Tag Archives: Money management

Business Opportunities For High School Students

English: I photographed this wooden box myself...

(Photo credit: Wikipedia)

A small business you coud start is a woodworking business. Some woodwork projects you could make can be small wooden boxes, cutting boards, and the like. You would need to have tools to run a small business. You would need a router, a jigsaw, a sander, a miter saw or a circular saw, and some clamps. This list contains a few of the necessary items needed for starting a small woodworking business. The costs of buying these items are going to be high if you don’t own them. For this venture to succeed there must be commitment. It will take a few months to repay your parents for buying some or all of the tools you needed. It will be a little while before you see any profit. This is why you need to be committed. This is not a summer business, it is a year-long business. Once you have made some products, you will need to sell them. You can sell your products at craft fairs or at some farmers markets that have a craft section. If you plan to sell your products at these places you will most likely need help from your parents. You will need a sellers permit to sell in these places, so ask your parent for help. Selling your products at these place will also cost you some money. For example you will need to pay for your booth. Keep this in mind when you plan to sell your products. You can also sell your products online. There are sites where you can do this or you can just advertise your products online and ask people to email you if they are interested in your products. Don’t forget to sign your products or brand them so your buyers know it was made by you and that it is not a store-bought product. Having a small business like this can teach you commitment, responsibility, and resourcefulness. These traits will be a great advantage in life. Before you start a small business ask your parents for permission.


Debt and More Debt

American credit card debt is a leach on personal finance management. It sucks people dry of money. Sure there are “gifts” or “bonuses” that come with certain credit cards for everyday expense. For example some cards give you “free” nights at hotels or “free” airline mileage, but remember there is no such thing as a free stay at a hotel or free airplane ticket. Everything has a price.

Credit Card

Credit Card (Photo credit: 401(K) 2013)

Some people go into debt to get these points, other go in to debt because they want to have the latest gadget on the market. Some want to live a lifestyle that is not supported by their income. In other words they are spending tomorrow’s money today. This is how people go into debt. They spend more money than they can pay back by the end of the month. Now you have to pay an interest on the unpayed money. On the average the current credit card interest rate is 15% which is really high. In the long run you pay more money then the item really costs.  Today the total credit card debt in America is $843 billion dollars.

On the other hand mortgage debt and student loan debt are sometimes necessary. You do need a place to live. However some people tend to take out a big mortgage on the expensive house they bought. Now they have to pay a high monthly payment that they can’t afford. If you need to buy a house or go to college, buy a house that is in your budget. The same applies to colleges. The result of spending too much on a house or college is massive debt. Today the total student loans is $1.046 trillion dollars and the total mortgage debt is $12.9 trillion dollars.

There are differences between credit card debt and mortgage and college loan debt. A difference between these three is that credit card interest rates are much higher than mortgage or college loans. The average interest on credit card is 15.35% unlike 4.8-6.8% interest for college loans or 4.30% interest for mortgages loans. One other significant difference is the amount borrowed. People borrow more money for a mortgage loan or college loan compared to credit cards. These are just a few differences.

According to the usdebtclock.org the total American credit card debt is decreasing. More people are learn how to budget and prioritize their money. Try not to go into debt. The take away note is in Proverbs 22:7 b,”the borrower is servant to the lender.” You will never truly be free unless you are debt free.

How You Can Control Small Expenses

One thing many of us forget is that a lot of small expenses tend to be greater than that of a few large expenses. In this essay, I will give you a good tip on how to control small expenses. The first thing you have to do is set priorities, with out it, cutting down on small expenses will be more difficult. In other words, rank your list of small expenses from most to least in importance. Once this is done allocate a small amount of money for buying the items or services on the list. After you have finished allocating money you have to allot a portion of the allocated money to each of the items and services on the list. Remember you can only use the allocated money, no borrowing, so decide wisely. Here is an example, I will allocate $10/week for small expenses. The list of small expenses include snacks, music, games, and movies. I now will allot money to each item on the list, snacks $2/week, music $2/week games $3/week, and movies $3/week. Notice that if you add all the money up, you get $10. Also you don’t have to buy everything every week, one week your priorities might be different, you may not want to buy any music so the money you use for music can be redistributed to the other items on the list. Prioritizing and allocating are good ways to control small expenses.