Newsletter: April, 2010
April 2010: What Do You Know About Money?
Some folks love the hot weather of July. Some love skiing in December. At Biz Kid$, our favorite month is April–because it’s Financial Literacy Month. Let’s get money smart!
New Episodes
Biz Kid$ has new episodes airing the middle of this month! Check our Web site for your local schedule
Ring a bell?
We’ll be ringing the closing bell of the New York Stock Exchange on at 4:00 PM Eastern time on Wednesday, April 28. You can watch it live on CNBC, Fox Business News, CNN, and Bloomberg TV.
Biz Kid$ of the Month
This month’s Biz Kid$ are Jackson and Giorgia from Seattle. They have a truly egg-cellent business!

What do you do?
Giorgia: We sell organic eggs that our chickens have laid. We have 9 chickens. Our neighbours are our customers.
Jackson: Our business is called City Chicks Organic Eggs.

How did you get the idea for your business?
Jackson: We went to a fair and saw baby chicks. Our dad got the idea to have chickens. So he bought some and then our mom gave us the idea that we could sell the eggs.

How has the business helped you become financially literate?
Giorgia: I learned about what you can do with the money you make. You can spend it, share it, and save it, and it’s good to do all three.
Jackson: I learned it’s important to have a savings account.

What’s the most challenging thing about your business?
Giorgia: Getting the eggs when the chickens lay them in a corner that I can’t reach.
Jackson: You have to keep the selling going even when you don’t have time. We get 6 eggs a day so we have to keep up.

What’s the thing you like most about your business?
Giorgia: Scooting the chickens back in their coop because you can pet and hold some of them.
Jackson: I want to make sure they have a good life by doing a good job taking care of them.

What advice would you give to other kids who want to start a business like this?
Giorgia: You can do it!
Jackson: I think that if you want to start a business ask your mom or dad to help. It can hard but it is worth it because you make money!
Why be financially literate?
Most kids don’t worry much about money until they leave home. Then, they have to learn a lot of stuff in a hurry. Of course, if you’re getting this newsletter, you’re probably more money-savvy than most kids already. But it never hurts to ramp it up.

Financial literacy just means knowing how money works and how to manage it. It’s a lifelong journey–so it pays to get started early. Here are some basic areas to cover:

Save

  • Pay yourself first by putting something from every paycheck, or your allowance, in an interest-bearing savings account. Even if it’s a small amount, it will add up over time.
  • Learn about your different options for saving–money market accounts, bank and credit union savings accounts, bonds, and more.
  • Make sure you know whether your savings are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
  • Make a plan and set saving goals for each month, the year, and five years.

Learn about planning to save.

Live on a budget

  • Set a budget and stick to it.
  • Try not to buy on impulse. Research your purchases first for the best deals.
  • Consider whether you really need something or would be better off saving the money.
  • Research shows that the happiness of a new purchase wears off much faster than the satisfaction of personal connections and doing good for the world. You really can’t buy love!

Learn how to make a budget. 
Get tips on smart shopping. 

Organize, manage, and pay bills

  • Keeping current on your bills can have a big impact on your credit rating. Getting sent to collections can ding your credit score, which can really impact your ability to buy a car or house down the road.
  • Sign up for online billpay through your credit union or bank. Some even let you have bills delivered electronically right to your account.
  • Set two dates each month to pay your bills. Bills typically arrive around the 1st and 15th of the month, so setting bill pay dates on the 5th and the 25th can work well.

Manage credit

  • Credit isn’t necessarily bad–it can be very useful for getting through hard times or spreading out the cost of a big purchase. But it can also get you into financial trouble quickly if you don’t manage it well.
  • Try not to use credit unless you really need it.
  • Pay your bills on time. Missing credit card payments can make your interest rates jump through the roof!
  • Try to pay off your balance every month–that helps minimize interest and fees.
  • Look for credit cards that have lower interest rates–credit unions are a great place to start as they usually offer lower rates on loans and cards to members than commercial banks.

Find a credit union near you. 
Get tips on managing credit.