When Coss Marte was growing up, drugs were everywhere. His family was poor, dressing him in his sisters’ hand-me-downs to save money. His ultimate dream was to become rich—to break the cycle of poverty that embarrassed him and kept him from living out his dreams. And so he tried to get rich in the only way he knew how: by selling drugs.
He was thirteen years old the first time he was arrested. Nine more arrests followed over the next ten years. Coss spend 60% of that decade in jail. After a few weeks in solitary confinement, Coss received a letter from his sister, telling him to read Psalm 91. He did, and his perspective shifted. Rather than take from the world, he wanted to give.
Give, he did. When he got out of prison, Coss started a non-profit called Defy Ventures. Its mission is to help ex-cons start their own businesses. As Coss puts it, “I’m now giving others the opportunity to be treated as humans and break down barriers between ex-convicts and the general population.”
As simple as it sounds, Coss learned from his failure. We taped an entire episode on the topic. Check it out today.
The American Library Association has named Biz Kid$ “A Great Website for Kids!” The honor puts BizKids.com in a select group, “a compilation of exemplary websites geared to children from birth to age 14.” We thank the Association for Library Service to Children for the honor.
We’ve all been there: updating some software on our phones, blindly accepting whatever terms and conditions are put before us. For all we know, we could be agreeing to give all of our possessions to a software developer in California. But we click “accept” and hope for the best. After all, fine print is everywhere! If we read it all, we couldn’t possibly have enough time to eat or sleep, right? Well it turns out, fine print is nothing to ignore. But why?
Exhibit A: The Credit Card Application
The average credit card application contains 5000 words of fine print. Among those words are pretty significant “by the ways” about interest rates, late fees, and other charges. And believe it or not, the credit card companies have even been known to target certain people in shady ways. As CBS News reported, “some companies send less-sophisticated consumers flashier letters with pictures and entice them with zero-percent annual percentage rates, but fail to highlight hidden and back-loaded fees.” That’s right, Biz Kid: you could be targeted because of your youth. The fine print could be trying to hide high interest rates, big fines, and gigantic late fees. Don’t get excited about that free signup gift until you know what you’re getting into.
But seriously, how do I read this stuff?
One trick if you refuse to read 5000 words of fine print? Skip to the last page. Many of the fees and charges are pushed to the end, in hopes you’ll never read them. Another trick: know the game to play the game. According to Truth in Advertising, the FTC set strict guidelines for fine print. You can use these to find the info you need. They include:
Prominence: is the fine print big enough for people to notice and read?
Presentation: is the wording and format easy for people to understand?
Placement: is the fine print where people will look?
Proximity: is the fine print near the claim it qualifies?
Obviously, there’s a good chance that an advertiser might break these rules, but they’re at least a good starting point. Look for fine print around the offer before getting too excited about that Saturday shopping coupon.
If nothing else, be entertained.
In preparation for this article, I read through the fine print on my own credit card. This card is advertised as being loaded with perks for travelers, like baggage delay and trip disruption insurance. Basically, if something goes haywire during a trip purchased on the credit card, the credit card company will reimburse me for items I may be missing from my bag or hotel cancelation fees. But one funny exclusion I discovered: space travel. Yep. The card’s travel disruption insurance does not apply to travel on “rocket-propelled” aircraft. As in, rocket ships. To the moon.
Sounds like an exclusion only Fine Print Man would have found…
*You did it! You found the fine print. Great job, Biz Kid. You’re well ahead of the curve.
You’re likely aware of identity theft, the crime of pretending to be someone you’re not in order to get cash or credit in their name. But have you ever heard of a bank pretending to be one of their own customers in order to open additional accounts? Well it appears that that very thing has been happening—for years—at some Wells Fargo branches.
Table of Content
Shocking, right? According to CNN Money, investigators discovered that millions of unauthorized accounts had been opened under customer names by bankers hoping to make their numbers for the month. Things like additional checking accounts that the bank employees were incentivized to open. Rather than sell the current customer on the merits of the account, they were creating fake email addresses and secretly transferring funds to the new accounts without customers ever knowing.
How big was the scheme? Wells Fargo says that they fired 5,300 employees over the shocking behavior. But the firings actually took place over a number of years. Only now is the story getting out.
So what does this mean for you?
Lesson #1: You are the Target!
