On the Money Spring/Summer 2018

BY TEENS FOR TEENS

SPRING/SUMMER 2018

Ready for Summer

Chicago’s Money Mentors

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College Entrepreneurs Page 13

Affording College Page 8

Budgeting

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Contents One Summer Chicago Banking Orientations / About OTM and EAC LRNG Badging & Teen Opportunity Fair

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5 Budgeting Generic 6 Building Credit 7 Scholarships 8 Affording College College Access / Noble 9 Network Schools Owning v. Renting / 10 Technology Jobs 11 Mixing Business & Pleasure 12 Entrepreneurs 13 College Entrepreneurs 14 Business Competition 15 Social Media & Business Microfinance & Credit 16 Building 17 Risk Management 18 Business of Soccer OTM Intership / Camille the 19 Author TRY IT OUT - Test your 20 Financial Fitness

LETTER FROM MAYOR RAHM EMANUEL Each of us remembers our first job, a combination of excitement and nerves as we started our journey into the working world. We experienced our first paycheck, a first job on a resume, a first mentor and first real responsibilities which would lay the groundwork for future success. For me and many others, these were formative experiences in our lives that helped set us on the path to where we are today.

One Summer Chicago began as a simple idea but with a critical mission of providing more opportunities for young people who need them the most. Last year, 31,151 youth engaged in a summer job or internship, contributing their skills and talents to our city. That translates to 3,366,257 hours of work accomplished by youth, making them a key contributor to Chicago’s thriving summer economy. One Summer Chicago partners provided 2866 unique worksites across all major labor market sectors, including private and non-profit sectors.

Summer job opportunities teach our youth early money management skills that help them build a strong financial future. 60% of summer earnings from those who participated in One Summer Chicago went to supporting their families and local businesses, while even more impressively, youth saved an additional $10.2 million overall to support future goals.

A summer job is a great opportunity to get a head start on your financial future. Here are some tips to help you do more with your earnings this summer.

1) Get a bank account! If you do not have a bank account, visit GetBankedChicago.com to find fee free banking options for youth in Chicago.

2) Learn more about your bank account. Make sure that you do NOT have overdraft and that you know how to avoid an unnecessary fees.

3) Bring a printed direct deposit form to your orientation to enroll in direct deposit. Direct deposit will allow you to get paid faster, more securely and for free.

4) If you do not have a bank account before your first day of work, many orientations offer opportunities to bank onsite. Come to orientation with your state ID and social security number to take advantage of this opportunity.

5) Pay yourself first! Save some of every paycheck! You will be surprised how quickly your savings adds up!

One Summer Chicago is personally important to me, as there is nothing more important than investing in our young people because they represent what is best about this city. On behalf of every resident, thank you for your support of Chicago’s young people and helping to teach them valuable skills they will carry with them long after summer has ended.

- MAYOR RAHM EMANUEL

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PERSONAL FINANCE ABOUT ON THE MONEY

ABOUT THE EAC

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 the DePaul University, Chicago Public Library, the City of Chicago, and True Star Magazine. www.OntheMoneyMagazine.org

The Economic Awareness Council (EAC) is a non-profit financial education organization with program attendance of over 25,000 each year. www.EconCouncil.org

Thank you to the Citi Foundation and the Cities for Financial Empowerment Fund, State Farm Insurance CompaniesÂŽ, Republic Bank of Chicago, TCF Bank, Bank of America, Byline Bank, Huntington Bank, and MB Financial for their support of On the Money.

*Request additional copies at OTM@EconCouncil.org

Every year, young adults from across the city of Chicago meet at Whitney Young High School to interview to be a Chicago Park District Lifeguard.

While the students waited for their interview, On the Money Magazine had a booth encouraging people to be payday ready! While I was at the booth, I was able to meet and discuss with many young adults about direct deposits, setting up a bank account, and how to save their money. After all, many of the people there were trying to get a summer job, and it was important for me to make sure they knew how to be ready for the income they would receive this summer. Our magazine also shared a booth with a local Chicago credit union. This allowed students to set up a bank account on the spot, if they needed one. After stopping at our table, I hope more people were ready for their summer income.

- NIA ROBINSON

Interns Kassandra Adorno Pritzker College Prep, Junior Amber Anderson Kenwood Academy, Junior Miguel Agyei Lake View High School, Senior Jennifer Baeza-Jimenez Saint Xavier University, Sophomore Angel Barrera Pritzker College Prep, Senior Miguel Betancourt Pritzker College Prep, Junior Stephanie Carretero Lane Tech College Prep, Senior Michelle Chavez Westinghouse College Prep, Senior Alexiea Feaster Bogan High School, Senior Andrew Granciano Pritzker College Prep, Junior Fatima Huazano Pritzker College Prep, Junior Jonathan Lee Northside College Prep, Junior Amari Martin Urban Prep Academy - Bronzeville Campus, Senior Fan Xuan (Carina) Peng Northside College Prep, Junior Jamal Ray Muchin College Prep, Senior Janel Ray Chicago Military Academy at Bronzville, Senior Nia Robinson Jones Colllege Prep, Senior Alexander Shaw Kenwood Academy, Sophomore Instructors: Tracy Frizzell, Toiria Baker, Kiara Hardin, and David Mabry Magazine Layout and Design: Jessica Alessi Kim

Thank you to the Citi Foundation and the CFE Fund for your support of youth fiancial capability for One Summer Chicago 3

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On the Road to Financial Success LRNG Badging Panel at Gary Comer

During the month of March, I had the opportunity to speak to the students of Gary Comer about the benefits of completing LRNG Badge assessments, specifically the badge on XP “Be Payday Ready�. I spoke about the multiple things I learned from the XP such as the importance of banking, timesheets, taxes, direct deposit, and more. In addition, there were others who presented at the panel, emphasising the importance of learning financial literacy. The LRNG panel was very insightful and committed to reaching out to the youth. They even had exclusive sign ups for job opportunities from One Summer Chicago, for those who attended the event. Overall, it was a great experience.

