· Fraud Protection. If your credit card number is used fraudulently, by law your maximum liability is $50. This is not true of a debit card. A perpetrator can easily use your debit card as "credit" transaction in retail stores or online. This type of transaction does not require a PIN number to be entered, and is especially dangerous since a thief can clean out your entire bank account in short order.

· Loss Protection. Unlike cash which is gone for good if lost, a credit card can be replaced within days of reporting it to issuing bank. In meantime, you're protected against unauthorized use by anyone who finds lost card.

· Warranty Coverage. Many MasterCard credit cards warrant your purchases above and beyond that offered by product's manufacturer. Your purchases made with one of these cards get an extra level of protection for free. See MasterCard's website (http://www.mastercard.com) for full scoop on their coverage terms.

· Purchase Protection. Another benefit MasterCard offers on most of their cards. With their Purchase Assurance plan, your purchases are automatically insured against damage or theft for first 90 days, also at no additional cost to you.

With all of these benefits over other forms of payment, credit cards can easily become your favorite way to pay. Instead of dreading your credit card bill each month, it can become a pleasant reminder of your money mastery.

So far, reasons why we we’re financially dumb are because of rising costs and inadequate schooling. But clearly, these are not all contributing factors…

There are other reasons, including...

1. Math skills are declining. This is author’s observation. It’s based on teaching high school math 30 years ago compared to teaching college-level math in 2003. Kids in same area are less skilled than 30 years ago.

2. Parents forget they are financial role models. They miss opportunities to develop their kids money smarts.

CONSIDER THIS SOLUTION

Hate to ride “family values train” because there are conflicts with conductor. And author’s opinion is an educated guess.

But, parents, consider this...your kids reflect your money habits, attitudes, and behavior. What are YOU teaching your kids about money?

Copyright 2005 by Valerie Mills

Valerie Mills is a sales copywriter specializing in direct mail and web advertising. She writes sales letters, web pages, and brochures for the finance, self-help, and technology areas.

Valerie has also written several articles and an ebook for parents: please refer to http://teachyourkidsaboutmoney.com for more information.