Yes, you are the target of everything from criminal identity theft to harmless advertising. But being aware is vital to navigating either situation. In Season 5 of Biz Kid$, we talked with the Truth Campaign about how advertisers target teens. Check it out:
Lesson #2: Choose Your Bank or Credit Union Carefully
Choosing the right bank or credit union is a very important decision. Put your money into the wrong hands, and you could find yourself in a news story of your own. Watch our episode, “Take it to the Bank,” to get informed about your choices. Need an inspiring story to make you believe in the financial industry again? Watch this profile of one young entrepreneur who took his money to a special bank: one made just for kids and teens. It’s name? Young Americans Bank.
Lesson #3: Read the fine print and watch your bank statements.
Of the millions of accounts that Wells Fargo employees fraudulently opened, many of them were funded with current customers’ own account balances. That means that if the customers had been watching more carefully, they would have noticed money being withdrawn from their accounts without their permission. When you view your bank statement, take a look at the transactions and make sure that everything looks familiar. If it doesn’t, take a closer look. And if you know the transactions weren’t yours, call your bank right away. They’ll open an investigation. And who knows: you may just uncover a nationwide heist!
For more about protecting yourself from scams, watch our episode, “Scam-o-Rama” from Season 4.
How does that word make you feel? Trapped? Unable to have fun, buy the things you want, or be spontaneous? Frugality is certainly a financial discipline, but frugality can be profitable, too! In conjunction with Personal Capital’s frugality series, we’ve dug into the Biz Kid$ vault to take a look at look back at our series’ most frugal young entrepreneurs.
Table of Content
Coupon-Clipping Frugality
Coupon Girl
“The Coupon Kid” says she used to be penny wise, pound foolish. Instead of purchasing things her family needed, she let “deals” get the most of her, purchasing items she didn’t need just because they were on sale. That’s not frugality, that’s wasteful! Now, she only purchases things she needs, shopping with a plan and saving as much as 90% or more.
Green Frugality
Project Kool
Frugality paid off for one Earth-conscious Biz Kid. His business, Project Kool, uses discarded plastic bags to make all natural, reusable, upcycled tote bags. Because his primary material is FREE, he turned frugality into profit, selling $100,000 worth of bags and earning a healthy profit.
Frugal Living in LA
When Biz Kid Host Kaelon moved to LA to continue his acting career, he could have jumped into the high life, living it up and renting an expensive apartment. Instead, he purchased an RV in order to save as much of his income as he could. He joined us from his frugal home to tell us the story.
Getting Out of Debt – DJ Profile
When Tanisha was 18 years old, she applied for her first credit card, and quickly maxed it out with frivolous spending. She learned to be frugal the hard way, cutting her spending out of necessity, in order to make additional payments toward her debt. Now, she’s living within her means, and free from thousands of dollars in credit card bills.
https://www.youtube.com/watch?v=D7CGUwTIoL4
What kind of frugal are you?
Your money personality says a lot about how think about spending, saving, and being frugal. Check out our episode and corresponding (free!) lesson plan to learn your weaknesses and take steps to frugal living.
This month, a conversation about first jobs started on social media, inspired by the hashtag #firstsevenjobs. Celebrities joined in, listing out their (oh so normal!) first occupations, like these:
#firstsevenjobs construction, bus boy, cafeteria server, library data entry, futon frame maker, futon salesman, waiter
The exercise was certainly fun and interesting, but hidden beneath the curiosity are a few important lessons for all aspiring Biz Kids.
1. Your first few jobs may require more grunt work than you expect. Want to be a CEO? You may need to learn about customer service first by working at an ice cream shop. Want to be a millionaire? Learn to budget while making minimum wage, and you’ll be ahead of the game.
2. The road isn’t always clear. Some of the world’s most successful entrepreneurs climbed a ladder of various positions to get where they are today, but some of the stops along the way surely felt like setbacks at the time. Don’t feel defeated if the “next step” feels like a setback.
3. Successful people can learn from anything. If you find yourself in what feels like a “dead end job,” the easiest way to turn it into something is to find something you can learn from the experience. Perhaps about people, sales, or dealing with difficult customers. Every season has a lesson.
Bottom line, Biz Kid? Give yourself a break. Have patience with yourself in your first few jobs, learn what you can, and then remember, even the celebrtieis of the world had boring jobs at first.
The following is a guest Q&A with Lala Hayes, owner of “Go Loopy with Lala!”
Tell us about your business.
My business is Go Loopy with Lala! It’s based on my artistic passions: balloon twisting, face painting, and balloon decor. I soon hope to add additional entertainment options for my clients to choose from.
What inspired you?