- JAMAL RAY

Teen Opportunity Fair The Teen Opportunity Fair at Kennedy King focused on healthy banking habits, job opportunities and resume building. This event gave students an opportunity to network with different vendors while being exposed to new career and educational opportunities. During this event, On the Money (OTM) provided a classroom workshop teaching people about resume building and job readiness preparations. While I was at this event, I was able to meet intelligent and determined young adults and help them create a strong resume. Many of the students who attended this event came to receive feedback on a resume they already had or to explore potential careers they might be interested in.

I hope in the future more students and families will come out and find this event beneficial on their journey of exploring their passions. This event made me feel empowered as I was helping others learn more about themselves, and this experience gave me a sense of satisfaction as I successfully shared vital information with peers in my community.

- JANEL RAY

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On the Money Team with a volunteer from Wintrust Bank

The Importance of Budgeting A budget allows us to create a spending plan for our money. I believe that setting a budget is critical because with a budget you know your limits in regards to spending; otherwise you have no idea how much you could be saving! Independent business owner Jennifer Beaza says that, “If you set goals for yourself that you want to achieve, you can reach these goals faster.” Setting a budget will allow you to be prepared for managing and staying on top of a task.

In conclusion, it’s important to set a budget because it helps you maintain balance between your earnings and spending. Four steps to setting a budget are:

According to mymoneycoach.ca, “If you set a budget you will have a clear mind on what you can afford.’’ I believe that if I set a budget then I will be mentally prepared and will not go over the amount that I have set for myself.

A budget helps you figure out your long-term goals and work towards them. According to Amy Bell of Investopedia, “If you just drift aimlessly through life, tossing your money at every pretty, shiny object that happens to catch your eye, how will you ever save up enough money to buy a car, take that trip to Aruba or put a down payment on a house?” Kiara Hardin, a Depaul University graduate, says that “setting a budget allows you to see where your money is going and how much money you have”.

1) 2) 3) 4)

Calculate your expenses Determine your income Set saving goals Record all of your expenses and income

Setting a budget puts you on a path towards achieving your financial goals. Budgets are an effective money management tool, and budgets provide control over personal financial stability. Visit www.CollegeBudgetBuider.org (see page 12) to create your own budget.

- JANEL RAY

Name Brand vs. Generic Recently, fashion has become more and more expensive. A name brand shirt with holes in it may cost $350, but you can get the equivalent for $15-$30 at H&M. The lingering question is, what is it about name brands that make people spend more on items?

According to Cholmes0410 at Infogram.com, a website that focuses on infographic reports, 19% think name brands have better design, 13% of people feel more confident, and 10% wear it because of their classmates. Surprisingly, 40% of the people polled mentioned that they like name brands because they believe it has better quality.

have to worry about people talking about them, because they have the hottest shoe.” Overall, it’s a pattern that people assume based on their past experiences, that name brands have higher quality.

In reality, most food and pharmaceuticals all have to meet the same quality standards. As a result, we are left with the question of what makes a name brand so attractive rather than a generic brand. In addition, there are standards for the clothing. According to the International Trade Administration, Federal Trade Commission does have a quality standard for clothing. From the sources, consumers that are in search of quality are expecting a specific name brand to have even higher quality than generic.

Choosing name brands over generic is not only an issue in clothing brands, it’s also an issue in pharmaceuticals. Renard Thompkins, a pharmacist, says that the difference between generic and name brand medicines is similar to an analogy that “would be the example of taste of Wonder Bread or the taste of generic bread. They typically use the same ingredients but the quality of those ingredients could affect overall efficiency of the product. Meaning it may not dissolve like the brand or it may (have an) undesirable side effect”.

- JAMAL RAY

Portraying the idea that name brands simply may have better quality in usage is a key detail to the overall question. In addition, this idea has been expanded to other areas, such as shoes. John, an employee at Foot Locker, states that “having that name brand shoe can often make people feel confident in what they are wearing. They don’t 5

PERSONAL FINANCE

Why Good Credit Matters Many college students have a lot of worries about what they are trying to accomplish in life. Some are even struggling financially or with building good credit. The average credit score for young adults is 630 (Credit Karma, 2018). Having a good credit score can help someone qualify for lower interest rates and pay lower finance charges on credit card balances and loans.

Having a good credit score can benefit a young adult a lot with lower interest rates.

An article written by Kristine Kuchar, talks about how to build a good credit during college. It states, “… your credit can impact you right now, determining your interest rate for student loans. Plus, if you’re thinking about consolidating your loans after graduation, a good credit report could land you a better interest rate,” (2018).

