The Key: Wise Money Choices for Teens

By Marjorie L. Anderson

Marjorie Anderson shares her financial expertise and wisdom with todays teens and their parents by helping them learn to make wise money choices that will impact their future. To fully discover how much the material in this book was needed, the Author surveyed 100 middle and high school students about a variety of financial topics. The full survey and findings became the basis for the book. Every teen household should have a copy of this book!

If it is taught at an early age, it becomes a habit.
-Thomas, middle school

It is needed to jumpstart teens on basic money principles.
-Jasmine, sophomore

Financial skills are vital in learning to manage a household when you become an adult.
-Calvin, junior

It prepares students for when they are on their own.
-Travis, senior

It is needed so you can learn how to manage your money before its a necessity.
-Anna, sophomore

If you teach your family how to live and how to manage their finances early in life, they will take the knowledge with them and, and in turn, pass it down to their children and their childrens children.
-Marjorie L. Anderson

• Language: English
• Publisher: Xlibris US
• Release date: Feb 6, 2013
• ISBN: 9781479781034

Book preview

Copyright © 2012 by Marjorie L. Anderson.

Research Editor/Consultant: Rachel Brownlow

Developmental Editor: Brooke C. Stoddard

Copy Editor, Layout Design: Deborah Gabriel

Cover Designer: Ross Carnes

Photographer: Anne Throop

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the copyright owner.

Second Printing

Scripture references: KJV

Rev. date: 02/27/2013

To order additional copies of this book, contact:

Xlibris Corporation

1-888-795-4274

www.Xlibris.com

[e-mail]

129199

Contents

Preface

Acknowledgments

Getting The Most

From The Lessons

A Message To Parents

Lesson I: Finance

What is Finance?

What is money?

What is the Purpose of Money?

How to Acquire Money

Lesson II: Money Management

Why Manage Your Money?

The Importance of Creating a Budget

Creating a Monthly Budget

Personal Financial Statement vs. Budget Sheet

Lesson III: Personal Responsibility

Philanthropy and Giving Back

Lesson IV: Saving and Investing

Saving

Saving for a Purpose

Investing

Saving vs. Investing

Lesson V: Credit and Debt

Credit and Credit Cards

Identity Theft

The Survey

Survey Results

Survey Summary

Lessons for Teens

Glossary of Financial Terms

Resources

Notes

PREFACE

Give a man a fish, and he’ll eat for a day.

Teach a man to fish,and he’ll eat for a lifetime.

Old proverb

The proverb of the fish and fishing applies to food as well as money. The key to wealth and financial freedom is learning. The Bible says, A good man leaves an inheritance to his children’s children. Note it doesn’t say that a good man leaves behind tangible objects or money.

If you teach your family how to live and how to manage their finances, they will take the knowledge with them through their lives and, in turn, pass it down to their children and their children’s children.

To fully discover how much the material in this book was needed, I surveyed 100 middle school and high school students about a variety of financial topics—from whether or not they are interested in learning more about money management to whether or not they’ve ever borrowed money.

The full survey and summary results are in the back of the book [see page 52-57]. You are encouraged to take the survey on-line at www.challenge4teens.com.

Following are some quotes from the survey in response to the question Why do you believe it’s important to learn the basic principles about money matters while in middle and high school? These students, including my grandkids, are the reason I wrote this book. I pray that they and others will learn the concepts of money management early and take these principles into their adult lives.

Marjorie Anderson

It matters later in life or as an early adult to know how money works.

Zachary, high school junior

Learning about money matters is needed to jumpstart teens on basic finance principles so we can go into adulthood with some sense of how to save and budget and make our life that much easier.

Jasmine, high school sophomore

If it is taught at an early age, it becomes a habit.

Thomas, middle school

Money management skills are important to learn as a teen because a lot of times teenagers overlook that aspect of life until they are living on their own, having to learn it the hard way.

Nathan, high school sophomore

It’s better to learn money matters while you’re still young and living with your parents so that when you become an adult it won’t be an issue.

Scarlette, high school freshman

Because it prepares students for when they are on their own.

Travis, high school senior

So I have money for gas, college, and shopping.

Sierra, high school junior

Because after leaving high school you begin to experience life on your own and it can affect your future family.

Gentry, high school senior

Because it’ll help you prosper in life and teach you how to use your money wisely.

Trey, middle school

Because these financial skills are vital in learning how to manage a household when you become an adult.Calvin, high school junior An in depth understanding of how money works warrants unlimited future success.

Reed, high school senior

"Teens should learn and develop good habits about money management before they go