Jon and Kate Gosselin, the stars of the hit realty show “John and Kate Plus 8”, have made some plus-sized mistakes when it comes to managing their finances.  Their original claim to fame can be attributed to their brood of eight children, but they are now infamous for their epic divorce battle and their money disputes. So, what can we learn from John and Kate? Here are our top eight things NOT to do with your finances:

1. Don’t mismanage your money
This tip seems fairly obvious, but take a lesson from the Gosselins: they earned an estimated $2.25 million from their show on TLC, not including sales from books, appearances, and endorsements.  However, like so many “get rich quick” millionaires, they (Jon, in particular) are wasting away their wealth. After announcing his intentions to divorce, he went on a spending spree that involved dropping hundreds of money on shoes, leasing a Manhattan apartment, buying luxury cars, and taking lavish vacations.

If you’re lucky enough to find yourself in a position with a job that pays well, spend sensibly! Try not to take your paycheck for granted, and assume that your earnings will need to stretch into the future.

2. Keep your eyes on the cards
Kate was recently spotted trying to pay for gas with a credit card, which was declined in front a slew of paparazzi. Why did this happen? Either Jon or Kate forgot to pay the bill, the balance was over the limit, or the credit line was suspended.

Even if you’re not constantly in the limelight, it’s a smart move to check your balance often. Especially if you’re a joint cardholder, always check the balance, payment history, and account history before charging a purchase to your card!

3. Don’t ignore your budget
Keeping track of your finances can be tough with a television show and eight kids to look after. Despite the fact that the Gosselins have busy lives, they still need to keep track of their budget. Their financial troubles came to a climax when Kate recently claimed that she only had $1,000 in cash and couldn’t pay the bills.

Being constantly on the go is still no excuse for neglecting your checkbook. In order to plan ahead for your daily expenses, you need to keep your credit card balance down by paying your bills on time and avoiding bounced checks.

4. Be honest about your financial situation
If you have ever watched their reality TV show or opened a tabloid magazine, you know that Jon and Kate have more than a few trust issues.  Kate accuses Jon of secretly using protected funds, while he says that she hasn’t been forthright about the revenue from her book sales.

If you suspect some shady dealings with your spouse, it’s important to address the issue right away. If you’re thinking about divorce, hiding your funds will just cost your family more money and stress, which may not be in the best interest of the kids. Instead, write down all personal economic activity, from accounts to assets. Keeping a detailed and candid record can actually help to improve your marriage, or pave the way to a smoother divorce.

5.  Keep it simple!
Jon and Kate have definitely overcomplicated their finances. In fact, Jon claims that Kate has 11 bank accounts. Why is that necessary? Many people like to compartmentalize their finances—keeping one for a vacation fund, another for home improvements, etc. This approach can give you a false sense of security because it’s fairly easy to lose track of your money this way.  Life is definitely complicated enough without having to monitor multiple accounts! Try consolidating your bank accounts, having one joint checking account for your family, and a single individual account per person.

6. Don’t merge funds
The Gosselins are in the middle of splitting up their assets, but dividing them equally is proving to be very difficult. Kate seems to be the more enterprising and entrepreneurial of the two, which is creating an argument over who is getting the bigger slice of the money pie. Assets and liabilities acquired during the marriage tend to be typically cut in half. However, it is still possible to protect your assets. Keep your inheritances and gifts in your own name, which has the same effect as a pre-nup.

7. Don’t involve attorneys too early
There’s no doubt that Jon and Kate are paying their lawyers big bucks. Most lawyers’ fees begin at $250 per hour and increase from there. This translates to a huge amount of legal fees. If divorce is on your horizon, try to work out a reasonable agreement before getting an attorney.

8. Don’t break the law
This is another obvious tip, but you’d be surprised how far people would go to “win” a divorce case. Jon was ordered to return $180,000, the majority of which he withdrew from his joint bank account with Kate. In most divorce cases, there is usually an order that stipulates that marital assets cannot be transferred or withdrawn without spousal approval.

Needless to say, always proceed legally and with caution. Document all expenses that demonstrate that joint finances are being used for legitimate family expenses, like child care or doctor’s appointments.

So, what else can we learn from Jon and Kate Gosselin? Yes, love can become rotten and personal details should always be left private, but handling your finances in an honorable way is essential to maintaining a happy marriage.

