On the Money Fall 2015

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Invest in Yourself Page 14 Teen Entrepreneurs Page 4 & 9

Small Business Expo Page 6 Money and College Life Page 12

College Life!

Money Smart!

Table of Contents 3

Letter from the Treasurer

Interns Finance

Entrepreneurship

12

College Major Choice / College Life

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Young Business Owners

13

Unemployment / One Summer Chicago

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Entrepreneurs and Perseverance

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Networking and Investing

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Small Business Expo Supports Entrepreneurs

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Teen Budgeting / Illinos Jumpstart Event

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Insurance and Entreprensurship

16

High Paying Non-College Careers / Illinois Saves Competition

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Local Entrepreneur Teaches Communication

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Health Care in India / Care for the Elderly

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Blogging / Music Sharing

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Controlling Teen Spending / Nuclear v. Solar Energy

9

Teen Entreprenuership / Fashion Entrepreneurship

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Illinois Hispanic Chamber of Commerce Event

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Social Entreprenurship

About On The Money

On the Money magazine is written by teens for other teens. On the Money covers entrepreneurship, business, finance, credit, saving and more... providing real world experiences and resources that can help students learn to meet their business, money and career goals. On the Money is provided by the Economic Awareness Council through collaboration with Chicago Public Library, DePaul University, the Office of the City Treasurer of Chicago, and True Star Magazine. www.OntheMoneyMagazine.org

About the EAC

On the Money Magazine would like to thank HSBC Bank, the Coleman Foundation, the Office of the City Treasurer of Chicago, State Farm Insurance Companies速, U.S. Bank, Republic Bank, FirstMerit Bank, Guaranty Bank, MB Financial and TCF Bank for their sponsorship of this issue.

ADRIEN AMPONSAH Muchin College Prep JENNIFER BAEZA Phoenix Military Academy TRENATI BAKER Whitney Young High School KEZIA BRANCH Rowe Clark CHRISTINA BUTLER Kenwood Academy TILEA CARTER Marine Leadership Academy JASABELLA CLARK Michelle Clark High School AUTUMN EVINS Devry Advantage Academy COLETTE GORDON Walter Payton College Prep AKILI HAYDEN Lincoln Park High School NIA HILL Whitney Young High School LAUREN KELLEY Kenwood Academy KALIAH LITTLE Whitney Young High School SAMANTHA MALLETT Lane Tech SELVYN MARTINEZ Phoenix Military Academy YAZMEEN PABLO Home School HILARY PHAM Whitney Young High School AISHA ROMER King College Prep JOSHUA STONE Chicago Military Academy ELIZABETH VEGA Thomas Kelly

INSTRUCTORS Toiria Baker, Tracy Frizzell, Jasmith Joseph

THANKS TO OUR PROGRAM HOSTS

The Economic Awareness Council (EAC) is a non-profit financial education organization with program attendance of over 20,000 each year. www.EconCouncil.org

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Table of Contents

Magazine design and layout by Jessica Alessi

Letter From City Treasurer Kurt Summers As we start the New Year, concentrating on your studies continues to be a top priority, but I don’t want you to forget about smart money management and investing in yourself. Just this summer, through our One Summer Chicago jobs program, thousands of teens like you met with bankers and signed up for a new checking account or direct deposit.

These responsible services help avoid costly check cashing costs and can save you those hard-earned dollars!

In the New Year, make sure to keep those bank accounts active. By depositing your allowance or money earned after school from part-time jobs, you can watch those dollars add up. If you continue putting money away, you’ll be even closer to having some of that money saved up for bigger purchases!

Now is the perfect time to build financial habits that will help you succeed in college and your professional career.

Don’t forget to set and keep true to your budget. Spring semester brings additional expenses that could drain your savings. Prom, graduation or even just dance or movie tickets, transportation costs, and other purchases add up, but if you think ahead about these items and budget for them, you’ll be able to partake in all these activities without dipping in to your savings. Visit practicalmoneyskills.com for budgeting calculators to help get you started.

Keeping true to your budget and what you’ve learned about smart money management over the summer will help you get the most out of your allowance or paycheck. If you are interested in learning more about my office, a future in finance or have any questions, reach out to me. Tweet me @kurtasummers, post on my Facebook page at facebook.com/summerschicago or email me at city.treasurer@cityofchicago.org.

Best wishes for a great New Year!

Starting with the Fall 2015 semester, Chicago Public High School graduates with a 3.0 GPA who test college-ready in math and English will be able to pursue an associate degree at City Colleges of Chicago at no cost – free tuition, fees and books.

What does the scholarship cover?

After application of federal and state financial aid, City Colleges will provide waivers for all tuition, fees, and books for three years or until the completion of an associate degree, whichever comes first.

Who is eligible to benefit from this program?

City Colleges will provide this free college opportunity for Chicago Public High School students who graduate in Spring 2015 or later and who meet three requirements: 1. Graduates from a CPS high school with a 3.0 or higher GPA 2. Places into college-level Math and English via COMPASS or the ACT (score of 21 in math and English) 3. Enrolls in one of CCC’s structured, relevant pathways This includes undocumented students and students at CPS charter schools.

How long is this scholarship good for?

CPS graduates will have three years to use the funds starting in the first fall semester after their CPS graduation. Students with a CPS GPA of 3.0 who test into remediation at CCC will be able to retest during their first year and, if they test college-ready, will be eligible for the remaining scholarship period.

