The Teen's Guide to Personal Finance

The Teen’s Guide to Personal Finance Basic concepts in personal finance that every teen should know Joshua Holmberg and David Bruzzese Foreword by BJ Fuller, Ph.D. Foreword BJ Fuller, Ph. D. Co-Founder, BJ Buzz Organization and Management Consulting Former Human Resources Vice President, Compaq Computer Success in most areas of life depends on having the right tools, knowing how to use them and developing the discipline to use those tools as a matter of habit. This is especially true of financial tools and spending habits. In my practice I find that the positive habits of self-discipline, in any aspect of life, carry through from adolescence and have a major influence on our success, whether it’s in working with others, in raising our families, or in managing our finances. This is a time in our culture when teenagers are tempted every day to make poor financial choices—using credit cards, failing to pay off debts, spending rather than saving—and these choices have long-term consequences. Many young adults end up with little savings, have to borrow even more to pay higher education expenses, and are saddled with high interest debt for years into their adulthood. This often leads to a long struggle of trying to pay down credit card debt, student loans, and second mortgages. Knowing and using effective fi nancial tools and techniques is the key to avoiding these struggles. It’s difficult for young people to find resources to help them understand financial tools and to learn how to apply them in daily decision making. Their parents often grew up in a very different financial world: one without easy credit, skyrocketing tuition expenses, and without the savings tools that are available today such as the 401(k). This book provides a clear and accessible roadmap for understanding today’s financial realities, the tools that are available, and when and how they should be used. The book also addresses the mindset that young people must develop in order to make using these tools a part of their everyday fi nancial decisions. Following these guidelines can help lead to the development of positive money management habits based on a solid understanding of the basic concepts that shape today’s financial world. I recommend that both parents and teenagers read this book and discuss how they can work together to build a strong financial foundation for the young person’s future. Waiting is not an option. Many of the recommendations in this book yield far greater benefit if implemented early in life—in the teenage and young adult years. The book includes easy-to-follow action plans that will make an immediate difference in the financial wellbeing of the young people who follow this guidance.