While it's important to build good credit, certain types of purchases should probably not be put on your credit card. Some things that you buy might send a red flag to credit card companies, who are waiting to catch consumers who have less than stellar finances. Here are the top 10 purchases to avoid putting on your card:

1. traffic tickets - everybody has accidents on the road once in awhile, but even if the ticket is not your fault, you will still look reckless to a credit card company. Additionally, tickets can increase your insurance rates and put a strain on your personal finances. Many people have charged their traffic tickets to their credit cards, which puts a strain on their personal finances and makes it more likely to default on their cards. It's just a bad idea.

2. retreading car tires - many people put this charge on their credit cards because they might not be able to afford to get new tires. If you've previously bought new tires, this can look like a desperate move, and credit card companies tend to shy away from desperation.

3. binges at bargain stores - if you've never dropped a lot of money at 99-cent stores, don't start now! Stores that attract financially-strained customers gives the impression that you are worried about your finances and your job security.

4. adult toys - nobody is judging you, but your purchases are definately looked at. Buying pornography or going to a strip club on your credit card sends the message that you're trying to escape from financial worries. Just pay in cash like the rest of 'em!

5. therapy and marriage counseling - money issues are frequently the bane of many relationships issues. Not only can divorce ruin your finances, but charging your therapy to your credit card can give the impression that you're unstable.

6. lottery tickets - the sad truth is that buying lottery tickets is not a sound financial plan. You don't want your credit card company to think that you're a gambler or are irresponsible, so it's best to just pay in cash. On that note, and don't take your credit card to Atlantic City either!

7. cash advances - credit card companies love these types of charges because they get loads of money off of interest. However, tapping your card for cash just isn't a good idea. Using a credit card to pay other bills doesn't look good either.

8. personal pampering - as tempting as it may be to splurge on spa treatments and manicures, don't put these purchases on your plastic. Whether it's right or wrong, credit card companies assume that these purchases are a way to deal with job or financial stress.

9. income taxes - when you use one bill (your credit card) to pay another bill (your taxes), it raises a red flag to the credit card companies. Could your debts be overwhelming you? If that's the case, or even if it's not, just don't pay your taxes with your credit card.

10. alcohol - carry cash with you to the bar. Spending too much money on booze can be a sign of stress from money woes or relationships. And charging several trips to one bar might make it seem that your binge was not a fluke.

Obtaining credit is getting harder, and getting a good rate is tougher still.  After the financial meltdown, lending institutions have tightened their standards and jacked their interest rates.  Even with the new legislation that puts the brakes on predatory lending, people with an uneven credit history can expect to pay a premium.  However, there are things you can do to protect, and even enhance, your credit score – but first, you need some information.

Most lending institutions use the FICO scoring system to determine your credit score.  Your FICO score is determined by three credit rating agencies – Experian,  Trans Union and Equifax – and you can get a free estimate of your credit score from CreditKarma.  However, experts recommend ordering a report from www.myfico.com, will give you a more accurate assessment of your credit score.  Scores range from 300 to 850, and the higher your score, the better chance you have for securing good credit terms.

Your credit history determines your credit score.  The single biggest factor potential lenders consider is how timely you were with your payments.  The next is how much do your currently owe in relation to your available credit.  Other factors include how long you have had credit, what kinds of credit have your qualified for, and if you have recently applied for any additional credit.

Once you receive your report, read it carefully.  A recent survey found that up to 1/3 of credit reports had errors and in today’s world of tight credit, you want to make sure that lending institutions have an accurate picture of your financial history.  If you find a mistake, follow the procedure outlined by the reporting bureau on their website, and then follow up.  Finding and fixing an error can boost your credit score substantially.

If you discover your credit score is less that stellar, there are some things you can do to start turning this around, but it will take time, so get started.

If you have had a credit account cancelled, negotiate for the best terms you can to repay the balance, pay it off and move on – and take good care of the accounts you still have.  Once you purchase your FICO score, you will receive a copy of the report it was based on – but don’t stop there.  Annual Credit Report can get your report from other credit bureaus and you are entitled to a free yearly update.  Getting a handle on your credit score now is a smart way to handle and plan your financial future.

If you are tired of skyrocketing credit card costs, you will be happy to know that the U.S. Federal Reserve has proposed additional measures to help provide you with protection from lender practices that could potentially cost you an arm and a leg.

