YOUR MONEY,

YOUR FUTURE
A PRACTICAL MONEY GUIDE
FOR STUDENTS
One of the best things about having TABLE OF
your own money is that you get to
choose how to use it.
CONTENTS
Whether you get a weekly allowance or get paid
for walking your neighbor’s dog, your first step in
Chapter 1: Earn 2
handling your money well is to think about short-term
and long-term goals. Then make a plan to reach them. It
takes a bit of practice to master your money, just like it Chapter 2: Save 8
takes time to learn to ride a bike. But once you get the
hang of it, you’ll be ready to tackle all sorts of money
twists and turns. In this money guide, you’ll learn to Chapter 3: Budget 14
earn, save, budget, spend, borrow, protect and give.

Chapter 4: Spend 22

Chapter 5: Borrow 28

Chapter 6: Protect 34

Chapter 7: Give 40

Wrap-Up 46

01
chapter 1: earn HONE YOUR SKILLS
Earning is the first step in your journey to managing money

LEARN
wisely so that you can build a successful future.
We all have different talents and abilities. It’s important to take the time to
recognize your strengths and develop your skills so that you can excel at what

TO EARN you do. By investing in your education and interests, you will set yourself up for
a path to success.
Get started by asking yourself these questions to help you think about what
career path you might want to pursue.

What topics interest you? What are you good at?

1. 1.

2. 2.

3. 3.

What are you passionate about? What are your hobbies?

1. 1.

2. 2.

3. 3.

Did You Know?

You can legally start working in the U.S. at the
age of 14.

3
 BIG IDEAS, BIG MONEY MAP YOUR CAREER PATH
You can earn money doing what you love by becoming You may have had a lemonade stand to make money as a kid,
an entrepreneur. but how do you want to earn money in the future?
Being an entrepreneur means using your skills, interests and unique ideas to build Not sure where to start? Your school’s library and career club are great places
your own business. Anyone can become an entrepreneur with enough hard work. to research your interests and potential careers. You don’t have to decide on a
Many teens have built amazing businesses right out of their homes. Some have career right away, so don’t limit yourself to one area of interest. You can grow your
started tutoring younger kids, selling handmade items online or even organized skills and learn more about your potential careers by taking a class at your local
their own catering services. community center.
You might not be thinking about a career yet, but planning ahead will help you in
the process of getting there. Based on your brainstorming, come up with three
potential careers that you might want to pursue in the future. Do some research and
determine the average initial salary for each career. Which path will you choose?

Potential career Salary

Are you good with Do you care about Do you love animals? 1. $
computers? the environment? Start a pet-sitting
Teach others how Collect recyclables business. 2. $
to use them. in your home
and neighborhood. 3. $

Could you excel at starting a new business using your interests and skills? Now that you’ve thought about potential careers based on your interests and skills,
Channel your inner entrepreneur and come up with three businesses that you might what part-time jobs could you start after school or during the summer to help you
want to start. reach your goals? Brainstorm three jobs that you could start now.

Business ideas How can you start earning money?

1. 1.

2. 2.

3. 3.

4 5
 TRUE OR FALSE?

1.
Only adults can be entrepreneurs. T / F

2.
Planning your career starts with an
assessment of your personal interests, T / F
skills and goals.

3.
An entrepreneur is someone who has /
T F
started his or her own business.

4. YOU’RE READY
Education isn’t important to build your
T / F TO START EARNING!
skill set.

5.
Finding a mentor is a way to get
T / F
advice about your business idea.

Key: 1. F, 2. T, 3. T, 4. F, 5. T

6 7
chapter 2: save MAKE IT A HABIT
Making smart choices with your money is the first step

GET SAVVY
toward becoming financially fit.
The easiest way to save is to pay yourself first. That means setting aside a certain
amount of money you earn and keeping it in a savings account. The key to saving

AT SAVING successfully is by making it a regular habit. By saving early and often, you’ll set
yourself up for a brighter financial future.
It’s important to save money for a rainy day, just in case you need it for any
unexpected expenses like a broken laptop. Another portion of the money you
receive should be set aside for your various goals. These goals can be categorized
as short-term, medium-term or long-term. You can reach your goals by saving your
money over time.

