By Teens for Teens
Summer/Fall 2018
Need Books for College? 9
Tips on Car Buying 12
Investing 101 14
Thousands of Chicago Youth
BANK & SAVE
During One Summer Chicago!
On the Money Mentors photographed with the Industry statue at the Chicago Board of Trade 1
Contents 3 4 5 6 7 8 9 10 11
On the Money and One Summer Chicago Importance of Savings How to Get Money Motivated Start Saving FAST for College First Gen College Students Spring Break on a College Budget Book Buying for College How to Get Good Credit Buying Your First Car
12 Own the Car or Share Your Ride 13 African American Retirement 14 Investment 101 15 World Cup Sales 16 Impact of Gentification 17 CPS School Cosings 18 1 Million Degrees 19 TIP FEST/Americorp back page
Thank you to Mayor Rahm Emanuel, One Summer Chicago, the Department of Family & Support Services, the Citi Foundation and the CFE Fund for their support of Chicago's youth & youth financial capability.
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Interns Maham Ali Senior, Carthage College Miguel Agyei Freshman, Bradley University Jennifer Baeza Junior, Harold Washington College Kailyn Bates Senior, Bradley University Stephanie Carretero Freshman, University of Illinois Chicago Cameron Green Junior, Morehouse College Min Zhen Chen Sophomore, Univeristy of Illinois at Urbana Champaign Alexiea Feaster Freshman, Xavier University On the Money magazine is written by The Economic Awareness Council (EAC) is a of Louisiana teens for other teens. On the Money covers non-profit financial education organization with entrepreneurship, business, finance, credit, saving program attendance of over 25,000 each year. Kayla Lucas and more, providing real world experiences and www.EconCouncil.org Sophomore, Clark Atlanta resources that can help students learn to meet Amari Martin their business, money and career goals. On the Freshman, Eastern Michigan Money is provided by the Economic Awareness Thank you to the Citi Foundation and the Cities University Council through collaboration with the DePaul for Financial Empowerment Fund, State Farm D’Quan Mathes University, Chicago Public Library, the City of Insurance CompaniesŽ, Republic Bank of Chicago, Sophomore, Minnesota State TCF Bank, Bank of America, Byline Bank, Chicago, the Chicago Public Schools and One Huntington Bank, U.S. Bank and MB Financial University Moorhead Summer Chicago. for their support of On the Money. Su Mon www.OntheMoneyMagazine.org Sophomore, Saint Louis University *Request additional copies at OTM@EconCouncil.org Janel Ray Freshman, Illinois College Congratulations to the On the Money - Money Mentors who provided Nia Robinson Freshman, University of Pennsylvania Congratulations to the youth of One Summer Karmen Rosiles Chicago! Over 7,500 One Summer Chicago Sophomore, Marquette University participants completed over 46,000 financial Serena Taylor education activities at LRNG-OSC.org. Junior, Washington Saint Louis Additionally, 9,498 One Summer Chicago youth University enrolled in direct deposit and 4,589 of these Jasma Wheeler youth deposited their funds into a checking or savings account. Keep banking & saving Chicago! Sophomore, Northern Illinois We are On the Money Chicago! University Christi Wright Sophomore, Gettysburg College
WE ARE ON THE MONEY CHICAGO!
ABOUT ON THE MONEY
ABOUT THE EAC
Instructors: Tracy Frizzell, Toiria Baker, Richard Schrishuhn, Alex Riggs, Kiara Hardin Thank you to the Citi Foundation and the CFE Fund for your support of youth fiancial capability for One Summer Chicago.
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THE IMPORTANCE OF SAVINGS Have you ever dreamt of going to California? Do you dream of being able to go to the beaches, having the sun in your face all day long, or trying new food? I was fortunate enough to visit California before starting my summer job this year. I knew since February that I was going to go, so I started saving every penny. I saved about $30 every week and that increased over time. It’s a good habit to start saving now for a ‘rainy day’ fund in case of an emergency.
Saving up means having somewhere to get funds from whenever you are down to your last penny. In an emergency, you don’t want to [have to] depend on others, instead you can go into your savings fund and spend from there. It is also important to start saving money as early as possible for your children’s education. It’s important to have a savings account because at most banks you can earn interest on your money without even having to do anything. Many people attempt to save their money but keep their cash at home. While that is still a form a saving, putting your money in a savings account is much more beneficial. As mentioned, you can make money from your money and it is truly safe, unlike keeping it at home where it can get robbed or it can be destroyed by natural disasters.”
According to a 2017 article by CNBC, on average 34% of Americans have zero dollars in their savings account. Suze Orman, a financial expert, says that you should have at least saved up for twelve months of basic living expenses in your emergency fund just in case of any emergency or lay off. “We live in the craziest world I've ever seen in my life right now. And the only way you can take craziness out of that is for you to make yourself secure." (Orman, 2017).