"This proposal is another step forward in the Federal Reserve's efforts to ensure that consumers who rely on credit cards are treated fairly," said Elizabeth Duke, who is the Fed Board Governor, in a statement.

The new proposals, which are actually a part of the Credit Card Act that was signed into law back in May, were opened up to public comment. Finalized rules regarding unfair credit card practices were released back in December, but the more recent proposals represent amended versions of those regulations.

"The rule bans several harmful practices and requires greater transparency in the disclosure of the terms and conditions of credit card accounts." Continued Duke.

With the proposed regulations in place, consumers would be protected from unexpected increases in their credit card rates because credit card companies would not be allowed to increase the rates within the first year after opening the account. In addition, they would not be allowed to increase the rate on an existing balance. Credit card companies would also be prohibited from issuing cards to people under the age of 21, unless that person had demonstrated the ability to make payments or obtains a signature from a parent or other person who is capable of making the payments.

Another part of the proposed legislation would require credit card companies to obtain the cardholder's permission before charging for transactions that go over the credit limit. Fees associated with suprime credit cards issued to people with high-risk credit would also be curved, while two-cycle billing methods will also be banned.

The credit card industry has received a great deal of attention lately due to the fees they routinely levy against cardholders. While Congress has taken the initiative and has implemented legislation to help protect consumers from exorbitant credit card fees, many are still wondering when the same will be done to regulate the fees that are being charged against debit card users.

According to many critics, the fees excised against debit cardholders can be far more destructive and out of control than those that are applied against credit cardholders. In fact, it is not unheard of for a debit card user to amass a couple hundred dollars worth of overdraft fees in just one day. How you might ask? Simple. If you use your debit card to pay for all of your purchases throughout the day and the funds are not available for some reason, some banks will allow you to make every one of those purchases without telling you that the funds are not there. Rather, they will simply cover the cost of the purchase and then hit you with a costly overdraft fee of $30 or more.

The reality is that overdraft fees accumulated via debit cards has become an important source of revenue for banks, particularly as they struggle to make it through these difficult economic times. In fact, banks are expected to rake in a whopping $27 billion worth of fees this year based on overdrafts alone, with most of these overdrafts being done with a check or with a debit card purchase.

As if getting stuck with costly fees wasn't bad enough, perhaps the worse part of this fiasco is that some banks are actually manipulating the order of their customer transactions so they can cause more overdrafts to occur.

“Banks will let you overspend on your debit card in a way that is much, much more expensive than almost any credit card,” said Eric Halperin, who is the director of the Washington office of the Center for Responsible Lending, in a New York Times article.

In essence, debit cards have turned into a form of credit card, as banks allow consumers to make purchases with funds that do not exist. The cost of taking out these "loans," however, is much higher than the cost of using a credit card.

The good new is that consumer outcry regarding these practices has reached the ears of lawmakers. As such, regulators are planning to introduce some protective measures by the end of this year. Although the regulations likely will not out an end to overdraft fees, they should help make the fees more fair while also putting an end to shady practices. For example, banks may be required to get permission from consumers before placing them in an overdraft program. Those who opt out of participating in this type of program will simply have their debit card declined at the register if funds are not available. Another potential regulation may include barring banks from processing the most expensive purchases first in order to lead to more overdraft fees.

As might be expected, the banks are not too happy about these proposed legislations, claiming they are merely helping to prevent consumers from being embarrassed when their card is declined. Further, they maintain that consumers should be more responsible about handling their own expenses.

“Everyone should know how much they have in their account and manage their funds well to avoid those fees,” said Scott Talbott, who is a chief lobbyist at the Financial Services Roundtable, which is an advocacy group for large financial institutions, in the article.

Yet others are concerned about the potential impact this legislation might have upon banks that are already struggling. In fact, some experts warn that a sharp reduction in these fees could run some financial institutions out of business. According to Michael Moebs, who is an economist who advises credit unions and banks, approximately 2,000 credit unions and 1,000 banks will likely fold within two years if consumers are allowed to decline an overdraft service. Moebs goes on to say that 45% of credit unions and banks throughout the country collect more from their overdraft services than they actually make in profits.

“Will they be able to replace it with another fee?” Moebs continued. “Not immediately and not soon enough.”

