Winning With Finances - Ten Topics For Teens

1) Budgets
2) Checking Accounts
3) Debit Cards
4) Credit Cards
5) Cell Phones
6) College
7) Career
8) Cost of Living
9) Insurance
10) Saving / Investing Goals

When can I get a checking account? How is a credit card different than a debit card? What's the best cell phone plan and do I have to pay for it? Teens want answers to these questions, along with information about cars & insurance, college, and ways to save and invest money. Get involved in the real world of finances and learn how to apply a few simple concepts to succeed. Find out how making smart financial choices now could affect your whole life.

Don't Let Your Money Disappear

A spending plan (budget) puts you in control of your money. You plan for your fun and future. Without a plan, your money disappears and you end up with nothing to show for it. Instead, watch it grow-and still have fun, as you decide how to best use your hard-earned money. Start with income from an allowance, job, or other source. Next, list expenses. Do you pay for your own cell phone, food, movies or other fun stuff? What about clothes or car expenses? Include school lunches, even if your parents hand you the money.

Career & College

How do you most enjoy spending your time? Could you make a career out of it? Research all topics of interests and dare to dream. What would take to earn a living doing what you love?

Multiple scholarships and grants do not have to be repaid. While in high school, ask your guidance counselor for resources, assistance, and financial aid options. Consider community college, technical schools, the military. and work for credit options.

Tips for Teens

-Goals: Set big & small goals,Look at them every day. What small steps will you take to reach your big goals?

-Know the difference between needs and wants:. You need the basics of food, shelter & clothing, but a want is a game system.

-Banking: Ask banks for pamphlets about free checking & savings accounts, on-line banking, debit & credit cards, and other topics. Read, then ask all your questions.

-Cell Phones: Get a cell phone with unlimited minutes and no contract.

-Cars: Used cars must be checked by a mechanic. Find out the cost for insurance, maintenance, & gas.

-Job interview: Create a resume. List education, skills, work & volunteer experience. Have 3 references ready.

Checks - Cards - Cash - Credit

Checks & debit cards are like cash... the money is gone when you spend it. Credit cards are like loans, because you buy-now, pay-later. Banks charge expensive fees, if you don't follow the rules. Read the small print on any contract and know your rights. Paying your bills on time has the biggest impact on your credit history and score, which follows you your whole life. A good score helps you get the best loan rates over time and could affect insurance rates and job opportunities, and more.

Did you know?

"I could be a millionaire!" Save part of any money you earn before buying anything else. Time is on your side. From ages 16- 20, save $2000 a year ($8,000 total) in a ROTH IRA ( a type of Retirement Account) that earns 10.7%. By age 67, you'll have over a million tax-free dollars!

- OR -

At 16, invest $80 a month for 46 years at 10.7% ($43,200) in a ROTH and you'll have over $1 million. Which way of saving and result do you like the most? (Investment % could be lower or higher)

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