Sow to Good Soil: Entrepreneurship Series
Article1:
Building Blocks to Credit
Remember, building good credit is like entering new levels of a video game. Start good habits early, be consistent, prevent mistakes, and remember it is not the end all be all. You'll set yourself up for success in the future!
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1. What's Credit?
Think of credit as the financial society's "trust score." It's like a performance card of how well you can adhere to select financial institutions' instructions. If you borrow money or use a credit card and manage it responsibly, you can grow your credit profile and scores. Keep in mind: There are financially secure and wise people who choose to utilize credit scores/reports, and there are some who don't. It's a tool, not a necessity. We explore these ideas further in our Premier Youth Program.
2. Why It's Important
Just like a good power-up, boosted credit scores can determine if you get onto the next level in a good game. A credit score can decide if banks will lend you money if you can get a credit card, get help buying a car, or even if you can rent an apartment when you're older. If you choose to use credit as a tool, it's important to know how to use it correctly.
3. Starting Early
Right now, you're too young for a credit card, but you can start by saving money, understanding the value of money, and being responsible for it. Gaming "Assets!" Psshh. They are completely MINOR in comparison to the real assets that you'll need in your life as you get older.
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4. Ways to Build Credit When Older
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Co-Signed Credit Card: When you're a bit older, a trusted adult can co-sign a credit card with you. If both they and you use it responsibly, it can help boost your credit. Think of it like partnering up with a teammate to hit the next milestone of your favorite video game.
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Paying on Time: Always pay your bills on time. Late payments can hurt your score. Even better: Pay your bills before a very specific day every month called the "statement close date," to ensure that your credit utilization is under 10%. High achievers keep it under 10%, although under 30% is all right too. We break down more about credit score factors in our Premier Youth Program by using relatable, easy-to-comprehend strategies tailored just for young people.
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5. Avoiding Pitfalls
No Overspending: Just because you have a credit card doesn't mean you should spend all the money on it. Only spend what you can pay back. If you can't pay it back don't spend it at all. If you have it for emergencies from mom, dad, or guardian -- only use it for emergencies! We provide tools for families to develop action plans that will help keep them on track.
Understand Interest: If you don't pay off your card in full, the bank will charge extra (interest). It's like a penalty for not paying on time.
We explore topics that enable young people to keep money in their pockets by avoiding interest overload.
6. Checking Your Credit:
When you're older, you can check your credit report. It's like reviewing a score sheet to see how you're doing.
You can access free credit reports at: annualcreditreport.com. In our Premier Program, we unpack how to understand a credit report by studying real copies piece by piece..
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Keep in mind: that there are different scoring models. Not every agency uses the same model or the same factors to determine your scores. What are the different models? What's an agency?! What does this mean for me? What more do I need to know about this? Enroll now to find out.
Article2:
4 Valuable Financial Lessons for Youth To Learn Early
Understanding of these critical lessons serve as a protective shield, enabling youth not just to survive, but thrive, in their financial lives.
1. Understanding Wants vs. Needs
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Lesson: It's essential to differentiate between things we want and things we truly need. This helps prioritize spending.
Application: Before buying something, ask yourself if it's a luxury (like a new video game) or a necessity (like new learning supplies).
2. Budgeting & Tracking Finances:
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Lesson: Creating a plan for how to spend and save money ensures you live within your means.
Application: Use a simple notebook or app to track income (like allowances) and expenses (like snacks or toys) to see where your money goes.
3. Investing in Personal Growth:
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Lesson: Money spent on learning and self-improvement often yields long-term benefits.
Application: Consider spending on books, courses, or activities that build skills, knowledge, or character. This investment can lead to scholarships, opportunities, or personal fulfillment.
4. Giving Back & Community Engagement:
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Lesson: Money isn't just for personal gain; it can be a tool to support others and improve the community.
Application: Allocate a portion of savings to donate to a local charity, support community projects, or help those in need. This cultivates a sense of social responsibility and shows the broader impact money can have.
Article3:
7 Habits Young People Should Cultivate Now For Future Entrepreneurial Success:
Cultivating these habits early on can provide young people with a strong foundation, equipping them with the skills and mindset needed to thrive in the entrepreneurial world.
1. Proactive Mindset:
Habit: Take initiative, whether it's completing assignments before deadlines or seeking new learning opportunities.
Future Benefit: Business owners must be self-starters, anticipating challenges and seeking growth opportunities without being told.
2. Effective Time Management:
Habit: Create a daily or weekly schedule to prioritize tasks, setting aside specific times for studying, chores, hobbies, and relaxation.
Future Benefit: Time is a precious resource in business. Managing it efficiently ensures that all essential tasks are addressed.
3. Building Relationships:
Habit: Cultivate positive relationships with peers, teachers, and others. Listen actively and show empathy.
Future Benefit: Networking and maintaining good client or partner relationships are crucial in business.
4. Embracing Failure as a Learning Tool:
Habit: Instead of getting discouraged by mistakes or failures, analyze them to understand what went wrong and how to improve.
Future Benefit: In business, not every venture will be a success. Learning from failures can pave the way for future triumphs.
5. Continuous Learning:
Habit: Stay curious. Read books, attend workshops, or seek out new experiences to expand knowledge.
Future Benefit: The business world is ever-evolving. Lifelong learning helps entrepreneurs stay ahead of the curve.
6. Financial Literacy:
Habit: Manage allowances or earnings wisely. Save, invest, and spend responsibly, understanding the value of money.
Future Benefit: Sound financial management is at the heart of any successful business. Early understanding of finances can lead to better business decisions later on.
7. Problem-Solving & Critical Thinking:
Habit: When faced with challenges, instead of giving up, brainstorm solutions, weigh pros and cons, and take informed steps.
Future Benefit: Business owners often encounter unexpected hurdles. Being a strong problem solver can mean the difference between success and stagnation.