I WANT YOU

$20WANT?

SPRING 2009

TO WORK HARDTHIS SUMMER

GET YOUR SUMMER ON TRACK!

LEARN, EARN AND SAVE!

CHECK OUT MONEY SMART

WEEK ON PAGE 4

TIPS FOR INTERNSPAGE 5

SEE PAGE 6

WRITTEN BY CHICAGO TEENS FOR CHICAGO TEENS

ON THE MONEY2 | SPRING 2009

Dear On The Money Readers, It’s about that time again … it’s spring now, which means summer is approaching. Now would be a great time to get a head start on summer job hunting. With this year’s recession, it’s imperative to have your own resources so get up off that couch and start searching. First stop should be the internet. If you Google teen

summer jobs, you will find more than 5,670,000 results. Your next step should be

narrowing the results down to positions that interest you and finding the requirements for that position Some places prefer for you to apply online. Take care of those applications first.

Your second stop before leaving out the house is to make sure you have a résumé and cover letter handy. Research the store’s hours of operation and call to see what days the manager is available. You are now prepared to go in and request an application. Head on over, dressed professionally, and then ask to hand in your résumé and complete an application. Turn these in with the manager, and be ready for the possibility of an on-the-spot interview. Preparation is the key to landing your desired job.

So you received that callback, everything is going according to plan. Maintain your professionalism because your defining moment is your first day, be punctual and show that you are reliable. Be open to handling any task and willing to learn new things. Jobs help you develop as a person because you gain responsibilities and leadership skills.

When the summer’s over and your seasonal job has ended, maintain these principles. If you were a great employee, it’s likely that your employer will rehire you the following summer and possibly give you a permanent position. Plus, if you leave on good terms, you will always receive good recommendations from your employer in the future. Most importantly be “Money Smart” and pay yourself first by saving some of your earnings for a later day. You are on your own now. Good luck and let me know how your journey went. Make sure you stay tuned for the Summer 2009 issue to learn more tips on making the most of your summer job and your summer money.

Sincerely,Manoucheka Airey, On The Money Editor-in-ChiefGet REAL WORLD job experience with ON THE MONEY MAGAZINE. See back cover for details.

Spring 2009

Manoucheka Airey, Hyde Park Career Academy (Student Editor)Myles Gage, 2008 Money Smart Kid, University of Chicago Laboratory SchoolMario Gage, 2004 Money Smart Kid, University of Chicago Laboratory SchoolNicolas Guzman, Brother RiceTashawn Tyus, Chicago Military AcademyMike Carson, Plainfield NorthAntonio Martinez, Lakeview High SchoolStephanie Moore, Lindblorn Math & Science AcademyJonetta Lenise, Hyde Park Career Academy

Elizabeth Thompson (Coordinator)Amy SteinBrian FrizzellJarrett SidawayTeresa SonkaDanny PendryJack Tench

ON THE MONEY SPRING 2009 | 3

With the economy in a recession, it is crucial for teens to know how to properly manage their money. I am going to share with you three simple tips to help you keep and grow your money. If you practice these tips regularly, they will become a habit, starting you on your way toward financial security. Whenever you get money, the first thing that you should do is donate 10% of your money to charity. In life, the golden rule is giving, and it is better to give than to receive. There are many organizations out there that you can donate to such as churches, domestic violence shelters, schools, etc.

The second thing that you should do when you get money is save 40%, because you are your most important investment. When you are saving money, the bank is the safest place. Many banks offer several types of accounts, with the main accounts being savings accounts and checking accounts. Just about every bank allows teens, along with a legal guardian, to open a savings account. According to Lawanda Hampton, a personal banker at Midwest Bank, “A teen who is under the age of 21 can open a savings account with their parent as the legal signer on the account.” Lawanda

Hampton goes on to say, “The account will be opened using the social security number of the minor, but the parent has to sign,” says Hampton. Some banks allow teens, along with a legal guardian, to open student checking accounts. Finally, after donating 10% of your money and saving 40%, you now have 50% of your money to spend. This is the money that you will live off of. First, buy what you really need, and only then what you want. You should always shop for sales, because in order to keep money, you must spend it wisely. The most important rule is to NEVER SPEND ALL OF YOUR MONEY.

Making It Worth Your Dollar

What do you need to start saving?

According to Lawanda Hampton of Midwest Bank, you will need your personal information and the information for the parent opening the account with you, including:

• Legal name

• Date of birth • Social Security number

• Home address

• A copy of the parent’s identification and the teen’s if applicable

How do other types of accounts compare with savings accounts?

Certificate of Deposits (CDs) Higher interest rate than a savings account that is fixed.You must leave your money untouched for a set amount of time; otherwise, you face a penalty fee.

