Kara McGuire - The Teen Money Manual: A Guide to Cash, Credit, Spending, Saving, Work, Wealth, and More

LETS MAKE SOME MONEY!

Everyone loves paydayfrom the first quarter you earned for setting the table to the weekly allowance you squirreled away to buy toys or iPhone apps. Then comes the day of that first official paycheck and all of the responsibility that goes along with it. That includes spending wisely and saving for the future. It means making smart decisions but still having fun. Learn all about the ins and outs of making moneyfrom paychecks to paying taxes, finding jobs, and starting businesses. And best of all, learn how to earn money without lifting a finger.

CHAPTER ONE

Its common for teens to juggle schoolwork and paid work, whether its the occasional babysitting job or waiting tables 20 hours a week at a restaurant. Teens need money for hanging out, for hobbies, or for gas for the car. Then there is the cost of big things, such as saving for a car, helping with college tuition, or taking an overseas trip with the school orchestra. Its understandable why sometimes earning money seems more important than keeping up grades or working on college applications.

Your number one job as a teen is to get good grades, gain experiences from school and community activities, and prepare for higher education. Your education affects job opportunities and how much you will be able to earn. The lifetime median earnings of a worker with just a high school diploma is $1.3 million. It may sound like a ton of money today, but it averages to $15 per hourthats not much once you consider daily expenses and how long you could live. Americans with a bachelors degree can plan on median lifetime earnings of $2.3 million. Those who stay in school for a doctoral or professional degree, such as medicine or law, earn a median of $3.6 million.

Although there are certainly exceptions to this rule, having a college degree increases your chances of earning more money and opens more doors to interesting, fulfilling careers. As the chart indicates, nearly 80 percent of people who earn $200,000 a year or more have a bachelors degree or higher. Less than 10 percent of people at that income level have only a high school education.

If a four-year college is not in your plans, some peoplesuch as electricians, construction managers, and sales managershave average lifetime earnings that come close to the earnings of workers with bachelors degrees.

Source: Census and http://taxfoundation.org/article/who-are-americas-millionaires#_ftn5

Heres something to think about when you go off to college. The average starting salary for college grads in 2014 was $45,473.

Source: National Association of Colleges and Employers Salary Survey, April 2014
https://www.naceweb.org/uploadedFiles/Content/static-assets/downloads/executive-summary/2014-april-salary-survey-executive-summary.pdf

Mo money, mo problems. Biggie Smalls

Well now, money cant buy you happiness, but neither can poor ole me. Hank Williams Jr.

Hank and Biggie were wrong. More money does not automatically equal more problems. And while you cant buy happiness with cold, hard cash, researchers have found that when people expand their income, they report more life satisfaction, no matter how much money they start with.

WHEN WILL YOU BE A MILLIONAIRE?

Thats rightnot if, but when. You can earn more than $1 million in your lifetime by following these tips.

1. Stay in school. Keep learning, whether its college or a training program for a good job.
2. Know where your money goes. Track your spending and have a plan for your money. If you dont, youll be surprised at how quickly it disappears.
3. Start saving. Because of the magic of compound interest, the earlier you start to save, the more your money will grow. Even putting aside a few dollars each paycheck is worthwhile.
4. Spend smart. If you spend nearly as much or more than you make, youll have a hard time reaching seven-figure savings. Research before you buy and consider needs, wants, and long-term goals before shopping.
5. Take calculated risks. Dream big. Try new things. Dont be afraid to fail. But make sure the risks youre taking make sense and fit with your overall life plan.

Millionaire Calculator

Theres an easy online calculator for figuring how long it will take to earn $1 million, depending on the savings plan and amount saved per year. Check it out at themint.org .

Source: http://www.themint.org/kids/when-will-you-be-a-millionaire.html

BALANCING WORK AND SCHOOL

While being a student is your primary job, paid work comes with benefits beyond a paycheck. A job can teach you responsibility, time management, teamwork, and how to keep commitments and manage money. These are lessons youll use throughout life. They also come in handy for writing college application essays and deciding on a career.

Balancing work and school is a juggling act that requires support from your family and an organizational plan. Some ideas to keep you balanced include:

1. Keep a calendar of school and work commitments and consult the calendar before making plans.
2. Stick to a weekly schedule, if possible, working the same number of hours and days.
3. Start slowly. This will prevent overcommitting to work hours you cant handle.
4. Ask your boss if you can use downtime at the job to do schoolwork. But dont count on downtime. When youre at work, the job comes first.
5. If work is interfering with your success at school, youll have to cut back on work.

JOBS WHATS HOT

The following jobs will be the 10 fastest-growing occupations between 2012 and 2022, according to the U.S. Bureau of Labor Statistics.

Source: http://www.bls.gov/ooh/fastest-growing.htm

FINDING A JOB

Having fun money is tops on teens lists of reasons for getting a part-time job. Saving for college is important too.

But finding a part-time job can be challenging. The teen unemployment rate has stayed above 20 percent since the Great Recession of 20072009. You can look for a job through help-wanted ads in the newspaper, online at sites such as indeed.com or monster.com , or by searching for notices on bulletin boards or signs in storefronts.

If you dont find a job scooping ice cream or selling clothes at the mall, its OK to ask around. Networking is an important skill and a common way for adults to find new opportunities. Ask your friends, people you know through school or extracurricular activities, your neighbors, and your family for ideas. The more people who know youre job-hunting and know the kinds of opportunities that interest you, the more likely youll find the perfect job.