Here are some tips of what to look for when opening a bank account: 1. FDIC insured - If the bank goes bankrupt, your money will be 100% safe. 2. Has a good interest rate - the bank will give you money just for saving every year! 3. No monthly fee - You should not have to pay to keep your money at the bank. 4. Look for no minimum deposit or a low minimum deposit. Sometimes, you can open a bank account with as little as $0. 5. Close to your house - No more than a 10-minute walk from your house. 6. Mobile banking - Download your bank’s mobile app to keep track of your financial transactions.
Many people don’t know it, but they can easily open a savings or checking account at a bank nearby for FREE. Having a bank account encourages you to save more often. Stephanie Valencia, a banker from TCF, mentions that, “It’s important to save because we never know what path life has in store for us.
The chart below shows that 34% of people currently do not have anything saved.
On the Money would like to thank State Farm Insurance Companies® for their sponsorship of this issue.
Jennifer Baeza 4
HOW TO GET MONEY MOTIVATED: Tips for a Healthier Lifestyle and Healthier Pockets One of my favorite sounds is hearing the ATM churn as it is getting ready to dispense money. For you to also enjoy this luxurious sound, we must first make sure that you have healthy pockets!
does not happen by accident. It is the result of focused spending and strategic planning”. Another healthy tip is to set up a savings account and put at least 10% of your check in your savings. According to “The Motley Fool”, the average person saves only 5.5% of their income. However, this percentage is not likely to be enough for the average person in case of an emergency. When I interviewed my friend Isis Zollicoffer, a student at Central Michigan University, she stated that “having a savings account helps me sleep better at night, because I know that I have funds if an unexpected emergency occurs.”
One way to start having healthy pockets is to avoid impulse purchases. CNN Money reports that “five out of six Americans make impulse purchases and 20% who have gone this route admit to spending $1,000 or more on a whim.” How can you solve this problem? Implement the 24-hour rule: if you want to purchase an non-essential item, wait 24 hours before buying it. Crystal Bailey, an accountant at Northern Trust Bank, stated during an interview, “Whenever your purchases are not in line with your overall financial goals, they more than likely will work against your goal. Financial success
Having healthy pockets can lead to a healthier lifestyle because it can prevent you from stressing about situations like not knowing if you’re going to be able to pay your credit card bill on time because you spent too much money last Friday night. Get money motivated and make better financial decisions. The time is now! Christi Wright
On the Money would like to thank Republic Bank for their sponsorship of this issue.
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How to Start Saving FAST for COLLEGE As an incoming freshman, I realized that college students were not joking when they said college is expensive. According to Forbes, 1 out of 2 Millennials (the generation before Gen Z) feels they have too much student debt. So, this summer I have spent all my time working and making a steady income to help ease the cost of this upcoming school year. Here are some tips that will help high school students save money for college today! 1. Start a Side Job! According to a Harvard Business Review study, around 70% of teens are self-employed. That means they could be making money from YouTube, babysitting, or even giving dance lessons. Either way, Generation Z knows how to make a buck. So start a side hustle to make some cash whenever you are free. Norberto Valentin, Director of Financial Aid at Harold Washington College shared some of his key advice. “Working a part-time job in the evening or during the summer is a great way to help fund your education. You can help pay for school without all the debt! I would recommend high school students allow themselves to work outside of their comfort zones and challenges themselves.”
2. Birthday Money Shannon Kennedy, an intern at My College Planning Team said, “Putting 80% of [your] paychecks or birthdays into savings and using the leftover 20% for miscellaneous spending was key for me. Sure, it is important to enjoy your high school days, but it is also important to look ahead and set yourself up to be financially stable in the future.” 3. Scholarships! It does not matter what grade you are in, high school students can start applying for scholarships today. In fact, the earlier you apply in high school, the better your chances. Most high school students wait until senior year to start applying, but my advice is to take advantage of scholarships as soon as you can. Gabrielle McCormick, a senior who won over $150,000 in scholarship money told USA Today, that “everything under $2,000 is what really helped.” Valentin, the Director of Financial Aid at Harold Washington College, further advises students, “Follow your dreams and do your homework. There are many resources available. You will have options such as scholarships and financial aid.” So go out and use them! Clearly, saving money will be very helpful in the long run. Don’t let the fear of college finances keep you from applying. Earning and saving your money during high school is a great way to offset the cost of college.
Nia Robinson On the Money would like to thank Bank of America for their sponsorship of this issue.
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FIRST GEN COLLEGE STUDENTS Many colleges and universities are struggling to meet the needs of shifting student demographics. As a first-generation college student, my needs were different from a student whose parents have been to college. A first-generation college student is defined as a student whose parent(s)/ legal guardian(s) have not completed a Bachelor’s degree and they will be among the first in their family to do so. I often questioned myself about what I could have done differently: Should I have started planning for college sooner? What are my career goals? What resources did I miss out on? I realized that if I needed help answering these questions, there had to be other students who needed help, too. I made it my mission to address the needs of the growing first-generation student population at Carthage by creating my own organization.
A National Center for Education Statistics report comparing high school and postsecondary experiences of first-generation and continuing-generation college students followed a group of high school sophomores in the year 2002. Fifty-four percent who were first-generation were not able to complete college because “they could not afford to continue going to school.”
