On the Money Summer Fall 2017

BY TEENS FOR TEENS

SUMMER/FALL 2017

L A I C E P S ARTICLE T H G I L H HIG

Save $ on College!

Pages 12-16

Chance the Rapper Learn more about entrepreneurs like Chance and his non-profit, “SocialWorks” Pages 3-8

$20 SEE

TO WIN ER

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O ENT ET

Learn How to Build Credit

CK PAG BA

Turn Your Passion into a Business!

Page 8

Contents 3 4 5 6 7 8 9 10 11

Letter from the Treasurer/ Chicago Ideas Week Life on Chance/Chance the Entrepreneur Chance the Rapper: Social Works/Chance in Chicago Think: Chicago/Teen Entreprenuer TIP Fest Scholarship Assistance/ Founding “Scholars Path” Turning Passion into Business The Economy in Mexico Youth Employment Initiatives Employment and W-4 Tax Filing

Interns 12 13 14 15 16 17 18 19 20

Jennifer Baeza

Tackling Student Loans/ Scholarship Winner Highlight

St. Xavier University, Sophomore

Saving Money on College Dorm and Food

Vanderbilt University, Sophomore

Financial Aid Resources for Dreamers Benefits of Traveling Abroad in College Out-of-State Colleges/ Budgeting for College How to Build Credit/ Advice from the Experts Comparing the Cost of Beauty Products The Impact of “Fast Fashion” TRY IT OUT - Test your Financial Fitness

ABOUT ON THE MONEY

ABOUT THE EAC The Economic Awareness Council (EAC) is a non-profit financial education organization with program attendance of over 25,000 each year.

Need a youth friendly bank account?

Want to learn more about banking and direct deposit?

Visit www.plan2achieve.org

www.EconCouncil.org *Request additional copies at OTM@EconCouncil.org Thank you to the Citi Foundation and the Cities for Financial Empowerment Fund, State Farm Insurance Companies®, the Coleman Foundation, the Office of the City Treasurer of Chicago, Republic Bank of Chicago, TCF Bank, Bank of America, Huntington Bank, Byline Bank and MB Financial for their support of On the Money.

Schools Chance the Rapper Donated To: (see article page 5)

Kailyn Bates

Bradley University, Senior

MinZhen Chen

University of Illinois, Freshman

Colette Gordon

University of Pennsylvania, Freshman

Cameron Green Morehouse College, Sophomore

Kaliah Little

Harold Washington College, Sophomore

Kayla Lucas

Clark Atlanta University, Freshman

David Mabry

One Summer Chicago, DePaul University Graduate

Samantha Mallett

On the Money magazine is written by teens for other teens. On the Money covers entrepreneurship, business, finance, credit, saving and more, providing real world experiences and resources that can help students learn to meet their business, money and career goals. On the Money is provided by the Economic Awareness Council through collaboration with the Chicago Public Library, DePaul University, the Office of the City Treasurer of Chicago, and True Star Magazine. www.OntheMoneyMagazine.org

Cyan Baker

Crane Achievement Academy High School • Percy L. Julian High School • Philip D. Armour Elementary School • Paul Revere Elementary School • Harlan Community Academy • Gage Park Academy • Solorio Academy High School • Mariano Azuela Elementary • Michele Clark Academic Prep Magnet High School • Hyde Park Academy High School • Steinmetz College Prep High School • Adam Clayton Powell Jr., Paideia Academy • Nathan S. Davis Elementary School • Mahalia Jackson Elementary School • Charles Carroll Elementary School • Clemente High School • Robeson High School • Orr High School • Hirsch High School • Juarez High School • Westcott Elementary School • Fenger High School

DePaul University, Sophomore

Su Mon

St. Louis University Freshman

Hilary Pham

University of Illinois, Sophomore

Karmen Rosiles

Marquette University, Freshman

Serena Taylor

Harold Washington College, Sophomore Jasma Wheeler Northern Illinois University Freshman Instructors: David Mabry, Giovanni Adams, Richard Schrishuhn, Tracy Frizzell, and Toiria Baker Magazine Layout and Design: Jessica Alessi

Letter from the City Treasurer With another school year starting, I wanted to bring to your attention some professions that are not highly publicized in our communities. I encourage you to look at career paths for these roles and investigate your interest in them.

Hedge Fund Jobs - Hedge funds are private investment funds whose managers can buy or sell a wide array of assets and financial products.

Private-equity professionals help businesses find capital for both expansion and current operations. They also provide financing for a number of corporate business transactions.

Venture-capital professionals (VCs) work with small businesses and start ups and make investments in these early stage companies if they think they will eventually be successful.

Some basic and helpful information on finance careers can be found here: https://www.bls.gov/ooh/business-and- financial/home.htm I hope that my description of these has sparked your interest; I encourage you to consider them.

Kurt Summers City Treasurer of Chicago

Entrepreneurship “Chicago Ideas Week, October 16-22, 2017, is a seven-day festival featuring over 200 global thought leaders and innovators speaking on a variety of topics ranging from leadership and life’s lessons, to science and technology, to the most pressing issues of the day and the most creative insights in entertainment.” Visit www.chicagoideas.com and choose from the over 150 events that you might want to attend.

Hot topics for On the Money readers might include: The Future of Fin Tech (this discusses Bitcoin, etc.); the Spirit of Entrepreneurship with speakers such as Bobbi Brown and Rachel Ray; Social Entrepreneurship featuring local winners of a social entrepreneurship challenge; and A World Without featuring John Mackey of Whole Foods and others.

Most tickets are just $15!

Learn about entrepreneurship from other local youth entrepreneurs like these! Have a business idea and want to get more involved?

Email us at otm@econcouncil.org.

Consider applying for our entrepreneurship competitions or programs.

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LIFE ON CHANCE Does the name Chancelor Johnathan Bennett ring a bell? No? How about Chano?

Still no? What about Chance The Rapper? Yes? Before he was Chance the Rapper, he was also known as Chano in an instrumental group, Instrumentality. Chance grew up in a middle class family to mother, Lisa Bennett, and father, Ken Bennett. He really didn’t start showcasing his talent until he was around the age of 14 or 15. Chance would compete in talent shows at Jones College Prep High School. His fellow classmates would go crazy over his rhymes. He then knew he wanted to become a rapper, but his father had other plans for him. He wanted Chance to go to college and find a better career. Ultimately, he decided to support his son’s unconventional career as a rapper.

Since he was a young boy growing up on the Southside of Chicago, Chance the Rapper has always been extremely dedicated to his music, which has given him a strong platform to give back to his community. In recent years, he has been growing in popularity due to his unique style of music and his background. In his many years in the public limelight, Chance has lead several community outreach projects. In 2014 he led an initiative to combat gun violence, and in that same year he started an organization called SocialWorks, which hosts a variety of inclusive community events including a monthly OpenMike night to act as a creative platform for Chicago’s youth. Perhaps the most notable of his efforts, he recently donated one million dollars to the Chicago Public School system, and encouraged the Chicago Bulls to match his donation (Tribune, 2017). This generous donation will allow thousands of Chicago youths to attend school in a more positive, inclusive, and opportunity-filled environment.

