WE'RE
WE'RE GOING TO HAVE THAT ON OUR WEBSITE LATER. AND ANTONIO ALSO CHALLENGED US
TO KEEP LEARNING.
SO LET'S JUST DO THAT RIGHT NOW
WHEN IT COMES TO TEENAGERS,
SOME CONVERSATIONS ARE HARDER
THAN OTHERS TALKING ABOUT MONEY
AND PERSONAL FINANCE CAN BE A
REAL CHALLENGE.
SO LET'S LEARN FROM SOMEONE WHO
KNOWS WHAT THEY'RE DOING.
I TALK TO ROY PAUL, EXECUTIVE
DIRECTOR OF SENSIBILITY, A
NONPROFIT THAT'S EMPOWERING
HIGH SCHOOL STUDENTS WITH THE
FUNDAMENTALS OF FINANCE.
EVERY KID HAS A GOAL THEY WANT
TO BUY SOMETHING.
THEY WANT THE LATEST SNEAKERS.
THEY WANT THE GAME.
THEY WANT A BICYCLE, THEY WANT
SOMETHING.
AND I THINK IF YOU CAN
ENCOURAGE FIRST THEM EARNING
MONEY RIGHT AND THEN SPENDING
IT ON A GOAL SAVING UP FOR
THOSE SNEAKERS IF IT'S THREE
HUNDRED DOLLARS THEN YOU KNOW
HOW MUCH MONEY WOULD YOU NEED
TO SAVE IF YOUR ALLOWANCE IS
FIVE DOLLARS A WEEK OR
SOMETHING LIKE THAT SO THAT
THEY HAVE SOMETHING TO LOOK
FORWARD TO AND NOT JUST SAYING
OK MOM I WANT A PAIR
OF SNEAKERS.
OK, LET'S GO GET SNEAKERS.
THERE WAS REALLY NO EFFORT PUT
INTO THEM ACTUALLY EARNING THE
MONEY THAT WENT INTO THE
SNEAKERS SO THEY DON'T REALLY
UNDERSTAND THE VALUE OF IT BUT
WHEN THEY WORK FOR IT AND THEN
THEY WERE ABLE TO SAVE AND THEN
SAY OH WOW, I WAS ABLE TO TAKE
THAT MONEY, PUT IT UNDER MY
PILLOW OR SOMETHING AND NOW
THEY FEEL LIKE THEY'VE EARNED
IT AND THEY HAVE MORE RESPECT
FOR IT SEEMS LIKE A WORK ASPECT
IS THE KEY.
I TRY TO TEACH MY EIGHT YEAR
OLD ABOUT HER OWN MONEY AND
SHE'S EIGHT SO SHE DOESN'T GET
IT LIKE SHE GOT MONEY FROM HER
PIGGY BANK AND BOUGHT ABOUT A
DOLLAR.
SHE'S LIKE THAT WHATEVER BUT
WAY THAT WORK COMPONENT COMES
IN AND YOU'RE MAKING MINIMUM
WAGE, YOU'RE WORKING HARD THAT
STICKS TO YOUR RIGHT.
IT STICKS TO YOU NOT JUST AS A
TEENAGER BUT AS YOU GET OLDER.
YOU REALLY DO APPRECIATE THE
VALUE OF THAT MONEY AND IF THEY
ARE GOING TO GET INVOLVED IN AN
ECONOMY WHERE WE'RE TEACHING
PEOPLE TO ASK FOR THAT RAISE
AND TO KNOW YOUR WORTH, YOU
WILL APPRECIATE THOSE
CONVERSATIONS ABOUT KNOWING
YOUR WORTH AND YOU REALLY
UNDERSTAND HOW HARD YOU WORK
FOR YOUR MONEY.
YES.
DO I'M ASSUMING YOU TALK TO
TEENS WHO ARE STARTING TO MOVE
INTO THE COLLEGE SECTOR
OF THEIR LIVES?
THEY DO.
A LOT OF KIDS TALK TO YOU ABOUT
STUDENT LOANS, NOT STUFF.
THIS IS ONE OF MY PET PEEVES
BECAUSE I TALK TO A LOT
OF TEENAGERS ABOUT GOING TO
COLLEGE AND THERE ARE A LOT
OF PROGRAMS AND EVEN CORPORATE
ENTITIES THAT ARE FUNDING
HELPING TO SEND LOW AND
MODERATE INCOME KIDS TO
COLLEGE.
AND I THINK THAT'S A WONDERFUL
THING.
BUT THEY'RE ALSO SENDING THEM
TO COLLEGE WITHOUT THE MONEY TO
PAY FOR THE TUITION AND FULL.