Many banks are already looking at other fees that they can charge to make up for the potential loss in overdraft fees. For instance, some are considering charging anywhere from $10 to $20 per month on all checking accounts that are currently free. Of course, many consumers are wondering why banks can't simple alert consumers if they are about to spend more than they have in their accounts, but bank officials say this is not possible without purchasing costly equipment and software.

“If you think about when you swipe your card at, let’s say, Starbucks or at the Safeway or the Giant, there is no real sort of interaction there,” said Talbott in the article. “It’s just approved or disapproved. So how logically would that work? Would a screen come up? Would someone at the bank call the checkout clerk and say, ‘That customer is overdrawn?’ Logistically that would be very difficult to implement.”

According to William H. Strunk, who is a banking consultant that is credited with creating the overdraft system that is currently in place, banks are doing consumers a favor when they cover the transaction costs. Not only does it save consumers from feeling embarrassed, he claims it also protects them from being charged fees for bouncing a check.

So, while credit card fees will amass to about $20.5 billion for banks this year, overdraft fees will help them rank in $27 billion. Even more interesting, 93% of these fees are drawn from just 14% of customers. According to the FDIC, these consumers exceed their bank balances five or more times per year. A survey conducted by the FDIC also found that overdrafts most commonly occur among those consumers who have a lower income.

So, until legislation takes place, it is important for you to monitor your debit card closely and to make certain you are not spending beyond your balance. Otherwise, you may be finding yourself stuck with hundreds of dollars worth of fees that are difficult to pay. Or, if you find yourself needing to borrow from the bank on a regular basis, consider getting a credit card instead. The finance charges you pay on the funds you borrow is likely to be far less than the overdraft fees you pay on your debit card.

Every marriages has its ups and downs as well as its sore spots, but one area that is consistently put at the top of the "trouble" list for most couples is the area of finance. Even if you and your spouse have similar financial beliefs and goals, determining how to best handle your finances can still be a difficult process. But, what if you are married to someone who is your financial opposite?

While being married to your financial opposite can have certain advantages - primarily the fact that the two of you can help each other meet somewhere in the middle so you can both get enjoyment from the money you earn - there are certainly some downsides to being married to your financial opposite as well. After all, if you are a tightwad who is married to a spend thrift, it can be quite frustrating when your spouse seems to pour water out of his or her pocket like it is water. At the same time, if you are someone who enjoys spending money, you might have difficulty with understanding why your spouse doesn’t seem to want to let the dollars go.

If it is any consolation, you should know that you are not alone. In fact, a study called "Fatal (Fiscal) Attraction: Spendthrifts and Tightwads in Marriage," has determined that people tend to marry their opposites when it comes to the way they spend their money. Essentially, spendthrifts tend to be attracted to tightwads because they help keep them from overspending.

"Opposites attract for personality traits that people dislike about themselves," said Deborah A. Small, who is one of the three professors who is authoring the study from The Wharton School at the University of Pennsylvania and Northwestern University. "Critical to the definition of spendthrift and tightwad is that there is some self-recognition involved. You recognize that you are acting differently than you want to act and as a result you tend to be attracted to people who act in a different way than you."

In order to determine in which category each of the study participants belong, they completed an online survey that was designed to determine how they feel about spending their own money as well as the money of their spouses. Based on these responses, the participants were placed on a scale ranging from tightwad to spendthrift.

It is important to note that the participants were not ranked according to how much they actually spend, but rather on their emotional response toward spending. Spendthrifts experience very little remorse or pain when they spend, while tightwads experience a definite emotional response to spending.

"Tightwads and spendthrifts are generally unhappy with their emotional reactions toward spending, and complementary attraction may benefit both spouses if they help each other overcome their prepotent emotional reactions toward spending," the authors wrote in their report.

While being married to your financial opposite may help bring about some balance in your life, it also increases your potential for disagreement.

"Complementary emotional reactions toward spending money among husbands and wives will be associated with greater conflict over finances, which will in turn be associated with diminished marital well-being," continues the report.

Therefore, if you are getting ready to get married to your financial opposite, you should give some serious consideration to whether or not you will be able to handle this difference in the long-run. Having a serious discussion about your current financial situation - including your assets, your income and even your credit score - as well as your long-term financial goals will help you determine if the person you love is really the right person for you to marry.

