Finance

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For anyone, the idea of student loans is incredibly daunting. The thought of paying off student loans in the future seems like a lot. 

First off, what even are student loans? Basically, a student loan is money that you borrow to pay for college, while saying that you will pay the money back in the future. College is very expensive unless you get numerous scholarships, so student loans ensure that even if you can’t pay all the money now, you can still go to college but will have to pay the money off in the future when you are actually making more money. According to collegeavestudentloans.com, about 70% of college students in the country of America borrow money to pay for college. 

There are two types of student loans. Federal loans come from the government, while private loans come from banks or private lenders. So, while student loans can be incredibly helpful, it can also be a pesky reminder of just how much college costs.

 There are many ways students won’t have to even resort to student loans. For example, scholarships are a way students can lower the cost of college, and they can be given throughout many sports or academic accomplishments. There is also a form called the FAFSA, which provides students with federal aid. But despite these different things, student loans are often necessary. 

Interest rates are a big part of student loans, because it is the cost of taking out a loan. These interest rates are percentages of the amount of money you borrow, and are added onto the cost of your loan. Fixed interest rates are interest rates that will never change, while variable interest rates fluctuate over periods of time. 

Federal loans typically have fixed interest rates, while private loans have either fixed or variable interest rates that are usually higher. It takes most people between 5 and 15 years to finally pay off all of their student loans. According to studentaid.gov, there are 5 ways to be responsible and efficient when using student loans, and these include keeping track of how much you are borrowing, researching the average salary of people who work in your field of study, comprehending the terms of the loan and keeping copies with you, making payments right on time, and keeping in touch with your loan servicer.

To actually get a federal student loan, you have to take part in entrance counseling, ensuring you understand the terms and what they mean, and signing a note saying you agree with the terms. 

For the majority of student loans, you start paying them off after you graduate college. One of the most stressful parts of student loans is definitely paying them off. College costs A LOT of money, and it is often extremely scary to think of paying that much money. 

One of the biggest ways to pay off money from student loans is to get a job. Even a small part-time job in college can help you prepare to start paying off money, and in the future, having a stable job can be a good way to pay for this large sum of money. 

According to bankrate.com, one of the best ways to pay off student loans is to have a specific bank account used only for paying off student loans, so you can put any extra money in this fund. 

A lot of people’s parents create college accounts for their kids starting at a young age, and this is extremely helpful. Even if you’re still in elementary, middle, or high school, you can find so many ways to save up for college and have extra money for paying off student loans in the future.

 For example, setting aside that birthday money you got from your grandma this year into a separate fund for college is a great way to prepare and save.

 Another way to reduce the cost of student loans is by applying for loan forgiveness. Although applying for loan forgiveness has many strict requirements, it can be helpful if you are struggling to repay debt from college and need extra help. The Public Service Loan Forgiveness is a great thing to look into if you are struggling.

The subject of student loans is so broad and the costs and process of paying these off varies person to person. But one of the most important things I want kids and teens to learn from this is to start saving now, and to prepare for your college in the future. It might seem so far away now, but it is NEVER too soon to start saving. We will talk a lot more about this topic on our podcast, so check out the @ We Are podcast on all streaming platforms to learn more about paying off future loans, how you can start preparing now, and different topics and terms that go along with the complicated subject of student loans.   

Citations:

Federal Student Aid, Federal Versus Private Loans

Federal Student Aid, Loans

“Why Do so Many People in America Have Student Debt?” Marketplace, 2 Oct. 2019, Why do so many people in America have student debt?

Federal Student Aid, Federal Student Aid: Home

Gundersen, Hanneh. “8 Tips For Paying Off Student Loans Fast.” Bankrate, 8 Tips For Paying Off Student Loans Fast

We can tell you everything there is to know about stocks and loans, but in order to truly be financially better off you need to learn one thing; how to smartly spend your money. This is a concept that you can start implementing in your life at a very young age and will help you save so much money throughout your life. This can include some things as simple as shopping for more affordable clothes. Through this section I’ll talk about different ways to spend smartly, different situations in which you can help yourself save money, different resources and strategies you can use, as well as some hacks that I have learned and really loved. Topics will include clothes, school supplies, necessities, everyday purchases, etc.