Short-term Medium-term Long-term

Art supplies Tablet, smartphone or laptop College fund
Musical instrument Holiday spending money Space camp
Sports equipment New bike A car

Did You Know?

If you save $5 each week, you will have $260
by the end of the year.

9
 SHARPEN YOUR SAVING SKILLS WATCH YOUR MONEY GROW
It’s tempting to spend all of your money as soon as you
earn it, but you’ll be better off in the long run if you save Savings accounts enable you to keep your money safe and help it
grow with interest. You can open an account and start saving at any
a portion of it. age with the help of your parents.
Think about a short-, medium- and long-term savings goal and determine how
much you can save each month toward each goal. Remember, the amount that you The longer you leave your savings untouched in a bank, the more
contribute per month toward your goals can’t be more than you earn that month. your money will grow. You should limit how often you withdraw
Then calculate the cost of your goal divided by your weekly contribution to find out money from your savings account and only do so if you really need it.
how long it will take you to reach each goal.
When you open a savings account and deposit money into it, the
Short-term goal (1 month) bank will increase your savings by a certain percentage every year.
This is called interest.
What are you saving for?

Cost of goal Weekly contribution Time to reach your goal Compound interest is when you earn interest on both the money
you’ve saved and the interest you earn.
$ ÷ $ = /week(s)

The average savings account interest rate is currently 0.06%, but

can vary between financial institutions and over time. If you save a
Medium-term goal (2-12 months)
little each week, your savings will grow over time with interest.

What are you saving for?

Compound interest in action
Cost of goal Monthly contribution Time to reach your goal
Let’s say you deposit $50 into your savings account each month at a 1%
$ ÷ $ = /month(s) interest rate. Each year, the interest you earn will help your savings grow. See
how 1% interest will increase your savings over the course of three years when
it is compounded monthly:

Long-term goal (over a year)

Year Balance Balance + Interest

What are you saving for? 1 $600 $603.26

Cost of goal Monthly contribution Time to reach your goal 2 $1,200 $1,212.58

$ ÷ $ = /month(s) 3 $1,800 $1,828.02

10 11
 TRUE OR FALSE?

1.
The longer your money is in a
savings account, the more money T / F
you will earn.

2.
The easiest way to save your money
T / F
is to pay yourself first.

3.
Compound interest is when you earn
interest on both the money you’ve T / F
saved and the interest you earn.
YOU’RE A SAVVY SAVER!
4.
The interest rate on a savings account
T / F
decreases as you deposit more money.

5.
A college fund is an example of a
T / F
short-term goal.

Key: 1. T, 2. T, 3. T, 4. F, 5. F

12 13
chapter 3: budget IT’S A BALANCING ACT
You need to buy a jacket, but you also want to buy a new

BUDGET
phone. How do you choose?
To make good decisions about how to spend your money, start by setting your
money goals and work toward achieving them with a plan in mind. A personal

BUILDER budget is a plan that helps you put the money you’ve earned toward savings,
expenses (lunch, bus or entertainment money) or paying off debt (money you may
have borrowed).
When you’re creating a budget, it is important to understand the difference
between something you need to have and something you want to have.

Needs

Wants

Remember to take care of your needs first, so you can think about saving for what
you want. A budget can not only help you consider your immediate needs and
wants, but prepare you to achieve your long-term financial goals. You may have
some short-term goals that you can achieve in a matter of weeks, or long-term goals
that will take years to attain.

