SPRING 2009
WRITTEN BY CHICAGO TEENS FOR CHICAGO TEENS
GET YOUR SUMMER ON TRACK!
CHECK OUT MONEY SMART WEEK ON PAGE 4
LEARN, EARN AND SAVE!
TIPS FOR INTERNS PAGE 5
$20 WANT?
SEE PAGE 6
I WANT YOU TO WORK HARD THIS SUMMER
Dear On The Money Readers, It’s about that time again … it’s spring now, which means summer is approaching. Now would be a great time to get a head start on summer job hunting. With this year’s recession, it’s imperative to have your own resources so get up off that couch and start searching. First stop should be the internet. If you Google teen summer jobs, you will find more than 5,670,000 results. Your next step should be narrowing the results down to positions that interest you and finding the requirements for that position Some places prefer for you to apply online. Take care of those applications first. Your second stop before leaving out the house is to make sure you have a résumé and cover letter handy. Research the store’s hours of operation and call to see what days the manager is available. You are now prepared to go in and request an application. Head on over, dressed professionally, and then ask to hand in your résumé and complete an application. Turn these in with the manager, and be ready for the possibility of an on-the-spot interview. Preparation is the key to landing your desired job.
Spring 2009 Manoucheka Airey, Hyde Park Career Academy (Student Editor) Myles Gage, 2008 Money Smart Kid, University of Chicago Laboratory School Mario Gage, 2004 Money Smart Kid, University of Chicago Laboratory School Nicolas Guzman, Brother Rice Tashawn Tyus, Chicago Military Academy Mike Carson, Plainfield North Antonio Martinez, Lakeview High School Stephanie Moore, Lindblorn Math & Science Academy Jonetta Lenise, Hyde Park Career Academy
Elizabeth Thompson (Coordinator) Amy Stein Brian Frizzell Jarrett Sidaway Teresa Sonka Danny Pendry Jack Tench
So you received that callback, everything is going according to plan. Maintain your professionalism because your defining moment is your first day, be punctual and show that you are reliable. Be open to handling any task and willing to learn new things. Jobs help you develop as a person because you gain responsibilities and leadership skills. When the summer’s over and your seasonal job has ended, maintain these principles. If you were a great employee, it’s likely that your employer will rehire you the following summer and possibly give you a permanent position. Plus, if you leave on good terms, you will always receive good recommendations from your employer in the future. Most importantly be “Money Smart” and pay yourself first by saving some of your earnings for a later day. You are on your own now. Good luck and let me know how your journey went. Make sure you stay tuned for the Summer 2009 issue to learn more tips on making the most of your summer job and your summer money. Sincerely, Manoucheka Airey, On The Money Editor-in-Chief Get REAL WORLD job experience with ON THE MONEY MAGAZINE. See back cover for details.
2 | SPRING 2009
ON THE MONEY
Making It Worth Your Dollar By Mario Gage, University of Chicago Laboratory High School, Junior, Money Smart Kid 2004
With the economy in a recession, it is crucial for teens to know how to properly manage their money. I am going to share with you three simple tips to help you keep and grow your money. If you practice these tips regularly, they will become a habit, starting you on your way toward financial security. Whenever you get money, the first thing that you should do is donate 10% of your money to charity. In life, the golden rule is giving, and it is better to give than to receive. There are many organizations out there that you can donate to such as churches, domestic violence shelters, schools, etc.
What are Chicago teens doing with their money? What do you need to start saving? According to Lawanda Hampton of Midwest Bank, you will need your personal information and the information for the parent opening the account with you, including: • Legal name • Date of birth • Social Security number • Home address • A copy of the parent’s identification and the teen’s if applicable ON THE MONEY
The second thing that you should do when you get money is save 40%, because you are your most important investment. When you are saving money, the bank is the safest place. Many banks offer several types of accounts, with the main accounts being savings accounts and checking accounts. Just about every bank allows teens, along with a legal guardian, to open a savings account. According to Lawanda Hampton, a personal banker at Midwest Bank, “A teen who is under the age of 21 can open a savings account with their parent as the legal signer on the account.” Lawanda
17%
Hampton goes on to say, “The account will be opened using the social security number of the minor, but the parent has to sign,” says Hampton. Some banks allow teens, along with a legal guardian, to open student checking accounts. Finally, after donating 10% of your money and saving 40%, you now have 50% of your money to spend. This is the money that you will live off of. First, buy what you really need, and only then what you want. You should always shop for sales, because in order to keep money, you must spend it wisely. The most important rule is to NEVER SPEND ALL OF YOUR MONEY.