If you are already married and you are having trouble getting on the same page, try to have an open conversation with your spouse about why your financial lifestyle is important to you. Rather than bicker over specific expenditures, try to gain a better understanding of one another's point of view and then work out a financial arrangement that will work for both of you.

This past Thursday, several of the new regulations that have been imposed upon the credit card industry officially went into effect. No longer are credit card companies able to make major changes to your credit card terms without providing you with advance warning. Similarly, you will now have much longer to get your bill paid after you receive your credit card statement. These aren't the only changes that will be taking place, however, as additional changes are slated to go into effect in February. As a result, many consumers are starting to see some changes take place with the credit cards they currently have.

Once February roles around, credit card companies will be limited when it comes to offering credit cards to students. Similarly, credit card companies will be required to review credit card accounts every six months after they undergo a rate increase.

Thanks to the changes that credit card companies are being required to implement and because of the changes that are on the horizon, credit card companies have been contacting customers about interest rate changes as well as changes to their fees. Citi, for example, has implemented a $30 annual fee on some of its accounts.

American Express, on the other hand, has actually eliminated its over-the-limit fees. This change was made in response to the legislation that will be implemented in February, which will require credit card companies to provide their customers with a way to agree to the fee if they make a charge that will trigger the fee. While this is certainly a welcome change, the credit card company has also implemented a change that does not make its customers too happy - an increase in their interest rate. In addition, American Express has increased its fee for making a late payment. Whereas customers used to pay $19 if they were late on payments of balances of less than $400 and $38 for balances of over $400, the new system charges $19 on late payments on balances of less than $400 and $38 on balances of more than $400.

Of course, customers who have been handling their credit card accounts responsibly are not too happy to see these changes being made to their credit card agreements. In fact, to many, it seems as if the credit card companies are taking advantage of the situation and are penalizing those customers who have basically been good customers. American Express does not deny that these changes have been made in response to the new regulations.

"The reason why we did it is to be responsive to the business and economic environment, which obviously included the recent regulatory changes," said Desiree Fish, who is a spokeswoman for American Express.

It's not just American Express and Citi that are making changes to their terms of agreement, however, as a survey conducted by Pew Charitable Trusts has found that approximately 400 credit cards that are issued through the 12 largest issuers have increased their rates by an average of 2% since December. Not only is this because of the changes in legislation, but these changes are also being made in an effort to make up for the number of accounts that have gone into default thank to the current state of the economy.

Despite the recent hikes in interest rates and other fees, many experts still maintain that the new regulations will ultimately benefit consumers. Not only should consumers be able to better understand their credit card statements, they will also be less likely to be blindsided by changes made to their credit card terms. Nonetheless, it is still important to be a smart consumer and to stay on top of your credit card statements and terms in order to make certain you are not paying more than you should.

On May 22, President Obama signed the Credit Card Accountability Responsibility and Disclosure Act of 2009. We’d like to call it the “Credit Card Bill of Rights”. While most of the provisions in the bill will go into effect on February 22nd, many of them will begin today on August 20th.

So, how will this bill affect YOUR spending habits? First of all, the grace period will go from 14 days to 21. This is huge news! For instance, let’s say that your statement closes on the 1st of every month. And if your bank has the tendency to take their sweet time in mailing you your payment reminder, you run the risk of paying your bill late. If you don’t pay your bill on time, this means that you are stuck with the late fees. This isn’t exactly convenient for your bank account.

Thanks to the Credit Card Bill of Rights, you will have an extra week to submit your payment. However, the best way to avoid the problem of a slow reminder is to just pay your bill online using your bank’s online paying service and avoid interaction with your credit card company altogether. That way, you have direct control over your credit account AND receive an email confirmation that your payment has been received. Thanks to the speed of online payment, you are not subject to the whims of the postal service…and you save a lot of money on stamps while you’re at it.

Even if you already pay your bills online, the Credit Card Act is still pretty important. After all, even electronic bills take time to process. Secondly, depending on the agreement that your bank has made with your credit card company, you might have to schedule payments as far as 4 days before the due date. With another week to get your statements in order, late fees might be a thing of the past for many of us bill-paying procrastinators!

In addition, the APR notification will jump from 15 to 45 days. Have you ever received a letter in the mail notifying you that your rate has increased? 45 days is a very reasonable time to pay off your balance, if you are financially secure enough to do so.  15 days just isn’t enough time to do things like organize your assets, restructure your debt, and transfer a balance before your rates increase!

