Archive for the ‘Teens and Money’ Category
U22: Credit Unions versus Banks
Posted by kathy in Banking, Banks, Blogs, Credit Unions, Parents, Teens and Money on February 1st, 2010
When it comes to talk about personal finances, many of my friends have surprised me by asking, “Why do you bank with a Federal Credit Union?” First, it is clear their underlying question is they simply do not know the differences between a credit union and a bank, and there are many differences. So I’ll rewind past all my prior conversations and start at the beginning because if you understand the key elements of how credit unions and banks are structured, your choice is fairly clear as to which will serve your personal needs best.
Most banks are called “commercial banks” and as the name implies, their purpose is to serve commerce. Therefore their primary customers are businesses leaving private individuals as somewhat of an afterthought, (in fact banks account for 81% of industry revenue nationally). Most banks are led by boards of directors and must answer to shareholders with the expectation to make large profits. A bank’s depositors create those profits with every transaction they make. Even with a profit structure, for everyone who followed the news over the past year, it was the banking industry that was brought into the spotlight about their operations and need for a taxpayer bailout. (Did you see any credit unions under fire? No!)
So if banks have stockholders, what do credit unions have? Members. (So who do you think will serve your individual needs best?)
Credit unions were created specifically to serve individuals offering various accounts from savings to checking, in addition to credit cards, mortgages and, on occasion, home business accounts. Credit unions are federally regulated ‘non-profit’ organizations owned by their depositors, (that would be, should be you!). That’s why deposits are called shares versus deposits. Due to their structure and purpose, credit unions have remained well capitalized and remained the most viable option for home loans throughout the economic downturn. As consumers become more knowledgeable on the differences between banks and credit unions there has been an influx of families making the switch to who will serve their personal needs best, (and I think you know who that is).
So get moving to your locally depositor-owned and operated Federal Credit Union today!
Also learn more about youth accounts offered by Credit Unions. It’s a safe environment for teenagers to learn about money. Check out the GTE Federal Credit Union youth checking account for 12 to 22 year olds at www.U224U.com, because learning about money is important, no matter what your age.
U22: Teens Suffer Unemployment
Posted by alex in Blogs, Money, Teens and Money on January 18th, 2010
Hey everyone! I was reading this article on CNNMoney.com that I found very startling. While it seems that the nation as a whole is dealing with a 10.2% jobless rate, teens are suffering a record unemployment rate of 27.6%. What’s happening is that people between the ages of 16 to 19 are having a hard time finding jobs because of the surplus of older, more experienced workers who are also having trouble finding jobs. Our parents are filling positions like being a waiter in restaurants or a cashier in a super market – jobs usually filled by teenagers like you and me. What makes the unemployment rate for young adults even worse is that because it is more difficult to find jobs, many teens give up and don’t bother to look. It’s a very vicious circle that is taking a heavy toll on the nation’s economy. Lawmakers are becoming very concerned about this growing problem and are attempting to make changes, but until then, we teens and young adults have to continue to seek out jobs and get experience, even if it’s unpaid. You’d be hard-pressed to find a business turning down free work or an internship. Now is actually a great time to find your dream job or your dream company and ask to intern, just for the experience and to put on your resume for future! There are paying jobs to be had out there, we just have to try harder and get inventive, like blogging for example. If you’re a good writer, a lot of companies are looking for blog-savvy teenagers who are reliable and excited to work. Put your name out there on Twitter or even on your Facebook page advertising your awesome blogging abilities for example. And who knows, maybe when we get a little older, we will be able to affect large enough change preventing economic turmoil like what we’re experiencing today!
Look into a GTE Federal Credit Union U22 checking account for teenagers 12 to 22 in Tampa Bay. Because learning and managing money right is important no matter what your age.
U22: Making Financial Education a Must-do in Schools
Posted by kathy in Financial, Financial Literacy, Money, Parents, Teens and Money on January 11th, 2010
Hello All!
