“I’m Not Buying It”

Last weekend I was full of anxiety, but not for reasons you would have expected. The anxiety wasn’t related to work, my personal life or The Knowledge Bank. Last weekend was a major release date for several popular tennis shoes including the Bugs Bunny Jordan’s, Barkley Foam Posites, the Elite Kevin Durant’s and the Elite Lebron James’s. Normally, I’m not really the tennis shoe type of guy, but I want to do something a little more casual for the summer. Therefore, I have been on an intense search for a pair of kicks that compliment my swag. Unfortunately, all the shoes that were hitting the shelves last weekend went for at least $160 and the Barkely Posites ring up for a jaw dropping $234!! That’s a lot of money for tennis shoes when, in my situation, I would only wear them a few times a month on my casual fresh days. Fortunately for me, I have a connect who put me on a list to visit a “special” Nike store in Memphis where I could get the shoes for half price. Sounds like a good deal, but there were a few stipulations.

First, I had to drive 2.5 hours to Memphis which I was willing to do. The second stipulation was that I needed to arrive at the store no later than 6am. I’m not a huge fan of early Saturday mornings, but for half price shoes, I was open to it. The last stipulation was the problem. The store did not open until 10am, which means I would have had to wait in line for 4 hours. That was a deal breaker. I understand patience is a virtue, but not for tennis shoes. So, on Friday, April 19th, I decided I would pass on all four pair of shoes. There was no way I was driving to Memphis, leaving Nashville at 3am, waiting in line for 4 hours just to buy shoes. I didn’t care about paying half price.

After the mental tug of war on Friday, I woke up early Saturday, April 20th still kind of wanting the shoes. Although it was too late for me to drive to Memphis, I knew that there was a Sport Seasons about 5 miles from my house that always carries the new release tennis shoes. I gave in to the temptation, hopped in my car and drove to Sport Seasons. On the way, I called the store to make sure they were carrying the J’s. When I called the phone rang 2 times, a nice young lady answered and to my pleasure they were carrying the J’s. While driving to the store, I spent some time talking to myself. I asked myself questions like, “Are you willing to pay $200 for these shoes?” “How long are you willing to stand in line?” “What if they don’t have a 10.5?” “Would you rather get a size 10 or size 11?” As I was having this question and answer period with myself, before I knew it, I was in the parking lot of the store.

To my surprise the store had opened early and there was not one person inside the store. What do you think I did? I’ll tell you. I parked into the closes parking spot to the door, put my truck in park, took a deep breath, put my car in reverse and took my crazy butt back to the crib. I know what you are thinking, “This dude is C R A Z Y!” You’re not alone. My wife felt the same way. You are also probably wondering why I decided to pass on the shoes. The reason I passed on the shoes is the lesson I want you to learn from this article.

Ultimately, I did not want the shoes enough to pay $200 for them. At this point in my life, considering that I teach others how to develop healthy financial habits, I should not ever experience buyer’s remorse. Buyer’s remorse is when you make a purchase and at some point in the future you regret the purchase. “At some point in the future” is quicker for some than others. Some shoppers experience buyer’s remorse immediately after their purchase and have the wherewithal to return the unwanted item. They cost themselves a little time by having to make the return, but in the end, they get their money back. For other shoppers, more time passes before they experience buyer’s remorse.  This group reaches the point of sorrow after realizing their money could have been put to better use or after realizing they purchased an item for the wrong reasons. Buyer’s remorse is a common feeling amongst people with poor financial habits. Here are a few tips on how to avoid experiencing buyer’s remorse:

1. Make sure you can afford the item you are purchasing. If you are broke after the purchase, you cannot afford it.

2. If you are wavering on a purchase, think about it over night.

3. Research your purchase. Read reviews and shop for the best price possible.

4. Do not make purchases to keep up with the latest trends.

5. Understand that “on sale” does not always translate to “good purchase.”

6. Shop with an accountability partner (AP). Your AP should be someone who is mature and responsible, who you trust to be your voice of reason.

There’s a population of people that believe half price J’s or “no-wait” J’s are the best deal you can get in the sneakerhead community. But after considering tips 2, 4, 5 and 6 I’m not buying it. LITERALLY!