His countless efforts to provide an accepting, artful life for Chicago youth have not gone unnoticed. To date, he has received several prestigious awards both for his music and his philanthropy. These awards include 3 Grammy awards for his music from 2017’s “Coloring Book” project. Chance the Rapper made history as the first unsigned, independent artist to win any awards and to win an award based solely off of streams. In addition, he’s won a BET humanitarian award as well as several other BET music awards, an NAACP award for Outstanding New Artist, and a 2014 award from Chicago’s mayor, Rahm Emanuel, who named him Outstanding Youth of the Year after seeing the work he did to create equal opportunities for youth with former President Barack Obama. The youth look up to him and would like to see him run for mayor for the City of Chicago. With such a generous and dedicated soul, who knows what his next move might possibly be.

By: Kenyae Shelton & Kea'nahja Greene, On the Money St. Louis

Chance The Rapper, and Entrepreneur Over the last several years entrepreneurship and financial literacy have been trending themes present in Chicago, especially within the youth community. Now more than ever, Chicago’s youth are thinking of innovative ways to become financially free and successful while also influencing their peers to do the same.

Chicago’s own Chance The Rapper is a lead figure in this new movement as he continues to practice innovative methods of building his net worth, which is rumored to be $9 million dollars or more (Gazette Review, 2016).

Chance’s decision to remain an unsigned and independent artist has allowed him to freely create and control his own projects, musically and beyond. This has proved to be crucial to his financial success. Also, as an unsigned artist, Chance is able to openly participate in partnerships or collaborations with various brands and organizations, perhaps reaping more financial benefits than traditionally signed artists would. Without having to share a percentage of earnings with label partners, etc., Chance innovatively cuts out certain liabilities (or costs) that would decrease his net income. Because Chance gives his music away for free, his ability to still build wealth is inspiring to many. Some of Chance’s main sources of income stem from his self-ruled projects either

on his own or in collaboration with brands that give him creative freedom. Chance’s earnings from selling his brand’s merchandise along with what he earns off concert ticket sales are two of the main components in building his wealth. Chance is reported to be one of the highest paid artists in terms of earnings per show. Al-though he continues to build financial success for himself, Chance has also created a non-profit organization named SocialWorks that demonstrates the importance of building wealth and creating financial freedom within communities in need in Chicago and within Chicago Public Schools.

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By: Kenyae Shelton & Kea'nahja Greene, On the Money St. Louis (and David Mabry, On the Money Chicago)

Entrepreneurship

Chance the Rapper:

Giving back to Chicago through SocialWorks

Chance the Rapper founded an organization called SocialWorks with others in 2016. Within this organization, they deal with causes that have a daily impact. SocialWorks began with an effort to give back to the community, particularly students. The group was doing charitable work in Chicago in 2015, but had not incorporated as a 501(c)3 non-profit organization. They soon found that it was important to officially incorporate as a 501(c)3 for donations, partnerships, etc. The main mission of SocialWorks is to focus on cultivating the arts, education and civic engagement particularly for youth. “[SocialWorks] started by wanting to give back to the students and see what they cultivated”, says Justin Cunningham, Social Works founder. “My class cultivated a lot of musicians... maybe the next class will cultivate scientists or engineers. ” Justin says it is the “youth focus [of Social Works] that helps to set them apart” in working towards their mission.

One of the main functions of SocialWorks is to support OpenMike. OpenMike was named for Brother Mike, an influential mentor in You Media at the Harold Washington Library Center. The goal of OpenMike is to create space where youth can be themselves and perform. Artists are chosen randomly to come on stage and perform for most of the evening. Generally, 350 youth attend and 40-60 students are chosen to perform. Check out the next OpenMike on October 16(tentative). Find OpenMike information here http://www.socialworkschi.org/events. Bring your school ID as you must be in high school to attend.

A second large initiative was Warmest Winter. This initiative raised over $117,000 which was used to purchase 1,117

coats through the Detroit Empowerment Plan which employs homeless individuals in Detroit to make coats for the homeless.

This initiative was planned around the holidays in order to also “create physical warmth of the heart too” as it inspired individuals to give to others in need in a tangible way.

A third initiative was Parade to the Polls. This initiative was very important because before Illinois’ new automatic voter registration system, it was important to go out and actually register individuals to vote. The goal was to register new voters and re-energize apathetic voters and to “package [all of this] in a youthful, phone-friendly way.” In addition to efforts throughout the fall of 2016, Chance himself led 2,000 individuals to the polls, and there was on online event that had 6,000 individuals join. On the Money was proud to support SocialWorks in a Parade to the Polls event at the Harold Washington Library in 2016.

Finally, the most recent SocialWorks event is one of the largest. Through #supportCPS, SocialsWorks is working to encourage donations to support Chicago Public Schools and the Chicago Bulls have pledged $1 million in matching donations.

Students in particular are encouraged to tweet their support at #supportCPS and all are encouraged to donate. Learn more and donate at http://www.socialworkschi.org/donate. Funds generated will be used to “empower principals and school faculty” to improve their schools. 20 schools have already received support which is being used for arts programs, STEM education and more.

Look for more news on initiatives to support all Chicago Public Schools soon as well as the CPS wardrobe contest at http://www. socialworkschi.org/events.

Did you Know?

From the latest Kit Kat commercial in 2016 to throwing the first pitch on opening day with the White Soxs, Chance the Rapper has been involved with many partnerships in order to finance and grow his career. For Chance’s latest mixtape, Coloring Book was released May 13, 2016, Chance made a deal to release it on Apple Music exclusively for two weeks in exchange for being paid $500,000 and receiving a 30-second commercial. After two weeks, Coloring Book was available on many free music sites like SoundCloud, but it is through deals like this that Chance can remain independent AND make money.

By: Jennifer Baeza and Jasma Wheeler, On the Money Chicago

Taking a “Chance” on Chicago:

Chance the Rapper’s Support of the Chicago Public Schools - Investing in the Future of Youth in Chicago Chance the Rapper is well known throughout the country, but nobody loves Chance more than Chicago. And Chance loves Chicago too. Due to the recent state budget crisis, Chicago Public Schools have been struggling, especially neighborhood schools with limited outside funding. Chance, a graduate of Jones College Prep in Chicago, has stressed the importance of funding our schools as youth are our future. He recently donated $10,000 to 12 schools (and then later donated $10,000 to an additional 10 schools) in high risk neighborhoods (see page2). These donations had specific requirements for funding the arts programs as well.