Ellie Cahue, a first-generation college student, provides some insight into the problems facing these students. She said, “From a young age, I have valued my education as a path to success for me.” Her parents encouraged her to go to college, but were unable to support her through the application and financial process. Despite Ellie’s hardships, she has remained on the Dean’s list every semester. She cites that her “biggest achievement in life is being able to attend college and study something [graphic design] that makes me happy.”
Carrie Espinosa, Director of Student Success at Carthage College, encourages prospective students to ask, “Do they [the institution] provide specific programming for firstgeneration students and other student populations with specific needs? Are there grants and scholarships devoted to these groups? Student organizations? Web pages?” citing that “institutions that mean it, show it.” The U.S Department of Education report on First-Generation Students College Access, Persistence, and PostBachelor’s Outcomes reports that “3 years after beginning college, proportionally fewer first-generation students stayed on the persistence track (48%) than did their continuing-generation peers whose parents had received a Bachelor’s degree (67%).” If you're a first generation college student who wants to start an organization at your college, here are some tips on what to do first: 1. Start conversations with your friends, classmates, advisors, and faculty about your experience(s). By doing so, you can organize support for creating your own program or organization. 2. Think about a mission statement: What does your program or organization hope to accomplish? 3. Write a plan. What type of events are needed? How much time is it going to take to organize? What are the roles and responsibilities of those involved? 4. Reach out to someone like the Director of Student Involvement or Campus Activities to develop an action plan and make it official! 7
Maham Ali
SPRING BREAK:
College Budget Edition
It’s the middle of the second semester and the only thing on your mind is buying a ticket for a flight for spring break. Spring break allows college students to recharge their batteries and venture to new places, but it can also break your budget. Here are some booking and planning tips, popular destinations, and ways to save money while on spring break. Finding deals during the peak spring break season is always tricky, but here are some ways to cut costs: • Depart on Tuesday instead of Friday According to Hopper, a company that analyzes billions of flights to help you find the best deals, flying on Friday will cost you 20% more ($168 premium on international trips) than flying on Tuesday. • Return on Friday instead of Sunday According to Hopper, returning on Sunday will cost you 10% more ($84 premium on international trips) than returning on Friday. • Consider All-Inclusive Packages According to an article titled, “The Financial Benefits of All-Inclusive Resorts” written in U.S. News & World Report known for its publishing of consumer advice, Chris McGinnis, a consumer travel expert said, “When you book a vacation at an all-inclusive resort, nearly everything is paid for in advance, and there is little nickel-and-diming after the fact”.
“Look for hotels close to activities you would want to do to limit spending on travel” -Kiara Hardin (Graduate from Western Illinois University) As a student, our income is limited and after paying for transportation (flights, trains, bus, etc) it’s important to use your money wisely when you are at your spring break location. Here are some ways to make your money stretch as you explore: • Use your Student Discount A lot of stores/restaurants give student discounts as long as you have your school ID. • Use Public Transportation By taking the train or bus, you can see other landscapes/landmarks, get a better idea of what it feels like to live in that place, and it’s cheaper! • Look-Up Events that are Budget Friendly A lot of destinations have free events that can be fun as well. “Don’t be against trying the free things around the city and use your time there to explore instead of going to super expensive places all of the time (that’s when you make the most valuable experiences).” -Cyan Baker, Vanderbilt University Class of 2020 (Junior) Being a college student can be stressful and spring break provides the time for mental breaks and new adventures. Take stressing over money off of your list of activities for Spring Break!
Jasma Wheeler
On the Money would like to thank TCF Bank for their sponsorship of this issue.
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BOOK BUYING FOR COLLEGE From college freshman to senior, even graduate school students, we all have one thing in common, textbooks and most importantly the need to purchase them cheaply! Buying textbooks is a necessary evil. Jordan W., a recent Bradley University graduate says, “This knowledge needed from the book is priceless, but the prices are downright criminal.” In fact, The National Association of College Stores (NACS) say, “the average college student will spend $655 on textbooks each year, but with a single textbook easily costing as much as $300, that total can easily be much higher. In fact, the College Board puts the annual cost of books and materials at $1,168. Students at for-profit colleges tend to spend even more.” Well, what can you do to get cheap books?
it out of the library, but sometimes you can scan specific pages. The fifth tip is to share with a classmate. You may be able to split the cost of a textbook with a friend. The sixth tip is to consider the book buying strategy of book gambling. Book gambling, if done right, can save you a lot of money – after all, you might find out that you simply don’t need the book for a certain class. However, book gambling done wrong can put you way behind and cause a lot of stress. Be especially careful of book gambling if you cannot order the book to arrive within 1 day.
Keep in mind you have many options for buying your books: New books, used books, rentals, electronic versions, and electronics rentals. Now that you know this, the first thing you should do is do your research. If you have more time than money, look around and price comparison shop with search tools like Slugbooks.com, BigWords.com or MyNextCollege. com. Websites like these do the hard work of comparing prices across companies so you do not have to.
The 7th and final tip is to email the professor ask if an older edition of the book would be acceptable. “The California Student Public Interest Research Group published a study in 2004 that found new editions cost 58 percent more than older editions.” In fact, most textbooks don’t vary that much except math and other STEM-based classes because the homework problems may change.