Last year’s presidential election drew the attention of my teenagers for the first time, giving them a full lesson in the political process. Maybe it was their age, perhaps the state of the economy. Nevertheless, (and regardless of political party affiliations), I saw this as an important step towards being a responsible adult.
Since the election, we’ve seen government push forth for a program that would educate our youth on finances. As Business Week put it earlier this month, “When it comes to financial matters, Americans are functionally illiterate.”
So while the intent to educate has been alive for over a decade, those behind the financial literacy program say that during a strong economy many assumed we knew what to do with our money (other than spending it). Let’s reflect back on my previous blogs, ‘Teens Top 10 Money Myths’, obviously that assumption was not accurate.
As the Business Week article reported, “President’s Advisory Council on Financial Literacy issued a 57-page report in January just before President Barack Obama took office. Among other recommendations, the council said states and the federal government should mandate financial education from kindergarten to grade 12, and require college students to take a financial literacy course before taking out student loans.”
It seems our government leaders are seeking to correct our economy from both ends – what caused it (in part, financial illiteracy), as well as the other factors we’ve read about in the news. So I dove into learning more about the proposed Financial Literacy programs for our youth. One of several bills in Congress addressing the issue would devote $250 million per year to financial education, with the money split between K-12 schools and colleges. I love the thought of this program as my kids try to dodge me in my continued quest to educate them on money matters. (However, I have seen the results of my efforts in their savings accounts!)
A major benefit I’ve come to realize as a parent who is trying to educate my kids, is that our kids may soon be educated on finances within the schools from kindergarten through college. So educating them on saving, spending and investing will be unavoidable!
So there’s still a long road ahead in putting a Financial Literacy program into effect. I think we can all agree that with a program like this, we all win.
Learn more about a GTE Federal Credit Union U22 checking account for 12 to 22 year olds. Because learning about money is important no matter what your age!
U22: Teens and Gift Cards
Posted by kathy in Blogs, Credit Unions, Money, Parents, Teens and Money on December 21st, 2009
Gift Giving Challenges at the Holidays.
Buying for tweens, teens and young adults can be incredibly challenging. Seems like it’s almost impossible to figure out what’s in style, what are the latest trends. Sometimes I’m almost certain I got it right with my kids just to find out “thanks mom but that was soooo yesterday!”
However, one gift that is always in style is a gift card from one of their favorite stores. They seem to provide a sense of freedom, an opportunity to do their own shopping and buy exactly what they like. Now maybe for you, gift cards seem a little impersonal but it got me thinking about what they really like about gift cards. Freedom! Independence!
Freedom and independence can come in many packages and money never goes out of style. Now, I don’t want to sound like a pitch person, but opening the GTE U22 account with my own teens has proved to be an important step towards their financial independence. While I can contribute to their accounts as well as monitor their spending and balances, I mostly sit back and watch them manage their money all on their own. (I’ve been quite impressed!)
So I’ve decided to do what may seem a little predictable and gift wrap a few U.S. Savings Bonds and U22 deposits because I’ve seen firsthand the rewards of educating my kids on money matters.
(Hopefully they won’t read my blog or it’ll ruin the surprise!)
Visit www.U224U.com for more information on GTE Federal Credit Union’s U22 checking account for 12 to 22 year olds. Because learning about money is important no matter what your age!
U22: Suite Caroline’s Christmas Traditions
Posted by caroline in Teens and Money on December 9th, 2009
The holidays are here!! The holidays are here!!