In addition, Chance has founded his own non-profit called SocialWorks whose mission is to “empower youth through the arts, education, and civic engagement.” SocialWorks collects donations for youth and the homeless, selling t-shirts to further raise money. SocialWorks also does more than that, they host events that center around positivity and making an impact in the community through volunteering and leadership. On the Money Chicago partnered with Social Works for a get out the vote event during November 2016! Chance molded SocialWorks’ events to be free and accessible to the public, so if you’d like to be involved, visit www.socialworkschi.org.

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Entrepreneurship

By: Karmen Rosiles

ThinkChicago - Chicago, A Technology Hub tors, such as mHUB and 1871, were toured and the culture of the technology industry in Chicago was explored.

The second aspect of the program was the Civic Tech Challenge, a competition where groups of students would identify a problem that the city faces and use technology to improve life for Chicago residents. Every aspect of the issue would be analyzed creatively and a one page business proposal was submitted the next day. The top six proposals were then pitched to a panel of judges on the final day and the top three ideas were chosen as potential solutions the Mayor’s office could implement.

Sponsored by the University of Illinois and World Business Chicago, ThinkChicago was a unique, in-depth immersion into the technological ecosystem of Chicago. Through working with university students from other disciplines and exploring the resources offered to entrepreneurs, Chicago was introduced as a metropolitan area with a small town feel, standing out from all the other technological hubs across the country. Want to apply to ThinkChicago? Visit www.thinkchicago.net!

Usually when people think of the technology industry, hubs like Silicon Valley are the first places that pop into your mind. To promote Chicago as a technological center, every year 200 university students are invited to ThinkChicago, a three day program with a Civic Tech Challenge, company tours, and networking events for STEM and business majors.

This year, the program kicked off with a presentation from Mayor Rahm Emanuel and speeches from George Burciaga, the CEO/Founder of elevate DIGITAL, and Neal Sales-Griffin, the CEO of CodeNow. Unlike most events, ThinkChicago’s goal was to include the creativity and ideas of the students through question and answer sessions during each presentation. After the presentations, the offices of tech companies and startup incuba-

By: Hilary Pham

WANTED

T EEN ENTR EPRENE

Take your business idea to the next level! Compete in the

URS

Kim Products is an innovative clothing line that will be featured at the TIP Fest in Sept 2017.

On the Money Entrepreneurship Challenge Winners will receive up limited seed funding, business training & mentoring and the opportunity to sell their product at community events!

Congratulations to the On the Money Teen Entrepreneurship Competition - TIP Fest Winners for 2017:

Go to OntheMoneyMagazine.org/opportunities to learn more and submit your application.

Contestants must be Chicago residents between the ages of 14 - 24.

Businesses cannot be food items.

On the Money would like to thank the Coleman Foundation for their support of this issue.

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Entrepreneurship

• • • •

Kim Products DFTA (Don’t Feed the Artist) LaQueens N Things I AM BORN MADE

Making Scholarship Search Assistance a Business!

Students Helping Students – Founding Scholars Path

I have learned knowledge is free, but education is expensive, especially college. When I was starting out my college journey, that was my problem. Like many, for me college was an unaffordable dream. In fact, the average cost of tuition and fees for the 2016–2017 school year was $33,480 at private colleges, $9,650 for state residents at public colleges, and $24,930 for out-of- state residents attending public universities according to College Data.

To cover college expenses, most students rely on loans and grants, but the best way to cover college costs are scholarships.

Scholarships are essentially free money. Annually, around 8 billion dollars of scholarships are made available. That means you need to apply.

My junior year of high school, I started applying to scholarships. At first it was disheartening to not receive any letters of congratulations, but I continued to apply (to over 80 scholarships) and soon my letters started pouring in. By the time I won my 3rd scholarship, people were asking me what I was doing and if I could help them. It was clear I was doing something other students were not.

I ended up graduating from Mother McAuley Liberal Arts High School with 11 individual scholarships (the most scholarships in my class of 279 women) with a cumulative 2.98 gpa.

As I entered in college at Bradley University, I have continued to win scholarships, and because of my passion for helping others, I wanted teach people the information I learned. Three years ago we created our organization Scholars Path. My mother and I found that presenting together enabled us to reach both the students and their parents; hence the creation of our two-hour Scholarship Workshop.

Our workshop helps students and parents understand the steps and key components of preparing, applying for and winning scholarships. Our very first topic is the importance of your GPA. We talk about letters of recommendation (who the writers should be), resumes, interview tips, how scholarships may affect financial aid, what financial aid offices won’t voluntarily share, essay writing, and much more. We also provide If any of these workshops websites and a list of siginterest you or someone you nificant scholarships. know please email us at

As our scholkbcollege@comcast.net arship workshop has grown, parents and students alike began asking me about what college life was like and how I was able to write my winning essays. This prompted us to create the College Transition Workshop and the Essay Writing Workshop. We have provided this information for students from a variety of high schools (McAuley, Brother Rice, St. Rita, Hill Crest, TF North, Kenwood, Lindblom, De LaSalle, Air Force Academy, Marist, etc.). In fact, some of our students are winners of “big name” scholarships, such as the Ben Carson Scholarship and the Jackie Robinson Scholarship, just to name a few.

Some Helpful Sites: Cappex.com ScholarshipExperts.com CollegeXpress.com Why aren’t you applying to scholarships? For most people, they do not know where to apply or how to apply. They think it is hard or the amount of information available is overwhelming. As it turns out, scholarship searching is as easy as a Google search. Think about the activities you do and search for scholarships around that activity. For example if you have an interest in art, you can search art scholarships, and there will be scholarships that you can apply for by sending in your artwork.

Another trick I learned in my scholarship journey is to think about the stores I shop at.

Kailyn of Scholars Path Surprisingly most of these companies have scholarships or school supply drives.

My last scholarship secret is to get involved in your community by joining organizations. Many organizations give away scholarships, supplies to help students as well as giving you valuable networking skills that will be important in the future.

By: Kailyn Bates

By: Kailyn Bates

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Entrepreneurship

Turn Your Passion into a Business! ment overshadow how far you’ve come. It’s important to build your craft. Don’t jump into doing something because you like it without making sure that it is quality. No one wants to come to you for a service expecting a bad experience; but remember that you can’t please everybody. Stay confident and true to yourself and the craft that you built because if you don’t think it’s the best, nobody else will.

Have you ever wondered if it’s possible to make money doing what you love? If so, check out these stories of two entrepreneurs who both developed their passions as youth into successful businesses:

Chauntae Montgomery (Makeup Artist or MUA):

1. Where did your passion for makeup stem from?

I have always been into art since I was younger. I used to draw all the time and at one point I wanted to be a designer, but I later decided that styling is for me, not designing. So I guess you can say it started with that. Then in high school I got into watching YouTube a lot and I wanted to do the things I saw my favorite YouTube makeup artist (AaliyahJay) do.

Brandon Counts (CEO and Founder of Mac-Magician)

1. When did you realize that you have a passion for what you do? What benefits did you get out of your hobby? Where did you learn your trade?

