Check out the 5 financial tips for the first week of June 2012

Tip no 1 - 15% of your wages can be garnished for defaulting on a student loan.

This is the worst aspect of the federal student loans. Uncle Sam can snatch away 15% of your paycheck when you default on the federal student loans. Uncle Sam can start the Administrative Wage Garnishment process once you default on the federal student loans. Your employer will be instructed to withhold 15% of your paycheck every month. This thing will continue till the loan is fully paid back. You can check out the official website of National Student Loan Data System for getting more information.

Tip no 2 - Educate your children about money since childhood so that they know how they should spend money.

Children learn from their parents. It is the duty of the parents to guide the children in the right path. If you love your children and want them to lead a blissful financial life, then teach them the tips and tricks to manage money. Explain the concept of money once they're in school. Show real life examples which will help them understand the importance of money. Introduce the concept of "piggy banking" at a very young age. Your children will understand the concept of saving, spending and investing in the process.

Tip no 3 - Impatience won't work when you make claims on your insurance.

You won't get money soon after making an insurance claim. The insurance company will send an adjuster to determine the extent of damage on your insured product. For instance, if your vehicle has met an accident, then the insurance adjuster will visit your place and check the condition of the vehicle. He'll make an estimate of the damage and talk with the witness. If a third party is responsible for the accident, then he'll even talk with them. The adjuster will make a report and submit it to the insurer. This will take quite a lot of time. You need to wait patiently.

Tip no 4 - In case you have defaulted on your federal student loan, you can rehabilitate it.

This option is mainly applicable for the federal student loans. You can rehabilitate the student loans when it is not possible to make the payments. Keep it in mind that you can rehabilitate student loans only once in your life. If you default on the student loan again, then you'll not be permitted to rehabilitate it. Once you rehabilitate your loan, you'll become eligible for federal financial aid in future. Student loan rehabilitation also helps you avoid wage garnishment. This is the best part of student loan garnishment.

Tip no 5 - Spend money only by buying essential things and keep every penny you can in a savings jar.

Your employer agrees to release paycheck only after working for several hours in a week. He does not give you money for free. So, if you love yourself, try to save every penny earned in a month. Find out ways to save your hard earned money. Use your money only to purchase the essential commodities. Don't give in to your wish for buying luxury products. Remember, if your employer refuses to keep you in service in the next month, you'll have to run your family with the money you've kept in your savings jar.