Keith Jones - Cash and Credit Information for Teens: Teen Finance Series

Teen Finance Series

Cash And Credit Information
For Teens, Third Edition

Teen Finance Series

Cash And Credit Information
For Teens, Third Edition

Tips For A Successful Financial Life

Including Facts About Earning Money, Paying Taxes,
Budgeting, Banking, Shopping, Online and Mobile
Payments, Using Credit, And Avoiding Financial Pitfalls

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

a part of Relevant Information

Keith Jones, Managing Editor

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Copyright 2017 Omnigraphics

ISBN 978-0-7808-1551-3

E-ISBN 978-0-7808-1552-0

Library of Congress Cataloging-in-Publication Data

Names: Omnigraphics, Inc., issuing body.

Title: Cash and credit information for teens: tips for a successful financial life, including facts about earning money, paying taxes, budgeting, banking, shopping, using credit, and avoiding financial pitfalls.

Description: Third edition. | Detroit, MI: Omnigraphics, 2017. | Series: Teen finance series | Includes bibliographical references and index.

Identifiers: LCCN 2017005676 (print) | LCCN 2017012232 (ebook) | ISBN 9780780815520 (eBook) | ISBN 9780780815513 (hardcover: alk. paper)

Subjects: LCSH: Teenagers--Finance, Personal.

Classification: LCC HG179 (ebook) | LCC HG179 .C346 2017 (print) | DDC 332.02400835--dc23

LC record available at https://lccn.loc.gov/2017005676

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

Todays teens are spending their own money, and theyre spending a lot of it. But the challenges that come with managing and spending that money have never been more daunting. Faced with greater personal responsibility for managing their own money, and changing technology that has created both opportunity and risk, todays teens face economic challenges unlike any previous generation. Unfortunately, many teens are lacking the basic financial literacy needed to meet those challenges. In fact, a 2016 survey by the Council for Economic Education indicated that more than one in six American teens did not reach the baseline level in financial literacy. The same survey showed that 72% of parents are reluctant to talk to their kids about financial matters. As a result the majority of todays teens remain unaware of basic financial principles, such as earning, budgeting, saving, establishing credit and managing debt. In addition, many teens are unaware of the risks that come with the technology that while making their lives easier, also makes their personal and financial information more vulnerable than ever before.

Cash and Credit Information For Teens, Third Edition, provides an updated look at how teens can earn and manage money. It provides practical information about receiving income, paying taxes, and budgeting. It also discusses choosing appropriate banking services, managing a checking account, using credit and debit cards, making informed shopping decisions, making payments online and over mobile phones and borrowing money for education or major purchases. A section on avoiding financial pitfalls provides facts about debt-related problems, identity theft, and common financial scams. The book concludes with a list of online money management tools and a directory of resources for additional 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 by outlining the five key principles of making money. It continues with information about career planning and common ways teens can acquire money including jobs, internships, and through entrepreneurship. Information about taxes on income and other earnings is also included.

discusses money management and budgeting. It describes banking basics, and offers tips on safeguarding your accounts and avoiding common money mistakes. It also provides information on protecting your assets, and offers suggestions on how to make your money grow. A chapter on how you can use your money to help others is also provided.

talks about borrowing basics and what you need to know about credit. It explains how credit works and the importance of building a good credit history. It discusses the factors lenders consider when making decisions about loaning money, and it describes the types of loans teens may encounter most frequently, including credit cards, car loans, and loans for education. Information on choosing a credit card and keeping your credit information safe is also provided.

provides tips about shopping and spending money wisely. It discusses ways to evaluate purchase decisions and describes the benefits and risks of various payment options, including cash, mobile wallets, credit cards, and online payment services. Individual chapters discuss some of the purchase challenges many teens face, including shopping for cell phone plans, buying a computer or tablet, and buying a car. The impact of social media and opinion driven purchasing is also discussed.

explains some of the most common problems that threaten financial well-being, including spiraling debt, predatory lending practices, and identity theft. It also cautions readers about the risks associated with various frauds, lottery scams, bogus fundraising activities, fraudulent work-at-home and internet schemes, pyramid and Ponzi schemes, telemarketing scams, and gambling.

includes a list of online money management tools and a directory of resources for additional information about personal finance.

Bibliographic Note

This volume contains documents and excerpts from publications issued by the following government agencies: Board of Governors of the Federal Reserve System; Consumer Financial Protection Bureau (CFPB); Federal Deposit Insurance Corporation (FDIC); Federal Student Aid, U.S. Department of Education; Federal Trade Commission (FTC); Financial Literacy and Education Commission (FLEC); Internal Revenue Service (IRS); U.S. General Services Administration (GSA); U.S. Bureau of Labor Statistics (BLS); U.S. Department of Justice; U.S. Securities and Exchange Commission (SEC); and U.S. Small Business Administration (SBA).

In addition, this volume contains copyrighted document produced by the following organization: The Nemours Foundation