Every year I put up a tree with my sister. We use the ornaments that my mom doesn’t want for her tree … you know, like the SpongeBob ones, and the one with Taylor Lautner’s picture on it?? LOL. So, my tree is covered in things with feathers, polka dots, glitter. All the fun stuff. (Target was a GREAT source last year!!) I like to put the presents that I buy for my family under this tree, until Christmas morning when I take them to the family tree downstairs. (My mom likes white lights, I liked the colored ones!) I was making my list to go Christmas shopping, and when I looked at how long it was I got a little nervous. Do I have enough money to do all of this and still have some savings?? (I have LOTS of cousins!!) So, I went on my computer and called up my U22 account to check my balance. It was as easy as entering the web address. I was pleasantly surprised that my balance was in good shape. I also told myself to spend carefully, though, so my savings would still be there for many Christmases to come!!! Easier said than done, I know!!! But I REALLY am going to try 
Visit www.u224u.com for more information the GTE Federal Credit Union’s U22 checking account. Because learning and saving is important, no matter what your age!
U22: Suite Caroline – There’s nothing like Tennessee
Posted by caroline in Teens and Money on November 2nd, 2009
If you ask most kids where they’d like to go on a trip, most of them I guess would say something like Orlando. But if you ask me, I would have to say Nashville, Tennessee! I will be heading back there soon. Every time I go, I get energized about my music career. I meet with record labels (and yes, that IS very cool) song writers and other people in the music business that give me really good advice. I wish I could go more often. But these trips can be expensive! I have to fly on an airplane with my mom, and we rent a car and stay in a hotel. Now that I make some of my own money, I always set some aside for trips to Nashville. My U22 account helps make my trip easier. I don’t have to bring cash. (Which I am not very good at keeping track of!!) I just bring my MasterCard debit card. When I need (or want!) to buy something, all I have to do is swipe the card and enter my pin number. My mom gets an alert that I have made a purchase just in case I get a little crazy with my card! LOL!!
Wish me luck on my trip!! THANKS!!!
U22: Teen Talk 5 Steps for Improving Credit
Posted by kathy in Banks, Credit Unions, Financial, Parents, Teens and Money on October 29th, 2009
Build Credit. Fix Credit. Start Saving.
I’m sure this comes of no surprise to all of you, there are two personalities when it comes to money: Spenders and Savers. If there was a race, the savers would clearly be in the lead. Sometimes I wonder if all teenagers are born spenders (and grow into one category or the other).
We all know the “spenders”… covered in labels from international designers, driving the super sports car with a wallet bursting with showy credit cards. It’s a lifestyle that teens see in music videos and movies. But it’s not real, not smart and the consequences can be life changing. Today’s economy has presented a perfect opportunity for teens and young adults to learn from the mistakes of overspending. As I say it: “Spenders survive, Savers thrive”.
Build Credit. Fix Credit.
Establishing good credit is the message, but sometimes that requires a few fixes along the way. No one likes to suffer the consequences of doing something you didn’t know was wrong (or you did know but were too young to understand). Life catches up with all of us, especially when it comes to credit.
Sometimes our teens or college-aged kids sway from their fiscal responsibilities, so share with them the basic 5-step process for improving their credit. Perhaps if they have to do the work to fix their credit, they’ll get back on track and stay there!
• Step 1: Get your credit report. Everyone is entitled to one free credit report a year. Visit www.AnnualCreditReport.com and order one from Equifax, Experian, or TransUnion.
• Step 2: Categorize the negative items. Create two categories: items that are legitimate and those that are mistakes. It’s reported that 80% of credit histories have at least one error.
• Step 3: Deal with the mistakes. With identity theft on the rise, your teen may find accounts they never opened and charges they never made. Contact the credit reporting agencies; it may be a hassle but it’s worth the pain in rebuilding credit.
• Step 4: Try overturning legitimately bad items. Skip the credit repair companies; your teen can do this on their own. They made mistakes and got behind, so now it’s time to ask for forgiveness. In some cases a creditor may be willing to waive or remove a negative item for those who been an otherwise excellent customer.
• Step 5: Think beyond FICO. There are alternative credit scores out there where they can build credit by paying their rent on time and doing other responsible things that aren’t included in traditional credit scores. While the alternative credit scores won’t make a huge impact on the overall score, they can give a more accurate picture of a borrower.
