Even though we all love Summer days, we adore Fall afternoons! Yes, so it’s time to start preparing to bundle up. Check out these cute scarves that you will be able to rock to every football game this year! And guess what?? They’re all under 15 bucks…score!
Black Leopard Scarf- $14.99
Raspberry Striped Scarf – $13.50
Snakeskin Print Scarf- $10.00
So you have your part time check and what’s on your mind? Let’s see…. shoes, car gas, movies , nail polish and those dope pair of jeans you saw last week. You say to yourself, “Well that’s about it! What else do I really need to put my money? I bought everything I want and even needed!”
Hmm well “Congrats!” on buying your weekly needs and even throwing in some of your wants but you receive a “F” in the class of saving. Sorry to break it to you, if you’re not putting money away for rainy days it’s going to take you awhile to get the passing grade. Yes, I know necessarily you feel like either there is no point of saving, you don’t make enough to save or even don’t have anything worth saving for in my life. Well I’m here to break it to you that “Saving” isn’t your worst friend or evil nemesis in actuality it’s your best friend in camouflage. Still think I’m lying?? Ok, here it goes…you made me do it….
Rainy Days- Yes, we would love to live in a perfect world where you know what would happen next but unfortunately we don’t (at least it keeps life exciting, right?). Anyways let’s jump back on track. So you never know what can happen and yes that includes unexpected expenses. I know looking at your checks you feel like you don’t have enough money to save, well you’re wrong. You do not have to put hundreds in the bank a week, just put what you can afford. Instead of agreeing on an amount of what you would save because your check changes every week, agree on a percentage. So let’s say every two weeks you put 10% of your check. Trust me…it adds up!
Swap Out!- Sometimes the best trick when it comes to savings it is to do the “ Swap Out.” You ask what the swap out is, well I’m so glad you asked! The swap out is when you look at the list at the things, places, and people you spend your money on and see what you can swap out for savings. So instead of your money buying new accessories take that money place it in your savings account. By you doing this you can save more money by just limiting yourself.
“You Can’t Touch This”- Just like MC Hammer said as he rocked the stage same goes with you and your savings account. As excited as you get by how much you are savings you have after couple of months, make sure you do not touch it. And if you do it has to be in emergency situations in which the savings were made for! Oh and let me get one thing clear the shoe sale at the boutique does not quite make the cut!! I know it may seem like self torture now but you will thank me for this later
-C.O.R.E Family
“Lost in Translation, What You Don’t Know Can Cost You”
Just Write a Check: I remember shopping for shoes with my mother many years ago. Like most kids, I wanted the most expensive shoes in the store. I knew my mom would say the shoes were too expensive, so I devised a plan. See in the past, when my mom told me things were too expensive, I never had a plan, but this time things would be different. I was about 10 years old, the age of sideways understanding and no filter for ridiculous comments. So when I pointed out the shoes I wanted, my mom replied, “Boy those shoes are $100.” At that time, $100 to her might as well had been $1 million. As if her exaggerated exclamation regarding the cost of the shoes was not enough and just to make sure there was not a misunderstanding, she told me I was not getting those shoes or anything similar (in cost that is). Normally, this would have been the end of the story, but this year I was 10 and I was prepared. I responded, “Just write a check for them.” I had no idea that a check was actually tied to the money that a person had in their checking account.
The Commentary
On Saturday, June 2, 2012 The Knowledge Bank, an organization I founded that specializes in improving the financial literacy of youth, hosted its first workshop in Nashville, TN. Our focus was on learning the core principles of sound money management; Working, Budgeting, Saving and Giving for those taking notes. During the session, the participants learned about the essential principles that lead to creating a strong value system for money management. However, the most indispensable lesson came from the insight provided by a teenage girl.
Each week I give my students the opportunity to discuss any money-related experiences they had during the previous week. I believe that young people are a lot more knowledgeable about financial matters than what adults give them credit for, so we perform this exercise to refine the financial comprehension of our young people. Many of the experiences shared by the group were related to the personal disappointment of immediately spending money received as gifts. One student received $130 as a gift that he immediately spent on a pair of Nike Airmax. Another student expressed frustration about the large sums of money she receives each Christmas that is spent in less than a month.
