There s a friendly voice that wants to give you some advice on spending wisely, and is willing to use a carrot and stick to do it. Who is it that wants to help you so badly? Citigroup (C) .

Yes, that s right -- the same Citigroup that is now almost 40%-owned by the government, that has seen its stock fall from $6.71 a share to less than $2 since the beginning of 2009 and that has been declared unmanageable by the federal officials working to help bail out the company.

Nevertheless, Citibank is dispensing its own spending advice through a new credit card, which it announced with plenty of fanfare Wednesday. Dubbed Citi Forward, the bank touts it as the first credit card of its kind -- the only credit card that rewards consumers for using credit wisely. (That s not quite accurate, but we ll address that further below.) The card offers incentives, such as lower rates and bonus points, as long as cardholders' spending follows a pattern that Citi deems "wise."

So what exactly does Citibank consider prudent behavior? We took a closer look and also asked some economists and consumer credit experts for their thoughts.

Paying bills on time is good -- so long as you keep spending

Citi Forward says it will lower your APR for purchases (which starts at 12.24% variable after a six-month 0% promo) by 0.25% when you make a purchase, stay under your credit limit and pay at least the minimum amount due each month for three months on time. Repeat this good behavior and you could see your APR get lowered up to eight times, for a total 2% discount.

There s certainly wisdom in paying your bills on time, but this kind of spending may hurt you, says Kit Yarrow, a Golden Gate University business professor specializing in consumer psychology. You already have to stay within your credit limit and pay on time to avoid huge fees. The only real must-do in there to get the incentive is to buy something each month. That sends a mixed message, she says.

Also, cutting your interest rate isn t attractive unless you re carrying a balance. And don't forget that extra spending lengthens the time it ll take you to dig out of debt -- while generating more interest income for Citibank, says Yarrow.

Citi and other issuers are cutting back credit lines and closing accounts when they think cardholders aren t buying enough. For more details, click here

Dining out and going to the movies is 'wise'

Cardholders earn five points per each dollar spent on books, movies, music and restaurants with the Citi Forward card, plus one point per dollar spent on everything else. They can also earn a one-time bonus of 6,000 points when they spend $50 on the card within three months of opening. (You can also earn 5,000 points for opting out of paper statements and 100 points each month that you pay on time and keep your balance below your credit limit.)

If it seems a little reckless to encourage spending on discretionary expenses like movies and dining out, keep in mind that Citi Forward s target customer isn t your Average Joe who is dramatically cutting back on spending, says Daniel Hamermesh, economics professor at the University of Texas at Austin. Instead, they're consumers who have some money to burn. The people who are going to be using this are not those on the margins, he says.

Citi's O'Neil says the spending categories were chosen as a result of a market survey that asked consumers which rewards they would like most.

Mess up, and you re back at square one

Go over your credit line or make a late payment, and the Citi Forward card will revert to a variable default rate of 29.99%. You won t get your 100 points that month. Start using smart borrowing behavior again, says O'Neill, and your rate will eventually go back down. (Exact timeframes vary by individual situation.) It will take several months of good behavior before that will start to happen, though.

"The best intentions don t mean you can t make one of these missteps, warns Linda Sherry, spokeswoman for consumer advocate Consumer Action. O Neil says consumers should recognize that by signing up for a credit card, they are getting an unsecured loan that carries with it penalties for irresponsible behavior.

Despite Citibank s claims, this isn t the first time an issuer has offered a card that supposedly rewards good behavior. Discover (DFS) has the Discover Motiva (10.99% variable), which offers one month s interest as a cash-back bonus after you make six on-time payments in a row, while Bank of America (BAC) has the Money Return Platinum Plus Visa (V) (9.99% to 18.99% variable), which rebates 10% of annual interest charges to accounts in good standing.

But the timing of this offering from Citigroup seems particularly odd. Just last week, the company said it would stop paying dividends on $52.5 billion in preferred shares and that the federal government, which has come to its aid three times since October, boosted its equity stake to 36%.

Cognitive dissonance aside, it s not surprising that Citibank is trying marketing tactics to lure in customers in these tough times, especially those who profess to want help with spending smarter. Those consumers just need to think twice about where that smart spending advice is coming from.