A balance transfer is when you transfer your balance from one credit card to another, presumably to take advantage of lower rates. Some credit cards will write you a check for the amount, rather than having you jump through the hoops of paying another credit card company.

Why do credit cards offer balance transfers? Credit cards are in a constant battle to get a “share of your wallet.” They want to get into your wallet so that you’ll be more likely to use them when you make purchases, so all the cash back offers and reward programs exist to gain a piece of that share. They earn a percentage off each transaction, so having a large share is crucial to their business.

They have balance transfer offers because they know the longer you have the card, the more likely you are to use it. If you have a balance on your card, they’re playing the odds and thinking that you probably won’t be paying off that balance for a few months. Those are precious months they can sit in your wallet.

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One of the most anticipated IPOs in a long time is about to drop today – Facebook. This post will be published around 7am and when the markets open at 9:30am, chances are the initial public offering for the largest social network kick off with a price between $28 and $35 (they raised it to $34-38 late Monday this week… before settling on $38). All in all, given how many shares will be made available, Facebook will raise around $13.6 billion and have a valuation less than the $100 billion many expected. Either way, IPOs were exciting during the dot com boom and they’re exciting again.

Will you buy any shares?

I won’t. When you buy into an IPO, you’re gambling. I’d rather lean over a craps table and foolishly put money on the pass line. At least I think I’m having fun while the dice are flying. I don’t want to gamble with shares of an IPO, in any industry, because it’s really a crap shoot. If you get shares before they trade publicly, you might have an edge. If you get shares after, you lose any edge you have. You are betting you can sell your shares to someone else who is willing to pay more. Sometimes it works out, sometimes it doesn’t.

If it trades at $35, that’s 70 times it’s projected 2012 earnings. Apple trades at a price to earnings ratio of 13.61. Google trades at 18.31. While they aren’t the same types of companies, in terms of growth prospects, do you think you can sell Facebook to someone at 90 times earnings? Think Facebook can find a way to increase profits? The answer might be yes but you have to recognize that you’re basically gambling.

That said, sometimes it’s fun to gamble. It’s fun to get caught up in the excitement… that’s why I put money on the pass line at a craps table. I know it’s entertainment.

By now, you are probably aware of how important your credit score is to your financial future. Knowing your credit score, and keeping up with your credit situation can help you save money in the long run, especially as you take steps to improve your situation.

One of the ways you can keep tabs on your general creditworthiness is by signing up for a web site like Credit Sesame. Credit Sesame offers you access to a general idea of your credit score — at least the Experian version of it — and provides you with information about how you can save money with different credit offers. Recently, Credit Sesame launched an online app designed to let you take advantage of Credit Sesame on the go.

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Thus far, my investing in individual stocks has been confined mostly to dividend stocks and a bunch of companies I really like (and have good financials), such as Apple and Southwest (ok, mostly good financials). One of the things I researched extensively was the merits of dividend reinvestment. The idea behind dividend reinvestment is that it’s like automatic savings. For someone in my financial situation, where the dividend payments aren’t a necessary income stream, wouldn’t I rather just put it back into the holding? If I do, wouldn’t I want to do it for free, rather than pay each time? The answer to both is yes and so I needed to find a broker that offered free dividend reinvestment. Fortunately, TradeKing, where I already had an account, is one of several that offer this.

There is one large downside to automatic dividend reinvestment, it can be a pain whenever you sell the stock because you have to keep track of the various lots. And it really stinks to have to spend that time when the lots are a share or two (or fractional). There are a few smaller ones, like how you have to pay capital gains taxes on the dividend even though you didn’t take any cash out, but for the most part it’s a good deal for someone in a similar financial situation.

The following brokers offer free dividend reinvestment programs, ordered in least to most expensive trade commissions:
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Even though the economy is showing signs of improvement, they aren’t large signs, and unemployment remains stubbornly high. Additionally, some companies are still planning layoffs, and you never know when you might lose your job.

Unemployment benefits have been extended a few times in an effort to help those who are unable to find work. If you lose our job, unemployment benefits can help you through the tough times, but you do need to be aware of the requirements that might be placed upon you to qualify.

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When you hear about billionaire Warren Buffett paying a lower effective tax rate than his secretary, you’re hearing long term capital gains at work. The tax code smiles favorably on investment and the tax rate on capital gains of assets held for more than one year is much lower than ordinary income tax rates. If you own an asset for less than one year, you pay short term capital gains which mirror the rate of ordinary income tax.

Qualified dividends also enjoy favorable tax rates, with the income taxed at long term capital gains, which make them especially appealing to those on fixed income, such as retirees. As long as the dividend is considered a qualified dividend, you can enjoy the lower rates.

So what are the capital gains tax rates for 2012?

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The amount of collective student loan debt in America has surpassed $1 Trillion but to bring it closer to home, Finaid says that the rate of college tuition inflation is normally twice that of the regular inflation rate. That means that the cost of college will rise an average of 6% every year. Add to that the fact that wages for most Americans are stagnant, college is quickly becoming much like a home. American families cannot afford it without going in to debt.

How do you plan to pay for your child’s college education? Maybe a large portion of their tuition is covered by academic or athletic scholarships but for the average family, that isn’t the case. Needs based grants will only pay for a portion of the tuition making student loans a reality for many. A recent study by the Associated Press found that one out of every two college graduates either can’t find a job or they’re underemployed working in a field unrelated to their college major. This makes graduating with as little debt as possible a priority.

The 529 plan is the best answer to this problem. Although many plans used to allow for the purchase of years of college at today’s prices, most plans now work like a 401(k) where you invest money in to the plan and choose the mutual funds that fit your objectives. If you start contributing early, the tax advantages allow you to build up enough money to keep applying for student loans and many allow family and friends to contribute to the fund too.

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For many families, the recession still hasn’t ended. While “technically” the Great Recession has been over for years, practically speaking many families are still feeling the pinch. As a result, some are getting creative about the side businesses they are ready to start, as well as how they bring money into the family.

In some cases, this might include encouraging children to get summer jobs and help contribute to the family finances. Indeed, there are some families that ask kids to contribute to family finances in some way.

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