I’ve always liked technology since a young age. I started my company in 2011, just after 6th grade. I am completely self taught. In 2009, I worked on my Mac at home, and by 2012 I was good enough to help others. A business stemmed out of this.

2. How did you start off your makeup career? Was it as costly as you expected? How did you budget for your business?

I started off working for Ulta Beauty and learned how to do my own face. Working for Ulta gave me the product knowledge I needed to be the makeup artist that I am today. I got my first four clients while working there, building a relationship with them and handing my cards out. It’s not as costly once you know what cheaper products work and don’t work. Also, you have to learn to buy in quantities. I buy in threes. One for me, two for clients. It’s worth it for me because I love what I do. You have to spend money to make it and sometimes stepping out on faith is the best way to go for something you love.

2. How were you able to make a business out of it your hobby?

I started with my parents’ friends that needed tech help. They would pay me a little bit of money for helping, which gave me the idea to start a business. I branched out to currently having hundreds of clients, and instead of me traveling to their homes, they travel to me.

3. What advice would you give other interested in starting a business based on their passions?

Go for it. If you have someone to support you, do it. You never know what it can turn into.

3. What advice would you give those interested in starting a business based on their favorite hobbies or passions?

I would say don’t let how big you think you should be at the mo-

By: Cyan Baker

Historic Living Apparel Incorporated in 2010, Historic Living started as a young brand looking to connect the ideologies of various African cultures and histories with visions of resonating these histories and connections throughout the world. Its founders, Denise, Danielle and David Mabry, coined the idea because they all felt that the new generation of youth lacked adequate understanding of African history and also lacked proper representation in the fashion industry. They shared these ideas with current designers Treviance Orr and Harold Johnson III, and thus Historic Living was born.

Historic’s primary goal is to appeal to the fashion community and beyond through designs/ideas original to or in some form influenced by the vast African diaspora (or move-

ment). Through this connection, Historic Living is educating an entire generation and countless generations that follow. They have designed shirts that illustrate black excellence, black pride and most importantly black entrepreneurship.

Historic is a company willing to give back to their respective communities. They are putting forth efforts to start a HBCU College Tour collection, where they are hoping to host art shows and merchandise pop-up shops to raise funds for the art programs at the involved schools. Historic is more than a clothing line, it is a brand that wants to focus on the importance of finacial literacy, empowerment through entrepreneurship, and giving back to the community. Just as people mature, so do businesses. It is Historic’s mission to not only educate the community, but to lead by example. Here we have a clothing line that is migrating into the realm of economics and community services. Who knows what could be next.

By: Harold Johnson III & David Mabry 8

Entrepreneurship

Financial Crisis in Mexico

This summer I was fortunate enough to go visit where my parents grew up in Guanajuato, Mexico. I’ve traveled a lot to do service in different countries, but had yet to visit my parents hometown. Not many people know, but Mexico has been in financial crisis since 1994. According to the Federal Reserve Bank of Atlanta, “The Mexican peso crisis was a currency crisis sparked by the Mexican government’s sudden devaluation of the peso against the U.S. dollar in December 1994, which became one of the first international financial crises ignited by capital flight” (FBA, 2017). For those who do not know, a peso is the basic currency unit in Mexico. If you exchange one United States dollar to pesos, it becomes 17 or 18 pesos.

In Mexico, I was able to ask local residents about how the crisis has impacted their daily lives. Angelica Hernandez who was born and raised in Guanajuato, Mexico commented, “Mexico is a poor country. If a person from the United States would go and visit to Mexico, they would automatically assume everything is cheap. It’s not that it is cheap, it’s that it’s so poor over here that the USD is worth more pesos.”

Mexico is a beautiful country to go visit but keep in mind that even though there is beauty, there are many people that are struggling. In Mexico, I saw many people living in rural areas in a house they built from their own hands.

They create houses because they cannot afford to buy one. These same people are On the Money intern Jennifer Baeza trying to provide for a family of up to 15 people, but how can they when there in Mexico are no jobs near them? “It just shows so far how politically and economically behind the country of Mexico really is. It may be one of the closest developed country next to us (Canada to the north), but it’s also one that most needs for our help, and with American politics today, that help isn’t coming fast enough for the country to stay rich in culture”, mentions Adrian Varela, who recently visited Mexico. It is not a surprise to realize why people come to the United States looking for a better life.

By: Jennifer Baeza

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Youth Employment Initiatives:

How programs like “One Summer Chicago” and “100K Opportunities” are preparing youth for a brigher future.

Youth employment is very important for students beMayor Emanuel created OSC, because, “Keeping children busy and cause it teaches students life skills. On the job, students are able to engaged helps them grow and develop as people, but it also keeps them develop time management skills, help build a resume, and build safe so that they can enjoy their summer,” said Mayor Emanuel. “By financial independence. These skills collaborating with Cook County and othare important because they fill a void er agencies, we are doing more than offerleft in our traditional public education ing children the chance to develop strong, system. Students will learn time manresponsible work habits or earn money agement because they have to balance – we are giving kids a safe alternative to their schedules and get to work on time. spending unsupervised time on the streets.”

Having the pressure of the job count One other initiative that ing on the student will push them to do helps youth secure employment opportheir best and make them more productunities is the “100k Opportunities” tive. Being employed as a young adult initiative. This event not only generates will drive students to start building a job opportunities for youth but also preresume early on in their academic and pares the students for their interview. I Thank you to Wintrust Bank for hosting the On the Money professional career. Students will also interns this summer. Thank you for welcoming our team and had the opportunity to be a part of the learn financial independence. By having for making career opportunities available.

100k event for this summer. Students their own funds, students will learn how start 100k by going through mock into save to get things they want. terviews and receiving feedback on how they can improve their

Youth Employment helps the city by keeping students interview skills. The students then move onto the second step to busy and less likely to get into trouble, whether it’s the school year have their resume reviewed and apply for jobs with partner comor summer. According to the report, five of the city’s 77 companies at the event. After students have completed these steps, they munity areas accounted for a third of Chicago homicides in may be offered an ON THE SPOT interview with the companies 2016. Those same five community areas had jobless rates of they applied for. Through this process, I was offered a job on the 79 to 92 percent for teenagers, and 49 to 70 percent for young spot with Starbucks, and a second adults (Great Cities Institute/Chicago Tribune, 2017). By giving round interview for Potbelly’s. This students productive and fun things to do during the summer, this event showed me that getting a job could also help decrease the rate of violence in Chicago. Youth is not only about getting an interEmployment can also stimulate economic growth in the city. view, but also about being prepared

One way we are combating youth unemployment in to do whatever the interview calls Chicago is through the “One Summer Chicago” (OSC) initiative. for. Many students have not learned these skills yet. 100k works to fill This initiative, started by Mayor Rahm Emanuel, provides that void to help the students be suc31,000 youth with employment and enrichment opportuniOn the Money Interns at 100K. cessful in building their professional ties during the summer months. One Summer Chicago offers Learn more at careers. summer employment to youth between the ages of 14 and 24, as www.100Kopportunities.org well as a range of enrichment activities for children and youth of By: Kaliah Little all ages, including camps, sports, arts, and recreation programs.