The Credit Card Act is particularly helpful because it is designed to give us more time, something that we always wish we had more of. Ultimately, the Act will give us a fairer way to pay your credit card, without having to deal with the typical tricks and traps that the credit card companies try to throw your way. This all spells good news for the customers!

Listen up, students—your financial aid might be in jeopardy. Fox News reported on Wednesday that several states are making big budget cuts that are affecting their public colleges and universities. Financial aid programs are taking some of the biggest hits, including some of the scholarships and grants that provide a vital cash flow for the students who need it the most.

Over a dozen states are eliminating grants, reducing the size of awards, and tightening eligibility requirements due to budget constraints. Thanks to the recession, more and more students are seeking aid because of the sharp spike in tuition costs. While most colleges are witnessing an increase in applications from students who want to ride out the economic downturn and increase their earning potential with a college degree, the reality is that many students need help footing the tuition bill…and they’re not getting much assistance from the state government.

Lots of students receive need-based grants from the schools and the federal government, which is basically money that you aren’t obligate to pay back. Many need-based grants are at risk of being cut, which puts thousands of students in a bind. Without that extra cash, experts predict that some students may be forced to drop out, take on too much debt, or take on longer hours at work.

According to the US Department of Education, about 620,000 more students applied for federal aid compared with last year, which is a jump of more than 25 percent. The demand for aid is booming, and it seems like the government isn’t able to keep up.

The news about the financial aid cuts is clearly not coming at a convenient time. Lawmakers are currently struggling to balance the elusive budgets that are crippling the tax revenues. For instance, Illinois is scrambling to find $11 billion in budget savings, which is bad news for the 145,000 low income students who receive the state’s need-based Monetary Award Program. Since money is quickly running out, these students can expect to receive no help from the government by the time spring semester rolls around. Ohio and Wisconsin have quickly followed suit and eliminated similar need-based grants to their local low-income students.

Education Sector, a think-tank based in Washington, warned in a recent study that student debt was at an all-time high. With more financial aid programs being cut, students will be forced to take out larger loans. What does this mean for higher education? Will fewer students choose to pursue a college degree? Studies fear that higher education would be limited to only those who could afford to pay the annual $40,000+  tuition rates, and also would result in the lower-income students defaulting on their loans.

"We're getting a lot of questions about why students are not getting financial aid they got last year," Connie Hutchison, the executive secretary of the Wisconsin Higher Educational Aids Board, said. "It's so hard to explain to them."

If you’re one of the lucky dudes or dudettes with a 401K, did you know that you can actually get a 401K credit card?  It may sound strange, but this credit product is growing in popularity.  However, before you start spending, make sure you understand the pluses and minuses up front.

The first step in setting up one of these accounts is getting permission from your employer, then you need to determine how you want to structure your credit package.  There are some basic rules:  you can only borrow 50% of your vested balance or $50,000 – depending on which is the lower amount.  Your employer may limit the amount put into this credit line and make specific rules about how you use it. 

A 401K credit line works as a revolving loan, so you will be borrowing approved credit limit as you pay down the loan.  This is different than the more traditional one-time, non-revolving 410K loan that allows you to borrow, but once the loan amount is repaid, you are not able to access those funds again.

Once you receive approval for the 401K credit card, there are some things you need to keep in mind:

•    Each time you use the card, the transaction is considered a separate loan and each loan will have its own repayment terms, and this can be pricey.
•    The moment you make a purchase with your 401K credit card, the interest clock starts ticking, with no grace period, so be prepared.
•    Each month you will receive a statement of your account, just like a credit card, that will state your credit line, the financial transactions you have made and the monthly amount due.  It is your responsibility to pay this amount directly, it will not be deducted from your wages as in a traditional 401K loan.

One advantage to taking a loan on your 401K via a credit card account is the untapped funds in your account will continue to earn interest.  If you opt for a direct loan from your 401K, that money is no longer earning interest.

Of course, this isn’t a classic credit card with a retail or banking institution.  It is a line of credit that is financed by a load from your 401K.  And remember, borrowing money should never be a causal business – and you’ll want to make sure you understand the terms thoroughly before you consider applying for this kind of credit line.