4% 79%
SAVE & SPEND SPEND IT ALL DONATE, SAVE & SPEND
How do other types of accounts compare with savings accounts? Certificate of Deposits (CDs) Higher interest rate than a savings account that is fixed. You must leave your money untouched for a set amount of time; otherwise, you face a penalty fee. Checking Accounts Checking accounts traditionally don’t pay interest. However, some banks have options to open up checking accounts, with more restrictions (i.e. a minimum balance), that pay interest.Checking accounts provide easy access to the money in the account, while savings accounts are designed for saving.
Bank Terms to Know Social Security Number - A nine digit number issued to you for taxation by the government, also used for identification. Bank Account - A fund that is set aside just for you with your money at a bank. Interest - Extra money that a bank may give you in return for keeping your money there. Minimum Balance - The least amount of money that you can keep in your account without extra fees. Deposit - To put money in your bank account. Withdraw - To take money out of your bank account SPRING 2009 | 3
The Chicago City Treasurer is a proud partner of the Chicago Youth Saves Conference, Money Smart Week and On the Money Magazine. Make a commitment to save this summer! Be part of the $ave, Chicago! Challenge. Pay yourself first! Set goals for your savings – school, emergency, or holiday spending. Get to know your money, and get in control.
City Treasurer, Stephanie D. Neely, at the Chicago Youth Saves Conference On the Money Magazine would like to thank HSBC – North America for their sponsorship of this issue as well as the Office of the City Treasurer of Chicago Stephanie D. Neely, the Economic Awareness Council and True Star Magazine for their partnership.
Chicago Youth Saves: Event Recap By Deleska Charleston, Sophomore, Manley Career Academy, TrueSTAR Reporter
On February 26th, America Saves, the City Treasurer of Chicago, the Economic Awareness Council, On the Money Magazine and True Star Magazine, hosted the Chicago Youth Saves conference at Fosco Park for over 75 young people in the city of Chicago.
“I now realize the importance of finances and understand that the financial choices that I make today will determine my financial tomorrow.” As a high school student, I sometimes want things that I realize are not that important. However, this workshop taught young people like me the importance of budgeting money as a way to get the things you want and to prepare for your future. The America Saves - Youth Saves program told students how millionaires save money and what they buy with their money. The event was sponsored by Harris Bank, member FDIC, and HSBC – North America. Stephanie D. Neely, Treasurer of the City of Chicago, really captured the attention of the students. I think her words, “cash is good and credit cards are bad” taught me that credit cards are not a good use of money because they often add charges that
you wouldn’t have if you bought that item with cash. Since most youngsters are looking forward to being financially stable, the words and activities gave me a head start on what to do and what not to do. Exercises offered by financial experts and professionals showed students the importance of having good credit; the reality is that people are actually putting themselves in debt from credit cards. This entire event was an eye opener for all of the young people who attended. It personally bettered my life overall, and I will be sure to take these important facts with me later on in life. I now realize the importance of finances and understand that the
financial choices that I make today will determine my financial tomorrow.
Learn more about events for Money Smart Week Chicago 2009! Visit moneysmartweek.org Money Smart Week is a registered service mark of the Federal Reserve Bank of Chicago
4 | SPRING 2009
ON THE MONEY
Are You the Next Bill Gates? By TaShawn Tyus, Chicago Military Academy at Bronzeville, Freshman
If you own a candy sale business that makes a profit of $30 a day what would you do? A. Spend it on something you want B. Spend it on supplies to increase profits C. Save it for a new PS3 or outfit.
