Angela Williams - Financial Independence for Teens: Teen Finance Series

Teen Finance Series

Financial Independence Information For Teens, First Edition

Teen Finance Series

Financial Independence Information For Teens, First Edition

Tips for a Successful Financial Life

Including Facts about Financial Literacy, Teen Employment, Internships, Budgeting, Basic Banking, Tax Education, Managing Expenses, and Credit Scores

615 Griswold, Ste. 901

Detroit, MI 48226

Bibliographic Note

Because this page cannot legibly accommodate all the copyright notices, the Bibliographic Note portion of the Preface constitutes an extension of the copyright notice.

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OMNIGRAPHICS

Angela L. Williams, Managing Editor

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Copyright 2019 Omnigraphics

ISBN 978-0-7808-1581-0

E-ISBN 978-0-7808-1582-7

Library of Congress Cataloging-in-Publication Data

Title: Financial independence for teens.

Description: 1st edition. | Detroit, MI : Omnigraphics, [2019] | Series: Teen finance series | Angela L Williams, Editorial Manager. | Includes index.

Identifiers: LCCN 2018049167 (print) | LCCN 2018050656 (ebook) | ISBN 9780780815827 (ebook) | ISBN 9780780815810 (hardcover : alk. paper)

Subjects: LCSH: Teenagers--Finance, Personal. | Financial literacy.

Classification: LCC HG179 (ebook) | LCC HG179 .F4623 2019 (print) | DDC 332.02400835--dc23

LC record available at https://lccn.loc.gov/2018049167

Electronic or mechanical reproduction, including photography, recording, or any other information storage and retrieval system for the purpose of resale is strictly prohibited without permission in writing from the publisher.

The information in this publication was compiled from the sources cited and from other sources considered reliable. While every possible effort has been made to ensure reliability, the publisher will not assume liability for damages caused by inaccuracies in the data, and makes no warranty, express or implied, on the accuracy of the information contained herein.

This book is printed on acid-free paper meeting the ANSI Z39.48 Standard. The infinity symbol that appears above indicates that the paper in this book meets that standard.

Printed in the United States

Preface

About This Book

The U.S. Bureau of Labor Statistics (BLS) reports the number of youth working, from the age of 1624 years have increased from 2 million to 20.9 million from April to July 2018. With the technology boom and information at finger tips, the way teens earn, shop, and live have drastically changed. A proven fact, teens want to have a certain degree of financial independence and a guaranteed way to be able to achieve that independence is a job. Work always gives financial security and help meet needs. However, the challenge here for any teen is to find the right job and choose a career path that would benefit them in future.

Financial Independence Information For Teens, First Edition provides insights on knowledge related to financial capability and literacy for teens. It gives the reader information on labor laws, teen workforce participation, age requirements, various kinds of employment available in the market, job search and rsum preparation, self-assessment, career planning, apprenticeship, internships, etc. It also explains the necessary management skills needed at a workplace, basic workers right, and work-life balance. Information on budgeting, saving, investing, money management, and taxes, and importance of working with professionals is also included. It discusses about housing options and legal formalities related to it, transportation, and opportunities to study abroad, financial aid for education, etc. The book concludes with a list of online money management tools and a directory of resources for financial information.

How to Use This Book

This book is divided into parts and chapters. Parts focus on broad areas of interest; chapters are devoted to single topics within a part.

begins with a brief insight on the emotional and physical factors determining whether a teen is ready to be financially independent, the barriers they face, and how parents can guide and ensure their success. It also provides information on minor emancipation laws, how teens with disabilities can experience financial independence, and the barriers faced by teens in foster care to achieve financial independence.

deals with the process of getting employment. It begins with an overview of legal requirements for getting employed, laws pertaining to child labor, statistics of teens in the nations workforce, the types of employment available for teens, including internships, opportunities, and hazards related to the workplace. It also offers information on tools essential for job search such as networking, job search strategies, workplace ethics, workplace stress, balancing work and life, and concludes with rights and safety aspects for teen workers. Additionally, it deals with jobs for disabled teens and self-employment opportunities.

focuses on budgeting, saving, investments, financial knowledge, financial empowerment, and taxes and tax benefits for education. It also presents basic facts about banks and banking, managing money, and how to work with financial professionals.

focuses on housing options for teens who prefer to lead an independent life, besides legal issues related to renting, maintenance, and sharing responsibilities. It also discusses about sharing room, landlord requirements, landlord and tenant responsibilities, managing expenses, and details about finding and applying for a scholarship and financial aid for studying abroad.

dwells upon future financial and educational goals, career decisions, ways to protect and rebuilt credit score. Additionally, it deals with day trading, earning potential, options for earning online, and fraud prevention.

offers resources for financial independence.

Bibliographic Note

This volume contains documents and excerpts from publications issued by the following U.S. government agencies: Centers for Disease Control and Prevention (CDC); Consumer Financial Protection Bureau (CFPB); Federal Deposit Insurance Corporation (FDIC); Federal Trade Commission (FTC); Internal Revenue Service (IRS); National Institute for Occupational Safety and Health (NIOSH); National Resource Center for Youth Development (NRCYD); Occupational Safety and Health Administration (OSHA); Office of Housing and Community Development (OHCD); Office on Womens Health (OWH); TreasuryDirect; USA.gov; U.S. Bureau of Labor Statistics (BLS); U.S. Department of Education (ED); U.S. Department of Homeland Security (DHS); U.S. Department of Labor (DOL); U.S. Department of the Treasury (USDT); U.S. General Services Administration (GSA); U.S. Small Business Administration (SBA); U.S. Social Security Administration (SSA); and Youth.gov.

It may also contain original material produced by Omnigraphics.

The photograph on the front cover is Real Deal Photo/Shutterstock.

Part One

Determining When a Teen Is Ready to Be Independent

Chapter 1

Financial Capability and Literacy

What Is Financial Capability and Literacy?

Financial capability and literacy are defined as the capacity, based on knowledge, skills, and access, to manage financial resources effectively. This set of skills can help youth achieve financial well-being that happens when they can fully meet current and ongoing financial obligations, feel secure in their financial future, and are capable of making decisions that allow them to enjoy life. Financial education is how youth can learn these skills through a variety of resources and programming.