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Finance

Welcome to Adulthood! ( and TAXES)

As a young person, I can attest that obtaining summer employment is truly an introduction to adulthood. As reported by the Bureau of Labor Statistic under the U.S. Department of Labor, the number of employed youth 16 to 24 years old increases from spring to summer and went from 1.9 million in April 2016 to 20.5 million in June 2016. When youth are employed, they are required to fill W-4. However, many of these youth lack understanding about how to complete a W-4 and its importance. Although a person who makes less than $6,300 is not required to file a tax return, there may be an opportunity to receive a tax refund after tax season.

According to Paul Harrison, Director, Tax Clinic, Center for Economic Progress, “Form W-4 is the form that new hires fill out when they start work to tell their employer how much money to withhold from the employee’s pay for federal income tax. Its advantage is that it enables the taxpayer to tell the employer to withhold less money for income tax or even no money for income tax. If the taxpayer does not fill out Form W-4, then the employer would be required to withhold the maximum amount for federal income tax.” Employers give W-4 forms to new employees to determine how much federal income is withheld. The W-4 includes a personal allowance worksheet that helps an employeet calculate the allowances the employee should claim. The more allowances the employee has, the less federal income is withheld. Be though careful because not accurately calculating your personal allowance can cause the YOU to owe money to the federal government. You can keep your personal allowance worksheet for your records.

The next section of a W-4 is the Employee’s Withholding Allowance Certificate. This is where the employee should fill basic information (name, address, social security number, etc.) in for the first four questions. On question 5, enter the total

number of allowances that you, the employee, claim. Questions 6 - 7 allow for the employer to withhold more money.

Many youth employees write zero for these questions. Lastly, place youre signature and date at the bottom of the form.

Typically, employed youth can ignore the Deduction and Adjustment Worksheet unless they are married and/or have children. Youth that have more than one job would need to fill the Two-Earners/Multiple Jobs Worksheet.

Does all this make you nervous? Paul Harrison says, “Relax. If you’re uncertain about anything, claim 0 deductions and exemptions. Doing so will make you subject to maximum withholding, and any excess will be refunded once you’ve filed your tax return.” Similarly, Anabel Hernadez, Sophomore at UIC explained, “I’ve had to fill out a W-4 every year since I’ve been employed every summer. The biggest challenge is keeping everything accurate and making sure that I put down the correct information for each answer.”

Anabel suggests having someone who has completed the form before help you – your employer should be able to help you as well.

Make Your own c CollegeBud ollege budget at getbuilder .org!

By: Serena Taylor On the Money would like to thank Byline Bank for their sponsorship of this issue.

11

Finance

How to Tackle Student Loans

Are you thinking about entering in the world of higher education? Good! Have you also mapped out a plan dedicated towards financing that education? Even better! This is something that you have to consider because according to Student Loan Hero, the average 2016 graduate has $37,172 in student loan debt which is 6% more than last year’s class. If you want to try and steer away from this financial wormhole and repay your student loans more quickly, then you should keep reading about keeping your student loan costs low!

One option you have to control your student loan debt is to consolidate your federal student loans. This means combining several smaller loans into one larger loan. The U.S. Department of Education offers a Direct Consolidation loan which combines your federal loans into one new loan. The new interest rate is a weighted average of the interest rates of your old loans. The benefits of this type of loan are easy qualification, only one monthly payment, and you can qualify for Public Service Loan Forgiveness.

Determining which loans and which consolidated loans qualify can be confusing. See www.studentaid.ed.gov for more information. The disadvantages are that only federal student loans are eligible, interest rates are averaged, and income-driven repayment plans may result in more interest (finaid.org). Also, in order to qualify for student loan consolidation, however, you need to have a good credit score and a steady income (Nerd Wallet).

This second option can be a great challenge for others: increasing your income. There’s nothing worse than taking out more loans than you have to. If you’re able to pick up another job and/or get a pay raise, then you’re on your way to getting rid of more of that student loan debt. Also, cutting down on costs and expenses can help you to pay off more of your student loans. To learn more about reducing your overall student loan costs before, during or after college visit these websites: http://www.isac.org/ and http://www.studentaid.ed.gov/sa/.

Don’t forget to complete the FAFSA early and start gathering your tax and other required documents in advance! (FAFSA opened in 2016 on October 1st.)

Mark your calendars!

Visit FAFSA.ED.GOV for more information on when the FAFSA opens or to complete the FAFSA.

By: Kayla Lucas

Young Illinois Saves Get Your Money Right Scholarship Winner

My banking and saving experience, in addition to my financial education, has taught me that in order to save up for the things I want I have to be more flexible and make compromises. Sometmes this means cutting back on items I don’t need to buy very often, such as makeup, shoes, and clothes, in order to save money. I’ve also learned that it is important to read the fine print and to find a bank with a banking account that’s best for you. You also want an account that’s beneficial for your needs and can be as accessible as you need it to be so it’s important to do research and ask the bank teller questions if you’re unsure of anything.

My financial experiences will help me achieve my career goals since I’ve learned how to manage my money and have educated myself on the material I need to know in order to obtain my end goal. Since I want to own my own therapy and wellness center, I know that I have to maintain my credit score so that I can be approved for the loans I may need to achieve this goal while keeping in mind that I have to pay them off in an orderly fashion to avoid accumulating unnecessary debt.

Three tips that I would share with students my age are to do research on banks and the different savings accounts they may offer, to look into checking accounts designed for high school and college students, and to continue educating yourself in financial literacy.

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Finance

By: Kaitlyn Coleman

YOUR FRESHMAN DORM

After deciding on a college, one of the first things that many students consider is their freshman dorm room. Nowadays, teens spend an average of over $900 each year to turn their rooms into luxury spaces (National Retail Foundation). Retailers have noticed this and have created entire departments dedicated to dorm shopping. The U.S. dorm industry spending accounts for $50 billion a year. University of Pennsylvania Residential Life Director Ryan Keytack explained that every student approaches their room differently so costs depend on what they’re willing to spend and what they want.

Despite this, as the costs of college continue to rise, students are looking for ways to cut down on costs. Abby Jakus, a rising freshman at McGill University explained that she was surprised by the costs associated with creating a functional dorm space. Jakus will be living in a single so she is solely responsible for costs that roommates traditionally would share. To avoid unnecessary spending, Jakus explained that she only purchased in advance the essentials like bedding, mini-fridge, cleaning supplies, and other things she couldn’t live without. After a week or two at school, she’ll reassess what she actually needs and go shopping again.