When borrowing money, one is being charged through their annual percentage rate (APR) that represents the actual cost of funds over the year. Fernando Soto, an undergraduate student from UIC, talks about how he qualified for a 10% APR by saying, “When I first applied for a credit card I got rejected so I had to find another way to build [credit]. I got my phone bill under my name and changed the utilities under my name. Six months later a friend referred me to a credit card, I applied and got accepted. I qualified for 10% APR for the first year which is pretty low for a credit card.”

Even though he got rejected, he managed to find better solutions, and then qualified for a credit card.

As college students mature from their teenage years, they must learn how to manage their money and try to build good credit.

This helps you pay lower finance charges on credit card balances and loans. So what are you waiting for? Make a change in your early college life and start planning to build credit when you are ready!

- MIGUEL BETANCOURT

On the Money intern Jennifer Baeza with TCF Bank volunteer Diana Galvez On the Money would like to thank TCF Bank for their sponsorhip of this issue.

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BROKE and BOUGIE: Scholarship Success “Congratulations, you’ve won!” Every student would love to see or hear these words from an institution that is ready to invest in their future. According to the Finaid.com, 83.2% of college students need scholarships to help fund their education. (Finaid.com) Scholarships can be used to cover the cost of tuition, room & board, books, and many other miscellaneous fees. As a result of the high demand for these awards, national scholarship competitions are being used to put the best candidates to the test.

Matters, who elaborated on her work ethic as well as her determined personality.

While some may win the money that is offered through these scholarship competitions, there is still a large amount of students who need to have a financial gap filled in order to continue their college journey. How can they win money to make sure they are accumulating little to no debt? Whitney Patrick, a Wells Fargo personal banker, has suggested that aside from applying for national scholarships, there are other scholarship opportunities to consider. These scholarships can be found in your grocery stores, libraries, and even local community bank branches.

-ALEXIEA FEASTER

It is highly recommend that you build relations with your school faculty so that when you are in need of a reference there is no delay in talking about your accomplishments.

This would improve your networking skills that you will use in college and will also make you a better candidate for any scholarship awards you are aiming for.

Small scholarships could also be found on sites such as collegegreenlight.com and fastweb.com.

On these sites, students can find scholarships that are nationally recognized as well as pinpoint more locally sponsored opportunities as well. These local scholarships are sometimes easier to win because there may be less students to compete with and you may belong to the community that the foundation resides in, which could appeal to the scholarship committee.

A positive and determined attitude will show them that there is a need for the money they have to offer, and that if the award is offered to you, it will be put to great use. Once you have a reference from someone who really knows you, then in my opinion you have a big part of your scholarship application done.

In a recent interview with a Simeon Alumni Association Award winner, we discussed the application process and how it was hard for her to get recommendations from teachers because she was a bit shy throughout her high school journey. Ultimately she had to go to a community leader from After School

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DIFFICULT BEGINNING, REWARDING FUTURE

were enrolled in community college.”

There are institutions that have taken an initiative to help underfunded students. Jessica Zuluaga, a transfer student, states many organizations “have plenty of resources that can help you financially. I was lucky enough to be part of the STAR scholarship, which paid for my school and even my books!” She is transferring from community college to St. Xavier University, enrolling in the fall of 2018 with zero debt (see page 7 for Star Scholarship details).

It is important for community college students to research and be aware of the prerequisite classes that will be required for their chosen program at the university to which they will transfer. Once enrolled in community college, it is necessary for the student to do exceptionally well in all classes. Only having two years before transferring, it is crucial not to fall behind because it is harder to reach exceptional grades. Similar to senior year of high school, part of the time at community college will consist of going through the application process. Although this is a considerable amount of work, hard working and persevering students take those steps to have a free or low debt education that benefits them in the long run.

Getting accepted to the school of your dreams is your reward for the hard work you did in high school. Being able to afford the college of your choice is a different story, especially if the student doesn’t want to spend years paying off loans. Retired community college counselor Kathleen Frizzell agrees that attending community college is a more economical option. “For some students, that is the only option because their family is not financially stable.” According to The Institute for College Access and Success, “graduating seniors who ever received a Pell Grant, 88% had student loans in 2012, with an average of $31,200 per borrower.

In contrast, 53% of those who never received a Pell Grant had debt, with an average of $26,450 per borrower — $4,750 less than the average debt for Pell recipients with debt.” Although low-income students receive more federal aid, it does not always mean it is enough.

- STEPHANIE CARETERRO

A significant reason why students decide to attend community college is due to the high cost of attending a traditional four-year college. The College Board reports that, “In Fall 2014, 42% of all and 25% of full-time undergraduate students

On the Money would like to thank State Farm Insurance Companies® for their sponsorhip of this issue.

Thank you to State Farm Agent Linda Mitchell for presenting at the Young Chicago Saves conference 8

PERSONAL FINANCE

What Does a Four Year Degree Mean to Minorities?

Obtaining a four year degree is a big step economically and emotionally in the United States especially for minorities. According to Mr. Johnson, my current AP Economics teacher, “Being a Mexican in the United States meant I was judged, but that never stopped me from accomplishing my dream of getting a college degree and learning about the economy in a more innovative way”. His experience was not a rare encounter. According to the U.S Department of Education, in 1999 minority students made up less than 12 percent of graduate enrollment, but this is improving as underrepresented minorities now make up 22% of graduate enrollment in 2015 (insidehighered.org).