So, let’s start off with one of the most common means of spending for many teens; accessories and clothing. I can not even begin to explain how many kids I see wearing overpriced clothing simply because they don’t really know anywhere else to get clothes. I’ve learned a lot about smart shopping throughout the years from others, so here I am to talk about that.

The first strategy I use for shopping is really not paying attention to labels. I know most kids want the big brand names, and that’s ok, but you have to understand that clothes are just clothes and as long as you like their style and are comfortable in them, then where they are from doesn’t matter. Some shops that have extremely cute, durable, and affordable clothes. I personally have my favorite of these shops at any of the homegood stores, like TJ Maxx and Marshall’s. These stores kind of sound like they might sell not so trendy clothes, however, I have found my most favorite dresses, shoes, shirts, and accessories from here. And everything is beyond cute! From white sneakers to puffy sleeves to crop tops to cute earrings, they have it all (not sponsored by the way). Also, at these stores, they sell super high end brands for really cheap. This includes Adidas, Tommy Hilfiger, Fila, Under Armour, Polaroid, DKNY, etc, as far as I've seen. They also sell extremely well priced makeup that can be compared at other stores for double the price. I’ve seen brands that include Maybelline, L’oreal, Anastasia Beverly Hills, Milk Makeup, etc. They are my number one pick for cute and trendy yet affordable items. You can also find a lot of other goods there as well! 

Another great option for clothes shopping is thrifting. I personally haven’t gone thrifting much, but I have friends that go a lot and love everything that they get. Most thrift stores are very hygienic and you can find a lot of treasures there. They have assortments of everything you could possibly need, including some well known branded items that are being sold for considerably less than they would at the store. 

And finally, the last place I would recommend for buying affordable clothing is anywhere online! Places where you typically wouldn’t look for clothing are some of the best places for affordable clothing. Amazon has very affordable and cute clothes of many varieties that are reliable and durable. Many online stores have really great sales and clothes that they often do not sell at their stores, so it is a great idea to scout for an item online before you get it. Also, buying clothes or other expenses during holidays like Labor Day, Memorial Day, Black Friday, Cyber Monday, Summer Sales, Fourth of July sales, and others, are a great way to save big on anything and everything. Finding promo codes and saving coupons can help as well. Clearance sections are impeccable! Woah, that was fun. 

Anyways, now I’ll talk about getting school supplies for cheap. School supplies are super important for everyone, especially people that go to schools that don’t supply them. For electronics, buying a durable one is more important than buying a two thousand dollar laptop. I know it seems like the only good laptops are expensive, but I can assure you that you can find really good ones for great prices. Do your research first, and really make sure that any device you are considering is not overpriced or worse than others at the same price point. For laptops, HP laptops are very reliable, and on Amazon, you can find some for good prices. For tablets, I-Pads are really useful, and you can find older or secondhand models for good prices as well. 

As for textbooks, renting textbooks, buying reused textbooks on Amazon, buying textbooks from family, reusing textbooks, buying them from neighbors and things like garage sales, or just finding a free or cheap copy online could really help a lot of students with saving some precious money. I actually really recommend looking online or renting/buying textbooks online, as that is the most money-saving option. If you really need a paper copy, be sure to ask any family friends if they have any textbooks you need, and they will probably sell it to you for cheap. Places like Ebay and Amazon sell old copies for cheap. 

For the classic school supplies, like pencils, notebooks, and other stationary, online buying is a great way to go. Another tip that I’ve learned throughout the years is to buy school supplies way after or before the school season. Typically stores will bump up prices around august because that is when everyone is shopping for supplies, but if you stock up for the next year far before or after that time period, you could save big. Plenty of people don’t really see a point in buying something in the middle of the year, but if there is a good sale, just stock up. Trust me, it’s worth it. My family has notebooks to last us decades.

And now to the last topic of discussion; anything you need to know to conclude. First, don’t buy a lot of takeout or coffee or anything outside. Restaurants and stores that sell those things are extremely overpriced all the time, and while buying a coffee everyday might not seem like a lot, those seven dollars add up. Making food at home instead of eating at restaurants not only can save you a lot of money, but it also is a fun hobby and can be much healthier as well. 