I was inspired by balloon twisters at restaurants. I’ve always loved balloons and watching the way they’re used to create different animals. So when I saw a balloon twisting kit for $3 at a local grocery store, I had to try it. I used some of my allowance to purchase the kit and began twisting away. My mom thought I did a great job, and that I was blessed with a special talent we weren’t aware of. We then went to a craft store and purchased a large bag of twisting balloons and a pump. I started twisting balloons at friends’ parties and started to make money. I then began trying out face painting and balloon decor when several clients requested it. I love to please my clients!
What challenges have you faced?
One challenge I faced was understanding how to manage money. I had to get a business account in order to accept and make payments. I found it helpful to make a spreadsheet to keep track of what I earned, customer information, and events they hired me for. I also use that same spreadsheet to help me remember details about the event and the money I’m spending on products and advertisement.
How did you fund your launch?
In the beginning of my business venture, I used a small portion of my savings to purchase better products, my costume, tables, and advertising tools such as business cards, shirts and flyers.
How does your businessoverlap with your other life goals?
My goal is to use the money I earn to pay for college. I want to become a veterinarian because I love animals and want to help them feel better. I’ll continue to twist balloons because it makes people feel better–including myself! I love creating smiles; that’s my job! I enjoy contributing to and serving the homeless in my area. I would also like to be able to contribute even more for those in need of food, clothing, and shelter.
Do you have any advice for aspiring Biz Kids?
My advice to young entrepreneurs is to be yourself and embrace your talents. Focus on something that brings happiness to you and others. It’s also crucial to manage money, so seek help from loved ones that understand your vision. Always focus on your goal. And once you reach it, make a new goal. Don’t give up!
Who has helped you along the way?
My mom helped me get started with my business and has supported me along the way. She helps me improve myself and my business. What a true blessing she’s been to me!
Where can we learn more?
Visit Go Loopy with Lala‘s official Facebook page here.
Americans were recently asked about their savings accounts, and the results weren’t pretty.
A whopping 62% of Americans don’t even have $1000 in savings.
That’s just about equal to the average cost of rent in America. Yep–the majority of Americans are a single missed paycheck away from not being able to pay next month’s rent.
As such, this seems a good opportunity to relay the basics of the “rainy day fund.” The idea of the rainy day fund is to set aside enough cash to cover your basic expenses, were you to miss a month or two of income.
These savings can be a lifesaver for all sorts of reasons: being let go, facing unexpected bills due to health problems or a car accident, or being caught between paychecks while making a change of careers.
The rule of thumb varies depending on who you ask. Some say to save up one month’s income, others, six months, and others, an entire year. But judging from America’s survey results, perhaps you can start with $1000.
And to all you spenders out there, remember: you’re not robbing yourself of spending money when you save it. You’re just deferring spending so you can use it later.
Here’s another look at our chat with Biz Kid$ host Kaelon about the measures he’s taken to save big while living in one of the most expensive cities in the county: LA.
Unless you’ve been living under a soundproof rock this year, you’ve undoubtedly heard, seen, read, or hummed along to buzz about a man who hasn’t actually made news for several hundred years. His name, of course, is Hamilton. Alexander Hamilton.
You may know him as the guy on the ten-dollar bill, a founding father of the United States, or the star of the hottest musical to hit Broadway in decades. But Hamilton’s story has lessons for all of us. And for you, Biz Kid, we’ve uncovered a few that may be more relatable than you ever dreamed:
1. He was an entrepreneur.
Ever heard of the New York Post? Well, would you believe that Alexander Hamilton was its founder? It’s true. And it’s a brand that lives on today.
2. He’s responsible for the economy as we know it.
Hamilton was the first-ever Secretary of the Treasury. It was Hamilton who first established our national bank, our mint system, and who negotiated our first set of tariffs on trade. His legacy—and his recent popularity—are so important to the US economy that a recent movement to replace him on the ten-dollar bill was scrapped. Instead, Andrew Jackson will be replaced with Harriet Tubman on the $20. (Want to know more about how the economy works? Check out our episode, “The Global Economy.”)
3. He faced adversity.
The young Alexander didn’t grow up without hardship. In fact, he was orphaned as a child, having been born out of wedlock. But he didn’t let his childhood prevent him from becoming one of the most influential figures in American history.
4. He believed he had a single purpose in life.
Hamilton, as with many of the other founding fathers, felt that he had one major responsibility in life: to rid his country of rule by the king. And this one purpose drove his undying determination and resulted in a lifetime of accomplishments. (In a previous blog, we discussed the idea of the “hedgehog principal,” a term coined by bestselling Author Jim Collins to describe the practice of mastering one expertise, then using it to change the world.)