The second tip is to buy used books. Many times used books are very gently used, or if not, are priced according to the damage done. The third tip is not to be afraid to rent books. If this is only a general education class and you know you will not need this book again, often times it is cheaper to rent and send the book back once it is due versus going through the hassle of selling the book to someone. The fourth tip is to search your local library. Many times on campus textbooks can be found in the campus library; however, you may not be able to take
Textbooks are expensive, and there is a multitude of ways to reduce the cost and prevent high book fees. You may benefit from mixing and matching strategies in order to get the best bang for your buck.
Kailyn Bates
Visit Colle geBudgetB uilder.org to create a college bu dget!
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HOW TO BUILD GOOD CREDIT According to Experian, 36% of people have student loan debt. This isn’t necessarily a bad thing as some debt like student loan debt sometimes can’t be avoided -- the problem lies in terms of how a lot of youth view credit. When asked about the common misconceptions about credit, Bradley University student Kailyn Bates says, “Before I learned about credit, I thought no credit was the same as good credit and so I thought you automatically started with a good credit score.” Some youth don’t know what credit is and others don’t know how to establish good credit. This isn’t good considering future employers may ask to run your credit in the hiring process. Why? They want to see if you’re responsible! Have no fear! You can build good credit.
getting a credit card might pay off student loans or get a credit building loan. (Some students become an authorized user on a trusted parent or guardian’s credit card who has good payment history, but be VERY careful about this as anything you do will impact the other person’s credit and vice versa . When in doubt or as a general a rule of thumb, avoid this and wait to get credit on your own.)
Once you are a young adult and are working (usually age 21 and older or with enough income), there are many ways to build good credit. The first thing you need to do is to actually get credit. Some people get a card that can only be used at a certain store to limit purchases so you can only spend a little and it’ll be easier to pay of; others get a card that can be used at any store. Some who are opposed to
Finally, it is very important to keep your credit card usage to <30% of your credit limit. If your credit limit is $1,000 use only $300 of that limit at a time, and make sure to pay your balances in FULL. 83% of youth believe that being debt free is an attainable goal; be a part of this percent!
Next, you would want to check your credit. You can check your credit at each of the 3 credit reporting agencies once for free each year at annualcreditreport.com. You also want a good idea of what your credit score looks to see if you’re on the right track.
See back cover for more information!
Kayla Lucas On page 19, Jennfier Baeza highlights the Teen Entrepreneur Competition with the Chicago Park District at TIP Fest. Have a business idea? Check out the entrepreneurship resources at LRNG.org - Economic Awareness Council - Like A Boss
On the Money would like to thank U.S. Bank for their sponsorship of this issue.
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Buying Your First Car Before buying my first car, I knew I wanted a Mercedes Benz with leather seats, moonroof and six cylinders. Unfortunately, my budget and credit score did not align with that and today, I drive a Chevy. Purchasing a car is tough, especially your first car but being informed can help make the process smooth and exciting. When buying your first car, here are some important things to keep in mind: How much can you realistically afford? What features are you okay with losing? Will you be financing your car or can you pay for it in full?* What expenses do you have beyond the price tag of the car? (E.g., Gas and maintenance costs)
Pros and Cons of New vs. Used Cars New Cars • Often come with new car warranty which covers/discounts repairs on parts such as engines and more. • No car wear
Old Cars • Your car will not lose value as quickly. According to CarFax, new cars lose about sixty-percent of their value in their first five years • Cheaper prices
Tips on Buying your First Car: • Saving: Opening a savings account or certificate of deposit. These saving tools will push you to save and will allow you to earn interest. • Look for discounts when shopping for your car. Used car prices are usually negotiable. Newer car prices are harder to negotiate but prices may drop near the end of the year and during summer clearance events. • You can also save money on car expenses. One of the biggest car owner expenses is insurance. Use insurance comparison sites like Policygenius or Nerdwallet. You can also contact your school for a good student certificate for possible discounts. • Prepare for additional expenses. The average American family spends $1,898 on gas per year (Gasbuddy 2018). College Student Jonathan Irias says one of the biggest barriers in his budget was, “an unexpected car accident that prohibited me from driving my car any longer because the repairs were so expensive.” Being prepared is key to being a successful car owner. Karmen Rosiles 11
*Financing = breaking the cost of your car into monthly payments but does come with interest fees. Casey Baca, a sales representative from McGrath Lexus of Westmont, recommends having a co-signer or sixty percent down as a deposit for those with little or no credit in order to lower interest rates.