Don’t feel pressured to buy anything because your peers bought it. I know that’s much easier said than done, but know one knows your financial situation and needs better than you, and if they make you feel bad because of it, then they are not worth your time. Whenever you are iffy about buying something, really consider every aspect of it and make sure it is something you need or really want, and you are getting it the best way you can. By that I mean best quality, price, and timing. 

Finally, you can google more resources and ways to save money. For vacations, there are many apps that can help you find the best deals! Things like Groupon and Honey are things I’ve used for finding deals on clothes, items, fairs, carnivals, amusement parks, museums, skiing, sports, activities, coupons, and many more. Do what’s best for you! And listen to our podcast and follow us to find more tips and tricks we’ve learned from some professionals, or just from living throughout the years (via We Are Podcast on most major streaming platforms and all major social media outlets).

Yes, money dilemmas. Maybe you’ve been in one, or maybe you’ve heard of others who have experienced them. These could be anything ranging from who should pay the check to whether or not you should give that new friend of yours a money loan. 

I think it is so important for teens and kids to learn about these tough situations so they can live a less stressful and confusing life. Imagine you’re on a date, and you’ve just finished up dinner. Who should pay? Or maybe your friend needs an extra $60 for that new dress she’s been eyeing, and says she’ll pay you back. Should you give her the money? How generous is too generous when it comes to money? These are all stressful and confusing situations where many people might not know how to react and what to do, and there can be consequences. What if that friend never pays you back and you end up losing money? What if you just gave away half of your life savings to help a friend in need, and now you have nothing? 

It’s important to stay smart and level-headed in these situations, and it is also helpful to note that there is not one clear answer to any of these situations. Who should pay the bill? There’s not one true answer to that, but there are ways you can react to this situation and deal with it in the smartest way possible. 

First off, imagine yourself on a date with someone. You finished eating dinner and are sitting there waiting to pay the bill. I’m sure you’ve heard of the stereotypical concept that the man should always pay, but is this always the case? 

There are varying opinions of this, but I personally believe that the man shouldn’t feel obligated to pay. The man or the woman shouldn't feel obligated to pay, however, if one wants to, this is a considerate gesture for a first date. 

If one person in the situation does decide to pay for the bill as a nice gesture, that is ok. There is a big stereotype about men having to pay for the first date, but I personally think that the man can pay as a nice gesture, but splitting the bill is always an option too. 

If the man or woman shows interest in paying the bill, I think it’s ok to let them do this, as it is a good gesture.  I think there is no obligation to do either, but after the first date, I think splitting it is a lot more practical because it is unfair to one person to make them pay every time. 

According to elite.singles.com, there was a study done and women and men actually have varying opinions on the subject. 

Out of the 300,000 individuals that took part in this study, 62.63% of men believe that the man should pay for the first date, while only 46% of women believe men should pay for the first date. 2% of men think that women should pay, while 5% of women think women should pay. 7% of men think splitting the bill is the best option, while 18% of women want to split the bill. 28.28% of men don’t mind/care either way, while 31% of women don’t mind/care. 

This goes to show that any person in the situation can pay for the whole bill if they want to, but neither person in the situation should feel like they have to. If you would like to pay a nice gesture, go for it, but if not, they might offer to pay, or you might decide to split the bill. 

When it comes to money, being generous is a great thing, but not when it deprives you of your own money to the point where you can’t even support yourself anymore. When donating to charity, how generous is too generous? How much is too much? 

According to northfinanciladvisors.com, people who donate typically donate 2-11% of their income. But this source also notes that it is important to take into consideration your own financial situation and donate how much feels right for you. 

If you are having a good financial year, you can donate more, but if you are struggling this year, you might consider donating less this year or not donating at all and finding other ways to help your community. 

According to this source, a good rule to follow is the 50/30/20 rule. This basically means that 50% of home pay should be used for things like food, groceries, shopping, clothes, and the everyday things that we as humans need. 30% should go towards entertainment and lifestyle. For example, vacations, a TV, etc. 20% of your money should go towards savings for the future or paying stuff like debts and student loans. If you are doing particularly well in a certain category, for example, if you paid off all your debt and have plenty of money for savings, it would be wise to take money out of this category of your life and use it for donation. If you have plenty of money left in the entertainment and lifestyle category, it would be smart to use that extra money for donations. 