Checking AccountsChecking accounts traditionally don’t pay interest. However, some banks have options to open up checking accounts, with more restrictions (i.e. a minimum balance), that pay interest.Checking accounts provide easy access to the money in the account, while savings accounts are designed for saving.

Bank Terms to Know

Social Security Number - A nine digit number issued to you for taxation by the government, also used for identification.

Bank Account - A fund that is set aside just for you with your money at a bank. Interest - Extra money that a bank may give you in return for keeping your money there.

Minimum Balance - The least amount of money that you can keep in your account without extra fees.

Deposit - To put money in your bank account.

Withdraw - To take money out of your bank account

By Mario Gage, University of Chicago Laboratory High School, Junior, Money Smart Kid 2004

What are Chicago teens doing with their money?

4%17%

79% SAVE & SPEND

SPEND IT ALL

DONATE, SAVE & SPEND

ON THE MONEY4 | SPRING 2009

On February 26th, America Saves, the City Treasurer of Chicago, the Economic Awareness Council, On the Money Magazine andTrue Star Magazine, hosted the Chicago Youth Saves conference at Fosco Park for over 75 young people in the city of Chicago.

As a high school student, I sometimes want things that I realize are not that important. However, this workshop taught young people like me the importance of budgeting money as a way to get the things you want and to prepare for your future. The America Saves - Youth Saves program told students how millionaires save money and what they buy with their money. The event was sponsored by Harris Bank, member FDIC, and HSBC – North America. Stephanie D. Neely, Treasurer of the City of Chicago, really captured the attention of the students. I think her words, “cash is good and credit cards are bad” taught me that credit cards are not a good use of money because they often add charges that

you wouldn’t have if you bought that item with cash. Since most youngsters are looking forward to being financially stable, the words and activities gave me a head start on what to do and what not to do. Exercises offered by financial experts and professionals showed students the importance of having good credit; the reality is that people are actually putting themselves in debt from credit cards. This entire event was an eye opener for all of the young people who attended. It personally bettered my life overall, and I will be sure to take these important facts with me later on in life. I now realize the importance of finances and understand that the

financial choices that I make today will determine my financial tomorrow.

Chicago Youth Saves: Event RecapBy Deleska Charleston, Sophomore, Manley Career Academy, TrueSTAR Reporter

“I now realize the importance of finances and understand that the financial choices that I make today will determine my financial tomorrow.”

The Chicago City Treasurer is a proud

partner of the Chicago Youth Saves

Conference, Money Smart Week and On the Money

Magazine.

Make a commitment to save this summer!

Be part of the $ave, Chicago! Challenge. Pay yourself first! Set goals

for your savings – school, emergency, or holiday

spending. Get to know your money, and get in control.

City Treasurer, Stephanie D. Neely, at the Chicago Youth

Saves Conference

On the Money Magazine would like to thank

HSBC – North America for their sponsorship of this issue as well as the

Office of the City Treasurer of Chicago Stephanie

D. Neely, the Economic Awareness Council and True Star Magazine for

their partnership.

Learn more about events for Money Smart Week Chicago 2009!Visit moneysmartweek.orgMoney Smart Week is a registered service mark of the Federal Reserve Bank of Chicago

ON THE MONEY SPRING 2009 | 5

Sometimes, people must open up their eyes in order to see the possibilities that can change their lives and truly define who they are. Many people have gone through life afraid to leave their home and explore. I, too, was someone who was afraid to leave and explore; then came one summer that I will never forget. I had the opportunity to spend the summer of 2008 on an internship in Dubai, which is located in the Middle East next to the Persian Gulf, at one of the world’s largest banks. On top of intellectual experience working in a real business setting, I had the privilege to encounter new cultural experiences. I began to take advantage of the city’s venues, which included sky diving, indoor skiing, camel riding, and shopping; met amazing people who welcomed me warmly; and tasted some of the greatest food. In just one summer, I learned more than I had in the first 16 years of my life. Three very important lessons can be learned by many from my experience. The first lesson is that the world is too great to confine yourself to home. The second lesson is that there are experiences

everywhere; you must just open your eyes to find these experiences. The final lesson is that when you are openhearted and openminded you can learn more than you ever thought possible. Let’s take finding a job or internship. A problem is most teenagers do not know where to look. However, the right websites and newspapers can guide teens to great opportunities. Anybody 14-24 can find a great opportunity on youthreadychicago.org, where summer jobs and internships are offered along with resume tips and extra job resources. There are many sites to find jobs at such as studentjobs.gov, aplus-summerjobs.com and getthatgig.com to name a few. Internships can be found on college based sites such as fastweb.net. A teenager can even reach out to friends and family for employment help. There are too many opportunities available to sit back and watch others take action.

