It has been a tough year for mortgage holders but the good news is there are signs of better times ahead.

Predictions that interest rates will rise again before the end of the year have fallen, with the Reserve Bank's increasing confidence that the economy is slowing. At each Reserve Bank meeting the Board undertakes a health check of the economy using key indicators like job figures, wage activity, household spending, retail sales and commodity prices. Recent health checks have shown a cooling of economic activity and domestic demand, indicating that the earlier rate hikes have begun to work their way through the Australian economy.

Some experts like leading CommSec economist, Craig James, go one step further in claiming that Australians are better off than it appears. He found that while rate rises, higher petrol prices and a falling stock market have been hurting our hip pocket, some of these costs have been covered by years of wage increases and tax cuts.

A recent CommSec analysis of wage, tax and cost of living data has revealed that a person who took out an average home loan six years ago and was earning the average wage, would today be ahead by more than $425 a month. Even those who took out mortgages more than three years ago are likely to be in front despite numerous rate hikes and the increased cost of living.

The outlook in the US is not so rosy. Last year's subprime mortgage crisis has led the way to a depressed housing market, with mortgage firms, Fannie Mae and Freddie Mac, almost becoming the latest victims.

The collapse of these giant firms would present a serious threat to the US economy, which would have a flow-on effect in the Australian economy via lower commodity prices, lower demand for our exports and higher prices for funds. Given the severity of the situation, a Bush Administration rescue is in place, which it is thought will put a lid on the problem, preventing further destabilising of the economy.

In these times of economic uncertainty, it is all the more important to make a thorough and considered decision when a funding need arises. I am well experienced in arranging loans and will use this expertise to seek out a range of suitable financing options for you within the current economic climate.

When comparing the price of any product, including a home loan, it helps to compare apples with apples.

This is where comparison rates come in handy because they enable you to put home loan products from different lenders side-by-side and see their true cost. The comparison rate is a single percentage figure that includes both the interest rate and the fees and charges relating to the loan. A lender's advertised interest rate, for example, may be 7.49% and its comparison rate 8.75%. The rate difference takes into account the annual costs, in addition to interest rates, that will be charged on the loan.

Comparison rates take the guess work out of working out the cost of your mortgage, giving you more time to concentrate on what you need out of your loan. For example, do you want to be able to make extra repayments or enjoy features like fee-free banking? Features like these often make a loan more attractive and will help you to decide if it is going to suit your needs.

Keep in mind that features like no monthly fees and repayment flexibility are not included in the comparison rates but will make a difference to the final cost of a loan. Government fees and charges are also not included because they are standard across all loans in the particular state.

The comparison rate is prescribed by the Uniform Consumer Credit Code and it is mandatory for all lenders to advertise these rates. Because different loan amounts and terms produce different comparison rates, lenders must provide rate schedules that contain a list of comparison rates. In order to get an idea of the comparison rate that applies to your loan, look at the rate for the amount and term closest to the amount and term of your loan.

To get a great deal it often helps to seek advice. I have access to a wide variety of loans and am well placed to ask the right questions of lenders. Together we can compare loans and find a structure that suits your needs.

If you've caught yourself telling your kids money doesn't grow on trees, it's a good indication they're ready to learn about where money really does come from.

Educating your kids from an early age about the value of money is an important asset that will assist them through life (not to mention helping you survive the "I wants"!). Kids need to understand that money is a limited resource and not everything they want can simply be bought. Talk to your children about the difference between needs and wants and how to prioritise spending.

Start young by encouraging your children to hand over money when you make a purchase or press the OK button on the EFTPOS machine. Show them the value of money by explaining what a small amount like $1 can buy.

If you give out pocket money, use it as a method of introducing your children to the concept of saving. Encouraging the saving of pocket money in a piggy bank or bank account is a great way to establish sound financial habits for later in life.

Kid's bank accounts can provide the discipline need to put money away on a regular basis. If you work with your children to come up with an achievable saving goal, they'll get a buzz from watching their savings grow. Many childrens' bank accounts are fee-free and come with newsletters and activity packs for your kids to learn in a fun way about the benefits of saving.

Young children may not understand the concept of money management immediately, but it pays to make an early start in what will be a lifelong education!