For more information:

ccc.edu/starscholarship

Kurt Summers, City Treasurer of Chicago

WWW.CCC.EDU | 773-COLLEGE

Sponsored by

Letter from the Treasurer

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On the Money: Entrepreneurship Through the On the Money Entrepreneurship program, interns are developing their own business plans, running the business behind On the Money Magazine and leading entrepreneurship education programs across Chicago.

Young Business Owners

Aisha Romer

Have you ever heard of teen entrepreneurs? Some may think that only adults can own a business, but there are many teens that have started and still have their own businesses. Although being a teen entrepreneur is hard work because you also have to manage grades and extracurricular activities, it can be satisfying to have control over your own career and look after your business. If you want to be a teen entrepreneur, where do you start? Madeline Shownkeen and Reagan Wright, owners of an online apparel store called Wright and Carter, helped me answer this question and more.

According to Madeline and Reagan, having a partner helps generate ideas. To come up with ideas, whether a business strategy or a Madeline and Reagan of Wright and Carter product, the pair first brainstorm on their own and then get together and present ideas to each other. They both say, “When working with a partnership, it is important to make sure both people’s voices are heard and that both 100% agree on every decision made.”

After you generate an idea, you need to find customers and have a way to sell them your products. Marketing is what attracts customers and establishes a clear brand for your 54% of the nation’s millennials business.Wright and Carter markets through either want to start a business or social media, such as Twitter and Instagram. already have started one.

Customers then place their orders through (www.Kauffmann.org, 2015) the company’s website. Even though setting up a website was easy, Madeline and Reagan say there are many challenges to selling online. Especially with apparel, photos on the website must accurately convey how the pieces will look on the customer. They say, “Every photo needs to be on brand and attract the attention of the customer.”

Even though starting a business can be rewarding, you have to make sacrifices too.

Madeline and Reagan work every day, and it’s a huge time commitment. However, Madeline and Regan say, “It’s all very rewarding to see everything we have accomplished.”

On the Money would like to thank the Coleman Foundation for their support of entrepreneurship education.

4 Entrepreneurship

Fashion by Wright and Carter

Entrepreneurs:

Perseverance Through Ups and Downs

Joshua Stone

The definition of an entrepreneur is “a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.”

Every year, millions of entrepreneurs struggle to keep their business alive. According to Linkedin.com, 33% of small businesses fail. Entrepreneurs have ups and downs throughout the time of building their businesses.

One example of that would be Nicole Wheatly who started a company called “Pillars of Slippers.” Nicole had hoped to strike a deal on the ABC show Shark Tank.

Nicole says, “As soon as I saw the advertisement for the show, I knew it was meant for me to be on it. Although people said, ‘This will be a waste of time’ as over a million people applied to be on the show.” However, Nicole believed that she could make it on the show and did not quit. Because of her perseverance, she got a spot on Shark Tank.

Although Nicole did Entrepreneur Nicole Wheatly, not get a deal with the NicoleLovesShoes.com “sharks,” she still learned a big life lesson for herself and her business. When asked what her biggest lesson was, she stated, “When you are building a plan for your life, it is important to be specific...” She stated that if she could have done it all over again, she would definitely have had a vision of herself NOT ONLY making it on the show, but also winning the Sharks as partners. Through her experience came knowledge.

Another example would be an entrepreneur, Brian Frizzell, who started a company called “TrafficCell.” When asked why he sought to raise money from some angel investors, he reEntrepreneur Brian Frizzell speaks sponded, “We needed money, and angel investors were a good to On the Money Interns source.” But like Nicole, he also experienced ups and downs with his first business. However, through this, he stated that he learned, “a better understanding of the risks involved with starting a business.” Although his business was not ultimately successful, he also gained knowledge.

After not getting a deal, both Brian and Nicole started new businesses. Through their past failures, both of them used their knowl-edge to build new businesses. Brian started a new business called the Economic Awareness Council, and Nicole expanded her shoe company concept into a national business using individuals as shoe image consultants!

1. Don’t be afraid of age or lack of experience. It’s OK to make mistakes because that helps you learn what works.

2. Love what you’re doing. Being an entrepreneur is lots of work, but passion makes it easier to keep going when times are tough.

3. Don’t make quick decisions without thinking through consequences. Even if something seems like a once in a lifetime opportunity, it’s got to be right for you and your business.

Tips for young business owners from Aisha Romer Entrepreneurship

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On The Money Intern Attends the Small Business Expo

Small Business on the Road:

Story of a Student Intern at the Small Business Expo

On September 19, 2015, I had the opportunity to attend the City Treasurer of Chicago’s Small Business Expo held in Merchandise Mart. The mission of the Expo was to support small business owners, to provide jobs, to help the community and to help those who are starting a business. The people there were kind and generous with their time and sharing their stories.

Micae Brown receiving her Entrepreneurship Advocate of the Year Award from On the Money

One of these individuals was Gillespie Taylor who started her own business in which to help people become bilingual by talking in Spanish or English.“I started my business with my husband who I met 13 years ago in Spain. He only talked English, but with my help, I was able to help him talk Spanish. In that moment, we had the amazing idea of becoming partners and starting a business together,” said Ms.Taylor.

Ms. Taylor and I talked for almost half the session in the Expo in Spanish. She had an amazing motivational attitude about life. “Along with my business, I also help Spanish speakers learn English on Sundays. We get coffee together and it is a great way to meet people from all over the city!” said Ms.Taylor.

Just like Ms. Taylor, Alexis Wysinger is an entrepreneur who is making her own business with the thing she loves the most, food! She created an online business in which she does not make anything with salt.