C. Hale

You often see me refer to The Knowledge Bank’s Four Core Values of sound money management which are Work, Budget, Save and Give. In most of my writings and workshops, the middle two values, “Budget” and “Save”, get most of the attention, but today I finally have an opportunity to focus on the core value “Work.” Did you know that many females struggle balancing their careers and personal life while battling issues like salary inequality and corporate discrimination? According to Bloomberg Businessweek, women make 82% of what men make. In addition, women often have many internal battles about whether or not they are capable of fulfilling their womanly duties while working a fulltime job. The relationship between women and their careers is more comparable to algebra than to arithmetic. There are many factors that females must consider as they prioritize the value of working in their lives. The struggle hit mainstream media outlets a couple weeks ago with the announcement by Yahoo CEO, Marissa Mayer that the company would ban telecommuting, which allows people to work from home as opposed to driving into the office.  Telecommuting is convenient for women because it allows them to balance their commitments at home with their commitments at work. Pair the controversial decision at Yahoo with the release of “Lean In”, the book by Facebook COO Sheryl Sandberg, the first half of March has been an awakening of the feminist movement. So what’s the problem?

“Lean In” is Sandberg’s personal testimony about how she climbed the corporate ladder and how she overcame the personal insecurities of being a woman in the male-dominated tech industry. Mayer and Sandberg, being executives at two of the most recognizable companies in America, have the platform to address the issues of inequality and discrimination against women in corporate America, but many critics feel that the two have not used their positions to the benefit of the plight of women. Critics believe that Mayer set, not only women, but corporate culture back 10 years by banning telecommuting. Sandberg is criticized for almost suggesting that women’s perceived inferiority in the workplace is because of their lack of effort and focus. I bet you never thought working could be so complicated past the normal strains of the job itself. But don’t fret. I’m going to give you some advice that should alleviate some of the pressure that females face as they make tough personal and career decisions.

Much of the drama related to the issues above relate to the predetermined notions of what women should be and what women should do once they get in positions of power. It’s nothing but adult peer pressure. You deal with adult peer pressure the same ways you deal with peer pressure as a child. Know who you are, be true to yourself and make your own choices. Set goals and identify your likes and dislikes. Figure out how your career aspirations affect the goals you have set for your personal life. Some women are ok with working 40 hours a week and not having a husband or kids. Some women are ok with working 40 hours a week with a husband and kids, relying on outside help from family members or nannies to assist with the duties at home. Some women don’t want to work at all and allow their husbands to support the family financially. All three of these scenarios are acceptable on the condition that they align with your personal values. Don’t ever let anyone affect your ability to make your paper. If it’s legit and admirable, keep putting in “Work” because budgeting, saving and giving can’t happen on their own.

-C.Hale
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It’s January 2013, and for millions of high school seniors across the country THINGS JUST GOT REAL!!! It’s time to make some really tough decisions, one of which is determining whether to attend college. I understand the pressure that comes along with a decision of this magnitude, but if I’m answering the question, “Should I go to college?” on a multiple choice test, I’m selecting the last bubble that says “Not enough information.” There are several factors that should be considered when determining if college is the best move immediately after high school, but deciding how to finance an education is the most important factor.

According to finaid.org, 66%of undergraduates financed their education with loans. The average student loan debt after graduation is approximately $23,000. And considering that the average starting salary for college graduates in 2012 was $44,000, student loan debt could be a major strain on your finances as a young professional. Imagine working everyday to only earn 80% of your salary. If that sounds like a crappy deal, it is. So here are a few tips to help you avoid or reduce the need for student loans, so that when you graduate college you will be working for 100% of your money, minus taxes of course, but that’s a conversation for another day:
Be the best high school student you can be. Work for a 3.5 GPA or better. Participate in as many sports and extracurricular activities as possible because universities covet well rounded students and show their appreciation by offering them full scholarships. Student loans are not a problem for those who do not have them.

Prior to beginning the collegiate application process, know the field of study you want to pursue.
It is important to determine what your academic focus will be before choosing the school you want to attend. Many programs have funding to offer scholarships to students interested in certain disciplines. For example, the College of Business at a local state college may have scholarships available for students majoring in Supply Chain Management.

Consider an in-state school. According to The Department of Education, in-state tuition can save a student $10,000 a year. The cost effectiveness of college needs to be more important than the temptation to move away from home.