In regards to decorations, Jakus purchased a tapestry to hang on one wall of her room and is taking some of the throw pillows she currently uses at home. It’s important to realize that you don’t need to buy everything new, especially if you like the things you currently have. Finally, she has created photo collages that only cost a total of $10 because she made them herself.

EASY WAYS TO REDUCE COSTS: 1. Split costs with your roommate(s) - communicate early on about what you need.

2. Ask friends and family if they already have the things you need.

3. Check the web for cheap/ free furniture and decor on your campus.

4. Do your research - find bargains/use coupons.

5. Start early - comparison shop to get the best deals.

6. Only buy what you’ll definitely need before move-in. If a need arises later for an item, buy it then.

7. DIY! Create your own decorations to save major bucks. Making your dorm room feel like the perfect home-away- from-home can be intimidating, especially when you consider the costs involved.

However, this process doesn’t have to be expensive and there are many ways that you can create the perfect space within your budget. By investing a bit more time and creativity into your dorm decorating process, you can have the dorm you can call your home-away- from home.

By: Colette Gordon

Keeping Food Costs Low at College

It’s hard to save when there are so many things we want. You might not realize it, but the lunch and coffee that we buy everyday can add up. A quick way to save is to minimize eating out. “Millennials spend 44% of their food dollars – or $2,921 annually ($56 per week) – on eating out” (Forbes, 2016). You can save food dollars by packing your lunch instead of buying it every day and minimizing the number of times you eat out to one or two times a week instead of daily. You can save that money for college, or for the laptop and books that you need. Kaliah Little, a Money Mentor, is a smart saver who minimizes eating out to save her money for something else. Kaliah says, “I’d rather spend my money on things that are tangible, so it can be more worth it.”

Some people may be hesitant to pack a lunch because it can be a hassle. They might think it’s more convenient to eat out for lunch instead of making one every morning. However, think of the time you spend going to lunch and the time you spend earning the money for eating out. Also, one way to save time and effort is to pack lunch by planning out your meals on a weekly basis. Prepare the dishes for the week and pack it in a container so that you can just grab it and go in the morning.

Today, the convenience of eating out may make it hard to resist. It’s tempting to go to Starbucks when it’s on every corner. “It’s making it harder for them to develop a savings habit” a new study says (USA Today, 2016). Think about sacrificing your morning coffee and afternoon lunch to have more money in your pocket.

By: Su Mon 13

Finance

Financial Aid Resources for Dreamers

According to research by the University of California Riverside, over 40% of undocumented immigrants live in poverty, making college seem out of reach; that is not true at all. Financial Resources for undocumented students may seem to be extremely hard to find, especially for those going to college. Contrary to popular belief, undocumented The following banks (and some others) allow one to open a bank account with an ITIN (Individual Tax immigrants can have bank accounts. According to the Identification Number) and a valid identification: FDIC, only 68% of families are “fully banked”. Banking is safe and convenient for students to keep track and store • Bank of America their money while in college. In addition, it is a great way • Wells Fargo • Chase to save for college especially with a savings account that ac• Capital One cumulates interest.

Although taking out loans may seem like the only way for undocumented students or dreamers to pay for college, that is not true! There are some private and public universities that treat dreamers and U.S citizen students the same academically and financially! Kelly Rosiles, former data specialist at the Boston Board of Education says, “there are many opportunities available and my biggest advice is to become friendly and personally reach out to your school’s financial aid office”.

Luis Ortiz, an undocumented student who will be attending the prestigious Ivy League, University of Pennsylvania on a full ride thanks to QuestBridge, advises dreamers, “Be your own advocate. This means to seek out opportunities that are outside your usual radar. I had to consider that reality that even if I got into college, I would most likely not be able to afford it”. Affording college is a tough situation for many so it is vital to apply to scholarships and open a savings account as early as your sophomore year!* Below are some useful websites to direct students to qualifying merit and non-merit private scholarships:

• • • •

Cappex.com Collegegreenlight.com Collegeboard.org Scholarshipmonkey.com

By: Karmen Rosiles *Since this article was written, DACA (Deferred Action for Childhood Arrivals) has been rescinded. There are specific time limits on when current DACA youth can re-apply. Please see https://www.immigrantjustice.org/ and https://www.dhs.gov/ news/2017/09/05/frequently-asked-questions-rescission-deferred-action-childhood-arrivals-daca for more information immediately if this impacts you. These recent changes may also impact several points above. Please talk with your specific colleges or colleges you are exploring for details.

14

Finance

Traveling

College

Students

“Be flexible with the days of your trip, know when the off seasons are, and use numerous sites to compare prices.”

Traveling in college allows you to create memories, grow experience, and find your career path. According to David Chapman, Director General for the World Youth Student and Educational (WYSE) Travel Confederation, “Young travelers of the millennial generation represent 20% of international travelers”. Why not become one of them? Invest in yourself as you are embarking on the most expensive journey yet: college.

- Hilary Pham (University of Illinois at Urbana-Champaign)

When you are at your destination, consider cooking more instead of eating out, looking for free events and opportunities, asking about student discounts, and use public transportation. By cooking instead of eating out, you save money and it’s a healthier choice. Many cities have a tourism center that you can contact and see what events are occurring during your visit. Apps like Unidays offer discounts on pretty much anything as long as you have your student ID. By taking the train or bus, you can see other landscapes/landmarks, get a better of what it feels like to live in that place, and it’s cheaper!

“Getting to know new people and experiencing new things are huge benefits of traveling in college!”

-Ariana Holmes (Wheaton College)

The benefits of traveling are that you get more hands-on learning, career opportunities, network with new people, and to expand your cultural horizon. 75% of the semester abroad participants said that traveling influenced their career path (StudentUniverse 2013). Traveling lets you grow in resourcefulness and self-resilience while you find your passions and who you are as a person.

“Use Google flights, Expedia, and Airbnb to reduce costs.”

- Hilary Pham (University of Illinois at Urbana-Champaign)

“People are your connections, and experiencing things outside of your comfort zone truly helps you grow.”

College is all about finding your career path by pursuing different opportunities, which traveling offers.

By: Jasma Wheeler

-Ariana Holmes (Wheaton College)

As a college student, you most likely have a fixed income, which can hinder your ability to travel. Some options that are affordable are mission trips, interning abroad, studying abroad and volunteering. If you belong to a religious organization, try becoming a missionary. Travel the world sharing your beliefs while learning about different cultures. There are many employers from all across the world that are willing to pay you for various skills.

Many colleges offer study abroad opportunities that allow you to earn credit hours from a partnered institution. Plus there are scholarships available! Talk to your advisor and they may be able to help you schedule and finance it. Volunteering lets you connect deeper with another culture, gain new skills and inner fulfillment for doing something good for the world.

When you are thinking of traveling to different places, it’s important to stay within your budget. Here are some things to consider before you travel: consider staying in a hostel, travel with others, flexibility/shopping around, and travel during off seasons. Compared to hotels, hostels are less expensive and some have fully equipped kitchens and state of the art facilities. By traveling with friends or family, you can split the cost of expenses.