Own the Car, or Share Your Ride Ride-sharing and car ownership are very convenient when getting from place to place, but which option saves you the most money? There are varying amounts of money spent in different areas when it comes to ride-sharing and car ownership. Depending on how much ride-sharing costs, as well as how much one ride-shares, it may be just as costly as car ownership “I think you will spend more money using ride-sharing apps, because you are paying for the distance you are traveling. A full tank of gas usually lasts me a week, and with ride-sharing, you are paying money for everywhere you want to travel.” says Kiara Hardin, a car owner Not only does having a car cost a good deal of money, ride-sharing can also cost a lot. According to CNBC (2018), the average amount of money spent on ride-sharing in the past month in Chicago is $66 for Uber and $52 for Lyft. A recent NerdWallet study compared the costs of rides-haring and car ownership in 50 U.S. cities. It found that while owning a car is cheaper than ride-sharing for the average driver in all the cities surveyed, there are still some drivers who believe ride-sharing is a good alternative to car ownership. “Ride-sharing is the optimal choice when you are in need of a ride. Ride-sharing is very convenient in different situations such as when parking is non-existent”, says Ahmasi Martin, a proud user of ride-sharing. According to citylab.com, more people are using ride-sharing apps and the percentage of teens getting their driver’s license continues to decline. So, are you going to share your ride or own your ride? Track your spending to determine which transportation option, including public transportation, is best for you! Amari Martin
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The Racial Wealth Gap & Steps to Saving Success funds so there is no need to catch up. Chrystal Irving ‘Get Crowned extensions’ CEO states, ”What youth should do to keep in the loop about financial literacy is to speak with their current employer to make sure that they know about what benefits are being made available to you.” Linda Patrick, an African America professional and pharmacist, recommends, “SAVING… working where the money is at … & being financially literate.” How can people know how to save for retirement upon employment? According to a recent poll completed by Time.com, over 50% of people do not have a savings plan set for their futures while in their 20’s and 30’s. This is important because the first step on the path to a secure retirement is to set a savings goal; studies show that people who commit to a financial plan save more than twice as much as those without a plan (Time.com). Make a savings goal and start learning about saving and investing today! Learn more at EconCouncil.org.
“White families accumulate more wealth over their lives than African American families, on average, which widens the wealth gap as they age. In their 30s, whites have an average of $140,000 more in wealth than African Americans (three times as much). By their 60s, whites have over $1 million more in wealth than African Americans (11 times as much).” (Brooks, Forbes.com, 2017)
Alexiea Feaster New programs like Secure Choice in Illinois are making retirement savings programs more accessible. Learn more at www.ilsecurechoice.com. Ask your employer about benefits when you start working or if they do not have retirement benefits ask your banker about options such as a Roth IRA or other retirement savings plans. Start learning more NOW before you start working!]
How can you prevent such a thing from happening to you? What can be done about the racial wealth gap to make retirement easier for everyone? Start strategizing how to save more money! Start young! One answer is for everyone to start research on financial literacy early so that while on the journey of wealth all people can efficiently gain more knowledge to increase
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INVESTMENT 101 Did you know that over 20 billionaires started out with nothing (Bloomberg, 2010)? So how did they each turn the tables around to become one of the wealthiest people in the world? One answer is through investments. Investment is the action of putting money into something to make a profit. There are many different types of investments, but there are three specific types that most people talk about; stocks, mutual funds, and bonds. What exactly is the difference between the three different types of investments?
portfolio. A diverse portfolio is a mixture of stocks from different industries. By having a wide variety of stocks, a mutual fund reduces the risk of the investment. For example, a farmer who only grows apples operates at a higher risk compared to a farmer who grows apples, bananas, and pears when the market for apples decreases. According to Zac Brown, a Principal and Portfolio Manager at Milliman, a mutual fund is a good investment to consider, not only for beginners who just started investing but also advanced investors like him.
Stocks are shares of ownership of a certain company. When people talk about stock, often you hear Wall Street mentioned. Wall Street is known as the financial district and is the home to the world’s two largest stock exchanges. A stock exchange is a market where securities like stocks, bonds, and options are bought and sold. Stocks are oftentimes riskier, but there’s a chance of a high return. According to Investopedia, if you had purchased $100 in Apple stocks at the beginning of 2002, the value of your stock would’ve been $5,000 by 2016 which is 50 times the original investment. In other words, you would’ve made $4,900 through a stock investment which could get you a used car BUT stock prices can also go down. Investing, especially in one individual stock, is risky!
Bonds are basically loans that must be repaid over time. Bonds have the least risk out of the three because the money is required to be paid back. At the same time, bonds will have a lower return compared to the other two investments. There are few keywords that will help you understand bonds. Those are bond principal, maturity date, and interest rate. The principal is the total balance that was loaned out to the borrower. An interest rate is set at a certain percentage and that is the amount the borrower must return along with the principal. Lastly, the maturity date is the day in which the bond has to be fully returned.
A mutual fund is a portfolio of stocks from different companies. Mutual funds are usually less risky than purchasing individual stocks due to their diverse
Stocks, mutual funds, and bonds are all investing options. As a youth, investing might sound scary, but it could be interesting and it could even lead you to a career field to go into. There are lots of investing apps that youths can use to try and to learn how to invest. For example, Rapunzl is a mobile app that is easy to use and helps teach youth how to invest. The app provides you with an imaginary ten thousand dollars to invest in any stocks, and it shows the real-time market so you can form your own stock portfolio. There are many ways to start investing and starting early may get you closer to become a millionaire or even a billionaire! Min Zhen Chen
Thank you to the CFA Society of Chicago for your partnership and volunteer support.
