High school students learn money management tips
When Consumer Action’s Sol Carbonell asked 150 high school seniors from DC and Maryland if they liked spending money, every hand in the room went up, including those of their chaperons. When she asked if they wanted to go to college, about half raised their hands.
In a presentation before the Congressional Hispanic Caucus Institute (CHCI) Annual Conference, Carbonell engaged students in a real-world, interactive discussion about money management, including tips on opening a bank account, the importance of good credit, understanding paycheck deductions, budgeting, and saving for college. Asked what they would do if they won the lottery, students erupted with enthusiastic plans from traveling to remote places on earth to buying a home for their parents. Carbonell told them exactly how to get what they want, without waiting for an unlikely lottery payoff. “You can still do all those things if you have a plan,” she said. “And by a plan, I mean a budget. Why do you need a budget? Because you need money to buy a house, to go to college, and to travel the world.” Guided by Carbonell, the students debated on how to set financial priorities and distinguish needs versus wants.
The students also spent time learning about employment, with topics such as reading a paycheck, finding a job, networking, and time management. One student remembered how surprised she was when she got her first paycheck.
“I was shocked when I discovered that money had been taken out. I could not believe the deductions,” she said. Another participant mentioned that she worked for a credit union opened by her school, which is managed entirely by students. She was excited to field questions from other students, such as what credit unions do, what to ask when opening an account with one, and the kinds of fees they charge.
Carbonell steered the discussion to day-to-day money management. She asked students if they knew how many years it would take them to pay off a credit card balance of $1,000, making only the required minimum monthly payments. The room was silent. “3, 4, 2, 5 years!” shouted some students. After Carbonell informed them that it would actually take 9 years to pay off the balance, she talked in more detail about how credit works, including the benefits of good credit and the drawbacks that can come with bad credit.
As the nation’s premier Hispanic youth leadership development organization, CHCI created the Ready to Lead program to provide students with information, tools and resources on obtaining post-secondary education, internships and scholarships. To learn more about Ready to Lead and the CHCI, visit www.chchi.org. Consumer Action's participation was sponsored by MoneyWi$e, a financial literacy project of Consumer Action and Capital One.