5. He was a Biz Kid!
On July 4, 1776, how old would you guess that Hamilton was? 50? 60? 70? Guess again. 21! When the Declaration of Independence was signed, Hamilton was no older than many of the young entrepreneurs launching their own dorm-based businesses today. A democracy—now how’s that for a startup?
Brexwhat?! If you’re like most of us, you’ve been bombarded with word of Brexit in the last week. The vote, the outcome, and the uncertain future. But what’s all the fuss about, anyway? Why is all of this such a big deal? Today we’re breaking it down into simple terms.
Let’s start at the very beginning: 1973.
That year, the United Kingdom joined together with several other nations in a coalition—a club of sorts—called the European Union, or the EU for short.
The EU did a lot together, including negotiating trade deals with other countries. So what’s a trade deal, exactly? It’s an agreement between two countries regarding how much of one country’s goods the other will allow in, and with what kind of taxes applied.
This meant that when one country in the EU wanted to sell their goods to, say, the United States, they got the same deal as ever other EU country, immediately. No negotiation needed.
Being a part of the European Union also required nations to have open borders with one another. If citizens of one member nation wanted to travel to another nation, they had to receive them. It was that requirement that led to a dramatic increase in migration to the United Kingdom in recent years, and desire among some citizens to stop it.
But the only way to get out of the EU agreement was to leave the EU altogether. And that’s what prompted a kingdom-wide vote last week. And as you’ve probably heard, those who voted to leave the EU won. So what does that mean for the United Kingdom, and the world? And why is everyone talking about it?
Because all of the United Kingdom’s trade deals were negotiated through the EU, the future independent United Kingdom will need to start from scratch. That’s a lot of work, and there’s no guarantee that countries won’t apply more taxes to their goods than before. And that would be bad for, say, a chocolatier who competes with American chocolatiers on quality and price. Her prices would increase, and demand could decrease.
When the vote was counted, the British Pound (Britain’s main currency) dropped in value against the US dollar pretty dramatically. One of the reasons for that is uncertainty. Currencies are strongest when their economy is most stable. In other words, when everyone is fairly certain that things will be okay.
The following is a guest post Q&A with Biz Kid and balloonologist Travis DeRose.
Tell us about your business. What do you do, and what inspired you?
I’m an expert balloonologist, a balloon twister. I twist at various restaurants including some at Downtown Disney in Disneyland along with private events and parties of all kinds. I can balloon twist all sorts of creations such as a dinosaur, the Little Mermaid, or even a monkey in a tree with bananas.
How did you get started?
I was 15 years old and desperate for any job that would hire me. After searching on Craigslist, I found a post that read, “Balloon Twister – Training Included – Experience Not Necessary.” I was extremely intrigued and responded to the post right away. Two weeks later I found myself at the home office of the Twist and Shout Balloon Twisting Company for my first training session. Four months after that, I had passed the test and was proficient enough to start twisting balloons in restaurants and at private events.
I worked exclusively for Twist and Shout for about a year before I realized that I could do this myself. I already had the balloon twisting skills; all that I had to do now was learn to book my own events and get into a restaurant. So with that I started my own business called Twisted Art Balloons.
What challenges have you overcome in the process?
Certainly learning how to twist balloons is tough enough (it took four months alone). On top of that there is learning how to get people interested in your balloons, manage a busy restaurant, deal with unruly kids, etc. There’s a lot to learn because customer service, sales, and entertainment are all just as important as the actual balloon itself.
However, the real challenges came when I decided to start my own business. I had the typical challenges of learning how to market my business, network, collect payment, and the list goes on. I just learned through experience and by reading books and business blogs.
How did you fund your business in the beginning?
That’s the best part! I had literally no startup costs. I set up a free Yelp page and started posting Craigslist ads. I volunteered to balloon twist at a couple charity events and handed out business cards that I printed myself. From there I began to consistently book events and parties for myself every weekend. Soon I approached a Ruby’s Diner and asked if I could twist balloons in their restaurant every week in exchange for tips from their customers. They loved the idea because it was a free way for them to offer entertainment and they even had a kid’s night every Tuesday.
If someone wanted to start from scratch, they could start for less than $200. This includes all the practice balloons you’ll need to buy, your pump, your apron, and some sharpies. That’s it. The big investment in the beginning is time. It’s going to take about 150 hours to become proficient at twisting balloons. And honestly, most people quit because it’s challenging, time consuming, and frustrating. But that’s the reason I can charge $100/hour for my services: there’s not many people that can do it.