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WORLD CUP SALES The FIFA World Cup is a one-month soccer tournament that occurs every 4 years. Across the world, people watch 64 games with 32 different national teams qualifying for this tournament. Only one nation will become the champion of the world.
customers. We feel that inspiring our customers to come back helps a lot.”
Many businesses all over the world have benefited from this year’s World Cup. This year Adidas reached record-breaking sales for World Cup jerseys. Adidas outperformed rival, Nike, this year. According to independent .ie Adidas sponsored more teams than Nike in this year’s World Cup “sponsoring 12 of the 32 participating teams, including strong contenders like Germany and Spain, along with hosts Russia.” Adidas represented over 25% of the nations in the world cup and being the creators of the official match ball helped the brand exposure. “The World Cup has impacted our business a lot", said Sarah, General Manager of Adidas in Chicago. She went on further to say, “I still get amazed by the things the brand does with their innovations such as Kanye West’s Yeezys. It makes my heart warm that the brand is getting more involved with the environment.” When asked about competitors she responded, “We don’t really focus on our competition with other brands. We honestly just do our job and that is just serving our customer to the fullest. We try to make every moment possible matter to our
Various Adidas jerseys, such as Mexico’s illustrious away jersey, Egypt's away, Sweden's away, Korea's away, along with Japan’s home jersey, are all sold out from Adidas. Cesar Villegas, a sales associate at the Adidas Store at the Water Tower Place, expressed how crazy jerseys flew off the shelves. “Mexico’s away shirt sold out so fast and I was excited to see everyone hyped up about the World Cup especially my country since everyone wanted the jersey.” Rival company Nike also thrived with jersey sales this year. Nigeria’s home and away jerseys sold out within 15 minutes of the release. In addition, both home and away jerseys are sold out for Croatia and France who played in the World Cup final. However, according to independent.ie, Nike saw soccer sales fall a currency-adjusted 4pc to $2bn for its fiscal year ended May 31, 2017, accounting for less than 6 pc of gross revenue. Overall, Adidas has bounced back from losing money in 2014’s World Cup in Brazil and has made record-breaking sales for this year’s 2018 Russia World Cup. Adidas stock market value rose +0.50 while Nike went down -0.74. The two corporations will continue to battle it out in the growing soccer industry which is reaching more American fans year by year.
Miguel Agyei
AVERY CURRY
2018 Get your money right scholarship winner: Avery Curry is our 2018 Get Your Money Right Scholarship winner. She recently graduated from Westinghouse and is headed to Converse College is South Carolina. Here is what she had to say about saving money: “I learned that having a savings account is extremely important to have in case of emergency. I also learned the difference between subsidized and unsubsidized student loans. I think the most important thing I learned was how to file my own taxes because that’s not something you usually learn in class. I believe this scholarship will help anybody. It would be a privilege for anyone to obtain this extra money for college. But personally this scholarship would help pay for my books. I am well aware that college books are very expensive and they are a huge part of my education. This money won’t only be extra money I could use in case of an emergency, but money that will let me have the privilege of an education, something 95% of my family didn’t have the chance to obtain due to the lack of money.” 15
THE IMPACT OF GENTRIFICATION Over the past decades, many neighborhoods in Chicago have changed. Often, these changes are brought by gentrification, the "socioeconomic upgrading of a previously low-income neighborhood characterized by the influx of higher socioeconomic status residents and an increase in housing prices" (Ding and Hwang 29). Although this may sound positive, because it improves low-income communities and brings in revenue, it is far more controversial. Gentrification affects the community financially and culturally in both positive and negative ways. Community members and political officials argue that gentrification brings improvement to the community.
Increased home values encourage mortgage borrowers to continue their investment because their home is worth more and will provide a profit when sold. Gentrification also indirectly may affect credit scores. Improved economy, increased labor market and improved access to financial services may help individuals pay loans, which may improve their credit score. Access to financial services like banks can help individuals manage their spending and provide effective planning on repaying loans through financial planning sessions.
According to "The Consequences of Gentrification: A Focus Residentsâ&#x20AC;&#x2122; Financial Health in Philadelphia" written by Lei Ding and Jackelyn Hwang, gentrification improves economic status and increases the labor market. As the neighborhood continues to grow, more restaurants, bars, and stores open. These new businesses provide new jobs for the community, bring in revenue, increase property values, and attract more people to move in. New lending institutions come in and provide access to financial services.
A person's credit score is very important. It is necessary for receiving any type of loan, including loans for a car or a home. It tells the lender how reliable or unreliable you are at repaying your loans. With a higher credit score, you are more likely to have a lower interest rate on your loans, which helps you save money over time. Studies show that "Residents who do not move from gentrifying neighborhoods experience an average increase of 11.3 points in their Equifax risk scores" (Ding and Hwang 36).
