Sabrina Lamb, executive director of World of Money, talks about financial literacy for teens on thew Brian Lehrer Show.
Why is it important to be financially responsible? – Branden, Age 13
To be financially responsible is important in our everyday lives. Being financially responsible means to respect money and make good financial choices. You have to first believe in yourself and know that you are able to be successful in life. This attitude starts by doing well in school and getting good grades, which can lead to attending great college. Planning for our future is part of what it takes to be financially responsible.
To be financially responsible requires a few simple steps and procedures that include being aware of the power of money and being responsible with money. This also includes buying stocks, saving money spending money and most importantly making smart all around decisions.
Why it’s important to be financially responsible – Christopher, Age 12
In life, you have to make many decisions that will affect your future. An important decision is whether or not you will take your money seriously and be financially responsible. Everyone should want to be financially responsible for many reasons. First, financial issues can affect many aspects of your everyday life such as your house or belongings. Also, there are many ways that you get rewarded for being financially responsible. These are all examples why being financially responsible is important, as well as helpful.
There are many ways that financial issues can affect your personal life. If you go around spending all of your money, then you would have no more money to use on clothes, food, utilities, and your house. Also, if you were planning on getting a gift for a family member, then you would have no money left because it was irresponsibly spent. In addition, knowing how to budget your money can help you not spend too much of your money on things that you want and more money on things that you need. Lastly, being personal life because you must spend money on things that will help take care of your self. If you are sick, then you must buy some medicine or you endanger yourself and others around you. Your presentation is also affected by whether or not you are financially responsible because you need to buy deodorant, soap, shampoo, mouthwash, etc. But if you don’t have the money to buy these things, then people assume that you are not well kept.
Financial Illiteracy Will Make Us a Permanent Underclass
These days, I’ve become increasingly alarmed by the growing pattern of recklessness and neglect that seems to govern the management of our personal finances. Recent actions—or I should say inaction—by large numbers of African Americans have prompted me to suggest taking a bold step and declare a state of financial emergency. I make this assertion not for dramatic effect but to bring attention to the need for us to take corrective measures. If not, this self-destructive behavior will continue to threaten the future of our families for generations to come.
Let me give you an example. I recently discovered much to my dismay, that 21.7% of African American households are “unbanked,” while 31.6% are “underbanked,” compared with 3.3% and 14.9% of white households, respectively. What does this mean? As a member of the unbanked, you’re walking around without a checking or savings account. The underbanked rely primarily on nonbank money orders, check-cashing establishments, and payday loans to conduct transactions.
1) Review Ones’ Family Money Culture. Parents will complain about kids thinking, “money grows on trees.” Parents must be financial role models.
2) Have Cogent Conversation. Let them know what expenses are and how they are paid. It’s okay to talk about the bills–mortgage, gas, landscaping, food, etc. Start talking as early as possible: educate, inform and empower.
Damon Williams turned a passion for athletic shoes into a stock portfolio worth $50,000. The best part? He’s only 15 years old.
Featured Teen: Jasmine Lawrence, CEO, Eden Body Works
Jasmine Lawrence, a 17-year-old at the Williamstown High School, is arguably one of the most successful teenage entrepreneurs in the country. Jasmine’s business was inspired by a regrettable incident with a hair relaxer that made all of her hair fall out at the age of 11 – and she was determined to create safe organic products for other women.
Desperate to make her hair grow back, Jasmine researched and experimented with organic products, and stumbled onto a formula which helped her hair grow back. Word spread throughout her community, landing her a spot on Oprah and a deal with Whole Foods Market (which carries her line of bath salts). She has recently negotiated a deal with Walmart – all before the age of 18.
“My mom was like, ‘Maybe you can start the business when you are 20 or when you get out of college.’ ” Now, Archer is bringing in six-figure sales and has customers as far away as Ghana, Switzerland, Indonesia and Iceland.