“I serve people that eat everything such as vegans, vegetarians and more! It was a long journey making a living [by] myself. There were hard times in which I wanted to give up, but …I kept going until I was satisfied with what I did in life.” said Ms. Wysinger Entrepreneur Alexis Wysinger visits On the Money Magazine!

Finally, I was able to meet the wonderful Micae Brown of The Micae Brown Report with the Chicago Sun Times. She was the host of the event. She had a great sense of humor to address a crowd. “I work with people at a radio station so I’m use to breaking the ice during networking events,” said Ms. Brown.

Ms. Brown was named the 2015 On the Money Magazine Entrepreneurship Advocate of the Year for her work highlighting minority entrepreneurship in Chicago.

Overall my experience in the expo was great because I was able to meet new people and now I am able to stay connected to them.

- JENNIFER BAEZA 6 Entrepreneurship

Linda Mitchell: Insurance Agent and Entrepreneur

Nia Hill

Linda Mitchell, an insurance agent with State Farm Insurance Corporation®, first got involved in selling insurance in 2007. Mitchell wanted her own business, so she started working in industries where a person would have an opportunity to sell products or services. Through working in those industries, Mitchell got to know the infrastructure of different companies. Mitchell came across State Farm and was impressed with the company, and she has been working there ever since.

Fun Facts about Linda Mitchell: Attended Northern Illinois University and majored in Political Science.

Linda’s work day usually involves two appointments a day. If she isn’t workig on insurance claims with her four employees, she is selling different insurance, including auto, fire and life insurance.

Linda Mitchell, State Farm Insurance Agent

The most challenging aspect of Linda’s work is doing everything: “I have to sell the insurance, manage the payroll, manage my employees - it can become a bit overwhelming at times.” Yet there are many benefits, including helping families in the financial service arena and even the process of recruiting clients (telling her friends, family, and church members; bringing in leads; advertising on the radio and television, and in Mariano’s in the West Loop, and so forth).

Mitchell has some recommendations concerning insurance. She recommends that young adults consider protecting their belongings with renters insurance, and setting up life and disability insurance. Additionally, she believes all teenagers who drive should get auto insurance, of course.

Linda Mitchell speaks to On the Money Interns

Entrepreneurship

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An Entrepreneur Helps Youth Build Business Experience and Communication Skills Adrien Amponsah In a technological era where it is easier to pick up a cell phone and text a buddy “hey wanna hang?” than go and meet new people, we find ourselves in situations where we fall short on engaging in face-to-face interactions with people other than the ones in the contact list of our new phones.

This is causing deterioration in our ability as teenagers to communicate with adults or even professional colleagues in an appropriate manner. Research from ethos3.com shows a 75% increase in the past two decades in the number of Americans currently suffering from speech anxiety or glossophobia. Reaching a solution to this is complicated however; too much accessibility to the world through our iPhones, Androids, Instagram, Twitter, Snapchat, and Facebook may contribute.

C.O.O.L. Competent Communicators, developed by Mr. Michael Levesque, is a “youth and teen program that targets communication skill development through a series of hands on activities, innovative workshops, and structured field trips” according to an interview with Mr. Levesque (Founder) and Rania Elalej (Advanced Apprentice).

As a two- year graduate of this program, gaining this competency enables you to successfully communicate with professionals, expanding your network, and setting you up http://business-networksw.org/2012/02/15/our-survey-said-87-said-they-network-why-read-on/ for more career and job opportunities. Such job opportunities enable you to “get help in a business area you need,” says Mr. Levesque. These experiences will also enable you to gain experience needed to obtain a higher salary because having appropriate skills and gaining insight will help you grow your business and earn more money. Looking at the graph above, salaries are consistently almost 20% higher with 5 years of business experience. In surveys, 87% of people noted they were networking, 90% used groups to gain job opportunities and 80% attested to using groups to develop their businesses.

Overall, speaking and listening skills enable you to get jobs through networking, and to build business experience that will help you grow your business and lead to higher earnings.

Represent Your Company at the 2016 Teens in the Park Festival Sell Your Product at an event with an Audience of Over 5,000 Teens!

Are You a Teen Entrepreneur?

8 Entrepreneurship

For More Information: www.onthemoneymagazine.org Email: onthemoney@econcouncil.org

Owning A Successful Fashion Boutique Growing to be a successful entrepreneur is my American Dream and owning a fashion boutique is my goal.

This area of the fashion industry is growing. According to Referralcandy, a website that refers businesses, the number of boutiques is rising rapidly. In 2011, 90,501 retail stores opened in the U.S. Every year, there’s a 13.5% increase. Here are a few tips for launching and running a successful fashion boutique.

Tip 1: Have support and inspiration. Having support will give you that extra push not to give up.

Tip 2: Register your brand name, create domains, a website for your boutique and a budget.

Tip 3: Market. Promote yourself. Use social media like Instagram, Facebook, Tumblr, etc. According to Forbes, nearly 55% of small fashion business owners use social media. Marissa Simms, a successful boutique owner, says, “Social media is the way of business in this day and age. As a mass communications major, I definitely used my marketing skills. However; my best advertisement has always been word of mouth or a “shout- out” on social media.”

Tip 4: Know your target market. Keep the customer base in mind. Know your target market, cost and style of clothes. “No one wants to wear clothes that cost so much, and no one wants to look the same,” says Jhontia Brown, a student from Chicago Bulls College Prep.

Tip 4: Have fun doing what makes you happy. Have a passion for creating your own boutique.

- JASABELLA CLARK

Four in 10 students say they plan to start their own businesses, while 3% say they are currently running their own business, according to a survey of U.S. students in grades 5-12 by Gallup and Operation HOPE .

