence, than you’ve succeeded as a parent already. Meanwhile, for the rest of America, changing trends seen at school and on the playground could have you shelling out big bucks on the latest electronics, clothing and even automobiles. While satisfying your child’s social needs may seem noble, you need to step back and consider the impact these purchases have on your household’s overall financial standing.

Avoid Impulse Purchases

Marketing executives have an interesting way of influencing the impulse purchases of children. For example, products that often appeal to kids, such as candy, are placed at eye level near checkout lines and are relatively low priced. Once a child hones in on this item and implements the nag factor, most parents give in by telling themselves it’s just an extra dollar or two. However, if this is a regular occurrence that happens every time you go to the store, these minor purchases can add up over time.

Consumers better about managing credit The financial standing of many consumers has slowly improved during recent years, and as a testament to this trend, FICO Labs reports a growing number of these individuals now have near-perfect FICO scores.

Scores Improving

According to a report from the company, an estimated 18.3 percent of consumers have a FICO score ranging between 800 and 850. This is the highest this share has been since October 2022. In addition, roughly 19.4 percent have scores between 750 and 799, while 15.5 percent have a FICO score between 700 and 749.

Financial Stress Affecting Households

However, despite the improvements at the high-end of the spectrum, the report noted that financial stress among households in the wake of the recession has caused a number of consumers to fall to the lower tiers of the FICO scoring system. But since more than half of the individuals examined in the report had a score ranging between 750 and 799, analysts say this is a clear indicator that consumers are getting better about managing their credit.

The number of consumers in the lowest tier, meaning they have FICO scores between 300 and 549, declined to 14.9 percent. While this share still accounts for a considerable amount of consumers, it is the lowest it has been since 2021. As some of these individuals work to improve their credit scores, but are suddenly confronted with an unexpected bill that threatens any progress they have made, they may be able to utilize a personal loan to keep their financial footing.