For my longtime friend named Cindy, who is now attending the University of Illinois at Urbana–Champaign, the poverty levels of students has an impact on whether it is possible to earn a college degree. She explained, “Having the ability to be on the upper level of the social mobility curve has an impact on the accessibility of something as valuable as a college degree.” This is still a significant issue as only 14% of low-income college students graduate, according to a U.S. Department of Education study (Johns Hopkins, 2016).

The statistics motivate minorities to break through the social norm. A college degree is very valuable. For instance, according to U.S News, among millennials ages 25 to 32, earnings for college-degree holders are $17,500 greater than those with high school diplomas. This gives young people a strong incentive to earn a college degree to achieve a better job outlook and higher income.

Preparing for the Future: Increased ACT Scores

- MICHELLE CHAVEZ

Noble Network School and

During the National Arts and Humanities Youth Program Awards, Michelle Obama stated, “You have to stay in school. You have to. You have to go to college. You have to get your degree. Because that’s the one thing people can’t take away from you is your education. And it’s worth the investment.” It is important to go to school, but it is more important to actually succeed in school. Going to a school that actually prepares you for the future is very crucial when it comes to applying to college. One school network that stands out in Chicago is the Noble Network of Charter Schools. Students that attend Noble Schools are more likely to apply to college and perform better academically.

Arroyo stated, “I came back because Pritzker is different. You actually learn and pay attention. Here at Pritzker teachers actually care about you and Pritzker pushes you. I missed Pritzker because I knew I was not learning as much in my other school. Pritzker does set you on the right path.” Noble schools help students improve their ACT scores by having a strict culture, which allows teachers to teach and not have any disruptions. In addition, students learn more because they do not have any distractions such as phones, other students being loud, etc. As a result, students end up increasing their ACT scores, as shown in the graph, and attend a college.

- FATIMA HUAZANO

With 18 schools around Chicago, Noble schools have successfully increased the ACT scores of their students every year.

Mr. Milkie, the founder of Noble schools, spoke about the differences between Noble schools and CPS schools, “It starts with the teachers. We work really hard to get the best teachers. Another thing we do is that Noble schools are really strict. We like to think of it as having a strong school culture, and part of that culture is students behave in a way that allows teachers to teach and minimize the number of disruptions. We thought they could achieve more academically with really great teachers and a good, strong culture in terms of respect, good behavior.”

For example, Apryll Arroyo transferred from Pritzker, one of the Noble schools, but she came back to Pritzker in her senior year.

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Does it Make More Sense to Rent or to Own? If somebody asked you would you rather rent or own a building, what would you say and why? If you said you would rather own than rent that might make the most sense and it may be common to most, but here’s why.

Rommel Shaw, a real estate broker in Chicago said, “If you’re renting a building [or apartment], you essentially pay somebody to use their property for the time being, which means maybe for a couple months you’d be paying somebody money to use that property whereas if you own the building you’re the person being paid money.” However, owning buildings isn’t all rainbows and sunshine. There are setbacks that could hinder a property owner such as recessions and depressions. Recessions are economic declines that can last for as long as six months according to The Balance.

Depressions are a more severe case of recessions.

Flexibility, less responsibility, financial simplicity and investment flexibility are all benefits that come with renting. Renting is a simpler process than owning something. According to PewResearch.org, there are more renters than any time since 1965 with 36% of heads of households who rent. However, 72% of renters say they would like to own property someday.

A key pro to owning a building is its income potential. Income potential is the profit you could potentially make over time. According to Nolo.com, commercial properties often have an annual return off the purchase price between 6% to 12% and owned buildings have a return which is 1% to 4%. Dana Bolton is a real estate broker in the Chicagoland area that believes it is better to own than rent. Dana stated, “I believe it is better to own than rent because owners enjoy several benefits over renters plus have the additional benefit of flexibility. The financial benefits include the use of monthly payments toward principal balance which increases equity, market appreciation which increases equity and tax advantages due to exemptions and depreciation.”

- ALEXANDER SHAW

The Importance of Technology in the 21st Century Technology has become an essential part of our lives. The early stages of technology development began in the 18th century with the Industrial Revolution. As time passed, we became more and more dependent on technology. Technological advances make our lives much easier. They help in communicating with people from across the globe and even help in achieving our fitness goals. However, technology may have a negative effect on the workplace.

According to the Bureau of Labor Statistics, employment of computer hardware engineers is projected to grow 5 percent from 2016 to 2026 while employment of software developers is projected to grow 24 percent from 2016 to 2026, much faster than the average for all occupations. This is because the demand for computer software keeps increasing.

Jobs among these fields are among the highest paid. According to the Bureau of Labor Statistics, the median annual wage for software developers was $107,600 in May 2017. Beth Burns, a current investment program manager was asked what was the most challenging part of pursuing a major in Computer Engineer.

She responded: “Pursuing a job in Computer Engineer is challenging because it really teaches you how to think”. Pursuing a major in technology is challenging but you will learn a lot from it. When majoring in the field of technology more job opportunities are open for you.