Internships - Outside the Comfort Zone By Nicolas Guzman, Senior, Brother Rice
Sometimes, people must open up their eyes in order to see the possibilities that can change their lives and truly define who they are. Many people have gone through life afraid to leave their home and explore. I, too, was someone who was afraid to leave and explore; then came one summer that I will never forget. I had the opportunity to spend the summer of 2008 on an internship in Dubai, which is located in the Middle East next to the Persian Gulf, at one of the world’s largest banks. On top of intellectual experience working in a real business setting, I had the privilege to encounter new cultural experiences. I began to take advantage of the city’s venues, which included sky diving, indoor skiing, camel riding, and shopping; met amazing people who welcomed me warmly; and tasted some of the greatest food. In just one summer, I learned more than I had in the first 16 years of my life. Three very important lessons can be learned by many from my experience. The first lesson is that the world is too great to confine yourself to home. The second lesson is that there are experiences ON THE MONEY
everywhere; you must just open your eyes to find these experiences. The final lesson is that when you are openhearted and openminded you can learn more than you ever thought possible. Let’s take finding a job or internship. A problem is most teenagers do not know where to look. However, the right websites and newspapers can guide teens to great opportunities. Anybody 14-24 can find a great opportunity on youthreadychicago.org, where summer jobs and internships are offered along with resume tips and extra job resources. There are many sites to find jobs at such as studentjobs. gov, aplus-summerjobs.com and getthatgig.com to name a few. Internships can be found on college based sites such as fastweb.net. A teenager can even reach out to friends and family for employment help. There are too many opportunities available to sit back and watch others take action. Job Search Sites for Teens youthreadychicago.org studentjobs.gov aplus-summerjobs.com getthatgig.com fastweb.net
What do you think is more important to you when you own a business? A. Money Spent B. Money Earned C. Money Borrowed Do you ever wonder how can you fix a problem or solve a demand needed in your neighborhood? (Ex. A Paper Boy or a Boy Friday (Handyman).) A. No B. Yes C. Sometimes What are you intentions after high school? A. Work at McDonalds B. Go to College C. Probably Go to College If you own a candy business selling Snickers, Skittles and M&Ms what would be the best price to sell one package of candy? A. Buy for .50 Sell for .50 B. I would look to maximize the amount of money I make by balancing the trade off between my profit per bar and the impact of cost on the volume of my sales. C. Buy for .50 Sell for 1.50 If you mainly picked A, then you are the next employee of McDonalds. You spend every cent you have, and you don’t look for great opportunities around you. If you apply yourself, you might still be able to be the next assistant manager of McDonalds or any food chain. Thinking more about your financial future and career path may help you reach your goals. If you mainly picked B, then you are the next potential Bill Gates. You want to learn and are always looking for something to get into or change. You want to go to college and loves reading the Wall Street journal or any newsletter. Congratulations and good luck in the future with your CEO abilities. If you mainly picked C, then you are the next potential owner of a McDonalds or other food chain. You have the smarts and great ideas, but you just have to carry out those ideas to become a CEO. You would benefit from more commitment to your goals and looking for big opportunities around you. Most likely you will become Assistant to the CEO. SPRING 2009 | 5
ON THE MONEYYOUR VOICE Do teens have money saved for college? Are teens knowledgeable about college financial aid? These questions and more were posed to teens through an online survey with the results summarized below. Over 50 responses were obtained from Chicago teens with ages ranging from 14 to 22, with the most common age being 17. Let’s see what they had to say…
Behind The Scenes: The Ladies Behind True Star Magazine
100% of Chicago teens plan to continue their education after high school Only 25% of Chicago teens have any savings for college 89% of Chicago teens plan to pursue a 4-year degree following high school
Manoucheka Airey, Hyde Park Academy, Senior
On the Money partner, True Star magazine, is known for its coverage on celebrities and entertainers, but how much do you know about the two lovely ladies running the magazine? Well, meet J. Na-Tae’ Thompson and DeAnna McLeary, the founders of True Star. Before the two met, Na-Tae’ was doing teen events and programming at the Chicago Park District. While there, Na-Tae’ often came across DeAnna because she did motivational speaking at many of those events and was involved in creating publications. Na-Tae’ later asked Deanna if she wanted to start a journalism program for teens, and it’s been history since.
About Na-Tae’ Education: Morgan Park & Columbia College Chicago Likes: jumping double dutch, She even boasts, “I win double dutch competitions, so anybody out there … I don’t do tricks, flips and cartwheels, but I can jump” Favorite song: Mary J. Blige and Method Man, “You’re All I Need” She exclaims, “That was the first dance at my wedding.” Advice: “For an entrepreneur is: of course don’t give up, it’s a cliché but keep your eye on the prize ...” 6 | SPRING 2009
The two began the publication because they witnessed “juniors and seniors that were in high school who couldn’t formulate a paragraph or a sentence, and we thought that it was really sad because they were going into college and the workforce without basic communication skills”. So, in September 2004, the duo created what began as a four-page newsletter with only 18 students, which has spawned into the must-read magazine it is today. These ladies are true role models, so the next time you open up a True Star magazine make sure you remember the ladies whose vision made it possible.
About DeAnna Education: Whitney Young & Florida Agricultural and Mechanical University Likes: Entertainment industry Advice: “To become a student of whatever industry you want to be in, learn as much as you can about that industry, connect yourself with people who are smarter than you who have skills that you don’t have.” - “No matter how much success you get— give back; give back to your community, to your family, to not disassociate yourself from where you come from”
For the small number of people with college savings, the typical amount saved was about $1,100 The most common answer for how most students believe they will pay for school is through a combination of scholarships (87%), having a job (74%), and student loans (62%). 30% of Chicago teens felt they know a lot about financial aid, while an additional 48% felt they knew some information about financial aid. How confident are you about affording college? 50% 40% 30% 20% 10% 0% Very Confident
Somewhat Confident
Neither Confident, nor Uncertain
Somewhat Uncertain
Very Uncertain
Random drawing winner of $20 prize for this survey: Jameliah Salter
Please go to www.otmsurvey.com to take a new short survey for a chance to win a $20 prize drawing. ON THE MONEY
Think about it... Consider a mutual fund or an index fund. Mutual funds allow you to buy a little bit of stock in a lot of different companies. Index funds buy a set amount of a large number of companies and generally have reduced costs. Interested in Investing?
