NEW CASTLE —
Dear Dave: What do you think about the practice of credit card churning? — Ethan
Dear Ethan: I think it’s a pretty dumb idea. The concept is to run up the balance on one card as high as you can, then flip the balance from card to card in order to get perks like airline miles. But if you want to go through all the trouble and hassle over such a small amount of money, be my guest.
I’ve met thousands of millionaires, and none of them have ever credited their success to credit card churning. Think about it: With all the time you’d spend, and risk you’re taking on a scheme like that, you could actually have made some money.
If you want success, Ethan, you have to mimic what successful people do. This means living on a detailed plan, saving, and investing. — Dave
Dear Dave: Both of our daughters will start college next year. We have $25,000 set aside for each in their custodial accounts, but my financial adviser says we should take the money out because it will keep them from being awarded as much in scholarships and other assistance. What do you think? — John
Dear John: I disagree. It’s like saying you should quit your job to get food stamps. You guys obviously aren’t poor, and any financial adviser who says you need to fake being poor in order to get help is not a person whose advice I want to follow.
When your kids apply for scholarships and assistance, your entire financial picture will be assessed. More funding goes to kids from poor families than rich ones, but that’s only fair. Chances are, you fall somewhere in the upper-middle portion of the scale.
But no, I wouldn’t move the money or try to hide it. It’s just not honest to try and act like you’re poor when you’re not. I don’t believe in that kind of stuff. — Dave
(For more financial advice, please visit daveramsey.com.)
Columns
Related Photos
-
For years Dave Ramsey has been the host of the popular ‘Dave Ramsey Show’ on radio stations across the nation. Now, his financial advice column is carried by more than 300 publications. It will appear each Friday on The News website.
Discussion
Dave Ramsey: Credit card churning risky, foolish
- Columns
-
-
Lori Brothers: Body awareness can help manage stress
Are you an “inny” or an “outy”? I’m not referring to your belly button, even though the concept also applies there. I am talking about how you manage your stress. Do you internalize or externalize?
-
Mitchel Olszak: Snooping threat to the free press
In “All the President’s Men,” reporter Bob Woodward conducts late-night meetings with a source in a parking garage. That source, Deep Throat (later revealed to be high-ranking FBI official Mark Felt), was worried that he would be exposed as a tipster in the Watergate scandal.
-
Culinary Conversation: A day in France— or close to it
Here’s some advice: If your spouse packs your lunch, never complain about the contents. I wasn’t actually griping. I just noted that it lacked excitement. The response from spouse was — our kitchen isn’t the Ritz Carlton.
-
John K. Manna: Data shows decline in number of primary voters
Voter participation isn’t what it used to be. That’s nothing new, but there has been a significant drop in voting here in Lawrence County. And it’s happened suddenly, particularly in the so-called “off-year” elections.
-
Dave Ramsey: Avoid college loans if you can
“Dave Says" is a weekly column featuring financial advice from nationally syndicated radio host Dave Ramsey. His column is filled with timely, relevant questions and answers taken from actual letters and calls on Ramsey's radio program, “The Dave Ramsey Show.”
-
John K. Manna: New legislative districts give advantage to local lawmakers
We finally have a map, and area state legislators have to be gushing with joy. The map, which reshapes state House and Senate districts in Pennsylvania, gained the approval of the state Supreme Court this week.
-
Mitchel Olszak: Toomey takes a chance on guns
How does a conservative Republican senator representing a state with a Democratic majority protect himself politically? One way is to take positions that tend to straddle the nation’s ideological fence.
-
John K. Manna: Shortfall in state tax collections means painful decisions lie ahead
I don’t deny that there are really smart people in Harrisburg who deal with the state’s budget and taxes. But I have to wonder what any of them — including the governor — think when it comes to taxes.
-
Culinary Conversation: Weeding out cupcake recipes
They’re everywhere. They’re everywhere.I’m talking about cupcakes — those individual desserts in their frilly little papers. They don’t require a knife or fork and sometimes the frosting is as delectable as the cake itself.
-
Culinary Conversation: Easy selections lighten up your day
A highlight of my working day is receiving a contribution to Culinary Conversation. Anita Guyton, a Volant shop owner, was kind enough to pass along two recipes she obtained from the back of a can of tomatoes — black bean salsa and cheese grits.
- More Columns Headlines
-