15
 IT ALL ADDS UP
Start creating a budget by setting goals for how you Fill in the amounts you would like to spend monthly below. Remember to prioritize
would like to spend and save your money over a specific your savings over your expenses and pay yourself first.
time period.
Monthly Expenses
Be sure to consider everything you may want or need to purchase and separate
those into categories. A ride on the bus would go under transportation, and a slice Movies, Music & Entertainment $
of pizza would fall under food.
Clothes & Accessories $
Complete the budget below by filling out how much money you would like to spend
in different categories each month. The goal of a budget is to have money left over Games $
for saving, so you should start by thinking about how much you earn.
Food & Snacks $

Record the money you earn or receive each month below. Transportation $

Monthly Income School Supplies $

Money Earned $ Charity $

Allowance $ Other $

Gifts $ Total Monthly Expenses $

Other $
Subtract your total monthly expenses from your total monthly income. This is the
Total Monthly Income $ total you can add to your savings.

Results

Total Income $

Total Expenses $

Total for Savings $

Did You Know?
If you save the $6 you might spend on Now that you understand how much your wants and needs will cost, you can adjust
popcorn during a monthly trip to the movies, your habits to meet your saving and spending goals.
you could have $72 by the end of the year.

16 17
 TURN SPENDING INTO SAVING
The goal of a budget is to have money left to save. Practice categorizing your spending goals by brainstorming short-term,
Once you can see where you would like to allocate your money, you may be medium-term and long-term goals like the examples provided.
surprised by certain categories that add up more than you thought. These can be
good opportunities to cut back. The money you spent on a trip to the mall might Short-term goals (1 month) Cost
be better spent somewhere else, especially if you have $0 in your total savings for
1. $
the month.
2. $
Planning a budget helps you make choices about which goals you want
to prioritize. 3. $

Medium-term goals (2-12 months) Cost

1. $
Short-term goal 2. $
A new book for school
3. $

Long-term goals (over a year) Cost

1. $
Medium-term goal 2. $
A new winter coat
3. $

Every once in a while, something unexpected happens and you have to spend
more money than you planned. Whether it’s something small like stepping on your
sunglasses and having to buy a new pair or something bigger like needing a new
Long-term goal smartphone, it’s always good to have money saved for a rainy day.
A new smartphone

18 19
 TRUE OR FALSE?

1.
It is important to prioritize a want over /
T F
a need when creating a budget.

2.
When you budget you want to have /
T F
more income than expenses.

3.
A budget tracks where your /
T F
money goes.

4.
NOW YOU’RE
Focusing on saving for your goals
is more important than budgeting T / F READY TO BUDGET!
for a need.

5.
You should set aside savings in your /
T F
budget for emergencies.

Key: 1. F, 2. T, 3. T, 4. F, 5. T

20 21
chapter 4: spend HOW TO SPEND YOUR MONEY WISELY
Spending may seem like the easy part of managing your

SMART
money, but there are many tips and tricks that can help
you save.

SHOPPING
As you make smarter decisions with your money and think carefully about your
purchases, you will notice that saving a little with every purchase adds up over time.
Using a budget and learning to plan your purchases can make it easier to
save money.
The key to spending is to stay within your means. Don’t spend more money than
you have. As you plan to shop, make sure you keep your goals and your budget
in mind.

THINK BEFORE YOU SHOP

When you make a decision, you are often weighing a lot of
factors — not just how much money you’re going to spend.
Before you make a purchase, look at lots of different options to make sure you’re
getting the best deal. Rather than buying the first expensive pair of gym shoes you
see, plan ahead to make sure you are getting the best value by researching
quality and comparing pricing at multiple retailers — this is called comparison
shopping. The exact same pair may be cheaper at another store.
If you want to go to a concert, there will be ticket features you want and features
you need. When all you need is a basic ticket, you may sacrifice the features you
want in order to save money, while still enjoying the concert.

BAckstage vip General Admission

23
 SO MANY WAYS TO SAVE
When you do finally decide what to buy, you’ll notice that What might you take into consideration
you usually have a few options, such as name brands or when you buy something new?
generic items.
A name brand is recognizable; if you see one of its products you are likely to know
the manufacturer. A generic brand item is one that typically isn’t advertised. Many
grocery and multi purpose stores have their own generic versions of products. Most
What quality
of the time, there’s no significant difference between the two items besides price. do I want?
Generic items are usually less expensive — making them a great savings opportunity.
What quality do
I actually need?

