High School Money Hacks

By Karthigan Michael Srinivasan and Kyle A. Davis,ChFC®

What if you had a comprehensive education on money and wealth since the time you were a teenager? Every adult knows that understanding how money works is one of the most important skills we can possibly have. There’s only one problem–it’s not taught in school! Personal Finance Blogger Karthigan Michael Srinivasan of StretchADime.com and Kyle A. Davis, Chartered Financial Consultant® and owner of Integrity Financial Group have assembled a simple-yet-complete guide to learning all of the basics behind personal finance, including how to understand and avoid the crushing debt problems facing today’s students. This book is designed for the high school level–but relevant for all ages. Inside, the reader will gain an unfair advantage over other students and set them on the right track to be able to make smart and informed decisions about money by the time they earn their high school diploma! It’s time to put an end to the old phrase, “Wow, I wish I had known this when I was younger.”

• Language: English
• Publisher: Karthigan Michael Srinivasan
• Release date: Feb 18, 2016
• ISBN: 9781311103673

Karthigan Michael Srinivasan

Karthigan Michael Srinivasan has M.S. Electrical Engineering and is a Senior Manager in the Server Hardware Industry by profession. Stretch A Dime (http://StretchADime.com) is a blog he created to share his ideas and opinions about personal finance, investing, frugal living, products and services that provide the best value for money.

Book preview

High School Money Hacks

K. Michael Srinivasan

Kyle A. Davis, ChFC®

Dedicated to my beloved wife Sarah, and

my adorable daughters Samara and Arien.

--K. Michael Srinivasan

Dedicated to my clients, whether they be

family, friend, or referral, without whom I would

have never been able to build my business.

Thank you for your trust.

--Kyle A. Davis, ChFC®

Endorsements

A great tool to learn the basics and provide a head start to financial success. Packed with important facts, knowledge and examples to get you started on the right path. – Michael F. Kay, CFP®, President, Financial Life Focus, LLC.

This is the math they don’t teach you in school and you can do it with an excel spreadsheet. It packs many subjects into 69 pages. – Cary Carbonaro, CFP®, MBA, Author of bestselling Wealth Management book. The Money Queen’s Guide for Woman Who Want to Build Wealth and Banish Fear.

These are the concepts that we are continuously trying to get across to the people sitting on the other side of our desk. All in all I think it is excellent! . – Nicholas Randazzo, President, North Shore Capital Planning.

The authors break everything down in simple-to-understand examples that help inform my day-to-day financial behaviors in an enjoyable way. – Chad Coup, University Instructor.

The book is GREAT! I wish I had a resource like this when I was starting high school! The book is easy to read, with explanations/examples about everyday savings, college planning and grown up life finances. My 15 year old daughter and I highly enjoyed this reading. I even learned a few things! Definitely recommend this book to not only high school kids, but parents too! – Julie Flom, High School Parent

DISCLAIMER: Examples and Information contained in this book are strictly for educational and informational purposes only. Nothing contained in this book should be considered investment advice. Please consult investment and tax regulations before making any investment choices.

TABLE OF CONTENTS

Endorsements

About the Authors

Introduction

Targeted Audience

How to Use This Book

Prerequisite

1. Time Value of Money

1.1 Present Value

1.2 Future Value

1.3 A Quiz

1.4 The Beauty of Finance

1.5 Why is There a Time Value of Money?

1.6 Introduction to Finance in Excel

1.7 A Note on Compounding

2. Power of Compounding

2.1 How Compounding Works

2.2 A Simple Savings Example

2.3 How Much Does a $4 Cup of Coffee Per Day Cost You?

2.4 Understanding APR, APY, and EAR

2.5 Loan Calculator and Remaining Loan Balance

2.5.1 Loan Calculator

2.5.2 Remaining Loan Balance

2.5.3 Total Interest Paid

2.6 Car Loan Example: Payoff or Invest?

2.6.1 Finance & Invest

2.6.2 Pay Cash

2.7 Inflation: the Anti-Compounding

3 High School Money Hacks

3.1 Are You Busy Producing or Consuming?

3.2 Know Your Paycheck

3.3 What’s Are These IRA’s I Keep Hearing About?

3.3.1 Traditional IRA vs. Roth IRA

3.3.2 Should I Choose Traditional IRA or Roth IRA?

3.3.3 Who Can Have an IRA?

3.3.4 What Does It Mean for You?

3.4 Budgeting

3.5 Maximize Savings--Time is Your Unfair Advantage

4 College Education

4.1 Should I Go to College?

4.1.1 Income Gap

4.1.2 Income Gap Over a Career Lifespan

4.2 How Much Should You Spend on a College Degree?

4.2.1 How Much Will You Make?

4.2.2 How Much Will Your College Debt Cost You?

4.3 Paying for College Education

4.4 The 529 College Savings Plan: An Overview

4.5 The 529 Alternatives: What They Didn’t Tell You

5 Credit Report and Credit Scores

5.1 What is a Credit Score?

5.2 What is a Credit Report?

5.3 Who Uses Credit Reports?

5.4 How is Credit Score Calculated?

5.5 Final Remarks

6 Further Reading and Recommendations

6.1 Kyle’s Video Resources

6.1.2 Power of Compounding

6.1.3 Budgeting Made Easy

6.1.4 IRA Rules and Tips–The Crash Course

6.1.5 Whole Life Insurance

6.2 Michael’s Resources

6.3 Other Resources

About the Authors

Karthigan Michael Srinivasan is a Senior Manager in the Cloud Computing Industry with a Master of Science in Electrical