Understand that a 4-year college does not always translate to more money. Without scholarships or grants, it is possible that attending a four-year college may only translate to additional debt with no corresponding increase in take home pay.  Community college is a viable option for students who are undecided on a college major. Community colleges are less expensive than four-year colleges and they allow students to complete their core coursework.

Be cautious of “for-profit” colleges and vocational schools. According to the Department of Education, the average cost for a degree of less than two years at a for-profit school is $11,480 compared to $2,451 at a public school. The integrity of these schools is constantly in question as there have been concerns regarding the disclosure of costs and accreditation concerns.

Preparing for life after high school can be a stressful process. It is important to fight through the pressure and make non-emotional, well researched decisions. The ultimate goal of a college education is to help you land the job of your dreams or, at a minimum, just land a job. Don’t limit your financial potential by becoming dependent on debt whether it be for your education or otherwise. Being debt free is liberating and it is comforting to know that you can work, earn and keep 100% of your money, kind of…

-Courtney Hale

I remember a teacher saying that if you were to ask a class of Chinese students to raise their hands if they wanted to be different, no one in the class would raise their hand. My teacher was distinguishing between the American and the Chinese cultures and his point was that the Chinese do not place as high value on individualism as Americans. As I look back on that statement, I realize that my teacher’s perception of the American culture was far too simplistic. Taking a closer look at the behaviors of Americans, I think it is apparent that Americans, similar to the Chinese, are often influenced to follow similar paths as their peers.
With various ethnicities, religions and beliefs, to the untrained eye, America is very diverse. However, our personal goals tend to be the same and we follow the same path to get there. We are taught to pursue the highest levels of education, get a job, climb the corporate ladder, get married, have kids, retire and live happily ever after. We do not embrace risk as a culture and we are conditioned to believe that most of what we hear in the media, find on the internet or read in a history book is true. And just as the Chinese, Americans are not comfortable opposing the masses of popular opinion. Don’t believe me? Ask yourself where was the opposition when our founding fathers were stealing Native American land? Or where was the opposition to slavery or Jim Crow?  These are examples of adult peer pressure and how it affects our society. Peer pressure can also wreak havoc on your personal finances.
The transition of the American workforce from agricultural to industrial, from industrial to technological and now from technological to the informational age, has caused families to drop economic classes like a slinky kicked over from the top of the steps. In an effort to ensure students are prepared for the next transition in the workforce, we encourage every student to pursue some level of higher education regardless if the student is mentally or financially prepared. As a result, student loans have become more of a burden than a benefit and serve more as a maze to poverty as opposed to the interstate to success. Combine this with the constant pursuit of nicer houses, nicer cars, nicer clothes and better food, the influences of your peers can put you in a financial choke hold that not even Bones Jones can get out of. So, how do you prevent being “choked out” financially? Here are three suggestions.

1. Have a written plan. Establishing a plan requires examining your personal interests, wants and needs. It encourages accountability and clarity. The planning process is partially educational, so research is very important. The more informed you are the less likely you are to fall victim to the poor advice and influences of others. Additionally, you are more likely to accomplish a goal when you write it down.
2. Take advice from the experts. The streets really do talk, but rarely are they accurate. Would you take medical advice from a mechanic? Probably not. Only ask people for advice who have been educated and have experience on the issue for which you need help with. Otherwise, you’ll be drinking motor oil to cure the flu.
3. Don’t jump off the bridge with your friends. Be a leader. Be a pioneer. Be an inventor. One percent of the population owns more than 90% of the world’s wealth because they took the road less traveled. To get something you never had, you have to do something that’s never been done. I just got real poetic on y’all. But seriously, do not be afraid to make the hard, unpopular decision. It can make all the difference.

Historically, Americans have lived lifestyles supported by at least 97% of their income. This basically means we spend every dollar that we have. Imitation is a form of flattery, but in regards to finance, it can be a form of weakness. I challenge our readers to be strong. Be leaders.  Strive to be the model that others imitate. Set the standard as opposed to following the standard. Besides, what’s the point of keeping up with the Joneses when the Joneses are broke?