In the near future, machines may be able to replace humans, leaving millions of people without jobs. In “Robots May Steal As Many As 800 Million Jobs in the Next 13 Years”, an article in Fortune

by David Meyer, he states: “A new study by the McKinsey Global Institute estimates that between 400 million and 800 million of today’s jobs will be automated by 2030”. In today’s society, we are witnessing the early stages of the takeover by technological forces. This is why it is really important that more and more people pursue a job in technology and engineering fields such as software development, computer hardware engineering, cyber security, and computer science. Jobs in these fields are in a high demand now and will continue to be in the future.

On the Money would like to thank Republic Bank for their sponsorhip of this issue.

- ANGEL BARRERA

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Thank you to the CFA Society of Chicago for your volunteer support of On the Money Magazine and the financial capability efforts of the Economic Awareness Council.

ENTREPRENEURSHIP & BUSINESS PROS AND CONS OF MIXING BUSINESS WITH PLEASURE Lots of individuals believe that having a business partner will take the weight off their shoulders or that the business will be more successful but, is that the actuality? Not only do people believe that having a business partner is good thing but, some think that making their friend, family member, or spouse their business partner will make owning a business an even greater experience. This can be true. According to Joachim Schwass, a Director at the Lausanne-based International Institute for Management Development (IMD), he states that “numerous studies that show family-controlled and quoted companies create more wealth and outperform public corporations on many metrics including total returns and cash flow,” (cited from ‘The Balance’).

Jordan Lewis, a young Chicago DJ, gave his perspective on the cons of mixing business with pleasure, “The cons of having a business partner that is your friend is not being able to turn off “friendship’ and focus on business or turn off ‘business’ and be friends.”

On the other hand John Van Reenen, a unit director at the London School of Economics, has the belief that “family-controlled corporations seriously lack meritocracy in that the choice of chief executives and key leaders is usually limited to family members,” (Balance,year). According to ‘The Balance’, almost 70% of business partnerships fail. Mixing business with personal relationships can have its pros and cons. Terrence Tomlin, co-founder of ‘The Bigs,’ an independent sports media company, says that he has only experienced the pros of conducting business with his business partner who is his friend. Tomlin stated, “It has been the best business as well as personal decision I have made on this journey.” Tomlin advises those who plan on mixing business with family and friends to have strong communication and have a very strong bond. Mixing business with personal is beneficial as long as the individuals have great communication, a strong bond, similar vision, and know how to separate business from personal life.

Mixing your business life with your personal life can have both its pros and cons. On one hand, it can be horrific experience for the two causing them to end not only a business, but a good relationship. On the other hand, it can turn out to be a wonderful experience for the two individuals, allowing them to grow and create a bond stronger than they had before. The key is having good communication and an open mind.

- AMBER ANDERSON

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Learn to Invest with Rapunzl and Myles Gage Meet Myles Gage, COO and founder of Rapunzl Investments. Myles founded Rapunzl with a group of high school friends when he realized the disparity in financial literacy among their social circles, especially in regards to investing. While working on Wall Street is the dream of many aspiring adolescents, the nuances of investment banking are not common knowledge among youth. It was from Myles’ goal of bringing the knowledge of investment banking to the average young student that Rapunzl was born. Gage and his team wanted to create an informative investing platform but a collaborative one as well. The app’s unique ability to friend other users and form groups allows for not only collaboration and feedback, but also competition. The activity feed operates much like Facebook, allowing users to track their friends’ portfolios and consistently updating their personalized feed with their groups’ trades. By adding a competitive element, Rapunzl is able to hook users and keep them engaged with the app. The app’s use of fictitious money further incentivizes those who have little knowledge of investment to venture and explore. With no risk of loss, anyone who is curious can experience first hand how to invest through Rapunzl. Gage and his team are also committed to helping students, providing scholarship opportunities and cash prizes for the top performing portfolios every week, month, and year. No matter your background in finance or investment, you can learn, trade, and win with Rapunzl.

- JONATHAN LEE

Jose Luis Sabau Fernandez - Founder & CEO of ODDIN NOTICIAS Oddin Noticias is a Spanish news company with over 180,000 followers and 500,000 views on social media. Growing up in a small Mexican island of Cozumel, Jose Luis Sabau Fernandez, founder and CEO, has always been a lifelong learner of languages, news, and mathematical concepts. Although Jose had always felt a moral duty to understand the political decisions taken by all countries around the world, he failed to find a compelling method to do so. In fact, the original idea behind Oddin Noticias was to create a discussion forum that would be transmitted live on Facebook every Tuesday.

Through filming himself and delivering up-to-date news, Jose not only teaches himself politics but those around him as well. Jose started interviewing his peer entrepreneurs at Launch X summer program at MIT the past summer and has grown to interview numerous Nobel Laureates such as John C. Mather. Through my interview with him, I see Jose as a truly extraordinary and resilient innovator beyond just being a great friend. To Jose, “The difference between wanting and having is doing.” Jose will be attending Stanford University this fall.

- CARINA PENG

Visit CollegeB u to create a codgetBuilder.org llege budget!

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Keeping Your Business While in College The post-millennial generation, Generation Z, is full of entrepreneurs. In fact, almost 13% have their own business, and 22% more plan to own a business in the future (eCampus, 2016). It’s clear Generation Z values entrepreneurial spirit: nearly 40% envision that they will create a life-changing invention (“Generation Z: A New Class of Students Arrives,” 2016). However, for all the businesses that Generation Z has started, only a few businesses continue to prosper during college. For those who are wondering how to maintain their own business, this article will provide you with tips to maintain your business during your college years.