Teen Entrepreneurs: Strategies for Success in Starting A Fasion Business 1) When starting a business, it is important to do background research and to have reliable sources. Primary sources are always good because the information is coming straight from the source. Statistics will help you pinpoint information and determine if there is need for your business.

2) In a business, you’ll need a variety of ideas. Having a variety of ideas will help you to have versatility in your vision as well as respond to trends rapidly changing. “READ A LOT”, was a straightforward suggestion from teen entrepreneur Bianca Perry who started a headband business and is now a student at DePaul. The more knowledge you have the further your business will grow beBianca Perry speaks to On The Money Interns cause when you have a variety of ideas it’s easier to be competitive and always have something new to offer or apply to the latest trends. The business world is always changing rapidly.

3) Marketing also plays a huge role in the business world. Whether it’s one on one networking, or word of mouth, if it’s getting your name TIPS for Online Sales from out to the world in Bianca Perry of Bbands a positive way than you’re marketing.

· YOU CAN DO IT!

4) Lastly, to be · Take great product pictures successful in your · Promote on social media business you need · Sell only what you would want to buy to commit to a plan.

Writing a business plan will guide you through all the steps in creating a business. Committing to a plan will motivate you to taking action with what you need to do. Finally, Bianca Perry inspired me to have confidence in reaching my entrepreneurship goals, “YOU CAN DO IT! The world is your oyster, girl!”

- AKILI HAYDEN Entrepreneurship

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Chicago Breakfast Event

Illinois Hispanic Chamber of Commerce:

On The Money Intern Attends Chamber of Commerce Event On Thursday, September 24, 2015, I had the opportunity to attend the Illinois Hispanic Chamber of Commerce (IHCC) breakfast. IHCC recently celebrated their 25year anniversary assisting small and medium sized businesses of all types to grow and reach their milestones for success.

“My role at the chamber is to assist Minority Business Enterprises (MBEs) with certification and connect them to contract opportunities with Fortune 500 companies. I have been with the chamber for three years and I love my job because I help our members achieve their business growth objectives,” said Mr. DeLaGarza.

Joseph escorted me around, introducing me to a variety of different people who own and work for different corporations. The first person that I had the chance to interview was Jacki Reyes, who is part of the chamber and works with the Women and Girls in Transportation Initiative (WITI). “I work with young women who are interested in working in the transportation industry. I love my job because it encourages young women to explore fields they may not have even known existed,” said Ms. Reyes.

On the Money Intern Jennifer Baeza with Joseph DeLaGarza

Jacki helps young women access opportunities like internships and mentoring in the transportation industry. She recently placed two interns in human resources and engineering fields this past year. There are plenty of women who are capable of working in these fields but may not know the opportunities that are out there.

I also had the opportunity to interview Kelley Francis. Francis runs a program called ENTERpreneur program with Hispanic youths at Cristo Rey High School. “This program helps students get engaged in entrepreneurship and helps them become leaders. They set a goal and at the end of the program they are able to complete it,” said Ms. Francis.

The program is held during the summer at Cristo Rey High School and helps 15 students get the opportunity to pay for their tuition. This program helps increase Hispanic businesses.

On the Money Intern Jennifer Baeza with Jacki Reyes

Finally, Nick Delgado is an entrepreneur that I met who works with corporations. “I help companies with growth in [accessing] capital. I love working for Coaching for Growth because I have access to small businesses and great people,” said Mr. Delgado.

At the end of the breakfast, everyone received a Bears coffee cup. Being able to network with entrepreneurs and professionals from all over the city was a tremendous experience for a high school intern. The chamber is bringing together important professionals and making an impact across the city.

- JENNIFER BAEZA

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Executive Directors and Leaders in Social Entrepreneurship

Kezia Branch

We may know all of our favorite executive directors, the late Steve Jobs and even Donald Trump, but do you know what they really do? The lead role at any organization may go by many names, CEO, Executive Officers, or President, but generally the role is the same: network to grow the business and keep the day to day operations going. How does this role differ at a non-profit business? What about entrepreneurs that found and lead a non-profit? Let’s take a look at the background and day to day activities of non-profit executive directors to understand their impact.

Although the typical nonprofit executive director may have a background in business, not all positions require a degree, but they do require passion for the industry. Directors make an average salary of $60,000 - $85,000 (BLS. gov, 2015), and their total compensation varies depending on the size of the organization. Each nonprofit director has their own unique experience that they bring to the table. Many executive directors have a Masters degree in business or in a specific ‘helping profession’ such as social work or counseling.

What do nonprofit executive directors do? Tracy Frizzell, founder and Executive Director of the Economic Awareness Council (parent of On The Money magazine) says, “Being an executive director is a demanding job in that you have the final responsibility for the overall work of your organiEconomic Awareness Council Volunteer reads zation. At a small non-profit, you will need to be involved in all aspects of saving story at Community House program the organization’s work, from managing the finances to human resources to direct service.” It is rewarding because the EAC helps tackle issues in the community such as having a high percentage of unbanked families or financial pressure that are both also related to college dropout. Frizzell was involved in founding the non-profit and helping it grow from serving 50 youth per year to 20,000 youth per year.

Jennifer Fabian, Executive Director of The Community House in Hinsdale, IL says that,“Every day I have the responsibility to represent The Community House (TCH) to a large varietyof “audiences,” including our program participants, volunteers, supporters and donors, first-time visitors, other local nonprofits that we partner with, our board of directors, and staff from all departments.” Fabian also finds her job rewarding and comments, “What I like most about being an Executive Director is that I get to meet a lot of people who care very deeply about the community, and I am in the position to help them solve challenges. Usually I can’t do this alone, but I am able to build connections between people who have shared interests, and together we can figure out a solution.”