It’s all about finding what’s best for you and realizing what works best for your current financial situation. Check out this site in the citations area of under this section, because it talks about how to give money in smart ways that work for your own situation.   

Another common situation people experience a lot, and this one is a struggle for me, is how to react and what to do if someone offers you money. Should you accept it, and how much should you accept?

I’ve been in a situation where someone has tried to give me money before, and I always felt so awkward and didn’t know whether accepting the money was necessary or not. 

First of all, what if you simply do something nice for someone expecting no money, but they pay you instead? What if you fix your neighbor’s gate for free and they offer to pay you? Should you accept it? First, it is important to look at that person’s financial situation. If they have a secure financial situation and they are willing to pay you for something you were just doing out of good will, it is fine to accept this money because they have a good financial situation and are giving you the money out of gratitude. 

However, if you help a friend out for free and they offer to pay you but you know they are struggling with money at the moment, you can kindly turn the money down. 

If you are in a situation where it wasn’t a big deal to help someone and they offer to pay you; for example, if you shovel a friend’s driveway and they offer to pay you but you didn’t mind shoveling it and the deed didn’t take up too much of your time and effort, it is ok to refuse payment. 

However, if you do something nice for someone expecting not to get paid that took a lot of your time and effort and they offer to pay you, it is totally fine to accept this money. 

I think it is important to feel out the situation, and you should note that accepting money is not always a bad thing. If someone is in a good financial situation and you feel like you put in effort to help them, there is no problem with accepting money. And if someone continues to encourage you to accept the money, never be afraid to accept it. 

What if your friend or family members offers you money? For example, what if your family member offers you money when they know you are struggling, or what if your friend buys you a large and extravagant gift? Should you accept it? 

First, it is important to understand that person’s financial situation. If a family member offers you money because they know you are struggling and they themselves have the extra money to help you and are comfortable with the amount, remember that there is no shame in accepting money when you need it. 

And if a friend or loved one gives you something that you know costs a lot as a gift, it is also important to understand this person’s financial situation and your own personal relationship with them. If you know them well and are aware of their financial situation, consider these factors. You can also politely refuse, but if they continue to push it on you, it is ok to accept the gift. In a situation where you have the choice to accept money, always consider your relationship with the person offering it and their own financial situation. 

 Now this topic is definitely something a lot of people have run across. Should you lend a friend or family member money? If they say they will repay you, will they actually repay you, or is it all a lie? 

Imagine you and your friend are going dress shopping for homecoming, and your friend sees the dress of her dreams, but she forgot to bring money. She asks if you will pay for it, and promises to repay you within the next few days. 

In this situation, there are various different factors to consider. First of all, do you have enough money with you right now? If you do, ask yourself this. How much money am I paying for this? If it seems like you are paying a lot, it probably means it is a lot. 

The same thing goes for lending a friend money. If it seems like a large amount of money, then it probably is a lot. 

The next factor to consider is the character of the person in the situation. Are they trustworthy? If you have known the person less than a year and still aren’t sure about their character, definitely never lend that person money with their promise that they will repay you. 

If you know the person well and consider them a trustworthy person, it is ok to help a friend or loved one in need. 

Also consider something else. If a friend promises to repay you money, think about how much money is involved. If the friend didn’t repay you, would it be financially devastating, or would it have little or no effect on your financial situation? If it is a large sum of money that is a stretch for you financially, it is absolutely ok to not lend that person money because it could potentially devastate you in the end. 

However, if the money is a small sum to you that doesn’t really make a difference to your financial situation, there is no harm in lending a person money. 

But what if you lend someone money with no repayment involved? If a family member needs a loan of money, it might be the charitable thing to give them the money, but is it the right thing? If the amount of money will not hurt you financially and you can still support yourself and feel this person definitely needs the money, help them out. But if by helping this person you are hurting yourself, this could lead to bad places for you. It really depends on whether you are capable of paying the money, how much the other person needs the money, and if paying them the money will hurt you in the process.   