Look at a variety of sites for your intended travel spot and be flexible about your trips days, which can offer cheaper flights or buses.

Look up when is your destination is not so popular and you may score tickets at cheaper prices.

On the Money would like to thank State Farm Insurance Companies for their sponsorship of this issue.

State Farm Agent Vic Portillo receives the On the Money Entrepreneurship Advocate Award at the On the Money graduation in recognition of his volunteer efforts.

15

Finance

LAUNCHED

The 2006 movie Failure to Launch inspired my mother to push her children outside their normal orbit. As the youngest of three, going away to college was something I had seen done successfully. Can traveling out of state for college be a learning experience that the youth should be more open to? On average, only 11% of students travel more than 500 miles away from home to college. Although this is only a small portion of soon-to-be collegiate students across the country, this journey out of one’s comfort zone to further their education can in fact be an eye opening experience. When it comes to choosing whether or not to attend an in-state or out-of-state college, there are many variables that should be considered. It is key that students not be afraid to leave and base their final decisions on academic options, extracurricular activities, campus life and scholarship offers. When asked, “What do you think traveling out-of-state for college did for you?” Ms. Matthews, a recent college graduate, had this input, “going out of state for college showed me just how diverse and unique people are. It afforded me the opportunity to see how vastly different people live and how geography plays a huge role into how people view the world around them.”

By: Cameron Green

4 Easy Ways to Network Successfully in College network. Numerous job opportunities and scholarships are posted to apps such as Twitter and Facebook for students to apply for, but make sure that your profile is appropriate and professional!

College is a time where students discover themselves and start to make connections with people that will last a lifetime through networking. Networking is making connections with others that can potentially help you access other beneficial resources you need to succeed in life.

To learn more about how to successfully network in college, I interviewed Kailyn Bates, a Senior at Bradley University and Dr. Shannon Williams, Assistant Director of TRiO at DePaul University. Here are some of their top recommendations for college students.

Create a LinkedIn Profile

LinkedIn is a professional social media website used for people to network with employers, schools, and many more people. Shweiki Media reported that only 40% of college students take advantage of this website, but it is better to start building your online network NOW rather than later!

1. Take advantage of the resources available on your campus.

Bates found that connecting with her advisors, the career center, and financial aid office were most useful because they often considered her first when opportunities for professional development or scholarships were available. For more advice on financial aid, you can visit your school’s TRiO office for additional resources.

4. Let yourself be known and follow up!

Bates recommends that students get a business card with their phone number, email, college, major, and expected graduation date to pass out to others. Dr. Williams advised, “Do not be afraid to ask questions, reach out, and seek out assistance – that is what these offices and staff/faculty are there for … the more you know, the sooner you will have access to the information needed to succeed and move forward!”

2. Don’t wait until it’s too late!

Many students wait until their junior or senior years to start networking, but it is best to start immediately. Dr. Shannon stated, “We cannot do things alone and the more supportive figures we have in our lives and the more knowledge we have access to, the more that we can accomplish our goals with the time that we have!”

Remember, it is never too early to network and you never know when you might encounter someone that could help you.

3. Sometimes networking is much easier than it seems.

According to an Aberdeen Group report, 73% of young adults between the ages of 18 and 34 landed a job through a social

By: Samantha Mallett 16

Finance

Can You Build Credit as a Young Adult? show responsibility and prepare to have credit, by holding a job and having active bank accounts.

In addition, Kristin Schell from Building Credit NFP suggests that “teens under the age of 18 [or who have recently turned 18] could apply for a secured credit card.” A secured credit card works similar to a regular credit card except that the payment is guaranteed because there is a required security deposit for the card to open. The required security deposit (generally $200-500) is then locked in a certification of deposit (CD). Then, the account will be open and the secured credit card could be used the same way as a credit card. After making several payments, your credit will start building, but don’t forget to make the payments ON TIME! Ideally, set up automatic payments of your credit and keep a buffer of funds in your bank account so your payments all occur smoothly and on time.

Did you know that more than 45 million American consumers have no credit or credit score!? Of those 45 million American consumers, more than 80% of those consumers are between the years of 18 and 19 (CNBC 2015).

So what is a credit score and why is it important? Your credit report, a record of your credit transactions, is used to create a credit score, which is a numerical expression of your creditworthiness. Your credit score helps lenders, landlords, etc. determine how likely you are to make payments on time. This directly affects things such the amount of money they will loan you, the interest rate you’ll receive, or whether or not you can lease a car or apartment. Companies can also ask to check your credit score as part of a job application!

Statistics show that most teens were in the category of consumers without credit scores. This is mainly because they had not yet established their credit history as the main source for your credit score comes from paying for credit cards or making bill payments. This becomes a problem for teens that are not eligible for a credit card because they are under the age of 18. Mr. Anterio Jackson, the founder and CEO at Credit Honor, suggests that teens under the age of 18 should consider, “becoming an additional user on a credit card, getting a job, opening bank accounts, and/or putting one of your household bills under your name to build credit.” Becoming an additional user means to being added to the credit card of a parent or other trusted adult. Use EXTREME caution in doing this to avoid any conflicts about payments or other issues. Be careful to choose someone to do this with the uses only a portion of their credit limit and always pays on time as agreed. Make sure the company issuing credit reports additional users to credit reporting agencies. This may work for some youth that are very responsible and have an adult that is also very responsible with credit but is not a good option for ALL youth. However, all youth can start to

Additional Tips:

Youth over 18 may apply for their own credit card to build credit. However, their ability to get credit will be limited by how much they earn until age 21. Getting a credit card should be approached with caution! Make sure you are ready. Build savings first so you can pay your bills even in an emergency. Practice using a debit card and live on a budget. When you are ready to apply for a credit card, take your time. Compare cards and choose your credit card carefully. Do NOT apply for several cards at the same time. Once you have a credit card, pay your FULL balance on time as agreed to build credit and avoid interest charges and only use no more than 1/3 of your credit limit.

Learn more visit EconCouncil.org – Resources – Hope Builders: Credit!

By: Min Zhen Chen

Building Your Credit: An Expert Opinion

The On the Money Mentors were able to meet with David Larson, Republic Bank Branch Sales Manager. During this meeting, David Larson shared some helpful tips, not only about banking, but also on how young adults can build credit! Larson suggested focusing on BUILDING GOOD CREDIT. This doesn’t necessarily mean spending a lot on new clothes on shoes, but having a foundation of credit readily available for large loans you may need to take out in the future, such as a loan for a car or a home. Larson suggested that you may want to consider being added as an authorized user with a TRUSTED adult, but if that is not an option, David advises looking into a secured credit card. A secured credit card will give you a way to build credit while assuring you and your bank that you won’t fall into massive credit card debt! (It is always recommended to never spend over 30-40% of your available credit limit month to month!) David’s favorite part of his job is helping people, so do not hesitate to walk into Republic Bank (or any other bank) for any questions you may have on banking or building your credit!

