“Money, like emotions, is something you must control to keep your life on the right track.” -- N. Munson
It’s always a surprise when an individual looks at their first paycheck. The document labeled Your Paycheck provides an overview of the taxes and other items that are taken out of the amount of money that an individual earns. It is important in money management discussions that youth consider their total net salary and not their gross wage when making financial plans. We’ve also included a Sample Paycheck with a detailed description of the check components.
We highly encourage all teenagers and young adults to start a bank account. Learning Banking Basics including how to use the bank and the various account options is a critical life skill. Here’s a simple outline of talking points to review when discussing banking. Having a bank account can keep money safe and also could potentially help earn money through the interest received from keeping money in the bank.
There’s a very good chance that a young adult will have a credit card. They may have even been encouraged to get one for emergencies or to build up a credit history. Students increasingly have been using credit cards to finance living expenses and education, a necessity for many given the rising cost of education. Despite the name, credit cards are in fact loans, requiring repayment with interest. Paying high interest on educational expenses means overpaying for college costs and the need for using credit cards must be balanced with the danger inherent therein. Take a moment to review this simplified document about Credit Cards . Be sure to encourage anyone you are working with to shop around for various credit cards and read the fine print about payments and interest charges.
Here are some basic tips for looking at your projected monthly cash flow and considering careers that meet your financial needs. Use these directions for working through the Monthly Expenses document.
Many individuals often lose sight regarding the true importance of an education. In the most basic sense, education is important in society because without the obtainment of a high school diploma, GED or college degree, an individual will invariably face barriers and impediments regarding their ability to obtain a job. Without a basic education, individuals will have a difficult time functioning, earning an income, and being able to raise a family. The attached document labeled Education Pays outlines the significant pay differences for an individual with minimal education, versus an individual that obtains advanced college degrees. Also, outlined in this document is the employment rate based on educational attainment.
Many youth, parents, and educators forget that there are other viable career choices that an individual can pursue without getting a college education. These are good careers that result in high wages and are in-demand fields. Apprenticeship Options outlines the career choices in the apprenticeship fields in California. We highly encourage youth that are interested in these options to visit an apprenticeship program and talk to the teachers and tour the facility. It should also be noted that many apprenticeships offer college credit for the training that an individual receives.