Check out the 5 financial tips for the 3rd week of April 2012.

Tip no 1 - Look before you leap into the trap of insurance scammers.

The demand for the insurance policies has increased a lot in the past few years. Everyone wants to protect his home, vehicle, health and life against various accidents through insurance policies. When you're going to purchase an insurance policy, make sure you conduct a background check of the insurer. Find out if the insurer has the license to operate in your state. Check the insurer's track record with BBB. If you don't get proper information from the BBB, then you can contact state's Department of Insurance. They can give you proper information about the insurer. Don't fall into the trap of insurance scammers. Stay educated and protect your money.

Tip no 2 - Educate yourself about money matters when you get your first job so as to avoid the unnecessary expenses.

People feel at the top of the world after getting a job in this sluggish economy. They become elated after receiving their first paycheck and tend to spend the entire wage for various purchases. This makes it difficult for them to create a financial cushion for the emergencies. Once you get a job, start educating yourself about the various ways to save money. Your parents or elders can give you valid suggestions. You can also browse through the websites to educate yourself. Know the difference between needs and wants. This will help you avoid the unnecessary expenses.

Tip no 3 - If you get a hefty windfall, use it to kill debt.

If you receive a heavy windfall, then use it to pay off your debts. If you win $10,000 from a lottery, then use it to slash your debts. You can utilize the money to pay the fees of a debt settlement company. If you haven't enrolled into a debt settlement program and you're paying off your debts on your own, then use the money to make extra payments to your creditors. This will help you get rid of debts sooner.

Tip no 4 - Save daily for your insurance deductible.

Deductibles help you save money on your insurance policies. If you opt for a high deductible, then you'll have to pay low premiums on your insurance. This is why the insurance experts advise people to go for high deductibles. If you have opted for a high deductible to save on your insurance premiums, then make sure you save money for it. You'll need this money at the time of making an insurance claim. If your deductible amount is $1000, then save that amount as soon as possible. You can accumulate this amount by saving a small amount of money regularly.

Tip no 5 - Plan exactly how much you can spend before going out for shopping and make sure you do not cross it.

Create a shopping list and a budget before hitting the stores. Calculate the amount you have allotted for shopping in your monthly budget. If you have allotted $1500 for shopping, then you'll have to finish your shopping within this amount of money. You may have to skip certain items to fit in your budget. You can buy those items in the next month. After all, there is no point in getting into financial problems after making unnecessary purchases.