Of course everyone has a different view about granting credit cards supplementation in children aged adolescents.

“Giving credit cards to children is a training trust and responsibility are extraordinary, both for parents and for children themselves,” said Maria Sukrisman, Vice President, Card & Strategic MarCom Head, Citibank.

He explained that credit card issuers in Indonesia generally allow supplementation for children who already have identification such as ID cards, namely the age of 17 years.

The majority of parents agree that children should learn to be independent. They are taught early on saving and budgeting and, if necessary, be able to earn my own income. One way that can be achieved in teaching children how to manage finances is to give credit card.

Large profit from credit cards is to avoid the risk of carrying too much cash.

“Through the credit card, you can also control your spending and your children the ability to manage credit. You can see the transactions that they do through a monthly bill, so you can also see the habits of children and thus find out what problems might arise in the future , “explained Maria.

Based on that information, he added, parents can talk with children about the correct ways of using the credit card before they will have it own when having my own income.

Here are some tips from Citibank for parents who give credit cards to the child:

Teach children to use credit cards wisely

You should teach and give examples of the use of credit cards well to children. If you do not have good habits, most likely your children will follow the habit. Always remind you that credit cards are the means of non-cash payments, not for debt facilities.

Convey that the credit card is a Privilege

The first time you have a credit card, tell them that this card is a privilege that you give him and therefore they should be fully responsible for their use. Tell also that you will continue to monitor transactions performed by the children.

Review and discuss the bills every month

We accept credit card monthly bill, sit down together and examine every expenditure made by your child. If you feel there are things that are not needed or not should be, straight talk and finish it with your son or daughter. Through a monthly bill, you can also teach the children about the importance of interest and pay off bills on time.

Have a clear payment plan

One important thing is to be discussed with your child how he would pay the charge. If they have not worked, then you can put pieces of money monthly. Teach that they could only do the expenditure of the amount of money they have. If not, then they will not have the ability to properly manage credit card. If you buy a child something with a big cost, you may be charged interest when he returned the money to you.

Specify the limit that can be used child

Parents should make a deal with the child about the limits the use of credit cards. With the limit of it, both parties must be consistent in complying with the agreement that has been created. Make sure you only give one credit card to child.

If you plan to send children abroad, make a credit card payment facility that enables

Credit cards are very commonly used outside the country, so for the payment of tuition fees, purchase books, dorm room rental and other necessities could be done with credit cards.

For children, she will feel safe that parents in the ground water will meet the cost of education is needed. As for parents, although far in the eyes of children, credit card bills can be a role model activities and spending habits of their child.

As I promised, this edition focuses on the discussion of the estimated financial resources in old age as well as tips for identifying the funding shortage of funds with various funding sources available. Although it seems simple, there are systematic steps you should take to ensure a happy old age.

Prepare the Source of Funds

To facilitate your understanding about the methodology of calculation of income in old age, I will present illustrations Sasongko Pak family (quoted from the Old Days Planning Module Book Courses Certified Financial Planner).

Mr. Sasongko (in her 30s) has two teenage children. Husband and wife in this family is quite successful in their respective careers and they run a simple lifestyle. Both their income approximately Rp10 million per month before taxes.

They agreed to stop working at age 60 years (30 years). They want to have living standards that are simple, comfortable, but there is a certainty to finance their spending in retirement.

Furthermore, Mr. Sasongko need to make estimates about the needs of old age, and initial step is to estimate household expenditure when they retire.

Based on the records of income and balance sheet monthly household expenditures, household expenditures for Rp7 million per month. At retirement, their obligation to pay the mortgage (mortgage) has been completed and two beloved children no longer live with them.

Because some expense items reduced, Mr. Sasongko estimate that they only require 80 percent of the current financial expenditure to be able to have an adequate standard of living.

Thus, in later retirement years, Mr. Sasongko know that their life needs Rp5, 6 million per month or Rp67, 2 million per year. What next? They must find the source of funds for survival in the old days when they were not earning more.

Currently they already have two sources of income for such designation, the product of the Social Security savings accounts and life insurance programs they already have since several years ago.

In total premium benefits from both these sources could eventually provide income amounted to Rp50 million per year. Fortunately, they already have life insurance savings products so there is certainty of income sources in the old days later.

Based on the estimated quantities Sasongko Pak family needs in old age (Rp67, 2 million per year), there is a shortage of funds amounting to Rp17, 2 million per year in order to achieve their desired standard of living.

In addition, due to inflation, the shortfall will become greater. If their spending affected by inflation of seven percent per year, for example, means a total lack of funds will be Rp130.931.560 ballooned within 30 years (the amount calculated using the Future Value Table).

That is why, Mr. Sasongko need to calculate the amount of financial resources in the old days so they can finance the projected shortage of tersebut.Untuk find out how much money they need to collect, they first had to estimate the level of investment returns they can get at retirement will be.

This figure shows how much the funds they need at retirement so they could meet the shortage of funds that had previously predicted. When the results of investment amounting to eight percent per year, for example, means the family of Pak Sasongko needs capital for Rp1.636.644.500 when they retire.

This figure is obtained from the division between the magnitude of the lack of funds (Rp130.931.560) with investment income level (eight percent). During their funding of capital (Rp1.636.644.500) is not touched, the accumulated amount will provide an annual income as they need (Rp67, 2 million per year).

So, Family Pak Sasongko can know that they need the accumulated funds of Rp1.636.644.500 at retirement. Where does the need for these funds can be obtained?

The next step, Mr. Sasongko need to know the amount of funds they must set aside each month in order to achieve the target of accumulated funds. For example, the rate of investment return their funds amounting to 12 percent per year and the long investment period of 30 years.

Based on the calculation of compound interest factor to the Table for Future Value of annuity factor, the investment results obtained by the range factor of 241 333.

Thus, the amount of funds they need to set aside is Rp6.781.685 per year (or Rp565.150 per month). This quantity obtained from the division between the accumulation of funds that they need at retirement (Rp1.636.644.500) with the amount of investment yield (241 333).

That is, they must set aside funds Rp6.781.685 per year and this should result in savings interest rate of 12 percent per year so that the target of accumulated funds in the old days can be realized? Based on these illustrations, you can understand step by step what to do in financial planning in the old days.

More importantly, you’ve seen how important financial planning for old age! To accommodate the large accumulation of funds that you need later, you can equip themselves with life insurance savings products are designed so that you can get a guaranteed income which would, as surely as the standard of life you want later. Such planning requires an insurance agent and trained experts.

Within this context, involve a professional life insurance agent to discuss and design a financial planning program for the welfare of the old days you and your family.