-C Hale

I presented the following question to the kids in The Knowledge Bank: Why do people spend all the money they receive as gifts or prizes? One of the students responded, “Because people want to buy the things they cannot have under regular circumstances.” At that moment I witnessed an 11th grader transform into a psychologist and, as unfortunate as it sounds, she was exactly right. Some people believe they are entitled to their personal desires, but they are wrong. Despite what is in the news or what was said during the presidential campaign, people in this country are not entitled to anything but the freedoms granted in the constitution. The sooner you understand this realization the more successful you will be in life and the less heart break you will experience in life. I think there are several contributors to the “entitled” mentality. I think capitalism, our economic structure that allows private ownership of the production and creation of goods and services for profit, add to it. I also believe the images in the media contribute to the sense of entitlement. The entertainment industry sends the message that there is a relationship between luxury and happiness, but in reality we know (or you will know after you read this article) that money or luxury cannot provide you with happiness or completion, but GIVING can!

In one of my first articles for thecorereader.com, I described the best Christmas I had ever experienced which was defined by the quality and quantity of the gifts I had received from my parents. Even though I loved the Concords, ten speed bike and ping pong table I received, the most MEANINGFUL Christmas I had ever experienced was when I took someone else Christmas shopping. One year in high school, as a member of the student government association, I volunteered for a community service project that was sponsored by a local fire department. Our assignment was to take a less fortunate elementary school student Christmas shopping to find gifts, not for the child, but for their family. I remember walking through k-mart with this kid who was less than half my age, but had showed more strength and courage than I had at any point in my life. He told me stories of his daily struggle with poverty and bullying and how he was taking it all in stride. It was fulfilling to see him verbalize his struggles with such a positive attitude. It was just as fulfilling to see his eyes get brighter and brighter as our cart filled with gifts that weren’t even for him. Looking back on that day now as an adult, I realize that this kid possessed a perspective on life that should be modeled by everyone in our society. He truly understood that it is better to give than to receive.

In my work with The Knowledge Bank, we have established four core values of sound financial management which are Work, Budget, Save and Give. The first three are pretty self explanatory, but the last one gives some people pause. No one ever says that giving is not important, but people often wonder why I place emphasis on giving when teaching youth about personal finance. My answer is that I am working to develop successful and financially prosperous leaders for the next generation. I would be doing them a disservice if I did not teach them to contribute their gifts and talents to someone else who could use some assistance. Besides, there is always someone else involved in our personal success and there is no better way to repay that favor than to help another person. A pond that has water flowing into it but no exit for the water to escape develops scum. I believe the same thing happens with people. If we receive without giving, we turn into scum. This holiday season allow your happiness to be tied to your contributions to someone else and you’ll experience a level of joy greater than you would feel receiving any gift for yourself.

C.Hale

It is fall and the year is a number divisible by 4, do you know what that means? It means it’s time to hit the polls! If you think it’s not necessary to read this article because you are not 18, the minimum age to vote, think again. My personal opinion is that we should involve youth more in the political process so that they are not complete rookies when they do become eligible to vote for the first time. Politics are complicated and, unfortunately, a light switch does not automatically turn on at 18 that activates your political understanding. Therefore, it is important for youth to slowly familiarize themselves with the United States political system prior to their 18th birthday. To help with this transition, I offer a few explanations as to why voting matters even when you can’t.

Voting is a right! Voting is a right like freedom of speech or your right to practice the religion of your choice. In addition to voting being a right, it is a right that most people in our country struggled to acquire. The historical timeline to acquire voting rights in this country is plagued by oppression, persecution and discrimination. Black males, in theory, were granted the right to vote with the ratification of the 15th amendment in 1870. However, these early attempts to vote by black males were met with violence, acts of intimidation and Jim Crow laws that lasted nearly 100 years. It wasn’t until the mid 1960s that laws were created to outlaw the viscous attempts to keep blacks from the polls. Women were not granted the right to vote until 1920 with the ratification of the 19th amendment. Now let’s transition from history class to math class. The Constitution, the supreme law of the United States, was signed in 1787, so it took 133 years for women to legally be able to vote and 178 years for blacks to vote without fearing bodily harm or death. You should vote every time you have the opportunity because someone else suffered for you to have the right to.