Start Saving.
First ask your teens and college kids, “What are you saving for?” Independence? A computer? A car? Or even better, “A luxurious lifestyle?” Dreams are the first step in establishing goals. Once you have them, you need to draw a clear path on what it will take to accomplish them.
Sit with your kids and help them evaluate their own income whether they have a part time job or an allowance. From there, simply make note of all the large to small expenses they are responsible for. Do the math, set aside some fun spending money and portion for savings. If they train themselves early to save a fixed portion of each paycheck, your teen will find that spending is more controlled. This is a money saving habit I like to call “out of sight, out of mine (and mind)”.
I read about a 12 year old that bought a used lawn mower for $10. In one summer he saved $10,000 from his profits! He later turned his lawn mowing business into a successful landscaping business and now makes more than a six figure income.
A six figure income can translate to a lot of fun like vacations, cars, computers… what else did your teens have on their list? Here you can see how saving creates stability, less worry and more purchasing ability. What a great concept!
Visit www.U224U.com to learn more about GTE Federal Credit Union’s U22 checking account for 12 to 22 year olds. “Because learning about money is important, no matter what your age!”
U22: Life and Money After Graduation for Today’s Teens and Young Adults
Posted by kathy in Banking, Banks, Blogs, Credit Unions, Financial, Money, Parents, Teens and Money, Tweens on October 19th, 2009
One day, not too far off, Gloria, my eldest, will most likely be heading off to college. Beyond the liberating and exciting stuff college has to offer, like dorms, new friends, parties (don’t even want to think about it) and college sports, graduates are faced with the real world reality of how to pay for it all and student loans and credit cards are usually in the mix. Now, in today’s tough economy, for our kids in college, once they are 18, their credit history plays a huge part in their future success. You can have the grades, extracurricular activities, internships and a great personality, but if you’ve been irresponsible in the money arena, it can prevent you from starting a career. Graduates are faced with the real world reality and challenge of trying to find a job in a jobless market. Talking to your kids about managing money while away from home is more important than ever; a poor credit history is just one less obstacle they will have to hurdle. Check out these scary stats:
According to the National Association of Colleges and Employers, in 2009 only 19.7% of college graduates have found a job – that’s just 1 in 5 – compared to 51% in 2007.
The average college senior owes $21,000 in student loans upon graduation.
What are the statistics for young adults without a college education?
Unemployment is 20.6% for those with just a high school diploma according to the U.S. Bureau of Labor Statistics. (If that isn’t a statement for the value of a college education what is?)
These are harsh realities that need to be discussed. So, I set out on my continuous quest for knowledge about teens and money by visiting the local bookstore.
First, I encourage you to check out The Motley Fool Investment Guide for Teens. This clever book gives sound advice for teens to see how saving and investing can be fun. It’s filled with pages of work sheets, information in the credit card department and real world investment advice. Best of all, they talk the language of teens.
A few topics to expect from this book:
- How to gain financial independence
- Ask questions when it comes to managing your money
- Save cash for college, for investing and for fun
- Dodge the spending and savings pitfalls that have trapped many adults
- Get started with investing today
- Discover and learn how to identify up-and-coming businesses that could be future blue chips (what’s a blue chip? That too is explained in the book).
Fast forward to young adults and I found another great book, GradSpot.com’s Guide To Life After College.
This book helps twenty-somethings take a step into the real world with advice on finding a first apartment, first job, office politics, managing finances, paying taxes and so much more.
The book’s authors create a punchy comparison between college antics and fiscal responsibility pointing out there are those mistakes you can make now that won’t affect you when you’re older… and there are those that will. As they so aptly put it, “Between credit scores and compound interest, the American financial institution is designed to reward long-term saving and responsibility. So while a booze-soaked week in Acapulco hopefully won’t be held against you when you’re 65, your money and the people you owe it to are the proverbial elephants in the room. They are big, powerful, and have very good memories.”
