A potpourri this week. First, a serious credit card warning that you absolutely must read. Then, one of the finest readers' letters ever written. And finally, a request for help.

I'll be getting to the credit crunch that's been affecting the markets, just as soon as I can figure out what is really going on.

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The latest telephone credit card scam is a refinement on the basic model. This time, the scammers provide you with all the information, except the one piece they want.

It works like this:

Caller: "This is (name), and I'm calling from the Security and Fraud Department at Visa (or MasterCard). My badge number is (number). Your card has been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your Visa card, issued by (name of bank).

"Did you purchase an anti-telemarketing device (or something similar) for $497.99 (or a similar amount) from (company name)?"

When you say "No", the caller says: "Then we will be issuing a credit to your account. Please confirm (gives you your address). Is that correct?"

You confirm it.

The caller continues: "I will be starting a fraud investigation. If you have any questions, you should call the 1-800 number listed on the back of your card ask for Security. You will need to refer to this control number." (The caller then gives you a six-digit number.)

The caller then says: "I need to verify you are in possession of your card". He asks you to "turn your card over and look for some numbers". On the back of the card are seven numbers.

"The first four are part of your card number; the last three are the security numbers that verify you are in possession of the card.

The caller asks you to read the three numbers to him.

"When you do, he says: "That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have your card. Do you have any other questions?"

You say: "No". The caller then thanks you and says: "Don't hesitate to call back if you do", and hangs up.

Not long afterward, your card will take a hit for somewhere close to $500.

What the scammers want is the three-digit number on the back of the card. Do not give it to them.

Instead, tell them you'll call Visa or MasterCard directly for verification of the conversation. Never give out your card details unless you're sure you're dealing with a bona fide person.

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Now an excellent letter from a reader on the subject of teaching money in schools.

"As you quite rightly say, parents should be showing children how to manage money, but unfortunately, some children do not have both parents to help them, so it appears that one has to rely on the education system," the letter began. "That too is failing, so where do we go?

"You were talking about your father's advice, so let me tell you about what I learned from my father," the reader continued.

"The day my sister was born, during the depression in the 1930s, my father lost his job and was out of work for 18 months. So that his wife and young daughter could eat, he made a point of growing as many vegetables as possible, and also kept chickens so that the family had eggs and meat.

"I was born three years later. By that time, my father worked in local government, a job he detested, but he had a wife and two children to feed.

"We made our own Christmas decorations and had one main toy and a Christmas stocking, not the endless presents my grandchildren are showered with.

"Pocket money did not exist; there was no spare money. If I wanted something small or a bag of (candies), money was available once in a while.

"The house we lived in was rented and when my father had the opportunity to buy the house next door for £400, he did not have the money and would not go into debt.

"If we couldn't afford it, then without the money in the bank, it was not purchased.

"I always remember my mother buying a small refrigerator on credit in 1946 and my father being very upset.

"From the age of 16, I worked during the Christmas holidays as a postman and during the summer vacation as a bus conductor. The money was used to buy my clothes.

"Even when I was in college, my pocket money was the princely sum of 2/6d. (about 25 cents) a month. After qualifying in my profession, I worked away from home and my salary was £5 per week, of which £3 was spent on bed and board.

"Over the years, I have had to spend within my income and have made some good and some bad investments, but have not used income for investments, using instead some money which was left to me.

"I have loaned money to friends and to my sons, but have always made them sign a promissory note, so that there would not be any misunderstanding.

"Such notes have been for a fixed period of time.

"Naturally, with my sons, if they had had a problem paying off by the agreed date, it would have been extended. However, I am pleased to say that every note was paid off before the due date.

"Credit is the basic cause of people spending beyond their means. In Bermuda, we see tourists coming in with money they have saved for their vacation and they spend it.

"We also see exempt companies paying out big bucks and everyone wants to get on the gravy train. If one doesn't have the education, then the best way to get a quick buck is (often thought to be) to deal in drugs and hope you don't get caught.

"One's chances of being caught and bringing disrespect on oneself and the family are no longer thought of as a problem, because few people these days have respect for themselves, leave alone their fellow men.

"Matters will get worse in Bermuda, with banks allowing 100 percent mortgages.

Sounds nice until the banks foreclose.

"This can be seen in the way the housing market is going in the US - not just the lower-cost properties but also some at the higher-end.

"(Real estate) has always gone up (in value) over the years, and if folks used their money for property purchase instead of fancy cars, luxury cruises, high-end entertainment centres and buying (expensive) breakfasts, lunches and dinners, everyone would be better off.

"Save 10 percent of your salary and don't buy anything unless you have the cash to cover it (with the exception of property)."

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Finally, help please. Can anyone tell me what "cor blimey (or gorblimey) trousers" are? I'll explain why I need to know in a week or two.

If you know, please tell me at crombie@northrock.bm. Thanks.

Roger Crombie is a Fellow of the Institute of Chartered Accountants in England and Wales.