Job Search Sites for Teensyouthreadychicago.org studentjobs.govaplus-summerjobs.comgetthatgig.comfastweb.net

Internships - Outside the Comfort ZoneBy Nicolas Guzman, Senior, Brother Rice

Are You the Next Bill Gates?By TaShawn Tyus, Chicago Military Academy at Bronzeville, Freshman

If you own a candy sale business that makes a profit of $30 a day what would you do?A. Spend it on something you wantB. Spend it on supplies to increase profitsC. Save it for a new PS3 or outfit.

What do you think is more important to you when you own a business? A. Money SpentB. Money EarnedC. Money Borrowed

Do you ever wonder how can you fix a problem or solve a demand needed in your neighborhood? (Ex. A Paper Boy or a Boy Friday (Handyman).)A. NoB. YesC. Sometimes

What are you intentions after high school?

A. Work at McDonaldsB. Go to CollegeC. Probably Go to College

If you own a candy business selling Snickers, Skittles and M&Ms what would be the best price to sell one package of candy?A. Buy for .50 Sell for .50B. I would look to maximize the amount of money I make by balancing the trade off between my profit per bar and the impact of cost on the volume of my sales.C. Buy for .50 Sell for 1.50

If you mainly picked A, then you are the next employee of McDonalds. You spend every cent you have, and you don’t look for great opportunities around you. If you apply yourself, you might still be able to be the next assistant manager of McDonalds or any food chain. Thinking more about your financial future and career path may help you reach your goals.

If you mainly picked B, then you are the next potential Bill Gates. You want to learn and are always looking for something to get into or change. You want to go to college and loves reading the Wall Street journal or any newsletter. Congratulations and good luck in the future with your CEO abilities.

If you mainly picked C, then you are the next potential owner of a McDonalds or other food chain. You have the smarts and great ideas, but you just have to carry out those ideas to become a CEO. You would benefit from more commitment to your goals and looking for big opportunities around you. Most likely you will become Assistant to the CEO.

ON THE MONEY

Behind The Scenes: The Ladies Behind True Star Magazine

6 | SPRING 2009

On the Money partner, True Star magazine, is known for its coverage on celebrities and entertainers, but how much do you know about the two lovely ladies running the magazine? Well, meet J. Na-Tae’ Thompson and DeAnna McLeary, the founders of True Star.

Before the two met, Na-Tae’ was doing teen events and programming at the Chicago Park District. While there, Na-Tae’ often came across DeAnna because she did motivational speaking at many of those events and was involved in creating publications. Na-Tae’ later asked Deanna if she wanted to start a journalism program for teens, and it’s been history since.

The two began the publication because they witnessed “juniors and seniors that were in high school who couldn’t formulate a paragraph or a sentence, and we thought that it was really sad because they were going into college and the workforce without basic communication skills”. So, in September 2004, the duo created what began as a four-page newsletter with only 18 students, which has spawned into the must-read magazine it is today. These ladies are true role models, so the next time you open up a True Star magazine make sure you remember the ladies whose vision made it possible.

Manoucheka Airey, Hyde Park Academy, Senior

About Na-Tae’

Education: Morgan Park& Columbia College ChicagoLikes: jumping double dutch, She even boasts, “I win double dutch competitions, so anybody out there … I don’t do tricks, flips and cartwheels, but I can jump”Favorite song: Mary J. Blige and Method Man, “You’re All I Need” She exclaims, “That was the first dance at my wedding.”Advice: “For an entrepreneur is: of course don’t give up, it’s a cliché but keep your eye on the prize ...”

About DeAnna

Education: Whitney Young & Florida Agricultural and Mechanical UniversityLikes: Entertainment industryAdvice: “To become a student of whatever industry you want to be in, learn as much as you can about that industry, connect yourself with people who are smarter than you who have skills that you don’t have.” - “No matter how much success you get—give back; give back to your community, to your family, to not disassociate yourself from where you come from”

ON THE MONEY-YOUR VOICEDo teens have money saved for college? Are teens knowledgeable about college financial aid? These questions and more were posed to teens through an online survey with the results summarized below. Over 50 responses were obtained from Chicago teens with ages ranging from 14 to 22, with the most common age being 17. Let’s see what they had to say…

Random drawing winner of $20 prize for this survey: Jameliah Salter

Please go to www.otmsurvey.com to take a new short survey for a

chance to win a $20 prize drawing.

100% of Chicago teens plan to continue their education after high school

Only 25% of Chicago teens have any savings for college

89% of Chicago teens plan to pursue a 4-year degree following high school

For the small number of people with college savings, the typical amount saved was about $1,100

The most common answer for how most students believe they will pay for school is through a combination of scholarships (87%), having a job (74%), and student loans (62%).

30% of Chicago teens felt they know a lot about financial aid, while an additional 48% felt they knew some information about financial aid.