Knowing what an executive director does, is important because many of us aren’t aware of who leads the organizations we invest so much of our time in through volunteering.

Apply for the Plan2Achieve Scholarship!

Visit www.Plan2Achieve.org to complete the learning module and a scholarship application!

On the Money would like to thank U.S. Bank for their support of this issue

Entrepreneurship

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On the Money: Finance, Economics, & Career Education How Potential Earnings Impact the Choice of College Majors Students are becoming more aware of how much they could potentially earn with different college majors.

According to USA Today, the highest paying entry level salaries are earned by engineering majors who make an average of $62,998. This is higher than the median salary of $45,478 for all bachelor’s degree holders and much higher than the median salary of $36,237 for degree holders in the liberal arts and humanities.

According to Fortune, studying petroleum engineering will earn someone $3.4 million more, over their career, than a degree in early childhood education. Nevertheless, this wouldn’t convince Walter Payton junior Lindsay Opie to pursue petroleum engineering. She still wants to major in either chemistry or psychology. However, after learning that chemistry majors make $15,000 more than psychology majors, she expressed that chemistry would probably be a better choice because, “there is a balance between what I enjoy and what I know will put me in the best position for a profitable and successful career.”

These sentiments are becoming more common as students are noticing the repercussions of majoring in fields that are not in demand.

As college graduates are having more difficulty finding full-time employment post-graduation, it is becoming more important for college advisors to assist their students in making smart major choices. Retired college advisor Kathy Frizzell explained, “In order to make the best choices about their career path, students should self-evaluate and consider what they like to do, possible working environments, their own learning style, how long they want to be in school, and a variety of other factors.” Ms. Frizzell’s main assertion, however, was that students need to choose a major that will lead them to a career that they love while also allowing them financial stability.

-COLETTE GORDON

12 Finance

Advice to College-Bound Students College students tend to face a lot challenges; with the help of former and current college students, a list has been created of the do’s and don’ts of college. This advice can be useful to any college bound student.

College can be stressful; it affects an individual’s mental and health state. 85% of students feel stressed on a daily basis, 77% of students feel stress over academic concerns (College Student Stress, 2015). In order to avoid becoming a part of this statistic, several suggestions have been made during a series of college student focus group interviews. Azarel Lugo, a current college student explained what the don’ts of college. He stated, “Don’t do drugs. It may seem redundant, but it affects you more you think.”

College creates endless opportunities, it’s as an investment for your future and it’s challenging but so is life.

All college students in the focus group said their stress is worth it. Jasmine Ruiz, a current college student said, “Stay focused.” Katie Cashin, a College Possible Coach said, “Get to know people on campus, don’t be a hermit, join clubs and go to fairs, and have a supportive community that helps motivates and uplift you in your most difficult times.”

College is an investment for your future. It provides you with better opportunities.The median annual earnings for full-time working college-degree holding millennials ages 25 to 32, are $17,500 greater than for those with high school diplomas only (Danielle Kurtzleben, 2015). College provides you with the experience, connections, career readiness, and an opportunity to make a bigger salary. Antonio Allison, a college student, said, “Don’t party a lot, Stay focus on school more than your social life.” He advises students, “Gain patience and learn how far college can take you.”

-TILEA CARTER

Minority Teen Unemployment: Problem and Solutions

Nia Hill

Unemployment amongst African-American youth in Chicago has been significantly higher in comparison to other ethnicities within the same age group. Typically, the African-American youth that is unemployed has a lack of education, earning only a high school diploma or less. According to Louis Jacobson of Politifact, “[f]or young people who have graduated high school or dropped out of high school, who are between the the ages of 17 and 20, if they happen to be white, the unemployment rate is 33%... [i]f they are Hispanic, the unemployment rate is 36%. If they are African-American, the real unemployment rate for young people is 51%”.

Another reason why the unemployment rate among African-American youth is high is because of the lack of knowledge regarding job openings. In National Public Radio’s article, “The Youth Unemployment Crisis Hits African-Americans Hardest”, they state that “[a] nother big problem...is the absence of adequate job information. In most states, companies are not required to publicly list all of their job openings. As a result, there are huge disparities in labor market information”.

Alayna Washington, a social science teacher at Whitney M. Young Magnet High School, also believes that there is a high unemployment rate particularly among the African-American youth because of a lack of education and inequality towards African-Americans. She believes some solutions include addressing awareness of the problem, informing individuals of job openings, and building more businesses in African-American communities. In addition, companies have adopted practices to prevent inequality and discrimination based on race, though these are not always fully effective.

There could be numerous ways for youth to combat African-American youth unemployment such as researching career posting sites (CareerBuilder, LinkedIn, etc), looking for opportunities via academic guidance counselors, participating in job fairs, asking friends and family about where they work, networking with individuals in your desired field, and volunteering in order to gain insight into organizations. Ultimately, communities must provide more job opportunities for the youth; meanwhile, the African-American youth must engage in more activities and network in order to seize these opportunities.

Apply for One Summer Chicago at www.onesummerchicago.org.

Look for information this March!

Finance

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Networking: How to Promote Yourself

How to Be a Teenage Millionaire

As a teen have you wondered how do people my age get connections with jobs and colleges?

The answer is NETWORKING…..

What is networking? Networking is an interaction with other people to exchange information and develop contacts, especially to further one’s career goals.

In today’s society, we teens have a great challenge in getting a job and building a career. This is especially true for minorities.