This stuff costs money! If you’ve watched any debate, commercial or press conference during the campaign I guarantee you’ve heard one of these words: debt, deficit or economy. They each relate to money. Whether you realize it or not, the federal government is responsible for funding several things that we take for granted each day. For instance, one of the advantages to living in Nashville, TN is that we can get to any side of town in 15 minutes or less because we have 3 major interstates that pass through the city. The federal government is responsible for ensuring that these interstates are properly maintained. That includes repairs and upgrades when necessary. The federal government gives states millions of dollars each year to ensure students in public schools have access to the resources necessary to obtain a quality education. Most of our grandparents receive social security income, which is monthly income that the government gives to elderly adults to cover their living expenses. Whether we are talking about interstates, education or income for the elderly, all these things cost money. We as citizens pay the costs of these expenses through our federal income taxes and it’s the government’s responsibility to use these funds efficiently. My message to our readers is that nothing in this country is free and just as you probably would not let a stranger manage your personal money, you should not want a stranger to manage our country’s money. Therefore, it’s important to get to know your political representatives, local and national.

Don’t manage your money like the federal government! The reason you hear the words debt, deficit and economy in every debate, commercial and press conference is because our political leaders do not have a good track record of managing our federal dollars well. For the last 12 years our country has had a national deficit, which means we owe more money than we have. One reason for the deficit is that we have a lot of debt, which is money we owe other people (countries or our own citizens). The national deficit and debt have been burdens on the economy, which is our system or producing, distributing and consuming wealth. Look at our country as if it’s a lemonade stand. The more lemons we can obtain to juice and sale, the better the lemonade stand will do. Our economy works the same way, but instead of lemonade we produce goods and service like clothes and cable television. The more clothes we produce and sale, the better the economy does. That’s a pretty shallow example, but I hope you get the point. As I mentioned earlier, the federal government has expenses like transportation costs, education and social security. Unfortunately, we have more expenses than revenue which results in a deficit. As an individual, you never want to have more expenses than income. Otherwise, the conflict you see between the political parties on tv will become conflict in your household.

I challenge our readers to begin familiarizing themselves with politics because one day you will be voting on the decisions that affect how our country operates. Just as you wouldn’t want a rookie beautician doing your hair for prom, I don’t want an uninformed citizen voting on important decisions that affect our lives. Begin your political education now! In addition, don’t just become engulfed in national politics. Your local city and state representative elections are just as important as the national elections because the local elections involve things that are going to affect you directly and immediately. Please remember that we are not entitled to anything in this country and our security has come at the expense of the sacrifices of those before us. Repay them by having a voice. Vote…when you can.
C.Hale

How familiar are you with the following words: discipline, maturity and self-esteem? Most teenagers probably hear at least one of these words per day. Have you ever thought about these terms in the context of how you manage money? Most people don’t, but they should! Effective money management is more about mastering your psyche and developing positive personal values as opposed having superb mathematical skills and superb record keeping ability. Pop quiz, what do the following people have in common: Allen Iverson, Marion Jones, Terrell Owens, Mike Tyson, Sheryl Swoopes, Mike Vick and Vince Young? The obvious answer is that they all are or were professional athletes. The less obvious similarity is that all of them had a variety of financial problems despite earning millions of dollars throughout their careers. Each of the athletes mentioned above were weak in one or all of the personality traits mentioned above. Let’s talk about how our financial vocab words can put you on the path to financial freedom instead of on the path to financial captivity.
Discipline is a code of behavior which is the result of being trained to obey certain rules or standards. It is perseverance, restraint, endurance, thinking before acting and finishing what you start. Discipline is studying for a test a month in advance or staying in shape during the off season. It is the most important personality trait that is required for prolonged success and it is also the foundation of sound money management. All the athletes above showed little discipline in how they managed their millions. Iverson, Owens, Tyson and Young had spending problems. They disregarded advice from accountants and financial advisors to stick to a budget. Jones, Swoopes and Vick’s lack of discipline was shown in their inability to research their financial advisors and personal investments. Jones and Vick failed to abide by the law which compounded their money problems.
Maturity, as it relates to behavior, means to act as a reasonable and accountable adult. Maturity encourages sound decision making and is useful when making purchases. Additionally, it is essential in setting goals and accepting the consequences of poor decision making. Maturity > Vince Young + Allen Iverson.