How confident are you about affording college?

VeryConfident

SomewhatConfident

NeitherConfident,

nor Uncertain

SomewhatUncertain

VeryUncertain

0%

10%

20%

30%

40%

50%

ON THE MONEY

It is important that teens become financially fit in order to live a long, healthy and wealthy life. Being financially fit is just as important as being physically fit. If you are financially fit, you will be able to eventually own your own piece of corporate America. This opens doors to other opportunities such as owning your own home and business which means you’ll be in good shape to live a comfortable life. Investing money is fun and easy to do. Since it’s not a topic discussed in a lot of homes, most of us don’t know where to begin. I’m going to help you get in shape financially! Just like with exercising, you must stick to a routine to see results. Here are two good routines to start immediately (no matter how old you are). Don’t buy things you don’t really need! For example, do you really need another pair of gym shoes? Start investing in yourself regularly! Decide on a dollar amount that you are going to save/invest monthly. It can be as little as $5.00 a month or more depending upon age. Once you have saved enough money, you can look into purchasing stocks in companies that have good growth rates. To start trading stocks, you’ll have to go through a brokerage service like “sharebuilder.com”. To set up an account, you’ll need a parent or guardian that has a credit card to register. It is good to put money in a savings account or Certificate of Deposit (CD), but when investing for the long-term,

you should also consider investing your money in the stock market because stocks potentially have a higher growth rate. This means stocks can POTENTIALLY make you more money. Say for instance you put $100.00 into a savings account with the average interest rate of 2.4% a year. According to bankrate.com, it will take about 37 years to double your money. If you invested in a stock with an average growth rate of 10% a year, it will take you 7 years to double your money. BUT, stocks can go up and down in value and you can even LOSE money. Let’s take a look. If a senior in high school needs money for college tuition

the following year, the safest place for your money (a savings account or CD) is the smarter choice. (This is because you do NOT know if the market will go up or down in value in one year.) However, if you know you will not need your money for a long time (ie. you anticipate your parents

will pay for college or you will get a scholarship), this may be the perfect time to invest in the stock market. Always remember once you start purchasing stocks to diversify, don’t put all your eggs in one sector. Buy in different sectors. Invest in companies that you’ve actually heard of and know what they do. Investing can be fun if you find interesting companies to research. Remember it is good to save but sometimes it might be better to invest for the long-term because your money might grow more with investments.

SPRING 2009 | 7

Financial Fitness For Life

“If I can do it anyone can. No money is too little. You can start with $10 a month. Everybody can scrape up $10 a month.” — Damon Williams, Ujamaa Junior Investment Club Member, High School Student, Money Smart Kid 2006

Myles Gage, University of Chicago Laboratory High School, Freshman, Money Smart Kid 2008

Terms to Know Stock - A tool that represents an ownership position (called equity) in a company; buying stock in a company means that you own a small part of the company Growth Rate - Change in value of your investment from year to year (shown as a percentage)

Savings Account - An account where you can deposit money at a bank, often pay interest

Interest - Extra money banks pay customers to keep their money in an account there

Certificate of Deposit (CD) - FDIC insured investments that pay a set rate of interest for a specified time period

Sector - A subgroup of a market, business or economy (investorword.com)

Consider a mutual fund or an index fund. Mutual funds allow you to buy a little bit of stock in a lot of different companies. Index funds buy a set amount of a large number of companies and generally have reduced costs.Interested in Investing?

Think about it...

7 YEARS

SAVINGS AFTER 7 YEARS

Savings w/ 2.4% APRStocks w/ 10% APR

($100,000 to Start)

$250K

$200K

$150K

$0

$50K

$100K

From Making It Worth Your Dollar (page 3), a Certificate of Deposit (CD) is a bank product that often offers a higher ______________ (see definition page

3) than a regular savings account but requires you to keep your money in the CD for a set period of time.

From Making It Worth Your Dollar (page 3), list 3 pieces of information that you will need to open a bank account.

Complete this quote from City Treasurer, Stephanie D. Neely at the Chicago Youth Saves Conference (page 4),

“Cash is _______. Credit is _______. “

List 3 resources where you could find information about internships (page 5). Visit 2 of these AND list 3 things you learned on the site.

In Financial Fitness for Life (page 7), a number of investing terms were intro-duced. Use this crossword and clues below to fill in these terms.

2.

3.

4.

1. A tool that represents an ownership position (called equity) in a company

2. FDIC insured investments that pay a set rate of interest for a specified time period

3. Change in value of your investment from year to year (shown as a percentage)

DOWN

1. A subgroup of a market, business or economy

2. An account where you can deposit money at a bank

3. Extra money banks pay customers to keep their money in an account there

ACROSS

1

2

3

2

3

5.

(use abbreviation)