According to the Chicago Tribune, “Across all geographic areas, black teens had the lowest employment rates compared to all other racial and ethnic groups.

In Illinois, only 16 out 100 black teens were employed in 2012.” Nationally, 52.7 % of young people were employed in July, 2015.

Because of this, building a network is critical for all teens but particularly minorities. I recently interviewed a successful young professional, a financial analyst at Loop Capital, David Borom. He explained, “Networking has helped me in every stage of my life. Especially when I was applying for colleges and looking for jobs.”

What can we do as high school students? Join organizations both inside and outside of your school.

Email people that you want to meet or talk to and ask them if you could conduct an informational interview. This can help you build your network and make connections!

- LAUREN KELLEY

When many people think of investing, they picture a middle-aged person with a job, family, etc. Did you know that investing can start much sooner, even with teenagers? According to a study done by Karen Pittman, 12 to 19-year-olds spent $175 billion in 2003, an average of $103 a week. Thus, the disposable income of teens is most likely not generating further profit (http://forumfyi. org/content/youth-today-risky-busi).

Mario E. Gage advises teens to “remember the importance of paying yourself first. Dollar cost averaging is a good way to go about doing this.” Dollar cost averaging is when you invest a specific amount of money over regular intervals of time (ie. investing $50 into your investment account on the first day of every month). By dollar cost averaging, you purchase shares of your investment at different price points, since you are purchasing regardless of whether or not the investment is up or down. David Borom recommends considering the money you invest as a ‘loss or spent’. David says, “Considering it a loss helps you put the money in and leave it there. You won’t make any money (interest, etc) if you treat the [investment] account like a piggy bank.”

The most important part of teen investing is starting the conversation at home. 73% of teens whose families discussed the importance of savings reported saving 25% or more of their income (http://character-education.info/Money/money-studies-and-statistics2.htm).

Gage says, “As a teenager, whenever I received money, I would split my money up three ways: donate 10%, save/invest 40%, and spend 50%.” If you invest just $7.50 per day from age 23 to 65 at 7.5% APR, you will have $1,000,000 by the time you retire! If you start small with your disposable income that you don’t need and be patient, you will have more time to educate yourself on how to wisely invest in more stocks and bonds in the future as your earn more income.

- SAMANTHA MALLETT On The Money Magazine was visited by the CFO/COO (Chief Financial Officer/Chief Operating Officer) of CareerBuilder, Kevin Knapp, this fall. Mr. Knapp has been working at Careerbuilder for 12 years and majored in accounting. Mr. Knapp shared information about looking for a job and how to start a resume. Many students began to create their own resume on the spot. “Mr. Knapp left our students amazed and ready to begin their future careers,” Says Jennifer Baeza, On the Money Intern. On The Money Magazine thanks Mr. Knapp for coming in and helping out students on the magazine.

14 Finance

What Do You Spend Your Money On? Has Teen Spending Changed Over Time?

Yazmeen Pablo

High school teenagers are more focused on money and spending now than in the 1970’s. A survey published by Personality and Social Psychology Bulletin found that in the 70’s, 48% of the students believed it was important to have a lot of money, and now 62% say it is important.

In a 2012 survey, by Cc.Ww. Pproductions, the teen participants said, 32% of their main income came from their parents. 27% came from allowance or a job, 18% from gifts and only 1% came from another source. Teens spend an average of $5,000 of their parents’ money a year.

Teens are getting most of their money from their parents, which they spend on clothing and food. In 2015, money spent on food totaled 23% compared to 15% ten years ago. Additionally, 20% is spent now on clothing, followed by 10% on accessories/personal care.

There is a gap between wanting things and working hard for the money to earn things. “Compared to previous generations, recent high school graduates are more likely to want lots of money and nice things, but less likely to say they’re willing to work hard to earn them,” said Twenge, author of the book Generation Me. Experts have said that teens are spending more money than ever because they have more to buy, but they don’t have the will to work hard.

Overall, 39% of students admitted that they did not want to work hard, while only 25% admitted this in 1976 through 1978.

This attitude may also relate to frustration regarding challenges finding employment. In the recent years, the proportion of high school seniors in paid employment has declined from 75% in 2001 to 59% in 2010, but what teens spend their money on has not changed much. Clearly, today’s students need increased financial literacy. In a 2012 poll, 87% of the students said they knew little to nothing about managing money, 12% reported not having any parental guidance on how to handle their finances (ING Direct and Capital One, 2012), and in another poll from 2014 (Junior Achievement and Allstate Insurance), 77% of teen boys ages 16-18 and 63% of girls ages 16-18 reported not keeping track of where their money is going.

The Illinois Jump$tart Coalition’s third Holiday Award Reception and Benefit was held on November 16th. This networking reception and benefit was hosted to recognize this year’s recipient of the Terry Savage Financial Literacy Award, which was Nancy Hanlon Harrison. Alice M. Wood, author of Saving is Sexy! was in attendance as well to discuss financial literacy and finances in general. (Nia Hill, Intern)

Finance

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High Paying Non-College Career Options: Vocations & Entrepreneurs

Trenati Baker

Senior year is a very stressful. Besides balancing courses necessary for graduation, participating in extracurricular activities, and (for some students) working, seniors are pushed to apply to colleges and for scholarships. Many young people feel like they must attend college in order to be successful. However, where does that leave students who do not want to go to college or fear that it is not a good fit?