I couldn’t have said it better myself. Buy the book or visit the website www.gradspot.com for great advice by college graduates for college graduates.
Here’s a real world tip… get started today! Visit www.U224U.com to learn more about GTE Federal Credit Union’s U22 checking account for 12 to 22 year olds. “Because learning about money is important, no matter what your age!”
U22: Alex wants you to win Howl-o-Scream tickets!
Posted by alex in Credit Unions, Teens and Money on October 19th, 2009
Hey Hey,
Did you know GTE FCU is giving away Howl-o-scream tickets at Busch Gardens? Only 2 more weekends left!
Go on to your Facebook or MySpace page and become a friend of GTE FCU to enter. See our pages for details. You could win FREE Tickets, and at $50, $60 a pop, that’s an awesome giveaway!
Become a Fan:
GTE U22 Account: http://www.facebook.com/pages/GTE-U22-Account/141512079625
GTE FCU: http://www.facebook.com/pages/GTE-Federal-Credit-Union/11031481521?v=box_3#/pages/GTE-Federal-Credit-Union/11031481521?v=wall
MySpace: www.myspace.com/MyU22
Here is my insider’s scoop:
Howl-o-scream is back in action this year as they celebrate their 10th year of scaring the pants off of everyone. This year is supposed to be pretty cool too. They have a huge fashion show as you walk into the park, which seems not really that scary, until they show you their true form. There are seven haunted houses this year and if they’re anything like last year, then make sure you pack a change of underwear with you. If you’ve been to Howl-o-scream within the past 2 or 3 years then you’ll be able to recognize some of the returning houses, but the new ones are supposed to be really awesome. There is an evil toy factory this year. So if your frightened by small children, dolls, or clowns, then I would cruelly recommend this house for you. There are also 4 scare zones this year which means, “get ready to close your eyes and run”. There is also a magic show and a show called Fiends (aka a show with nurses in pink wigs). So if you’re ready to rest your heart from the scary madness, the nurses show is more entertaining than terrifying. Well I think I’ll leave the rest of Howl-o-scream up to your exploration. Your gonna have a blast! Just remember to spend your money wisely and stay away from those extremely large stuffed animals. They may be exciting to win, but they are a pain to carry around. And hey, maybe I’ll see some of you there… you’ll know it’s me by the really girly screaming…
U22: Suite Caroline – What it’s like to have corporate sponsors!
Posted by caroline in Banking, Banks, Blogs, Credit Unions, Money, Teens and Money on October 19th, 2009
What is it like having corporate sponsors?
Hi. It’s me again. Suite Caroline. I hope you have enjoyed reading about some of the stuff I have been up to. It actually gives me time to reflect on everything going on in my life. Us songwriters like that kind of thing. Anyway, I thought I would tell you what it is like to have corporate sponsors, like GTE Federal Credit Union. Well, in a word, it’s “cool.” Make that two words.. “totally cool.” You see, at first it was just all about me and writing some songs. Then it was about getting a band together. Now it is about being a part of a business organization that supports me and offers me some killer opportunities. I have gotten to know the people at GTE FCU very well. I even met the President of the whole company! I love promoting their credit union because they are so interested in kids. If you haven’t checked out the U22 program, click this link, www.U224U.com. If you are from age 12 (like me) to age 22 it might be just what you need to get good things going with saving and banking. Even if you don’t have a whole lot of money to manage, you need to have it somewhere safe, right? And whenever you need it, it only takes a swipe of your U22 debit card to get it! And it makes me feel like a VIP when I can use a debit card that is actually mine! As a matter of fact, I just used it to buy my Halloween costume. (I am going to be an M&M. The blue one.) BTW, I plan to say “Trick or Chocolate” this Halloween, instead of “Trick or Treat!”. BBYYEE!!!!