17

Finance

By: Karmen Rosiles

Beauty and Her Wallet

If you’re a young woman who wears makeup or is interested in wearing makeup, then this article is for you.

As we all know, makeup can be extremely expensive; anywhere from $10 to well over $1,000. According to TODAY (Murray, 2017), “...The average woman wears about $8 worth of makeup and skincare products every day. That adds up to almost $250 a month and well over $200,000 in a lifetime.” This is about the same cost of buying a house.

So how do you get invested in makeup without spending so much? Research! Researching different brands and looking at reviews is the best way to start without wasting money.

Product

Cost Per Use (Drugstore)

Cost Per Use (Designer)

When you go the mall, set a budget and stick to it. According to Kaliah Little, a fellow intern on the magazine and avid makeup lover, “Spend your money where it counts. If you want your foundation to look seamless, spend more money there. If you don’t wear eyeshadow, don’t spend a lot on it.” Also, don’t blindly purchase makeup. Instead, ask for advice from a cosmetologist in a well known makeup store, like Sephora, M.A.C., and Ulta, for example. No matter where you go, they will always be enthusiastic to help. I recommend going to someone who looks like they’ve been doing makeup for years. You can differentiate these cosmetologists from others by looking at how they did their own makeup for the day.

Once you find the right makeup for you, buy the smallest version of it offered so that you can try it out to see if it really works. You can also buy the drugstore version instead of designer makeup. Most people cannot differentiate the two. According to TODAY (Rosen & Billington 2016), when asking strangers which looked better, drugstore or designer, they chose drugstore. The drugstore face was valued at $60 and the designer was $250, a whopping $190 in savings. This shows you that you don’t have to invest much to look good. Also, Kaliah said it best when she said, “Do not look down on beauty supply or drugstore makeup. Some of the products may be better than high end makeup.”

While shopping for makeup, start with the basics: foundation, eyeliner, brushes, an eyebrow pencil, and maybe lipgloss or lipstick. If you are still within your budget, save your money! I recommend saving your money until you understand more about makeup and can buy an advanced product without hesitation.

Keep these tips in mind when starting your makeup journey. They will help you look beautiful without breaking your bank. As my mom always says, you might as well get more bang for your buck.

Savings

By: Cyan Baker https://learnvest.global.ssl.fastly.net/wp-content/uploads/2010/07/makeupchart.jpg

Research is not limited to online reviews. Ask your peers, ask adults that you look up to who have amazing makeup skills, look at tutorials on YouTube, follow makeup artists on social media (Instagram and Snapchat mostly), and the biggest tip of them all, go to the mall!

On the Money would like to thank TCF Bank for their sponsorship of this issue.

18

Finance

Shop, Slash, Salvage

Every time I walk into an H&M or Forever 21, it feels like I’m walking into an entirely different store. To Myia Esper, a fashion student at SAIC, consumers have shifted to a “see now, buy now” mindset, driven by “instant gratification” and encouraging companies to quickly release new products. This shift in the usual four clothing seasons to “11 or 15 or more” has created a trend of increased purchases and waste (NPR, 2016). A 2015 study found that women wear clothes an average of 7 times before throwing them away (Daily UK, 2015). With more clothes flowing in and out of stores and consumers keeping their pieces after fewer wears, the amount of textiles thrown out each year in America has increased from 7 million to 14 million tons over the last twenty years (Newsweek, 2016).

Throwing away clothes has a significant financial impact not only for consumers but also for governments, and in turn, taxpayers. According to the Environmental Protection Agency’s guidelines, it costs municipalities $45 per ton of waste sent to a landfill (Newsweek, 2016). New York City’s municipality spends $20.6 million to send textiles to landfills and incinerators annually, an expenditure that uses taxpayer money that could be spent on infrastructure or education. Even after clothes are sent to landfills, if the textiles are natural fibers such as cotton or linen, they release the greenhouse gas methane as they breakdown. Synthetic fibers, like nylon or polyester, take hundreds of years to breakdown which will take up spatial resources.

To help curb the environmental and financial effect of fast fashion, try donating your clothes instead of throwing them away. When you donate your clothes, about 10-

If you are concerned about the impact of “fast fashion”, check out “renewed clothes” like those at Rebirth Fashion. Ayanna Watkins of Rebirth Fashion uses her artistic talent to recreate clothing with messages of empowerment!

20% end up being sold in thrift stores, the other 85% gets either recycled into new textiles and fibers or reused abroad, leaving the last 5% of the fibers to be sent to landfills (Council for Textile Recycling, 2009).

So before you throw away that H&M dress you wore once or buy a new sweater that you don’t think you’ll wear but is really cheap, try donating or thinking twice about the effects your clothes will have on the environment.

By: Hilary Pham

On the Money would like to thank Republic Bank for their support of this issue.

19

Finance

TRY IT OUT!

Apply what you learned in On the Money!

1) On pages 4-5, On the Money interns described how Chance the Rapper has inspired Chicago youth to be independant and entrepreneurial. In 6-8 sentences, describe how Chance or other artists/entrepreneurs have inspired you? What is your idea? How will it impact Chicago youth? (Email your response to us at otm@econcouncil.org or Tweet about it to @OntheMoney13).

Want to In te On the Mo rn with ney?

Send us

an OTM@Eco email at nCouncil.o rg to learn h ow to app ly!

Learn more about SocialWorks Support CPS at Socialworkschi.org & #supportcps on Twitter!

2) Select your favorite 3 tips to save on preparing your college dorm (pg. 13) OR for traveling as a young adult (pg. 16). List these below.

1. 2. 3.

3) On page 17, Karmen Rosiles describes suggestions for building credit. Find the top 3 factors used to determine your credit score using the chart below.

The chart below lists the things that credit reporting agencies think about when figuring out your credit score. It also shows how important each item is. (For example, “payment history” is the largest section of the chart at 35%. This means that “payment history” is the most important factor or item in setting your credit score.) A list of what each item like “payment history” means is included to the right.

35 15

30

PAYMENT HISTORY = a record of previous credit payments including bill payments, credit card payments, etc. (Bankruptcies, delinquencies, accounts not paid or late payments will hurt your credit score.)

AMOUNT OF CREDIT = the amount that you owe as a percentage of your credit limit (pg. 60) (Owing too much or “maxing out” your cards hurts you.)

LENGTH OF CREDIT = a record of how long you have had your accounts open (Having a short credit history will hurt your score.)

TYPE OF CREDIT = a listing of the types of credit you have – loans, credit cards, etc. (Having a positive record of managing credit card and loan payments helps you.)

NEW INQUIRIES = a record of new inquiries or applications for credit (Having too many applications for credit can hurt your score.)

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