Advertisers are well-known for targeting teenagers and have a firm reason for doing so: Teenagers spent close to $190 billion in 2006, and that figure is expected to jump to approximately $209 billion by 2011. It seems quite obvious that teenagers know how to spend money, but do they know how to save?
Personal financial planning is the process of establishing your own financial goals and finding a way to reach them. It is an ongoing process that involves examining all existing resources, developing a plan to use them, and systematically implementing the plan to achieve your goals. While teenagers yield immense spending power, many lack the financial knowledge necessary to manage their money wisely. The Complete Guide to Personal Finance: For Teenagers is a reliable and relevant source of financial information in which teenagers will find a wealth of useful information.
In this new book, you will learn how to get and manage credit, how to make and stick to a budget, how to save for college, how to determine your needs versus your wants, how to pay for a car, how to finance college, how to manage risk, how to open a bank account, how to write a check, how to balance a checkbook, how to avoid the pressures of consumerism, and how to avoid financial mistakes.
You will also learn about investment options, taxes, checks, debit cards, credit cards, and basic budget tips. This book is filled with helpful suggestions from financial and family counselors, and you will discover creative ways to get a jumpstart on your financial future and use money responsibly. Even if you have had a few missteps along the way, you will be able to learn from your mistakes and get on the path to financial well-being.
Foreword 13
Introduction 15
Chapter 1 Learning from the People Around You 19
Your Parents 20
How to ask for a peek 24
Learning by example 25
Other People 26
Chapter 2 Spending and Saving 33
Needs versus Wants 34
Need versus wants questionnaire 36
Why does it matter? 36
They All Want Your Money 43
Impulse buying 45
Sure, you can spend 48
Chapter 3 Stashing Your Cash 55
Different Types of Bank Accounts 56
Savings accounts 56
Checking accounts 60
Other types of accounts 62
Putting Money into Your Savings or Checking Account 65
Depositing money by mail 65
Depositing money by ATM 69
Depositing money by other means 73
Where Should You Put Your Money? 74
Develop your plan 79
Picking a bank 83
Online Banking 85
Fees 87
Chapter 4 Budgeting Basics 93
What is a Budget? 95
Create Your Budget 102
Write it down! 102
Track Your Spending 111
Cash envelopes 112
Spending logs 117
Sample spending log 120
Cards 121
Checkbook Registers 127
Deciding how to track your spending 129
Chapter 5 Creditors and the Games They Play 133
The Principles of Credit 134
Common credit card fees include 136
The Tactics 139
Look out! 139
Here, have something for free 140
Here, let us help you 142
Here, buy anything you want 143
Here, become an adult 148
Minimum payment: Bad news 150
What if I don't pay? 154
Chapter 6 Debt, Debt, and More Debt 165
Good Debt and Bad Debt 167
Good debt 167
Bad debt 168
Handle your debt 172
The debt spiral 181
Are you in trouble? 182
Getting rid of debt 186
Chapter 7 What Are You Saving For? 189
How to Save 190
Saving for things you want to buy 190
Saving for college 195
Student loans 200
Saving for a rainy day 204
Chapter 8 Getting Money 209
Getting an Allowance 211
Getting a Job 215
Resources for Finding a Job 220
Create Your Own Job 222
Get rich quick? 228
Chapter 9 Financial Responsibility 231
Cosigners and Joint Accounts 232
Parental access 235
Chapter 10 Credit Reports 237
What's Listed? 238
Credit Scores 239
Identity theft 240
Chapter 11 Everything Else You Need to know 247
Investing 248
Taxes 249
Insurance 250
Chapter 12 On Your Own 253
Making the Decision to Leave 253
The Current State of the Economy 256
Budgeting Worksheet 258
Conclusion: Congratulations! 261
Glossary of Terms 263
Bibliography 281
Author Biography 283
Index 285
AngieMangino
Posted March 22, 2010
The Complete Guide to Personal Finance For Teenagers and College Students
By Tamsen Butler
2010 Atlantic Publishing Group, Inc.
Reviewed by Angie Mangino
Rating: 4 stars
The personal finance education Tamsen Butler provides in this guide is not a boring course by any means. This comprehensive book talks to teenagers and college students in a down to earth real life manner, giving them the basics that will capture their interest, and the options to handle their money now. Why is it important to learn how to handle money while young? The good habits learned now will serve throughout life, especially now when there are no firmly established bad habits they would have to unlearn. Handling money well is an important first step to independence.
This book gives the full picture in short, specific case studies, mainly from other teens, but additional from a parent or two, and a financial expert. Learn the difference between needs and want. Find out how to spend, how to save, and what the consequences are of debt. Know about the different types of bank accounts and credit cards. Find out the tactics that marketers use to influence teen spending. Save Smart Tips throughout the guide offer quick advice to help.
