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)
Getting Ahead in Finance
A few years ago, global financial capitalism was booming – until the credit crunch. Liquidity was drained from the financial markets and major economies were forced to act when faced with the risk of collapse. Financial education can also be vulnerable to ‘bubbles’, and now, more than ever, the finance and investment industry needs better-educated professionals to help rebuild trust and restore confidence.
Despite industry volatility, demand for further education has not been dampened and a career in finance remains a strong allure for much of the brightest talent. The recession has witnessed rising interest again in postgraduate programmes of study, but now with greater expectations (supported by demonstrated efforts) of instilling responsible leadership and ethical standards. These trends are being reinforced in the less developed areas of eastern Europe, Africa and the Middle East, for example, where students are increasingly keen to realize their potential. Recruiters are also interested in building up their Eastern European operations, reflecting this geographical shift.
These movements are all taking place within the wider context of Europe’s Bologna Accord, first adopted 10 years ago. The objective of the agreement (between 40 countries) was to drive the harmonisation of graduate and undergraduate education, including finance, and it is contributing meaningfully to mobility of students, quality of education and recognition of achievement. The success of this initiative is shown by growing numbers of non-European (including North American) students drawn to finance programmes of Europe’s leading education providers.
In spite of the global recession, companies are also committed to building and retaining talent, and investors, perhaps more wary under current market conditions, have become more active in sourcing the best people in the investment industry. By earning further qualifications, practitioners demonstrate to employers, colleagues, and clients that they have attained a high level of proficiency in investment knowledge.
If you are considering entering the world of finance, research the major sectors (banking and financial services, insurance, actuarial work, accountancy) carefully as the various divisions and options can be daunting! For example, private banking is more focused on customer relationships whereas investment specialists and analysts tend to be more institutional, with less client contact. If you want to secure a job in a financial institution, you will probably have a preference for front office operations (revenue creation such as trading, sales, lending) or back office functions (account administration, settlement, regulatory compliance). All these positions, however, have to be based on trust and competence.
So what helps the brightest get ahead in the investment profession? Many students who wish to pursue a career in banking and finance strive to boost their professional credentials, and further study is, of course, one way of doing this. In today’s tough job market, any positive differentiating factor is an advantage. A Masters in Finance or a Masters in Business Administration (MBA) is certainly helpful but may not be sufficient in itself. A bridge between academic theory and practice often remains, and many such programmes miss some fundamental elements such as teaching the importance of ethics. Alternative and complementary routes exist such as the CFA Program, a self-study graduate level investment credential that has become globally recognised across the industry.
To be an exceptional investment professional, it is important to stay abreast of current topics, understand what is going on in the marketplace and to apply theoretical and technical knowledge in a practical way. One way of doing this is to take advantage of executive education programmes offered by many educational institutions. Most, but not all, finance programmes help to ensure that graduates complete their studies with a thorough grounding not only in the fundamentals, but also in ethics and professional conduct, so it is important to be selective.
So whether you decide to become an analyst, portfolio manager, hedge fund manager, or private wealth adviser, to name a few, if you build your human capital through education and professionalism you are likely to be better placed to survive and thrive.
