Recently, I created a non-profit called Right to Read Inc., which provides ownership and access to books by children who are homeless in Washington, D.C. I have contacted two shelters in Washington and have formed a relationship with them in order to promote literacy among homeless children. Although many shelters already have created libraries, a unique aspect of my non-profit is that it enables each child to own a book. Many of the homeless children own very little. By giving them a book that they can keep, I am teaching them about responsibility and building their self-confidence.
Owning a book isn’t the same as owning a home or a business. However, it is a good start. It teaches children to dream about a better future. When they grow up, maybe they will remember the importance of building assets. If you are interested in supporting Right to Read Inc., please contact me through the blog.
I would like to thank REI Tour for the opportunity to write blogs over the past six months. This is my last blog, and I hope that through these blogs, I have raised and addressed several important issues relating to managing money and building assets. When I look back over the last six months, I realize how much I have learned about the importance of financial literacy, of saving rather than spending, and of ownership. As a youth blogging about these issues, I hope that I have motivated other youth to consider their finances and have a better future.
As of May 29, 2008, the U.S. Treasury reports that the national debt is $9,391,228,825,656.43. Can you believe it? About 9.4 trillion dollars in debt? The national debt has continued to increase an average of $1.57 billion per day since September 28, 2007. I don’t understand how the U.S. government can carry such a large debt while expecting its citizens to avoid debt. Aren’t they setting a bad example?
Recently, Congress passed the Economic Stimulus Act, which provides tax incentives to encourage business investment and offers low and middle class taxpayers with rebates. This law promotes spending in order to improve the U.S.’s economy and prevent a recession. However, shouldn’t the government be supporting saving and not spending?
Therefore, I challenge the financial messages that the U.S. government is sending its citizens. Why is the U.S. encouraging spending and debt when it should be promoting financial literacy and saving? We need to realize the importance of financial literacy, of saving, and of avoiding debt. By focusing on these three goals, we can have a brighter future.
When I was thinking about what to write in this month’s blog, I started looking online for information about what high school students can do to learn more about finances. In my search, I discovered that April is financial literacy month. Therefore, April’s blog is about understanding money management and creating and keeping a budget.
I found a helpful website called Jump$tart Coalition, which is an organization “dedicated to improving the financial literacy of kindergarten through college-age youth by providing advocacy, research, standards and educational resources.” The website describes a major problem: many high school students graduate lacking skills in financial management. Many do not know how to balance a checkbook or how to invest money. Therefore, the Coalition is working to promoting better financial understanding for youth.
The Jump$tart Coalition is encouraging high school students around the country to take a test in order to inspire learning about personal finance. The test is 35-questions and enables students to be recognized for their knowledge about finances. I encourage you to participate!
Financial understanding is very important in your life. By learning how to manage your money and create a budget now, you can achieve greater financial stability later. I hope that this blog motivated you to visit the website and learn more about financial literacy.
For more information about financial literacy, you can visit
http://www.jumpstartcoalition.org/
After saving money I had earned from various jobs and my annual allowance, I decided to put the money into my savings account in the bank. After doing a little research, I found that the bank’s interest rate is 0.20%. Therefore, if I put $200 in the bank for 1 year, at the end of the year, my savings would increase by $0.40. I was shocked to discover that I would gain such little money after an entire year. However, I suddenly realized the importance of savings.
Although I would gain less than a dollar by putting my money into savings, I realized that I would have more money at the end of the year than if I had kept it sitting in my sock drawer. By using a savings account, I would not be tempted to spend the money that I had earned. Therefore, after the end of the year, I would have more money, not less.
So what does this lesson teach us? For high school students like myself, an important first step in saving money is to open a savings account. Visit a number of banks in your area, compare their interest rates, and open a savings account at the bank with the highest rate. With your new savings account, not only will you be making money, but you will also be prevented from spending it. After a number of years, your savings will increase, and you will achieve greater financial stability.
First I would like to thank REI for the opportunity to share my ideas about working and saving money. I look forward to hearing from other youth about their thoughts and opinions.
I would like to share an experience that happened recently. This past week was one of those weeks where nothing was working out. However, my school was organizing a community service event, and instead of sitting at home and thinking of all the things I have and don’t have, I decided to attend. For hours, we made turkey and cheese sandwiches to deliver to homeless people in the Washington, D.C. area with a program called the Grate Patrol, sponsored by the Salvation Army. After filling the small white Grate Patrol van with 160 turkey and cheese sandwiches in crinkled brown paper bags, we drove into the heart of downtown Washington, D.C. The homeless people recognized the van and immediately formed a line leading up to the doors. After handing out the sandwiches, many of the homeless people continued to linger by the van, enjoying the chance to talk and laugh. As the van pulled away, a chorus of “thank you’s” and “God bless you’s,” echoed around me.
My experience with the Grate Patrol left me with a feeling of gratitude; it made me forget what I didn’t have and reminded me of all I can offer. Material goods do not make us happy; after a while, we grow tired of them and forget them. However, I will never forget the smiles on the homeless people’s faces and the stories they shared with me. Community service not only improves our own lives but also makes a lasting difference in other’s lives.
When we watch television, surf the Internet, or listen to the radio, what do we see or hear? Car commercials advertising new deals, new electronic gadgets that are a must-have, or new clothes that we need to buy. We are bombarded by messages telling us to invest in material things; things that “we can’t live without.”
“Buy it now.” “Hurry before it’s too late.” “Indulge yourself.” All of these messages equate money with happiness. They send the idea that only when we have purchased all of these items, we will be truly happy. However, the truth is that material goods will never make us happy; we will never be satisfied because we will constantly want more.
Today, we only see or hear advertisements about spending money. But, what about saving it? We need to stop thinking about what we can buy and starting thinking about how we can save. We can’t just think about the present; we need to think of the future.
For students in high school like myself, the issues of managing money, finding jobs, and saving for college are constantly on our minds. We have to manage the pressures of school with the pressures of saving money. I hope that through these blogs, I can help you handle the same issues that I am struggling with. Remember: stop looking at today and start thinking of tomorrow.