That’s probably a low blow but these guys made some really immature financial decisions. Allen Iverson is known for never packing clothes for his road games and buying all new clothes when he arrived at his destination. To make matters worse, he never packed the new clothes when he departed. He often left them in his hotel room. Geesh! Young, who is probably the most disappointing athlete on the list because he blew his $26 million during his career, is known for spending several thousand dollars per week at chain restaurants. Yea, I said it CHAIN restaurants. He once purchased every seat on a Southwest airline flight from Nashville to Houston. These guys were probably more stupid than immature, but you see how unreasonable people can be with their money.

Self-esteem  is the most important of our vocab words. Self-esteem is a person’s overall appraisal or evaluation of themselves. People with healthy self-esteem are firmly grounded in their own personal values.  They understand that tangible possessions or relationships do not define the individual. Lastly, people with healthy self esteem are not easily influenced or distracted from achieving their personal goals. Unhealthy personal perceptions can affect your finances. Marion Jones was a world-class Olympic sprinter and was arguably the best female athlete of her time. Her financial problems stemmed from testing positive for performance enhancing drugs. She felt her natural ability was inadequate to compete on an international level, so she cheated. In the aftermath of her doping allegations, Jones was convicted of crimes relating to fraud and perjury. Her reputation is permanently tarnished. This type of behavior is more prevalent than ever as we see women altering their physical appearance through surgery, drugs or supplements to meet unfair standards set by pop culture.  We have many liberties in this country. Unfortunately, these liberties give companies the opportunity to capitalize on people’s insecurities. Commercials are extreme in their attempts to make us feel inadequate and out of touch. Amongst other things, love yourself to build a solid financial foundation in this type of culture.
It has become common to hear about professional athletes fall from financial grace and I don’t have pity for a person that is broke after spending, in a few years, what most people don’t earn in lifetime. However, I am concerned about the mentality of a person that spends every dollar they earn.  It is very difficult to alter the mentality of adults who are often set in their ways. This is the reason why I’m passionate about working with youth. Young people have the power to change the economic trends that plague our country. Always remember your values serve as the foundation for who you are and why you make certain decisions, financial or otherwise. Be intentional about improving your discipline, maturity and self-esteem. And always remember, whether rich or poor, sound financial management is more about managing the space between your ears than managing the space in your wallet.

-Courtney Hale

I finally figured out why my mom would never buy me $100 tennis shoes when I was a child. Apparently, she knew that it would cost her about $235,000 to raise me from birth to 17 years old and she did not want to increase the price tag any further. Ok, maybe that’s a stretch. My mom is a pretty smart woman, but an economist she is not. The fact is, according to the Agriculture Department’s Center for Nutrition Policy and Promotion; adults have the choice between raising a child or purchasing a Lamborghini Murciélago, SWERVE. Fact is, children cost a lot of money and they don’t even have suicide doors. Housing is the single largest cost included in the estimate which also includes cost of transportation, child care, education, food, health care and miscellaneous expenses.

Although it’s not proven, I believe parents incur the bulk of these expenses while their children are teens. Think about it; teens eat more than they did as adolescents, and require on demand transportation services to ensure they meet their obligations to their countless extracurricular activities, which also can carry a hefty price tag. I think a teenager probably invented the words “miscellaneous expenses”. So to help you keep your parents from having buyer’s remorse, I thought I would provide a few tips for making your price tag more manageable during your high school years.

Normally that last sentence would have been followed by sequential bullet points with supporting statistics, classifications and justifications. But this time I’m going to make it really easy for you guys, so easy you should not even have to highlight or take notes. The key to successfully managing the costs associated with being a teenager is to follow the blueprint. FYI, here comes another hip hop reference.

Jay Z’s “The Blueprint” is widely regarded in hip hop circles as one of the greatest rap albums of all time. “The Blueprint” was Jay’s 4th #1 album (never miss that question on a history test). Jay created “The Blueprint” as a tribute to the soul samples he grew up listening to and to give his fans some insight into the events that contributed to the conception of, arguably, the greatest rapper of all time. In essence, he showed fans, critics and other hip hop artists how to use adverse experiences in life as instruments that could contribute to one’s progression in life. He literally created a lyrical blueprint. I just embraced my inner Hova there with a little word play of my own.
Blueprints are used in architecture and engineering as a guide to create buildings, bridges, databases and a ton of other things. They are the documented adaptions and improvements of many failures. Just as Jay Z provided the details that motivated him to be a great rapper and businessman and just as architects have created plans for the most majestic architectural structures on earth, there is a blueprint for being a teenager.