A budget begins with the first allowance received, includes money received as gifts, and goes on to when a job increases income. Leaning how to handle money when young begins the path to independence. The concluding glossary of terms and bibliography of other books and websites makes this a valuable reference not only while young, but also helps ensure a better handling of money for a more secure financial future.
1 out of 1 people found this review helpful.
Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.RenoMo
Posted March 12, 2010
Where was this book when I was in school? Solid financial advice can be priceless and I'd like to think I would have at least browsed through this little (290 page) book and stored away some of the recommendations in the back of my brain for future use. Saving, saving, saving is stressed throughout the book and Tamsen Butler does an excellent job detailing the advantages of saving and the pitfalls of not saving money - clearly and concisely; defining the needs vs wants theory of spending. She does a great job explaining different types of accounts, and how interest (particularly compounded interest) can work either for or against you. In the section on credit cards Butler even details the 'hold' that credit card companies often put on an account when booking travel, hotels, and some other major expenditures. Something that a lot of adults may not even be aware of.
From kids getting an allowance, to trying to balance a full time job and a college schedule, to the young adult leaving home for the first time, Butler explores various options for setting up a budget, explaining that discipline and self-motivation are key. She uses realistic examples and brief case studies written by real people - from how to afford concert tickets or a new CD to saving for college or a car, to handling your money once you move out and are on your own, including how to use a credit card responsibly.
The author encourages parents to sit down with their kids and have a heart to heart about finances. After all, our first, and probably most lasting lessons about finances come from our families. It's how we handle money that affects the way our children handle money. Even if we never discuss it, the examples and the visual cues are there. Although written for teens, adults would do well to peruse this book along with their kids. It's never too late to learn how to handle your money more efficiently.
1 out of 1 people found this review helpful.
Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.LamishaSerf
Posted August 6, 2012
With an ever-changing economy, financial know-how is a must especially for teenagers and college students in order to begin their financial future on the right foot. Author Tamsen Butler has done an outstanding job of using engaging case studies, budget worksheets and real life examples to guide readers through the seemingly overwhelming topic of personal finance. She covers everything from setting up a budget, different types of bank accounts, and saving for the future to more complex topics such as debt, credit cards, mutual funds and IRA’s. It is hard to believe there is so much valuable information covered in a book with less than 300 pages.
The information contained in this book is not something that is typically taught in high school or college and while many adolescents get to college without knowing how to manage their money it doesn’t have to be that way. Parents and grandparents may want to give their children and grandchildren an opportunity to learn the importance of personal finance and, The Complete Guide to Personal Finance for Teenagers and College Students is the perfect book for that purpose. This would also be a great book for teachers and schools that wish to introduce the principles of personal finance in the classroom to give adolescents a jump start on good financial planning for the future. Overall this book has great information in a well laid out format for teens, college students and even adults.
iwatson58
Posted June 9, 2011
We constantly hear of teenagers or college students, once of out of school, getting themselves in to desperate financial situations because of their lack of discipline or knowledge. Once on their own it seems like every credit card company gets their address and bombards them with enticing advertising. As well, student loans are easy to get and just as easy to spend not anticipating they will have to be repaid with a high interest attached.
This book is a very important component of the teen or young adult's reading material before embarking on their own. Much of the information isn't taught at school and in many cases never discussed with parents. Also, in many cases the parents themselves aren't well versed in financial matters.
I believe Tamsen Butler covers all the necessary aspects of providing information so as not to get into debt or succumb to easy loans or credit cards. She also covers spending, saving, and budgeting. I specifically like her explanation about creditors and the "games they play." As well, Tamsen covers areas such as different kinds of debt, responsibility, and credit reports. From what I can see nothing was missed to give the young person the basics of sound financial management.
I do recommend this book be given to every teen before they leave home and embark on their own. It may the best investment in their lives.
DaniGirlDB
Posted March 3, 2010
A Complete Guide to personal Finance for Teenagers and College Students by Tamsen Butler provides a clear and invaluable survival tool that should also be read by their parents. Not only does it teach them about the kind of options available, but it also helps them to understand the consequences of their choices.
As someone who worked as a financial counselor for over eight years, I particularly commend her on Chapter 6 (understanding credit and how creditors actually work), and well as Chapter 10 (understanding credit scores and the consequences of identity theft).
I hardily recommend this book and just hope that anyone who gets it not only reads it, but practices what it preaches.
Overview
Advertisers are well-known for targeting teenagers and have a firm reason for doing so: Teenagers spent close to $190 billion in 2006, and that figure is expected to jump to approximately $209 billion by 2011. It seems quite obvious that teenagers know how to spend money, but do they know how to save?
Personal financial planning is the process of establishing your own financial goals and finding a way to reach them. It is an ongoing process that involves examining all existing ...