Board of Directors attend college.” However, Pizano is cautious: “I fear that the organization I started will not be able to sustain itself without me in the picture. I want to make sure the program can endure without my direct participation or guidance.” So, make sure that you leave your business with those who love the mission that you created and your legacy should live on. Combine this advice with the importance of time management and using college resources, and your business should continue to be a success.

- NIA ROBINSON

Want to buy from other local teen entrepreneurs?

Visit iGenMarket.com!

First, it is incredibly important to practice time management. You have to prioritize your school, business, and personal life. Ryan Hesslau, the founder of foreverU, started his business at 16 years old. Here are his tips to prioritize his life: “I start each morning writing out my responsibilities for the day – this gives me a blueprint on how I will take on the day ahead.” Next, take advantage of being in college. Hesslau realized that, “You have access to professors that I have requested to be my mentors. You have access to students in need of real world experience. You have access to college professors and alumni in their professions.” So use the resources you have while you are in college.

SAVY LEISER

However, what if your business can’t travel outside of Chicago? Armando Pizano, founder of Bridge Tutoring Program, is facing this challenge. His tutoring program is a city-wide, student-led initiative that tutors Chicago Public School students. He plans on “selecting high school juniors and seniors to help manage this student-run non-profit while the current

Any dog lovers out there? Well, take a look at Savy Leiser, a Chicago author who writes a series of children books called, The Furever Home Friends. These books are about courageous dogs and their transition to being adopted by a loving family. With a Bachelor in Communications from Northwestern, she also writes for Halftime Magazine and does workshops at Open Books in Chicago’s West Loop. She is an extremely productive writer and is on the path to obtain a Master’s in Writing and Publishing at DePaul University to continue writing books on other topics as well.

-STEPHANIE CARRETERO

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Competition Between Businesses Can similar businesses keep each other creative? Would consumers benefit from similar businesses more than the owner of a business? Many entrepreneurs have similar ideas, but some ideas are also very different. Similarity can create competition between specific businesses, this leads to companies working against each other to create rivalries. Companies with similar goals may tend to work against each other. This perspective benefits consumers by providing them a variety of quality choices. In this working economy, businesses don’t win or lose. As the consumer, purchases are made by what is admired.

ideas creates innovation which allows the production of better products. With the production of better products, more consumers will come which allows that entrepreneur to get an advantage over similar businesses. According to businessgross.com, competition is not only good for the business, it’s good for the consumers as well. This gives consumers the opportunity to choose options. This leaves room for development for these businesses which allows them to expand on their ideas and create new ones for consumers to purchase.

- AMARI MARTIN

Braylen Stevens, an entrepreneur who founded MBRACED, stated that, “Entrepreneurs have similar messages with their products but they also have different ventures.” Businesses have their own expectations that have to be met. Businesses also have to keep up with what consumers like most. So, how would consumers keep the businesses at the very top? According to Forbes.com, a few things that help businesses compete are:

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Take your business idea to the next level! Compete in the

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Go to OntheMoneyMagazine.org/opportunities to learn more and submit your application.

How do consumers play the largest role in the success of a business? Braylen Stevens also stated, “Make sure your business has a real purpose. Trust and believe in your brand. Find ways to network with your brand.” Businesses with similar

BRAYLEN STEVENS

Contestants must be Chicago residents between the ages of 14-24 Businesses cannot be food items

During an On the Money meeting, Braylen Stevens had the opportunity to present to the interns on the topic of professionalism. One of the key points that was highlighted was how to present yourself because a “first impression is always the last impression”. Braylen had mentioned this to the interns in order to illustrate a very important factor that’s needed in the business world. In addition, he went over the correct way to dress, speaking loudly when presenting, and making sure your social media is not an “emotional dumping ground” when staying professional. Braylen, also had the opportunity to present his brand “MBRACED” consisting of hats and shirts to tell the message of embracing who you are and being proud because of that.

- JAMAL RAY

Thank you to the DePaul University Writing Center for their support of On the Money Magazine.

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JUNIOR ACHIEVEMENT EVENT The Junior Achievement Competition is a regional competition that allows companies to showcase their work with their very own products.

This allows companies to demonstrate their skills in a two part competition: one-on-one interviews and the company presentation. My experience in the JA Competition was great. I had the opportunity to present On The Money’s products; the iGen store is a platform that allows us to help the entrepreneurs get their products presented and On The Money Magazine which is a by teens for teens magazine that allows the interns to educate students on financial literacy and entrepreneurship.

- AMARI MARTIN

Uses of Social Media in the Business Industry It could be argued that the majority of people looking for jobs spend most of their time on social media compared to looking in local newspapers. Having companies expand their business on social media is one way they could get more customers. One goal that all companies share is being able to gather more exposure and appeal to a broader audience. For example, YouTube, Facebook, Snapchat, Twitter, etc. have many social media accounts and digital ads for their businesses with the purpose of drawing more attention. The majority of businesses have not been able to expand their impact due to the lack of marketing. Moreover, those businesses that do get involved with social media have a greater chance of getting noticed.

business clients because it was able to help them expand their businesses.