The social blueprint for being a teenager is outside the scope of my expertise and definitely requires the perspective of a psychologist. However, the financial blueprint is much easier for me to explain. Teens need money for social events, trips, clothes for social events and trips, school supplies, homecomings, proms, senior year and transportation. Although this maybe over simplified, I think I captured 90% of everything. We all know that these things are going to come up and need to be paid for. The solution to the financial complexities of teenagers is to design a blueprint for managing expenses. You may be wondering, “How do I create a financial blueprint?” It’s actually not that difficult, but it does involve a few bullet points.

1. Write out all your upcoming expenses and calculate your grand total
2. Prioritize your list
3. Identify your streams of income (wages, allowances, gifts, etc.)
4. Determine how much of your income you want to allocate to your upcoming expenses
5. Give each expense a deadline as to when you want to have the money

High school expenses are as unavoidable as an electric bill. And like an electric bill, teenage expenses come at the same time every year. Whether you are a child or an adult, the solutions to many of our financial problems lie in our lack of preparation. The sooner you develop healthy financial habits, the less difficult it will be for you to manage your finances as an adult. Besides, the last thing you want to hear your parents say about you to each other is, “We should have gotten the orange one.”

-Courtney Hale

Recently, while updating family and friends on the progress of The Knowledge Bank, I was flabbergasted by a statement made by a man who I have always admired for being a progressive thinker in regards to personal finance as it relates to black people. For the sake of this article, I will refer to him as Rob. Rob is 80 years old and was a college graduate during a time where graduating from college involved a lot more than four years and earning passing grades. The topic of our conversation turned awry for me while discussing the indecent behavior displayed by members of the Jackson family over Michael’s estate or the money and property he left behind after his death. Rob stated that the Jackson’s behavior is exactly why you should not leave money to your family after you die. To make matters worse, he added that he did not have any life insurance that would cover more than the cost of his burial. I about fell out of my chair!!! I felt like I had been hoodwinked, bamboozled, led a stray, run a muck. Who was this person that just made these absurd comments? It couldn’t be the man who I had admired for his professionalism and his intelligence? Despite my disbelief, it was.

Prior to the conversation with my family and friends that included Rob, I had been disturbed by a statistic I read regarding the wealth disparity between whites and blacks. According to the U.S. Census Bureau, on average, Caucasians have 22 times more wealth than blacks. The usual suspects that contribute to the wealth disparity are underwhelming statistics related to the education, the employment and the income of African Americans. I would like to add the failure to prioritize leaving an inheritance to future generations to the list of contributors to the wealth disparity.

An inheritance is the passing of assets including property, titles, debts, rights and obligations to love ones upon the death of an individual. A “will” is the legal document created by the deceased that officially identifies the individuals who should receive certain assets. For example, after T.I. dies, his money, cars and jewelry more than likely will be distributed amongst Messiah, King, Domani, Major and possibly one of the OMG girls if they are all included in his will. Inheritance statistics for the U.S. population are dismal across all demographic profiles. According to the Federal Reserve Bank of Cleveland, only about 10% of Americans receive money due to the death of a family member. The average inherited amount is $64,000, not nearly enough money to build generational wealth. In fact, only 1.6% of the population receives more than $100,000 after the death of a family member. Ironically, despite the problematic statistics mentioned previously, black families have one advantage over other ethnicities in their potential to leave an inheritance.

African American families are more likely to have life insurance than any other race in the U.S. Most African American families feel that life insurance is their only means of leaving an inheritance to their love ones. Unfortunately, African Americans are also the biggest consumers/spenders in the country, so insurance money like our pay checks doesn’t last very long. What can last for a long time is $469,000. Where does this figure come from? If a person is left $64,000 after the death of a family member, invest the money earning 8% interest, never touch it and pass the earnings down one generation, over a 25 year period, that $64,000 will be worth approximately $469,000. If that $469,000 is reinvested under the previously mentioned terms, the initial $64,000 will be worth over $3.4 million. Three million dollars, managed properly, changes the scope of the financial health of a family.
You may be thinking that 50 years is a very long time and it is, but remember this is money a family can earn without doing anything outside of periodically evaluating their investment strategies over time. I challenge our readers to be the person responsible for generating wealth in your families. Encourage your parents to develop a will. If you really want to be progressive, tell your parents they need to consult an attorney to create a living trust. A living trust protects your inheritance from a lot of taxes and fees you may incur while going through the legal process to obtain your funds. Building wealth requires patience, time and a commitment by someone in your family. You can be that person.
So what did we learn?