This was not the first time I heard stories of disappointment and frustration related to money management. While working as an investment advisor, I heard of a few stories where people either won the lottery or inherited millions of dollars, only to be broke again in less than a year. So I asked this question to the group, “Why do people value the items they buy more than seeing their money grow in a savings account?” Reasonable people prefer to be financially secure, as opposed to being poor. And since it’s the accumulation of money that makes a person financially secure and not the accumulation of “stuff,” what is the justification behind spending every dollar we earn? I thought this would be a question that no one could answer, but after a brief moment of silence, I received a response. The teenage girl said, “It’s because we want to buy the things we would not regularly be able to have.” This was powerful insight, but it sadly explained one of the saddest statistics related to expenditures in this country.
The demographic of people who make the least money in the United States are the biggest consumers. Financial experts attribute this observation to generational tendencies stemming from psychological issues such as low self- esteem, behavioral conditioning and insecurities as a result of poor education. Ultimately, it makes no sense that the people with the least amount of money spend more than the people with the most money.
Robert Frost, the great American poet, said “poetry is what gets lost in translation.” Similarly, I believe poverty is what gets lost in translation. Not only can a lack of financial education cost hundreds of thousands of dollars over a lifetime, but the bad habits that are developed can affect future generations. Just as you commit to going to college, or becoming a better dancer, stylist, friend, musician, etc, expose yourself to resources that enhance your understanding of money, because what you don’t know can cost you.
-C. Hale
The Best Christmas Ever and the 401K
One December just before Christmas, a young boy overheard his parents talking. “We have to get the kids gifts for Christmas so you better think of a plan to ensure the kids have something under the tree” , said his mom. The boy, being about 12 or 13 years old, had good rationale. When he heard this comment, he quickly understood that there was a great possibility that he and his siblings would only end up with trinkets as gifts. The boy was not very materialistic, mainly because he could not afford to be. So, he was content with the possibility of having a Christmas that lacked the normal flare of the Christmases from the past. To his surprise, on Christmas morning, he got a bike, ping pong table, Jordans (Concords to be exact), clothes and other stuff that was overshadowed by the stuff already mentioned. This was the best Christmas ever and it was funded solely by his dad’s retirement savings, called a 401k. The boy’s dad spent money that was supposed to ensure his comfortable financial future. For many years the boy never understood or cared what his dad’s choice meant or how it would affect his family in the future. All he knew was that he was happy. He had no idea about the crucial decision behind how he got his best Christmas ever.
The Commentary
I believe in order to educate someone, they must relate to you. In order for someone to relate to you, they must be comfortable with you. In order for someone to be comfortable with you, you must share a part of yourself with them. So, in the spirit of this philosophy, I just shared part of myself with you. The story above was about me and over the next couple months, I will share a short story of how financially-miseducated I was as a child.
Like most of the readers on this site, I was not taught about personal finance at an early age. The few lessons I was taught ended up being confusing because I often saw my parents doing the exact opposite of what they were teaching me. I believe my calling in life is to teach youth the financial complexities that most adults do not learn until they have made many costly mistakes. Through my monthly contributions, get ready to learn financial concepts and practices that could make you wealthy and change the trajectory of your life. I am excited about this opportunity with COREMAG and I hope you guys are excited about the endless possibilities and all the opportunities you will get through this website.
A Little About Me
My name is Courtney Hale. I am originally from Nashville, TN and somehow I still live here. I received my Bachelors degree in Finance from the greatest HBCU on earth, Tennessee State University, and I received my Masters in Business Administration from David Lipscomb University here in Nashville. I am a devoted husband of 3.5 years, I am a member of Alpha Phi Alpha Fraternity, Inc. and I am a frequent volunteer with Habitat for Humanity where I serve as a Budget Coach. During the day I work as a Financial Analyst for a local hospital.
My biggest project right now is the organization I started called “The Knowledge Bank”. Our mission is to increase the financial literacy of teenagers. Why is it important to educate teens on personal finance? That is easy. First, there is nothing substantial in our education system that educates teens on how to understand and manage money. Regardless of how good your grades are, the career path you choose, or even if you graduate from high school, every student in America will get to a point in their life where they are 100% responsible for their own financial decisions. We do not aggressively prepare our students for this monumental task. I am passionate about youth being equipped to maximize their potential academically and financially. Through CORE MAG and The Knowledge Bank, I will do just that. We will chat soon…
-C. Hale
Copyright 2013 — CORE MAGAZINE