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Despite the benefits of gentrification, there are multiple downsides that concern many community members and political officials. Gentrification increases the cost of living in the neighborhood. Increased rent, property taxes, and rising costs of living may cause financially vulnerable residents to leave. Difficulty in paying rent, property taxes, or other credit accounts can hurt lowerincome families' financial health and credit scores. Less advantaged residents may have to move to lower income neighborhoods with fewer opportunities for financial services. The correlation between gentrification and displacement is concerning for many critics. Research by the UC Berkeley Urban Displacement Project found a strong link between gentrification and displacement in a high-gentrification city like San Francisco. Nearly 26% of the families surveyed in the UC Berkeley study are at risk of displacement because of gentrification.
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WILL CPS 2018-2019 SCHOOL YEAR BUDGET AFFECT EDUCATION IN A LOW-INCOME NEIGHBORHOOD? In the 2018-2019 Chicago Public Schools (CPS) budget, there are plans to make certain schools state of the art. CPS plans to invest $75 million dollars into this development, but according to the Chicago Tribune (December 2017), CPS plans to close 4 neighborhood schools in Englewood next school year. Local residents have expressed both concern for local students and understanding of the CPS financial struggle. Beverley Davis, a private school pre-k teacher in Englewood, expressed concerns about the impact, and said that, "traveling expenses will be too great." Her concern is that this may impact graduation outcomes in this neighborhood. An average family in Englewood annual salary is $18,900. This likely means the average family is living pay check to pay check as the average household size in Englewood is a family of five. Charles Wilson, a graduate of Lindblom Math and Science High School, was a product of CPS schooling. Mr. Wilson has traveled all across the globe to inform youth to pursue a career in Energy. Mr. Wilson stated, "From a business standpoint, CPS doesn't want to invest money into schools in which only ¼ of the population [capacity of the school] shows up. To change CPS investment vision people must move to low-income neighborhoods and begin to build businesses." How can the new CPS plan accommodate all of CPS and receive better results at every school CPS? Perhaps CPS can consider some past successful models for schools during the renovation process. For example, Lindblom Math and Science Academy increased its student attendance and college acceptance rates since reopening. It is a challenge, but perhaps, with a new high school in Englewood, CPS can steer to invest and make more STEM or other attractive programs within the new plan in lowincome neighborhoods to help with attendance and performance issues while staying within budget.
D'Quan Mathes
NIA ROBISON
2018 ON THE MONEY SCHOLARSHIP WINNER The Economic Awareness Council was extremely proud and excited to select Nia Robinson as our 2018 On the Money Scholarship Winner. Nia has been a 3-year intern with On the Money Magazine. Nia was selected as Vice President in her junior year of high school and served as President for her senior year. Nia is attending the Wharton School of Business at the University of Pennsylvania. “The past three years of working with On the Money Magazine has led to some of the most rewarding and memorable moments of my life. When I joined this company, I started as an intern in the marketing team, and today I stand as the president of the magazine. Seeing this company become more successful everyday has led me to believe in my capacity to make a difference. “As I see the leader I have become in my community, I realize that my work with On the Money Magazine has shaped me into a person I am proud to be. When I present myself to the world in my collegiate and professional life, I will do so in remembrance of what the past three years of OTM has taught me. I am thankful that I was given the chance to be a part of something as amazing as On the Money Magazine.” 17
ONE MILLION DEGREES: Increasing Opportunity for Chicago Students There are seven community colleges that serve in the City of Chicago. The schools offer opportunities for students from different backgrounds to complete their academic programs in order to advance them in their education or career. According to Mayor Rahm Emanuel and the City Colleges of Chicago, the schools have a record graduation rate of 22.9 percent (2018), an increase of 108 percent since (2011). With a higher graduation rate, there is a need for resources that can aid the future success of community college students.
and a community to lean on to transition to city colleges and to have a successful transition to 4-year university.”
Students are required to attend monthly sessions at their campus. The first session focuses on scholar development and the second session allows scholars to meet with their assigned professional coach. Arielle Semmel, an OMD coach since 2011, believes the best part about being a professional coach is getting to know the OMD scholars. “They are an amazing and inspiring group of individuals who teach me new ways to understand my city and the world and myself in them.” The students are required to Kaliah, One Million Degree Scholar & One Summer One Million Degrees, founded in 2006, is attend one-on-one meetings with their program Chicago Financial Capability Award Winner a program that supports students from low- Photographed with Juan Gonzalez of the Office of the coordinator on campus. Program coordinators Mayor of Chicago. income communities in their academics, engage with scholars throughout the year, future careers and personal life. One Million Degrees partners making sure scholars maintain the expectations of the program. with all seven City Colleges of Chicago and several other Illinois community colleges. The program follows a scholar development Many positive outcomes have come out of the program. According model, which offers financial, academic, professional, and to One Million Degrees 2016-2017 annual report, 83% of OMD personal support for each of the students. Students receive a scholars graduated or persisted in OMD for the full academic tuition stipend for the academic year to prevent financial barriers year. About 90% of OMD Alumni are employed or continuing on educational expenses. When asked about why she decided their education or both. One Million Degrees continues to to apply to One Million Degrees through the City Colleges of grow every year with new scholars joining the program and Chicago, Kaliah Little responded she “knew from an experience new opportunities awaiting them. Learn more at https://www. at another school, [she] needed support, accountability, a network onemilliondegrees.org.