Are there discounts

or sales that can help
me save? Have I tried
comparison shopping?

What features of
this product are most What is
important for my my budget?
needs? My wants?

Did You Know?

Sometimes, spending can also pay off in the long run. If you have your own
If your family buys generic cereal once a week business, you may need to spend money to be able to better serve your customers.
instead of name brand, they could be looking at For example, if you start a lawn mowing business in your neighborhood you’ll need a
$50 in savings by the end of the year. lawn mower, gas and potentially other landscaping tools down the road.

24 25
 TRUE OR FALSE?

1.
When you comparison-shop, you go to /
T F
one store and buy the first item you see.

2.
Generic-brand items are usually /
T F
more expensive.

3.
When you consider what you want to /
T F
buy, you shouldn’t consider quality.

4.
DECIDE WHAT TO
There are no steps that should be /
T F BUY WITH CONFIDENCE!
taken before you make a purchase.

5.
When you’re choosing between two
items, you should prioritize features T / F
you need over features you want.

Key: 1. F, 2. F, 3. F, 4. F, 5. T

26 27
chapter 5: borrow DO YOU WANT TO GO TO COLLEGE OR BUY
A CAR SOMEDAY?

PAYING
You can reach your long-term goals by borrowing money
and paying it back later.

IT BACK
You may have borrowed money from a friend for an after-school snack or from your
parents to see a baseball game, but in the future you might need to borrow more
than a few bucks. The cost of going to college or buying a car is usually more than
you have saved in your bank account. Luckily, investing in your future or purchasing
an expensive item is still possible with a loan. When you borrow money from a bank,
it’s not free money — you have to pay it back, plus interest. This means you have to
pay back all the money you borrowed plus extra for the service.

IT’S PAYBACK TIME

Everyone borrows money at one time or another. If you make
a plan to pay the owed money back on time and within your
budget, your debt won’t be out of control.
Have you watched car commercials where they’re talking about car financing deals?
In a few years, you might be driving. You may not be able to buy a car today, but for
this exercise, let’s look at how a car loan works. A typical length of a car loan is five
years at about a 4% interest rate. If you are under 18 and want to take out a car loan,
you will need your parent or guardian to be a cosigner.

Car loan

Total amount borrowed $5,000

Interest rate 4%

Length of loan 60 months

Monthly payment $92

Total cost of loan plus interest $5,524.96

29
 WHY CREDIT MATTERS
What might you need to borrow Take control of your credit score by managing your debt.
money for in your future? The amount of debt you’re in may impact how easily you can qualify for future loans
after you turn 18. There is a written record, or credit history, that tracks how you’ve
repaid previous loans, any outstanding debt and other financial history. Your credit
history determines your credit score, which helps lenders decide the credit risk
associated with loaning you money. Credit scores range from 300 to 850. Generally,
the lower your credit score, the higher the interest rate you will have to pay on
future loans because it’s assumed there’s a higher risk you might not pay it back
on time.

a car credit
score

a house

college

Did You Know?

If you pay back your loans late, you will pay
a business
more in interest and late fees than if you pay
them back on time.

30 31
 TRUE OR FALSE?

1.
Borrowed money is free money. T / F

2.
You have to pay interest on money /
T F
you borrow from a bank.

3.
The later you pay back the money you /
T F
owe, the lower your credit score will be.

4.
Debt doesn’t cost you anything. T / F YOU’RE READY TO
BORROW WISELY!
5.
The faster you pay back the money
you borrowed, the lower the amount T / F
of interest you will pay.

Key: 1. F, 2. T, 3. T, 4. F, 5. T

32 33
chapter 6: protect PROTECT YOUR DIGITS
Earning money is hard work. It takes time and effort, and it’s

KEEP YOUR
just as important to protect your money as it is to make it.
The easiest way to protect your hard-earned cash is to keep it in a safe place. A
bank is one of the most secure places for your money because it’s the bank’s job to

MONEY SAFE keep it safe. It will give you peace of mind knowing where your money is at all times.
Just like you wouldn’t leave your backpack unattended outside, you shouldn’t leave
your money where it could be stolen or lost. Protecting your financial information
online is just as important as keeping your money in a bank. You can access nearly
any information online, but with all that access also comes responsibility.
What private information is important to keep safe?