First of all, do not panic! Although on average college graduates earn on average more than non-graduates (see page 12), according to the US Bureau of Labor Statistics, more than 60% of U.S. workers do not have a bachelor’s degree. Does this mean that they must be impoverished? No! There are over 35 high-paying occupations that do not require college degrees, with air traffic controller and radiation therapist being the highest paying [US Bureau of Labor Statistics].

Plus, there are a variety of ways students can pursue post-secondary education without attending a traditional 4-year college. These options include becoming an entrepreneur, attending technical, trade, or vocational school, and participating in community job-readiness programs.

Youthbuild is a combination of these options. Youthbuild is an international non-profit organization that helps low-income students take control of their future by providing them with resources and opportunities that will lead them to success. In addition to the high school/GED academic credentialing and college preparation, Youthbuild offers a multitude of job readiness workshops including resume writing, interviewing, and communication skills. Additionally, Youthbuild offers 9-12 month construction and health care tracks that introduce students to the fundamentals of each field and allow students to earn credentials as well as gain hands-on experience. All in all, Youthbuild is one of many organizations that introduce students to their post-secondary options or as Shawna Huley, College and Career Transitions Manager of Lake County’s Youthbuild, put it, Youthbuild helps students “obtain long-term self-sustainability to create a better future for not only themselves, but their children and the family members they may support.”

On the Money is proud to welcome its first sister organization in St. Louis!

Please visit www.OntheMoneySTL.org to learn more!

If you think that college isn’t right for you, look closely at all of your career and vocational training options and know that no matter which you choose, with dedication, you can obtain long-term self-sufficiency.

On the Money would like to thank Republic Bank and Young Illinois Saves for their sponsorship of this issue.

16 Finance

Non-Profit Saves Lives in India

The Importance of Aiding the Elderly

Aarohi is an NGO (non-governmental organization) that focuses on the health of the people in Satoli. Aarohi’s goal is to implement the habit of good health in the children and people of Satoli, India. The organization gives children from grades 4 to 8 shampoo, toothbrushes, and toothpaste. Educating the children on the importance of hygiene creates a habit that influences health throughout the population.

The Aarohi center is equipped with multiple facilities.

This includes dental, surgical, pharmaceutical and ultrasound technology. This offers the people of Satoli many opportunities to check on their health.

Outside of Satoli, Aarohi offers a training program for the ASHAs of Supai. An ASHA is a female that works to preserve and protect the health of mother and child right up to the point of delivery. The ASHA’s tool kit consists of a scale to weigh the baby, thermometer, and blankets to keep the baby Increasing infant health warm. Beyond that, factors such as birth weight has been shown to save $12,000 to Aarohi supplies food to $18,000 in health care costs ensure nourishment for in one year both mother and child.

(March of Dimes, 1998).

These ASHAs are essentially trying to implement a type of prenatal care during pregnancy to help decrease infant mortality rates, but they have insufficient tools to do it. However, infant mortality is decreasing; infant mortality rates in India have declined from 80 per 1,000 in 1991 to 44 per 1,000 in 2010 (UINCEF). Aarohi is not equipped to help if anything serious were to happen. This is unfortunate due to the fact that Satoli and Supai are over three hours away from any type of medical facilities.

[Author Kaliah Little was able to visit Aarohi in India with a school trip. She comments “My trip to India has influenced my plans for the future because I have learned that lack of healthcare for women isn’t just an epidemic in the United States but internationally as well. I plan to educate women and young girls about their physical health.”]

Kaliah Little

What is the importance of an elder?

Of course, most elders have health needs; however, their valuable wisdom and experience outweighs their physical restrictions.

As mentioned by Ms. Ksander, a home remedy nurse from Inner Faith House, “It is important to satisfy the needs of the elders, not because they provide net contributions, but because they provide social benefits and offer a value system. The elderly are not a liability. Instead, they are an asset who can provide wisdom and experience.”

Previous studies such as The Role of Social Work Service in Improving the Living Standards of the Elderly in Kuwait, an Empirical Study states that elderly who receive care outside of nursing homes report receiving better treatment and have a better attitude towards the family (Dhafiri 2014).

Home care can have cost benefits as well. The idea of home care is that rather than wait until the elderly get sick and need hospitalization, a multidisciplinary team can be built that would conduct home-visits and tackle health-related issues within time (Rauch 2013).

Aside from being convenient in allowing elders to stay in a comfortable environment, home care saves upwards of $2,000 - $3,000 a month on each patient. It is beneficial to invest in a home care program because elders will feel more comfortable.

Furthermore, health insurance spending will decrease. Economically supporting the elderly and promoting programs such as the home health care will allow for the health system to be more efficient and desired.

To learn more, use this calculator: http://www.aarp.org/relationships/caregiving-resource-center/LTCC.html and Medicare resource guide: https://www.medicare.gov/nursinghomecompare/Resources/Nursing-Home-Alternatives.html

Selvyn Martinez Finance

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The New Sound of Music

Hilary Pham

In today’s ever advancing technological era, almost all teenagers have used or at least heard of music streaming sites before. At a student discount, Spotify allows users to stream music for as low as $4.99 a month and $9.99 a month for the rest of the subscribers. Other sites including Google Play Music and Pandora cost around $9.99 a month too, offering an affordable alternative for music lovers. By subscribing every month, listeners are allowed to play and download whatever song they want, wherever they want. Many students are taking advantage of these prices, like Myia Esper, a senior at Whitney M. Young High School, who loves how the sites are “easy to use and work well on a budget.” Although the affordable price has allowed more access to millions of songs, the impact of streaming music is slowly shifting the market for music.

Despite the growth streaming companies have had in the last few years, the total music industry revenues in the US have increased by 12% from 2012 to 2014 (RIAA), sharing sites pay artists a small share per play. On average, Spotify pays artists about $0.007 per play (Spotify Explained).

