KIDS FUNANCE – AGES 14-18

What Is Bitcoin?

1. Bitcoin is a type of cryptocurrency.
2. There are no physical bitcoins; they are digital coins.
3. Bitcoins are transacted over the internet from person to person.
4. Bitcoin is not held in a bank.
5. They can be used in every country.
6. There is a limited supply of Bitcoin.
7. Bitcoin is now more scarce than gold, making it potentially more valuable.
8. All Bitcoin transactions are listed on a public ledger.
9. The original Bitcoin software came out in 2009.
10. Bitcoin terms you should know: miners, nodes, blockchain

Where Can You Use Bitcoin?

Where Does the Government Get Money?

There are three ways by which Governments can get money: 1) print it, 2) borrow it, or 3) collect taxes from its citizens.

When the government PRINTS money, it is essentially taxing the people. Since, U.S. currency is no longer backed by gold (as it once was), there is no real value to “new” money. Therefore to give it value, the government issues an “inflation” tax. Whenever new money is distributed into the economy, the value of the currency is lessened, making the costs of goods and services rise to make up for that lessening.

The government also sells our DEBT to other countries to raise money. Currently, Japan owns the most U.S. debt, with China and the U.K. following behind. In 2019, just the interest on our debt was over half a trillion dollars. In times of recession, or crisis, such as right now, the government has to sell more and more debt to fund relief programs like the Coronavirus Stimulus efforts.

Collecting TAXES from U.S. citizens funds the majority of the Federal Government. Almost half of taxes come from federal income taxes, followed by Social Security and Medicare taxes, corporate taxes, and finally estate taxes.*

*CFI 2020

How Old Do You Have To Be To Work?

There are two answers to this question. First, there is a Federal age limit of 14 years old, with limited hours if under 16 years old. There are also a variety of rules concerning what type of work you can do, i.e. nothing hazardous. The rules are also different if you are working during school hours versus working outside of school hours.

Second, your state most likely has its own age requirements and, according to the U.S. Department of Labor, the governing body for all jobs, the requirements that are most PROTECTIVE of the minor are the ones that take precedence. Labor laws are also divided between Farm Work and Non-Farm Work.

Some states, like California, require anyone under the age of 18 to obtain a work permit before starting any regular job. Babysitting, lawn mowing, etc. does not require a work permit.

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App Spotlight

Mint

Mint is a financial app that will transition from your teen years to your young adult years. It’s capable of connecting all of your accounts from savings, checking, credit cards, even investment accounts.

Mint has a budget and spending tracker. And, of course, it has the all-important subscription tracker. These days, everyone from teens to grandmas has multiple subscriptions and keeping track of them helps keep your budget on track.

Mint also comes fully equipped with insights, or Mintsights as they call them. These insights not only track your activity but show you where you can save a buck or two.

Banking Spotlight

Interest

What do you know about INTEREST??

Did you know that interest isn’t all bad? You can either PAY or EARN interest. When you purchase items on credit, you generally must pay interest. However, if you are lending to someone, you can earn interest.

There are many times when you will have to PAY interest:

  1. Credit Cards
  2. Car Payment
  3. Mortgage Payment

There are also many times when you will EARN interest:

  1. Savings Accounts
  2. Money Market Accounts
  3. CDs (Certificates of Deposit)

When considering interest, remember this – it’s negotiable! Many institutions will negotiate interest rates with you. Do not hesitate to ask if your rate is negotiable.

Check your rates with the Consumer Financial Protection Bureau to make sure you’re not getting a raw deal!

Earning Spotlight

Dog Walking

Earning money as a teenager can seem daunting. Start out with something easy like dog walking.

According to Indeed.com, the national average salary for a dog walker is $15.23 per hour. That’s a great starting salary for a teenager!

You can post flyers around your neighborhood. Many people love the idea of a local dog walker they know and trust. And once, you get some experience, you can walk several dogs at the same time.

It’s great exercise for both you and the dogs, and you can pocket some cash while you’re at it.

Something to check into: training. See if you can shadow train at your local pet store. They offer training classes for dogs all the time. You can pick up some skills and maybe even get a client or two.

Here’s a little math for you:

$15.00/hour x 2 hours/day x 4 days/week = $120/week

That’s almost $500 a month!

The American Kennel Club (AKC) has some great tips for puppy training to start.

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Laguna Hills, CA 92653