So let’s be real. How much do you make?
When I work in a restaurant, I work for tips alone. I don’t charge anything at all. Yes, sometimes I don’t receive any money at all for a balloon, but sometimes I’ll receive $20. I once even received $200 for a balloon that took me 5 minutes to make. In a restaurant, I can make anywhere from $100-$400 per night. That’s usually 4-5 hours of work so I average about $50/hour in the restaurants.
When I work special events or parties, I’m paid an hourly rate ranging from $75-$100/hour. I only work parties that are at least 2 hours long but I’ve also worked parties that are 7 hours long. So that’s $200-$700 in a single day. I usually only work two or three days a week because that’s all I have to do. I spend the rest of my time focusing on school or having fun with my friends.
So what would it take for someone to start a balloon twisting business right now?
These are the steps I would recommend to someone wanting to start a balloon twisting business:
1) Buy yourself a pump and some balloons and start learning how to twist balloons. YouTube is a great resource to learn how to make balloons. Begin with simple things and keep at it. It’ll be frustrating at first but anybody can do it.
2) After you feel comfortable making a few different balloon creations, go ahead and start posting some ads on Craigslist. It’s free to post and a lot of people look on there to find entertainment for their parties.
3) Once you get your first gig, just commit and go. It’s going to be awkward and stressful but you just need to take the dive. And remember, most people are really only expecting dogs and swords so if you can do more than that you’re better than 50% of the balloon twisters out there. If you’re really nervous about your first event, volunteer to work at a charity event for free.
4) From there, I would work on building a Yelp page. Today, all of the events I book are either from my Yelp page or repeat clients. After every event, ask the client to post a review on Yelp. It’ll add up quickly. 3 or 4 reviews are all you need. You can even offer an incentive like 10% off their next event if they write a review.
5) You could then try approaching a restaurant to see if you can twist balloons in exchange for tips from their customers. Restaurants are great because it is consistent work. I always know that I can go and make money at Ruby’s every Tuesday and Saturday night.
How did you get on CONAN?
I applied for tickets on their website. It’s a lottery and were lucky enough to receive the four tickets we applied for. I watch the show regularly so I knew that Conan likes to interact with his audience occasionally. I knew that making a balloon Conan would be perfect and he’d love to comment on it. On the day of the taping I made sure to hold up my balloon Conan every time the audience cheered or applauded. Then as we were coming back from a commercial break I noticed all the cameras pointed on me. My balloon Conan and I were the opening shot coming back from commercial! Conan and his sidekick Andy then proceeded to talk to me and about my balloon for the next minute or so.
I’ve been back a few times since and have made balloons every time. One time I even made a life size balloon Conan and was invited on stage after the show to take a photo at Conan’s desk!
For more about Travis’s business, check out his company’s Facebook page, Twisted Art Balloons.
While discussing his Grammy-winning music career, Jimmy Buffett once compared it to something familiar to all of us: “I still consider it a summer job. I try to maintain that summer job as long as I can. It’s exciting to be able to have the opportunity to do things I always dreamed of as a kid.”
What does that say about the summer job? They can be fun! They can be so much fun, in fact, that one of the most successful musicians in America today likes to think of his career as one.
Working through the summer doesn’t have to be boring. Summer jobs give us an opportunity to try our hand at different skills, to make money, and to meet new people. And if nothing else, you’ll be in good company with some of the world’s most successful people who worked summer jobs before they hit the big time.
Bill Gates spent his first summer working as a page in the US Congress.
Christopher Walken was a lion tamer.
Amy Poehler scooped ice cream.
Yahoo’s CEO Marissa Mayer bagged groceries.
And billionaire Michael Bloomberg? He worked at a parking lot.
(Oh, and former Biz Kid$ host Austin once took a summer job at his university’s television station, which you can read about on his blog post here.)
So where are you working this summer, Biz Kid? We want to know! In fact, we’re giving away copies of our new book, “$100 to $1,000,000” to ten lucky fans who tag a photo from their summer job with #SummerJobSnapshot by July 1st on Facebook or Twitter. We’ll even personally mail the book to your doorstep, anywhere in the world. So get snapping!
Unless you’ve been living under a soundproof rock this year, you’ve undoubtedly heard, seen, read, or hummed along to buzz about a man who hasn’t actually made news for several hundred years. His name, of course, is Hamilton. Alexander Hamilton.
4. He believed he had a single purpose in life.