Citations:

Watson, Sophie. “New Study Reveals Who Should Pay On A First Date.” EliteSingles, New Study Reveals Who Should Pay On A First Date

North, Cady. “How Much Should You Donate To Charity?” North Financial Advisors, 8 Apr. 2021, How Much Should You Donate To Charity?

Ennico, Cliff. “Accepting Money From Friends & Family.” Entrepreneur, Entrepreneur, 6 May 2002, Accepting Money From Friends & Family

moneyunder30.Com, Financial Gifts: The Etiquette of Giving and Receiving Money

Ok, so now that we’ve gone over almost everything from smart spending to student debt, I think we should talk a bit about investing. Investing can sound really scary and like it's this tremendous deal, but in actuality, investing is a lot simpler and important to look into. A lot of kids think you can only invest in something if you are a rich adult, but I can tell you that that is not the case AT ALL. I recently attended a class where I learned so much about investing and had so many more realizations about how it all really works, so throughout this section I would like to talk about the things I learned about investing, different options, benefits of investing, and where to start with it all. 

So, to start, what is investing? Investing is basically putting your money into some company or material in hopes that the value will go up and the money you put in will grow, thus leading to gaining profit through the investment. There are a lot of different ways to invest including investing in stock, precious metals, real estate, etc. Let's take a look at each of these options:

First up we have stock market investments. The stock market is a giant web of companies and businesses in which one can buy or share parts of ownership with that company. Stocks are practically a small share of that company. Many companies have public stocks where once you make an account, you can choose which brands you want to invest in. However, there are a lot of other components you need to look into before you start investing. 

First you need to decide what kind of stocks you want to invest in. Two major stocks are individual stocks and index funds. Index funds have lower costs and are mostly guaranteed to have the overall growth of their indexes. Individual stocks are slightly more complicated.

With individual stocks you have to make sure that you do a lot of research on how companies that you want to invest in will grow or not. If you aren’t very analytical and are not willing to do a lot of research on those companies, you may lose a lot of money. 

But, on the flip side, if you do want to do research and are willing to be more involved, this could be such a good option for you. There are also many apps such as the robo adviser that can help and advise you with stocks. If you want to learn more specifics about this, listen to our podcast and we’ll go more in depth on this topic. 

Ok, so now that we’ve gone over that, let's talk about the actual process. Once you decide what you want to invest in and how, you should decide how much money you want to invest. If you are thinking about taking money out of saving accounts or money that you would want to use for something important. Unless you have extra money from birthdays that you don't really need, then really make sure that the amount of money you invest won’t harm you if you lose it. 

Once you've decided this, with some guidance from your parents, you can ask to start an account. You can google how to do that. There is a standard brokerage account and an individual retirement account. Next, study the gain and losses of each company of interest and start off by investing small amounts. Then gradually increase your knowledge and investments. If you start off young, by the time you are an adult you will know all the ins and outs and be able to earn a lot of extra profits off stocks.

The next way you can invest is by buying products that can grow in value, such as precious metals like gold, titanium, platinum, and silver. The bonuses to this is that it's less risky. Precious metal typically does grow in value over time, or atleast holds its value. A great place to buy metals is at JM Bullion: Buy Gold & Silver Bullion Online | Free Shipping. 

To get these, just look at some charts that have had the best and most consistent growth, and pick your metals. Then save up some extra money and ask if you can invest in it. In a couple of years, or even decades, when the prices are higher, you can sell it and make your profit.

Another option is real estate, which you can buy when you're older, but I won’t get too in depth into that now. We will probably touch up on this in our podcast!

So, to conclude, I hope you start investing in some things so that in the future you can make more financially clever decisions and get a better grasp on our economy. Plus, you can eventually earn a lot of profit if you do it right! 

To learn more about investing and many other great finance tips in general, tune in to our podcast, the We Are podcast on most major streaming platforms. Here we will go super in-depth about the cracks and crevices of finance as well as discuss common dilemmas, the best ways to go about financial quandaries, and we’ll also talk to some learned people about finance!

Citations:

Our World Cultures teacher who dedicated several classes to teaching us about finance! Thank you, we learned a lot about finance, especially investing. Also, our parents whom were great helps. Mrs. Paul has a degree in finance and has worked in that field as well, so she was an amazing reference for us.

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