What happens when someone gets ahold of your information? They can use
your personal information to steal your identity and illegally obtain jobs, credit
accounts, mortgages and car loans — not to mention withdraw money from your
bank accounts. Luckily, most banks protect your account from those kinds of
crimes, but it’s essential to keep your other information safe from the start.
Personal information of any kind is important to keep secure, even information
about your schooling or family.

35
 MAKE IT PASSWORD PROTECTED KEEP AN EYE OUT
It’s important to put a plan into place when handling your There are a few ways to protect your money and
information, including your bank statements and passwords private information.
for important online accounts. Use the Internet Wisely
You should always use strong passwords, which contain uppercase and lowercase Everyone receives unwanted emails or “spam” from unknown sources, which solicit
letters, numbers and symbols — not recognizable spelled-out words. You should people by sending emails to a large number of email accounts. Delete spam emails,
know how to access all your online information and paper documents if you need especially those that ask for personal information, and keep your anti-virus and
them. Your passwords and documents should be kept in a safe place where they can’t anti-spyware software up-to-date. Shop online only on secure web pages (check the
get into the wrong hands. address bar for “https” next to an image of a lock). Never email or share images of
your identification, bank cards or other personal information on social media.
Destroy Personal Financial Records
Did your parents help you set up a savings account at a bank? Your bank will send
you monthly statements telling you how much money is in the account, as well as
the number and dollar amounts of withdrawals and deposits. Shred unneeded bank
documents and other files that contain your personal financial information so that
they can’t get into the wrong hands.
Beware of Scams
Your parents may have told you about being aware of scammers. These are people
who contact you via phone or email claiming to represent a bank, a credit card
company, a government agency, a charity or any other organization. Never give
out information about your bank account or passport. If you think the request is
legitimate, have your parents contact the company to directly confirm
its request.

Did You Know?

Common passwords like ‘1234’ and ‘password’
are easy to remember, but they are also the
most easily stolen. Change yours often and
choose complex passwords to keep your
accounts safe.

36 37
 TRUE OR FALSE?

1.
It’s wise to not share photos of your /
T F
passport on social media.

2.
You should delete any spam emails
T / F
that ask for your personal information.

3.
It’s safe to give out your bank /
T F
information to anyone online.

4.
YOUR MONEY IS SAFE.
Complex passwords include
uppercase and lowercase letters, T / F
numbers and symbols.

5.
A bank is one of the most secure /
T F
places to keep your money.

Key: 1. T, 2. T, 3. F, 4. T, 5. T

38 39
chapter 7: give HOW TO GIVE BACK
When you think about tomorrow, what kind of future

SHARE
do you envision?
Whether you’re passionate about the environment or about medical research,
there are so many worthy causes that are in need of skilled people like you. Giving

THE WEALTH back can come in many forms. You can give a portion of your savings to charity,
volunteer your time or donate items you no longer use. Making an impact, changing
the lives of others and building a better future are all rewards that benefit you when
you give back.

SHOW YOU CARE

You don’t have to give big amounts of money to make a
difference. Even small change adds up.
When it comes to money, it’s best to give with a plan in mind. Charitable
contributions should be included in your budget. However, make sure you prioritize
your needs. You wouldn’t want to give away all your money and have nothing left
for your daily life. When you’re setting aside money for your goals, think about other
ways you can put your money to use. While you may want to save for a new pair
of headphones, it can be even more worthwhile to pack away a small amount for
causes you care about.

Did You Know?

Americans collectively throw away $62 million
in coins every year. Keep a jar for your spare
change and donate it to a cause of your choice.
Those coins really add up!