Public networking comes in many forms, providing information to people in the form of advertisements. Another interviewee, Jessica, explains how her job is to spread the business for lawyers are by using ads. “Promoting your business makes your customers aware of your product or service. The message you send attempts to convince customers that your product or service is right for their needs. It creates a desire for your product”. The social media platform has shown a big change to many businesses that are evolving through society.

- KASSANDRA ADORNO

The use of social media can have its advantage because it will help businesses get involved with many additional resources and business partners. For example, Raul Jimenez, who manages the social media for a Martial Arts company stated, “Social media affects my job in many ways. Social media gives me the power to help others to grow their businesses and it also helps me to connect with more people around the world”.

Raul’s experience provides proof that investing in social media strategies allows businesses to expand. Online media gives a new perspective to what his job provides him. “Before my business client got involved with social media, they had way less interaction with their clients and they were not working to their full potential. After their social media involvement, they had more clients because the martial arts academy was actually listening to their clients and to the community”, Jimenez says. Social networking was key to Raul’s

Bank of America volunteers at a One Summer Chicago event

On the Money would like to thank Bank of America for their sponsorhip of this issue.

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THE COST OF MICROFINANCE Created by Jannoon028 - Freepik.com

Did you know that 1 out of every 10 American consumer has no credit score? How do they obtain jobs and healthcare benefits, apartment rentals, and loans? Without a credit score, not only would you not be able to access loans, but you would also encounter many inconveniences in daily life, leaving you out of the financial and social mainstream. It is clear that a student might experience the downsides of the lack of a credit score since they do not yet have experiences building a high score. For example, Tracy Frizzell, the Executive Director of the Economic Awareness Council, said she knows of “students recently that had difficulties renting an apartment because a rental often either requires a good credit score or a high rental deposit.”

ysis, there is much to be revealed. Since the borrowers often do not have any proof of credit worthiness, the investment is risky. Therefore, to compensate for this, loan companies charge unusually high interest rates. Kiva, a leading micro finance organization that many perceive as philanthropic, in fact charges a 35% interest rate for their poor borrowers.

You may ask, are there any other options for those who do not have any credit or who have low credit scores? Unfortunately, there are not many options. Loan Sharks charge even higher interest rates (average 520% annually) than microfinance lenders, usually under illegal conditions, while payday loans charge a high interest rate (as much as 400% annually) in an agreement that you will pay back when you receive your next paycheck. Dillon Hoover, an analyst at the institutional investment firm Castleark, summarizes the disadvantages of not having a high credit score. “They not only encounter high interest rates and short payback period, but also loan limitations.” Now that you’ve learned about the difficulties faced by the world’s population without credit, it is easier to understand why major international organizations are increasing their effort to encourage everyone to build credit.

Lack of credit also impacts an individual if they want to start a business. This is especially true in countries that do not have an established lending system. However, there is a solution called microfinance, which is the transfer of small amounts of loans to aspiring entrepreneurs who do not have access to normal financial services. Through lending micro-loans to the poorest individuals in the world, microfinance pioneer Mohammed Yunus showed that microfinance has the power to allow these people to bring themselves out of the poverty cycle.

- CARINA PENG

As good as it sounds, however, microfinance is far from a fairy-tale that can alleviate poverty at once. When looking at microfinance from the perspective of a cost-benefit anal-

On the Money would like to thank US Bank for their sponsorhip of this issue.

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#THETAKEBACK Being engaged in your community is important, and Hasani Henderson knows this better than anyone. #TheTakeBack is an anti-violence and gun prevention initiative that focuses on youth on the South Side of Chicago.

Henderson’s initiative aims to provide youth with a day of peaceful fun in an encouraging environment. Last summer, Henderson held #TheTakeBack event that fought against violence in Chicago. It drew a crowd of 146 youth, 47 adults, and 73 volunteers for a day of activities in a safe environment.

His organization continues to host this back-to-school festival that provides resources, school supplies, meals, and educational scholarships.

- NIA ROBINSON

WHAT IS RISK MANAGEMENT? “If you don't invest in risk management, it doesn't matter what business you're in, it's a risky business.”

-Gary Cohn, Ex-President of Goldman Sachs & Former Chief Economic Advisor to President Trump Investment firms and banks are in some of the most competitive industries in the world. While profitable returns on investment is what every investor strives for, at any moment stocks could also decline in value and lead to loss. Risk management is the process of identifying, assessing and controlling threats to an organization’s capital. It is one way firms attempt to maximize their risk adjusted return. A good risk management system will do more than just identify risk: it must be able to quantify it as well as predict its overall impact on the firm (Michael Stanleigh, financial professional and On the Money Volunteer). In its most common manifestation, risk management utilizes advanced statistics to quantify how most events could play out as well as attempt to account for the likelihood and financial impact of an extreme event. Embedded in these algorithms are variables ranging from terrorist events to adverse weather. Using these equations, firms will calculate potential loss from the most outlandish to the most probable of events.

the following three risk guidelines within their company: 1) Risk level: how much risk is Citadel willing to incur?

