Finance tips for young adults

I found this great article on www.asic.gov.au and reccomend you visit their site to read the whole thing:

"Money is an important topic for everyone. If you're young, and just starting out in the world of work, you may not have much of it yet! But it's never too early to learn some basics.

Whether you're thinking about banking, insurance, superannuation, or investing, we can provide some help to get you started. We've collected our top 10 finance tips - follow these, and you will be well on your way to making the best use of your money."

Click to read the full article...

Types of Car Insurance - whats the difference

• Compulsory third party (AKA CTP / green slip insurance) is the minimal cover that every car must have by law. It provides essential cover against claims for compensation if you injure or kill someone in a motor accident.
  
  If you don't think your car is not worth much you may wish to take out compulsory 3rd party insurance only. Keep in mind that it doesn't cover you for damage caused to other people's property such as if you're unlucky enough to run into a Ferarri.
  
  
• Third party property is the least expensive option. It covers you for the damage you may cause to another car and may include limited cover for damage caused to your car by an uninsured driver.
  
  
• Third party property, fire and theft also covers you if your car is stolen or burnt.
  
  
• Comprehensive car insurance is the best cover option but also the most expensive. It includes the cost of crash repairs or replacing your car, even if you're at fault.

(source captaincompare.com)

High interest accounts - making your savings work for you!

Basically a high interest account gives you a high cash interest rate on your money. These differ slightly from term deposits because you still have access to your money with a high interest account. Best of all most high interest accounts are free or low fee (they want your money) and are linked to your bank account via the Internet. The best rates in Australia are around 7%, which is a very good return for such a low risk investment. As interest rates rise people with cash in these accounts will really start to benefit. To find out more about these types of accounts you can check out infochoice.com.au for more information. Currently interest rates are rising and this really benefits anyone with spare cash lying around.

Prepaid Credit Cards

These are fantastic for people who have trouble managing their credit card spending as you are using your own money! Remember to watch out for any fees you are being charged for the privilege of having one of these cards. Chances are there will be a lot of competition in this area within the next year and you should be able to get a better deal with this increased competition.

How does it work
1. Order the card
2. Load money onto the card
3. Use the card

Easy!