Economics Finance

Dependent children require resources for health, maintenance, support and education. Some support is provided through guidance while other support requires money. Parents must provide both but what happens if the parents aren’t there to provide either?

The first step is crucial: have reasonable life insurance.

Could you imagine raising someone else’s child if the parents left no money? Most current statistics state raising a child to the age of 18 costs $250,000. Costs are higher in the earlier years due to doctor visits, diapers and daycare. On the back end, higher education could require additional money beyond age 18.

Even if only one parent is gone can the remaining parent alone afford mortgage payments, taxes, utilities and the costs of raising children?

What would the quality of life be for the surviving parent?

A family with one young child should consider having $500,000 in coverage.

What are your life insurance options? Three common forms are term, universal and whole life. Universal and whole life insurances are more expensive because they never terminate if you properly pay your premiums. Part of the premiums builds cash value, which one can borrow against or withdraw.

For many families term insurance is the best option because it is much cheaper and ends when needs for life insurance often diminish. It does not continue indefinitely nor does it build any cash value. If the term is 20 years, you pay the same premium for 20 years and after 20 years the policy ends.

How much does term insurance cost? $500,000 of coverage for a healthy, non-smoking parent is often less than $40/month.

It’s a good idea to have coverage on a stay-at-home spouse to help cover child-care costs and future retirement earnings if that parent were to return to work when dependent children are older. Continue reading ‘3 Estate Planning Steps For Young Families’ »

Usually, you don’t have to pay any sort of inheritance tax when some assets, money or property are left for you by the deceased one. In most cases, you get the inheritance after paying out the inheritance tax over it, but some situations may need to pay some sort of taxes.

You may need to pay three sorts of taxes regarding some inheritance, and these taxes can be in the form of income tax, capital gains tax, and inheritance tax. Let us find out in which conditions, you might have to pay these taxes.

If the items that you are going to inherit can generate taxable income for you, it is possible that you will have to pay on this inheritance. Usually, shares dividends, interest, and rental income are the incomes on which you might have to pay some tax over.

Similarly, when it comes to capital gains tax, this tax might be payable when you give away, sell or exchange some inherited asset. Often it goes up in value from the time of death. ‘Dispose of’ is what we call it in legal terminology that can be ceased to have an asset. If the inherited asset gains some value between the time of death, and disposing of date, this increase is known as capital gain, and you might have to pay some tax over it. Continue reading ‘Tax When You Inherit Money, Assets Or Property’ »

Selecting the best mortgage is as important as purchasing the house. There are a number of considerations that one can take into account before choosing a mortgage. First, you have to assess your personal financial situation. Lenders look at a number of factors such as your credit rating and job stability. With your job, you have to make sure that you can make the monthly mortgage repayments. As well, the lender will require such information as pay stubs, W-2 forms, and tax returns. When you apply for a mortgage loan, you will be given a mortgage quote of how much you can borrow and what the interest rate will be.

The following are the basic types of mortgages:

Fixed-rate Mortgage: This type of mortgage has an interest rate that remains the same throughout the entire term of the mortgage. Fixed-rate mortgages normally have a term of 15 or 30 years or more. Early in the loan, payments go toward interest and later in the loan term, payments go toward the principal or make a change of the future.

Variable-Rate Mortgage: This type of mortgage is also referred to as adjustable-rate mortgages or floating-rate mortgages. The interest rates can fluctuate with the market or be raised or lowered. The terms are normally only one year. If interest rates decrease, your payments will be less, but if they increase, your payments will be higher. It is a kind of interest that people have to manage be care fully. The interest rate on most variable rate mortgages is compounded monthly.

Conventional Mortgage: A conventional mortgage is a loan that does not surpass 75% of the purchase price or appraised value of the home, whichever is less.

FHA Mortgage Loan: These loans are insured by the government through mortgage insurance that is funded into the loan. First-time home buyers often take advantage of a FHA mortgage. The down payment requirements are low and FICO scores are not a major consideration.

Continue reading ‘Providing Financing For Your Mortgage’ »

In monetary term Banks are the backbone of the economy. They are the main source of money transaction in the world. The Bank is a oldest financial institution of the world.A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the USA banks are prohibited from owning non-financial companies. Each country has some own rule and regulations regarding the function of the bank.

Origin of the Bank
The name bank derives from the Italian word banco “desk/bench”, used during the Renaissance by Florentine bankers, who used to make their transactions above a desk covered by a green tablecloth. However, there are traces of banking activity even in ancient times.
Oldest Coin of the world

Continue reading ‘Bank – The home of money transactions’ »

Online Banking is a new concept in the banking world. Internet Banking is a service that allows a user to perform banking activities at home through a secure website on his/her personal computer. Online banking allows customers to conduct financial transactions on a secure website through internet.