2) Stress exposure: how macroeconomic variables could impact the portfolio’s risk or return 3) Liquidity: the availability of willing buyers and sellers for any given asset After synthesizing the risk data, the firm will decide if the risk level falls within its acceptable risk parameters. How much risk a participant is willing to accept is dependant on their business model, investment philosophy, and a variety of other factors. For example, hedge funds are far more likely to incur more risk than say, a traditional long-only* fund. While risk management can be a complicated field, it plays a vital role in the health of an investment firm and it’s a career worth giving ample consideration. *A long-only fund only takes long positions in a company whereas hedge funds can short, or bet against, the performance of a company (Dillon, Hoover, financial professional and On the Money volunteer).

Citadel, one of the most successful hedge funds across the globe, has an extensive and advanced risk management team that is integral to the success of the firm. According to their website and speaking with firm risk management employees, Citadel utilizes

- JONATHAN LEE 17

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the years. David Beckham, now a retired professional soccer player, has achieved plenty of success throughout his career of soccer. He won various titles in major leagues all over the world. Wanting to expand the game of soccer in the U.S is why he invested in Miami FC.

Growth of US Soccer Teams tournaments.”

Twenty two players, one ball, two goals: the game of soccer, the most watched sport in history is growing exponentially in popularity in the US. The amount of growth the soccer industry has shown within the last 12 years is impressive.

Major League Soccer (MLS) had many attempts to be created but was not officially established until 1993. Although MLS had many difficulties to become an established league, it has blown up ever since its creation. MLS started off with only 10 teams, and now they have doubled to having 25 teams.

Bruna Cambron, a 9th grader at Lake View High School who plays for the Lady Chicago Fire, expressed how soccer has impacted her life and helped her grow as a person. Cambron stated, “I was pushed to keep going even when I didn’t feel like it. Soccer gave me a lot of new opportunities: new friends, a nice environment, created new bonds and helped me get out of my comfort zone. I love the

In addition, the views of MLS have gone up tremendously over the years appealing to more fans. ESPN’s views on MLS have gone up over the years. In 2017 according to ESPN MLS television ratings for soccer rose 75% over 2015. “In Canada, an average of 1.3 million viewers watched TSN’s MLS Cup broadcast” (MLS.com) In conclusion, the game of soccer is growing more in popularity all around the United States of America. MLS is expanding as a whole industry and the exposure of their brand is becoming more appealing to our current generation. New teams are emerging, creating new business opportunities and this creates more opportunities for students outside the classroom.

All of this creates a new market of opportunities in the business world for entrepreneurs to invest in and receive possibly a great amount of revenue.

The MLS market has been growing constantly and more teams are being created. In 2014, David Beckham who played for the L.A Galaxy from 2007-2012 decided that he would invest in a new team called Miami FC. According to Forbes.com, L.A Galaxy makes 315 millions dollars, which is an 19% increase over

- MIGUEL AGYEI

On the Money would like to thank Bylie Bank for their sponsorhip of this issue.

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ON THE MONEY EXPERIENCE People are so scared to try new things nowadays but I joined “On The Money”, a financial and entrepreneurship educational publication that reaches 8,000 students a semester primarily to improve my writing. On the Money has been around for 10 years, and I thought having my writing published in a magazine would be amazing! It would help my chances for college and could help me later in life for my career. However, am I a fool for joining a business program when I only want to improve as a writer?

with a smile and told us about having a guest speaker to help us with our articles. A DePaul University student came to help me and saw I was writing more of a story. He commented, “Even if you want to be a writer, just remember, learn as much as possible. There are many valuable things you’ll never regret learning,”

After getting lost in downtown Chicago, it was a lifesaver to be in the DePaul University building where a student was so helpful in finding where I needed to be. Still, I was a bit scared. This is something I have never tried in my life ….but I took a deep breath and remembered what I was here for. Walking into the room where the OTM meeting was being held, I was greeted by staff members and teachers. The interview started and slowly my heart calmed itself and I kept in control.

After I was done with my article, all I could say is that this was worth the risk. No matter what people say about you or how much you doubt yourself, when a chance to follow your dream, is offered take the risk! You’ll learn something that can change your life. Don’t let someone or yourself stop you from finding your role in the world. That is what I learned from this chance to write an article for OTM.

Back downtown once again...Snow is blowing in my face and I can feel myself getting sick, but I couldn’t miss another day at On The Money. As soon as I walked in, the staff members greeted me

- ANDREW GRANCIANO

To apply to On the Money, email otm@econcouncil.org.

YOUTH ENTREPRENEUR CAMILLE JACKSON Last fall, I had the chance to meet an amazing 6 year old author: Camille Jackson. I had met Camille at a Girls Entrepreneur Expo last year, and I still keep in touch with her. I was blown away when I had the opportunity to talk to Camille. For a six year old, she had her mind set on what she wanted to be when she grew up. She also told me that she has a second book on the way and that I should keep a lookout. Camille’s second book is called Camille For President.

Her inspiration comes from her own dreams of becoming president one day.

“There is a page where you can draw a picture of what you would change if you were the president and another page where you can find out how many years you have left to be old enough to vote or run for president!” comments Camille. Ages 6 to 10 are most recommended to read the book.

Camille is soon going to Detroit, Michigan to showcase her book in the Girls Entrepreneurs Expo. Make sure to check out Camille’s new book online at www.camilletheauthor.com. Camille would like to leave off with: “No matter how small you are, you can make a big impact on the world.”

- JENNIFER BAEZA-JIMENEZ

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TRY IT OUT!

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