Leaving money for future generations is very admirable.
Life insurance is a good instrument to build wealth for future generations.
Your parents should create a will or living trust ASAP.
Your parents should be saving money and/or have a life insurance policy with you as the beneficiary.
Do your research on the people you look up to.

C Hale

After this article is published, I will have written 7 articles for C.O.R.E. Magazine this summer. We have discussed my financial delusions as a child, the importance of saving money, the value in understanding financial concepts, employment struggles of teenagers and the dangers of student loans and credit. This summer, my goal was for our readers to slowly implement my advice into their daily lives for the same reason English teachers issue summer reading assignments or athletic coaches issue summer workout plans, conditioning. The fact is if a student goes an entire summer without reading, the transition back to the rigors of an English class can be challenging. The same goes for an athlete that plays video games all summer while eating Little Debbie cakes on the couch. Coaches can use practice time more effectively if they do not have to worry about the conditioning of their athletes. In regards to finance, if a student can begin exercising financial discipline during the summer break, they are better prepared to continue those habits when school begins. Summer break is a more controlled environment for students to regain focus as compared to the beginning of the school year.

During the summer, students are mostly around other students who are relatable. They attend summer camps with people they like to be around such as family, friends and teammates. Implementing something new is always easiest in a controlled environment. When musicians write a new song, they tend to want to play it for a close acquaintance before introducing the tune to the public. Gymnasts and cheerleaders attempt new stunts with assistance from spotters before attempting a new stunt independently. C.O.R.E. magazine readers have had all summer to begin improving their financial literacy in a controlled environment, and now it’s time for the training wheels to come off during the month of August!

Many of you are returning to school this month. Therefore, your social activities not only include family, friends and teammates. They also include the gossiping girl from home room, the swag snatcher from English and the flirty cheerleader who has goo-goo eyes for your dude. Few people desire to be financially savvy under these conditions, unfortunately this is reality. Adults are often faced with the decision to either “keep up with the Jones’s” or to be conscience of more substantial responsibilities, such as properly funding their retirement accounts. The harsh reality is that the older you get the more complex the environment in which these decisions have to be made. So, if this summer was practice, August begins the season, and adulthood is the championship game.

Don’t approach the upcoming school year the same as school years of the past. Set your own rules and standards. Last week I heard an iHeart Radio commercial in which Lil Wayne was being interviewed about his image. In the interview he said that people often criticize him for trying to be different. Wayne’s rebuttal was that he actually is deliberate about being himself, and in a world where standardization is often popular, this ideal is what makes him different. Being your self is an essential principle to achieving financial freedom.

In high school and briefly in college, I was a member of the track team. My specialty was the 400 meters, a race that has varying strategies. Faster runners can pace themselves for the first 200 to 250 meters with the intention of reserving energy, enabling them to use their superior speed to pass the other runners in the last 150 to 200 meters of the race. Slower runners with more endurance often get out fast, running the first 300 meters much faster than the other competitors in hopes of building an insurmountable lead early in the race. Lastly, there are runners that are a hybrid of the two aforementioned categories. Their race is a lot more strategic. The hybrid runners run the first 100 meters hard, coast the next 200 meters, regain momentum at the 300 meter mark and fight for dear life the last 100 meters in hopes that their efficiency will lead them victorious. Whether you are a speedster, the endurance specialist or the hybrid, the key to maximizing your potential as a 400 meter runner is to run your own race.

I know it’s important to many of our readers to be a “back to school beauty” or a “homecoming hottie” or be “French class fresh”. Before you go wasting a whole summer’s savings on impressing people who have no interest in your success or people who don’t even like you, remember the financial foundation we have set this summer. This school year, as you work to balance new financial goals, extracurricular activities and social events, remember to run your own race. Winning the money game is the only option, so approach it with laser like focus and the intensity of a linebacker. Now let’s bring it in.. On three…ONE, TWO, THREE GAME TIME WOOOO!!!!

-C.Hale