Serena Taylor
LRNG Digital Badging Summit This past summer I was able to attend the LRNG Digital Badging Summit where I learned about the future of digital badging. Never heard of badging? You will! In the future, digital badging will become a popular avenue for awarding many people for online learning. Besides the “Be Payday Ready” and “Be Credit Ready” badges I am familiar with here at On the Money through LRNGOSC.org, an online learning website, there are hundreds of other online badging websites. So what are digital badges? Digital badges are a way to show that Entreprenuership you understand a concept and they are awarded through a series Ready of online modules on a topic. For example, at On the Money, we worked with LRNG to create a “Be Payday Ready” badge where students could learn about how to bank, save, and use direct deposit. Students are quizzed and have to give responses to show their understanding of the concept that they are learning. In the end, if they do well, they earn a “Be Payday Ready” badge that can be used to show employers that they understand how banking, saving, and direct deposit works. It was incredibly fascinating to learn about digital badging from so many people who were passionate about the subject. I would definitely recommend checking out digital badges that you can earn. Check out the new Like A Boss playlist from the Economic Awareness Council at LRNG.org.
Nia Robinson
Nia at LRNG Summit
18
With the Pitchfest Competition & United Way of Metro Chicago AmeriCorps Program, participants AND the Community are the Biggest Winners On August 3rd, I was able to attend a United Way of Metro Chicago AmeriCorps event, Pitchfest, located in the Pilsen neighborhood. Nine local community entrepreneurs, who were also part of AmeriCorps, came on stage and presented in front of judges. There were many great presentations but a standout among those present was Stephanie Ortiz, who created Glasses for Success. This organization, based in Cicero, helps low-income families by providing free glasses for students in pre-K to 8th grade. Statistics show that many students fail academically in reading, writing, and math because they are not able to see well. Congratulations Stephanie and Glasses for Success! We wish you the best of luck in your future endeavors! About a month later, on September 28, 2018, the United Way of Metro Chicago’s AmeriCorps members graduated from their program having completed 1700 hours of service in their program placement. Many were offered full-time positions to work in the same field that they were volunteering in while others started networking with people for future jobs. Among these AmeriCorps graduates was Gabriela Juarez, who was working in the Little Village area and was offered a job as an Operations Manager for the program she was working for. Michelle Ramirez, who was the AmeriCorps Member of the Year, adds a word of advice. She says, “(I am) very intentional with who I spend my time. Surround yourself with positive people that boost your confidence.” Every AmeriCorps member believes in serving the youth, community, and families. The whole purpose of the AmeriCorps program is for people to serve as mentors, tutors and role models in their own community. If you are interested in more information on how to get involved with the AmeriCorps program, please visit AmeriCorps.gov and ucmc.org.
Jennifer Baeza
KAILYN BATES
2018 TEEN ENTREPRENEURSHIP WINNER On September 22, 2018, the Teens In the Park (T.I.P.) festival, sponsored by the Chicago Park District and the Department of Cultural Affairs and Special Events (DCASE), was held in downtown Chicago. TIP Fest is a gathering of teen performers and entrepreneurs who perform live. Among those entrepreneurs was Kailyn Bates, who was the winner of the On the Money Entrepreneurship competition. Not only did Kailyn win seed funding for her business but she was able to expand her business by networking with youth at that event. “It was an honor to be selected to be a featured vendor. I got to improve my marketing skills and meet many teens and their parents. I received a lot of positive feedback and look forward to new potential partnerships. Listening to cool new music and telling people the coolest way to go to college for free was a great way to spend a Saturday!” commented Kailyn. Different businesses and performers attracted people from all over the city to the TIP Fest. The event was a success and brought many teens together. To learn more about applying to be featured in the next TIP Fest, visit OntheMoneyMagazine.org.
Jennifer Baeza
Thank you to DePaul University & DePaul's University Center for Writing-based Learning (UCWbL). Thank for hosting our On the Money meetings & for the support of your writing mentors. 19
In the know On page 10, Kayla Lucas highlights tips for building credit. Find the top 3 factors used to determine your credit score using the chart below. The chart below lists the things that credit reporting agencies think about when figuring out your credit score. It also shows how important each item is. (For example, “payment history” is the largest section of the chart at 35%. This means that “payment history” is the most important factor or item in setting your credit score.) A list of what each item like “payment history” means is included to the right. PAYMENT HISTORY = a record of previous credit payments including bill payments, credit card payments, etc. (Bankruptcies, delinquencies, accounts not paid or late payments will hurt your credit score.) AMOUNT OF CREDIT = the amount that you owe as a percentage of your credit limit (Owing too much or “maxing out” your cards hurts you.) LENGTH OF CREDIT = a record of how long you have had your accounts open (Having a short credit history will hurt your score.) TYPE OF CREDIT = a listing of the types of credit you have – loans, credit cards, etc. (Having a positive record of managing credit card and loan payments helps you.) NEW INQUIRIES = a record of new inquiries or applications for credit (Having too many applications for credit can hurt your score.)
35 15
30 Source: myfico.com
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