This number is not as trivial as it seems compared to the share artists receive per CD, about 13% which comes out to $1.30 from a $10 album (BBC News). Although these royalties seem small, the sites still are “benefitting the artists more than pirating or burning CDs ever will,” according to Liza Kalinina, a senior at Whitney M. Young High School.

Streaming sites do offer an easy and affordable way to listen to music. More artists are able to get their music out to a bigger audience and the sites help to “push them into new markets,” says Santiago Torres, a member of the Sweeps and an artist who has contributed to streaming sites before. Most sites have trials at a discounted cost for first time users, Spotify has a three month trial for only $0.99, and free apps and web players on your phone or computer. If you ever need to get a song out of your head or want to jam out at a second’s notice, why not give these sites a listen?

Blog and Don’t Stop!

Jennifer Baeza

Over the summer, I had the opportunity to intern with IWN, run by Dante Hamilton who works in Chicago Blog Week and manages his own corporation for bloggers. He also participated in Chicago blog week (November 8th to November 13), an event that consisted of classes he teaches and also a competition between bloggers from all over the world. “I discuss how to setup a blog, develop a content, as well as, ecommerce for bloggers, brand ambassadors and influencers. I conduct interviews with attendees for conversationswithbloggers.com,” said Mr. Hamilton.

Mr. Hamilton was able to create his own business on something he loves to do which is writing. “I am up very early about 3:30-4:00 am every day. I arrive at the office around 6:30 am. Sometimes I take a lunch around 11:00 am or after 1:00 pm. Then I work until late evening, usually 9-10:00 pm. Internet Webpages Newspaper was incorporated in January 14, 1998. I have been working in my own company for over 17 years.” said Mr. Hamilton. This summer, I became the features editor for IWN and was able to learn much about becoming a better blogger. Mr. Hamilton is an entrepreneur since his early career.

“Entrepreneurs are risk takers. I have been an entrepreneur from very early in life. The titles of my two main business jobs are Founder, and are the President of Internet Webpages Newspaper Inc (for-profit corporation).

Officially I would say I started my business when I was in high-school in 1977 when I was in the 11th grade. But even a few years before then I was an entrepreneur. My very first business was “Calligraphic Pen Lettering Service” and I specialized in Calligraphy, which I learned in a 10th grade art class. I always had an interest in art, mainly fine art.” said Mr. Hamilton.

Since 2011, Mr. Hamilton has hired more than 25 paid interns. He learned how to keep up with technology and loved teaching his students about blogging. He enjoys sharing and teaching his passion for writing with his students from IWN.

18 Finance

Smart Tips for Controlling Teen Spending Ever wonder why teens over spend on clothes?

Elizabeth Vega

I believe teen shopping is a big issue in our era because most teens shop a lot for all different reasons. Some want to stay updated in style and want to constantly buy new trends. Other teens may see shopping as a social activity, spending time with their friends. Still others have different reasons as one of my classmates, Esmeralda Del Real, said, “I shop to relieve stress.” Whatever the reason, teen shopping can affect budgeting in various ways. According to research by Business Insider, teens spent most of their money on food and clothes.

Now let me pass on some tips to help stop your shopping temptation!

These tips are from America Saves, based on their focus groups of teenagers regarding spending and saving. Their suggestions to avoid the temptation to shop include: ● Avoid going to stores and restaurants where you tend to over spend. ● Withdraw a set amount of cash to last two weeks until the next pay period and make the set amount last.

Teens know it is important to save up but most of them don’t know how. One way to be successful in saving your money is by having two bank accounts, one savings account and one checking account. Basically the checking account will be the one you use to spend money while having the savings account will encourage you to save. Once you have two accounts, split your pay-check between the two accounts using direct deposit. Be wise, don’t over spend and make your money last!

Solar vs. Nuclear Energy:

Which is more economically feasible?

Autumn Evins

Efficiency! Efficiency is what everyone seems to be emphasizing these days. Going green is the all the rage since we are making efforts to save the planet.

Solar energy is well known for being renewable as well as efficient. Nuclear energy has been under the scrutiny for years for possibly being harmful to the environment. There are quite a few concerns surrounding nuclear energy including waste, health concerns, security and even a few incidents of nuclear disasters. The article aims to explore if solar energy is economically feasible too.

The benefit to solar energy is that essentially one can “sell” their energy if they do not use it. Peter Murtha states that, by having homes “tied to the grid”, the energy which has been generated and not used can be used as renewable energy credits. There is an estimated production of 9,363 kilowatt hours per year. The approximate gross cost of installation of the panels was $35, 000 dollars. Furthermore there is a 30% federal tax credit.

An interview with Peter Cunningham, from Green Energy in Motion Inc. revealed that, “Solar system costs have fallen since 2010 and are projected to fall even more over the next 10 years.” In terms of the durability, solar panels are warranted for 20-25 years and can even last about 50 years. Finally, homes also have the option of selling the extra energy created for renewable energy credits.

In contrast to their solar counterparts, nuclear fuel rods, comparatively, only last about 10 years. Additionally, even though nuclear energy production is powerful and efficient, “At present, the nuclear power industry in the US relatively stagnant due to the huge cost of building the plant and various government regulations,” says Min Lwin of the University of Texas.

The environmental hazards and waste related problems of nuclear energy along with economic stagnation of the nuclear power industry in many countries can be compared with declining costs of solar energy. As a result, solar energy is a viable and economically feasible option for energy production in the future.

Finance

19

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