41
 CHANGE THE WORLD
Whatever cause you care about, your contribution can make
a difference.
When you’re saving to give money to charity, make a plan for how much money Are you a strong student?
you want to give. Maybe you want to set aside 10% of your allowance each week. Volunteer your time to tutor other kids
If you’re getting $10 per week, that’s $1 each time you receive your allowance.
in your neighborhood.
Have you decided on a cause? Reach out to your friends and family and get them
involved too. Contributing with a group can make an even bigger impact.

What causes do you care about? Do you make artwork?

Sell your creations and donate the
proceeds to a cause you care about.

Can you run for miles?

Put that to use by entering a charity run.
animal welfare

hunger relief If you don’t have the time to volunteer, consider donating items to charity.
Whether it’s books you don’t read anymore or clothes that don’t quite fit, giving
your used items to charity can help someone else who needs those things. Go
through your unwanted possessions and then find a charity that accepts those
types of donations. Make sure the items you give are in good condition — don’t
donate an item that’s broken or worn out.

environment
medical research

42 43
 TRUE OR FALSE?

1.
The only way to give back is by /
T F
donating money.

2.
Giving back can help you improve
T / F
your community.

3.
You can include charitable donations /
T F
in your budget.

4.
YOU ARE ON YOUR WAY
Charitable contributions should be /
T F TO MAKING THE WORLD
prioritized over needs.
A BETTER PLACE.
5.
You should give only items in good /
T F
condition to charity.

Key: 1. F, 2. T, 3. T, 4. F, 5. T

44 45
WRAP-UP

CONGRATULATIONS!
You have completed our guide to money
and are on your way to a bright financial future.
Keep up the good work!
Learning how to handle money well isn’t an overnight job. It’s a
lifelong skill. Gaining confidence about managing money is all
about understanding good money habits and setting goals.
The best way to improve your money skills is to keep practicing
everything you’ve learned. Whether it’s budgeting, saving or
spending, the more you do it, the better at it you’ll get.

47
 DO YOU WANT TO LEARN MORE? Lunch Tracker | Calculators
What are you spending on lunch? Calculate your spending,
Check out these fun resources to help you sharpen your learn cost-cutting tips and save money.
money skills at www.practicalmoneyskills.com practicalmoneyskills.com/lunchtracker

Rocket’s Powerful Plan | Comics Back-to-School Budget | Calculators

Join the Guardians of the Galaxy in this exciting new comic Consider all of your expenses before hitting the stores for
about the importance of saving money and learning more about back-to-school shopping. Create a budget to save on your
wants and needs. school supplies.
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Avengers: Saving the Day | Comics Building an Education Fund | Calculators

Financing a college education extends beyond the cost of
Join the Avengers and a special guest in this exciting
tuition. Don’t forget about books, materials, housing and
educational comic about saving money and saving the day.
food. Calculate the total amount you’ll need to save.
practicalmoneyskills.com/savingtheday
practicalmoneyskills.com/buildinganeducationfund

Financial Football | Games How Will My Savings Grow? | Calculators

Is your brain ready for a workout? Play this NFL-themed Compound interest can have a dramatic effect on the growth
Financial Football game and answer financial questions to of regular savings and initial lump sum deposits. Determine
advance down the field and score. how your savings will grow by analyzing your financial habits.
practicalmoneyskills.com/financialfootball practicalmoneyskills.com/savingsgrow

Financial Soccer | Games Saving for a Goal | Calculators

Put your financial skills to the test with Visa’s World Cup–themed If you’re having a difficult time putting money aside for a trip
Financial Soccer game, a multiple-choice-question video game. or a special purchase, determine how much money you need
Are you ready to play? to set aside each month in order to meet your goal.
practicalmoneyskills.com/financialsoccer practicalmoneyskills.com/savingforagoal

Econ 101 | Articles

YouTube | Videos
Whether you want a crash course on money markets or
Check out Practical Money Skills’ videos to learn basic
on stocks, Practical Money Skills’ articles make it easy
financial concepts and more.
to understand the economy.
practicalmoneyskills.com/youtube
practicalmoneyskills.com/econ101

48
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