SO THEY ARE TAKING OUT MORE
LOANS AND I SAY TO THEM, YOU
KNOW, RAISE YOUR HAND IF YOU'RE
TAKING OUT LOANS TO GO TO
COLLEGE AND THEY ALL HAVE THEIR
HANDS UP AND THEN I SAY TO THEM
KEEP YOUR HAND UP IF YOU KNOW
WHAT YOUR MONTHLY PAYMENT IS
GOING TO BE WHEN YOU GRADUATE
IN FOUR YEARS AND THE HANDS
START COMING DOWN BECAUSE
THERE'S A DISCONNECT WHERE
WE'RE SAYING TO THEM YES, YOU
CAN TAKE OUT TEN, TWENTY THIRTY
THOUSAND DOLLARS A YEAR BUT
THEY DON'T REALLY UNDERSTAND
WHAT IT MEANS TO HAVE TO PAY
BACK A THOUSAND OR SO A MONTH
WHEN THEY GRADUATE IN FOUR
YEARS AND THAT'S PROBLEMATIC
BECAUSE IF YOU'RE NOT TELLING
THEM HOW MUCH THEY HAVE TO PAY
BACK AND HAVING THEM REALLY
UNDERSTAND THAT SAY YOU'RE IN A
CITY LIKE SEATTLE OR A CITY
LIKE NEW YORK AND YOU'RE ONLY
COMING OUT MAKING FORTY TO
FIFTY THOUSAND DOLLARS
DEPENDING ON WHAT JOB YOU HAVE
AND NO ONE EVER SAID TO YOU
AFTER YOU TAKE HOME YOUR TAXES
AND YOU HAVE YOUR MONEY IN YOUR
POCKET IF YOU HAVE TO START
DEDUCTING A THOUSAND DOLLARS
FOR YOUR STUDENT LOANS THAT
MIGHT MAKE A DIFFERENCE IN HOW
YOU CALCULATE WHERE YOU WANT TO
LIVE, WHAT YOU WANT TO DO AND
THEN THE LOANS THAT YOU TAKE
OUT AND SO WE ALWAYS SAY TO
PEOPLE IF YOU KNOW BETTER YOU
DO BETTER AND SOMETIMES IF YOU
KNOW THAT YOU'RE GOING TO HAVE
TO PAY BACK AN EXORBITANT
AMOUNT OF MONEY WHEN YOU
GRADUATE INSTEAD OF GOING TO
THAT FANCY PRIVATE SCHOOL,
MAYBE YOU GO TO A PUBLIC SCHOOL
TO START OR MAYBE GO TO A
COMMUNITY COLLEGE FOR THE FIRST
TWO YEARS AND GET YOUR FEET
WET.
YOU DON'T HAVE TO TAKE OUT AS
MUCH IF YOU KNOW THAT IS NOT
GOING TO BE SO EASY TO PAY IT
BACK.
I THINK THAT'S SUCH A REALLY
GOOD POINT TO MAKE UP.
I DON'T THINK ANY OF MY FRIENDS
WHEN WE WENT TO COLLEGE OR
COLLEAGUES REALLY KNEW WHAT
THEY WERE GOING TO BE PAYING.
I MEAN FRIENDS WHO WENT TO
MAYBE LET'S SAY MEDICAL SCHOOL
KNEW THEY WERE GOING TO BE
FACING A CERTAIN AMOUNT OF DEBT
BUT YOU'RE RIGHT, CHOOSING THAT
SCHOOL MAYBE OMITTING
STIGMA
STIGMA ATTACHED TO COMMUNITY COLLEGES JUST SO THAT WE CAN ALL GET THAT EDUCATION AND GET
SOME MONEY SAVED.
SPEAKING ABOUT SAVING MONEY, WE
WERE TALKING ABOUT TEENS AND
HOW THEY WANT TO BUY THE NEW
KICKS OR SOMETHING COOL.
HOW DO WE GET THEM INTO THE
HABIT OF SAVING?
YEAH, IT'S IMPORTANT BECAUSE
THEY DON'T REALLY THINK ABOUT
RETIREMENT.
NO TEENAGER IS EVER GOING TO
THINK ABOUT RETIREMENT AND I'M
NOT GOING TO TELL YOU TO TELL
THEM THAT BECAUSE IT'S NOT
GOING TO WORK A LOT OF BUT WHAT
YOU CAN DO IS TALK ABOUT GOALS
AND THE IMPORTANCE OF BEING
ABLE TO SAVE FOR SOMETHING
SPECIFIC AND THAT'S THE REALLY
BEST THING YOU CAN DO WITH
TEENAGERS BECAUSE NOTHING ELSE
IS GOING TO GET THROUGH THEM.
IT'S VERY, VERY DIFFICULT BUT
THEY ALL HAVE GOALS.
THEY ALL HAVE WANTS AND MORE
IMMEDIATELY CREDIT CARDS IS
SOMETHING THEY'RE GOING TO BE
FACING AND MANY PEOPLE,
ESPECIALLY TEENAGERS, ONCE THEY
GO TO COLLEGE THEY PUT
EVERYTHING ON THE CREDIT CARD.
I WAS IN COLLEGE AND I PUT
STARBUCKS COFFEE ON MY CREDIT
CARD AND IT WAS IT WAS
RIDICULOUS THAT I THINK ABOUT
IT LIKE ALL THE STUFF I PUT ON
MY CREDIT CARD WAS INSANE.
BUT AT THAT TIME, EVEN THOUGH I
SHOULD HAVE KNOWN BETTER,
PEOPLE DO THINGS WITHOUT REALLY
UNDERSTANDING THE VALUE OF WHAT
THEY'RE DOING.
I REMEMBER BEING IN COLLEGE AND
THEM HAVING A BUNCH OF CREDIT
CARD BOOTHS SET UP AND IT WAS
LIKE SHOOTING FISH IN A BARREL
AND I DON'T KNOW ANY COLLEGE
STUDENT THAT DIDN'T GET A BIG
CREDIT CARD BILL AT SOME POINT.
SO ABSOLUTELY.
AND THE ONLY THING I WILL
ENCOURAGE YOUR AUDIENCE TO DO
IS DO NOT ALLOW ANY STUDENT IN
YOUR LIFE TO GRADUATE WITHOUT
UNDERSTANDING HOW MUCH THEY'RE
GOING TO END UP PAYING BACK
REALLY GOOD ADVICE THERE AND
WE'RE NOT DONE TALKING ABOUT
TEENS JUST