Terms to Know
Financial Fitness For Life Myles Gage, University of Chicago Laboratory High School, Freshman, Money Smart Kid 2008
It is important that teens become you should also consider investing your financially fit in order to live a long, money in the stock market because healthy and wealthy life. Being financially stocks potentially have a higher fit is just as important as being physically growth rate. This means stocks can fit. If you are financially fit, you will be POTENTIALLY make you more money. able to eventually own your own piece Say for instance you put $100.00 into of corporate America. This opens doors a savings account with the average to other opportunities such as owning interest rate of 2.4% a year. According your own home and business which to bankrate.com, it will take about 37 means you’ll be in good shape to live a years to double your money. If you comfortable life. invested in a stock with an average Investing money is fun and easy to growth rate of 10% a year, it will take do. Since it’s not a topic discussed in you 7 years to double your money. a lot of homes, most of us don’t know BUT, stocks can go up and down in where to begin. I’m going to help you value and you can even LOSE money. get in shape financially! Just like with Let’s take a look. If a senior in high exercising, you must stick to a routine to school needs money for college tuition see results. Here are two the following year, the good routines to start safest place for your “If I can do it anyone immediately (no matter money (a savings account can. No money is too how old you are). or CD) is the smarter little. You can start with Don’t buy things choice. (This is because $10 a month. you don’t really need! you do NOT know if the Everybody can scrape For example, do you market will go up or down up $10 a month.” really need another pair in value in one year.) — Damon Williams, Ujamaa of gym shoes? Start However, if you know you Junior Investment Club Member, investing in yourself will not need your money High School Student, Money Smart regularly! Decide on a for a long time (ie. you Kid 2006 dollar amount that you anticipate your parents are going to save/invest monthly. It can will pay for college or you will get a be as little as $5.00 a month or more scholarship), this may be the perfect time depending upon age. to invest in the stock market. Once you have saved enough money, Always remember once you start you can look into purchasing stocks purchasing stocks to diversify, don’t put in companies that have good growth all your eggs in one sector. Buy in different rates. To start trading stocks, you’ll have sectors. Invest in companies that you’ve to go through a brokerage service like actually heard of and know what they do. “sharebuilder.com”. To set up an account, Investing can be fun if you find interesting you’ll need a parent or guardian that has companies to research. Remember it is a credit card to register. good to save but sometimes it might It is good to put money in a savings be better to invest for the long-term account or Certificate of Deposit (CD), because your money might grow more but when investing for the long-term, with investments. ON THE MONEY
Stock - A tool that represents an ownership position (called equity) in a company; buying stock in a company means that you own a small part of the company Growth Rate - Change in value of your investment from year to year (shown as a percentage) Savings Account - An account where you can deposit money at a bank, often pay interest Interest - Extra money banks pay customers to keep their money in an account there Certificate of Deposit (CD) FDIC insured investments that pay a set rate of interest for a specified time period Sector - A subgroup of a market, business or economy (investorword.com) SAVINGS AFTER 7 YEARS ($100,000 to Start) Savings w/ 2.4% APR Stocks w/ 10% APR $250K $200K
$150K $100K
$50K $0 7 YEARS SPRING 2009 | 7
From Making It Worth Your Dollar (page 3), a Certificate of Deposit (CD) is a bank product that often offers a higher ______________ (see definition page 3) than a regular savings account but requires you to keep your money in the CD for a set period of time.
2.
From Making It Worth Your Dollar (page 3), list 3 pieces of information that you will need to open a bank account.
3.
Complete this quote from City Treasurer, Stephanie D. Neely at the Chicago Youth Saves Conference (page 4), “Cash is _______. Credit is _______. “
4.
List 3 resources where you could find information about internships (page 5). Visit 2 of these AND list 3 things you learned on the site.
5.
In Financial Fitness for Life (page 7), a number of investing terms were introduced. Use this crossword and clues below to fill in these terms. 2
DOWN 1. A subgroup of a market, business or economy 2. An account where you can deposit money at a bank 3. Extra money banks pay customers to keep their money in an account there
ACROSS 1. A tool that represents an ownership position (called equity) in a company 2. FDIC insured investments that pay a set rate of interest for a specified time period (use abbreviation)
3. Change in value of your investment from year to year (shown as a percentage)
1 3 2
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