Features and functions of Online Banking
We can broadly categorized common features provided by the online banking in below -
* Transactional (e.g., performing a financial transaction such as an account to account transfer, paying a bill, wire transfer… and applications… apply for a loan, new account, etc.)
* Electronic bill presentment and payment – EBPP
* Funds transfer between a customer’s own checking and savings accounts, or to another customer’s account
* Investment purchase or sale
* Loan applications and transactions, such as repayments
* Non-transactional (e.g., online statements, check links, cobrowsing, chat)
* Bank statements
* Financial Institution Administration -
* Support of multiple users having varying levels of authority
* Transaction approval process
* Wire transfer
* Personal financial management support, such as importing data into personal accounting software.

Continue reading ‘Online Banking – 24 hours banking’ »

In today world Mobile Banking is a popular term. Mobile Banking means a financial transaction conducted by logging on to a bank’s website using a cell phone, such as viewing account balances, making transfers between accounts, or paying bills. It is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. In recent time Mobile banking is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device.

Mobile Banking concept
In general term we can categorized the mobile banking below -
* Mobile Accounting
* Mobile Brokerage
* Mobile Financial Information Services

Most services in the categories designated Accounting and Brokerage are transaction-based. The non-transaction-based services of an informational nature are however essential for conducting transactions – for instance, balance inquiries might be needed before committing a money remittance.

Mobile Banking Services

Mobile banking can offer services such as the following:
* Mini-statements and checking of account history
* Alerts on account activity or passing of set thresholds
* Monitoring of term deposits
* Access to loan statements
* Access to card statements
* Mutual funds / equity statements
* Insurance policy management
* Pension plan management
* Status on cheque, stop payment on cheque
* Ordering check books
* Balance checking in the account
* Recent transactions
* Due date of payment (functionality for stop, change and deleting of payments) Continue reading ‘Mobile Banking – Definition and advantages’ »

In monetary term Banks are the backbone of the economy. They are the main source of money transaction in the world. The Bank is a oldest financial institution of the world.A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the USA banks are prohibited from owning non-financial companies. Each country has some own rule and regulations regarding the function of the bank.

Origin of the Bank
The name bank derives from the Italian word banco “desk/bench”, used during the Renaissance by Florentine bankers, who used to make their transactions above a desk covered by a green tablecloth. However, there are traces of banking activity even in ancient times.
Oldest Coin of the world

Continue reading ‘Bank – The home of money transactions’ »

Online Banking is a new concept in the banking world. Internet Banking is a service that allows a user to perform banking activities at home through a secure website on his/her personal computer. Online banking allows customers to conduct financial transactions on a secure website through internet.

Features and functions of Online Banking
We can broadly categorized common features provided by the online banking in below -
* Transactional (e.g., performing a financial transaction such as an account to account transfer, paying a bill, wire transfer… and applications… apply for a loan, new account, etc.)
* Electronic bill presentment and payment – EBPP
* Funds transfer between a customer’s own checking and savings accounts, or to another customer’s account
* Investment purchase or sale
* Loan applications and transactions, such as repayments
* Non-transactional (e.g., online statements, check links, cobrowsing, chat)
* Bank statements
* Financial Institution Administration -
* Support of multiple users having varying levels of authority
* Transaction approval process
* Wire transfer
* Personal financial management support, such as importing data into personal accounting software.

Continue reading ‘Online Banking – 24 hours banking’ »

In today world Mobile Banking is a popular term. Mobile Banking means a financial transaction conducted by logging on to a bank’s website using a cell phone, such as viewing account balances, making transfers between accounts, or paying bills. It is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. In recent time Mobile banking is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device.

Mobile Banking concept
In general term we can categorized the mobile banking below -
* Mobile Accounting
* Mobile Brokerage
* Mobile Financial Information Services

Most services in the categories designated Accounting and Brokerage are transaction-based. The non-transaction-based services of an informational nature are however essential for conducting transactions – for instance, balance inquiries might be needed before committing a money remittance.

Mobile Banking Services

Mobile banking can offer services such as the following:
* Mini-statements and checking of account history
* Alerts on account activity or passing of set thresholds
* Monitoring of term deposits
* Access to loan statements
* Access to card statements
* Mutual funds / equity statements
* Insurance policy management
* Pension plan management
Continue reading ‘Mobile Banking – Definition and advantages’ »

Debt settlement is commonly known as debt negotiation. It is one of the debt solving methods for people who are burdened with huge debt. This kind of settlement involves the negotiation with creditors with the main purpose of reducing the pay off amount to resolve the outstanding balances.

There are many benefits of having this solution. Firstly, the debtors will be able to relieve themselves from financial hardships. The creditors and debt collection agencies will stop disturbing them with non stop phone calls and reminder letters. There is no more legal action being taken by the creditors. In other words, the debtors will not be sued for bankruptcy and they don’t need to worry that they will lose their assets.

Secondly, the debtors are in fact standing at a better financial position. MONEY is the most solid benefit they can gain from debt negotiation. Through the negotiation process with the creditors, the debtors are able to settle their debt by paying a lesser amount of the actual debt. Saving a substantial amount of money is indeed possible. Some good debt settlement companies manage to assist their clients to save about 50% of their money.

Continue reading ‘Key Benefits of Debt Settlement’ »