Money Smarts (for Teens), a free program offered to teenagers in San Mateo County by the Redwood City Youth Literacy Council, is a series of classes about money basics geared to teenagers. Financial Literacy is important to long-term success by teenagers today. These monthly sessions will cover banking basics, savings accounts, checking accounts, credit cards, how to purchase a car, planning for your first apartment, budgeting, how to read your paycheck, funding your college education, and more. Funded by a grant from the State Farm Youth Advisory Council and taught by local financial experts along with the teens from the Youth Literacy Council, each class will be fun and educational. The one hour classes will include individual and group exercises, videos, and important discussions about money skills needed today. Pizza dinner and drinks will follow each class.

Any teen who completes 7 of the 9 sessions of Money Smarts for Teens will receive a framed course completion certificate they can add to their resume and college applications, and they will also receive a $200 VISA gift card!

Teens might think they know it all, but how much do they really know when it comes to money? The Redwood City Youth Literacy Council is presenting Money Smarts (for Teens) so that local area teens can find out. This knowledge could mean the difference between financial independence and young adults who never leave home. Got your attention now?

The Money Smarts (for Teens) classes run are offered monthly with 2 options per month for the same class. The topics change each month. See dates and times on the right. It’s not too late for teens to join. The sessions will cover VERY valuable money smarts that should be covered NOW. Register online at: www.SignUpGenius.com/go/20F0B4EAFAD28A64-money or stop by a session to see what it is all about.

The free program offers instruction in eight key areas of personal finance (including banking basics, earning/income - paycheck and own business; budgeting/spending; saving/investing; credit; protecting your assets; finding money for college) and a Parent Money Talks to Teens session. As an added incentive, any student who attends 7 of the 9 sessions will receive a framed course completion certificate and a $200 VISA gift card.

Jeff Gee, Mayor of Redwood City says, “I have seen the importance of empowering young people with the skills they need to build a foundation for long-term financial security. These classes will help them understand that knowledge is power over the control of their futures."

According to a recent survey, however, most kids need help when it comes to managing their money. In 2010, the 11th Annual Junior Achievement/Allstate Foundation Teens and Personal Finance Survey revealed an "alarming majority" of teens who admit that they "lack the knowledge to understand and effectively reconcile spending and consumption with saving and investing." Almost half the 1,000 teens surveyed nationwide said that they were unsure how to invest money, and 22% said they don't budget their money. In response to why they don't budget, 55% said that parents "take care of all my expenses" while 53% answered, "It's not necessary, given the amount of money I have." Insert sound of "wrong" buzzer here.

For the Money Smarts (for Teens) course, the lesson plans will focus on:

• using banking tools such as savings and checking accounts, ATMs, debit cards
• finding a job and understanding your paycheck
• being a savvy shopper - buying cars, renting an apartment, phone plans
• investing basics such as types of investments, inflation, compound growth
• how credit works, the risks, the types of credit - loans, credit cards, credit scores and credit reports, understanding interest rates and fees on credit card purchases
• minimizing the risk of identity theft
• paying for higher education
• the earning power of education

Parents echoed the importance of these issues in the Families & Money Survey released by Charles Schwab in 2010. Their top concerns for their children were: sticking to a budget, living within their means, saving money, and investing wisely. The survey also revealed parents' worries that their kids will repeat some of their own financial missteps, like not saving early enough for retirement, not saving money for emergencies, and carrying credit-card debt from month to month.

According to Dave Genesy, Redwood City Library Director, "It is difficult in our busy schedules to find the time to share our personal financial knowledge as parents with our teens. More importantly, we need to foster a spirit of personal accountability that can inspire the right financial behaviors in our kids."

The Money Smarts for Teens Course will cover:

1. Getting Started - 11/13 or 11/20

Teens need to understand that to reach dreams, setting goals is important. Teens must be aware of the four types of financial institutions (commercial bank, savings and loan, credit union, brokerage firm) and the services that each offers. They must then understand the various money tools and how to manage them – choosing a financial institution, opening, tracking and managing checking and savings accounts, and understanding ATMs and debit cards. Teens should be familiarized with how checking and savings accounts work.

2. Finding a Job and Understanding Your Paycheck - 12/4 or 12/11

Teens should understand the link between higher education, a valuable skill set, and a larger paycheck. The course will also cover tips to finding employment including job search strategies and job interviews. They should also know the difference between gross pay and net pay, the purpose of income taxes, W-2 forms, how to complete a W-4 form, and what paycheck deductions to expect.

3. Starting Your Own Company - from ebay to store - 1/07 or 1/28

Teens will learn different types of being self-employed. A review of the risks and rewards of setting up their own business will also be discussed. A panel of business owners will lead the discussion.

4. Spending Smart - 2/12 or 2/26

Teens will learn how to control their finances with spending plans and being a savvy shopper. Steps to purchase a car, cell phone, and renting their first apartment will be discussed. Teens must also be aware of budgeting for unexpected expenses and financial goals.

5. Saving, Investing and Building Wealth - 3/11 or 3/25

Teens must understand the variety of ways to grow savings and the risks and rewards associated with each. They should be familiar with the savings concept of "pay yourself first." They must also know the concept of diversification, or not putting their eggs all in one basket.

Teens should also be aware of the concept that wealth -- even millions of dollars -- can be accumulated through smart savings and investing. A 2010 Teens & Money Survey by Ameritrade found that 66% of teen savers are currently saving funds for college. Surprisingly, 70% of the teens surveyed had never heard of a 529 Plan. So look that one up before you talk with your teen.

6 and 7. All About Credit (2 parts)

Part 1 - 4/23 or 4/30

Part 2 - 5/13 or 5/20

Teens should understand how credit works, how it benefits them, the risks, and credit management. They will learn to "shop around" for credit. They will be very interested to learn how to evaluate the costs and benefits of car-buying options as well as what to look for and expect in a car purchase agreement. It's vital for teens to understand how to calculate interest and payments on credit cards since they are already inundated with offers of credit the minute they apply for college. Finally, teens must learn about credit scores and their credit report - what they are and why they should care. They need the skills to avoid too much debt, managing credit, and working with creditors.

8. Protecting Assets against Risk - 6/18 or 6/25

Teens must understand what insurance is, how it works, and its risks and benefits. They must be introduced to the various types of insurance available (auto, health, life, disability, homeowner's/renter's), and understand what those policies cover. Teens should also understand how laws and regulations protect their deposits.

9. Finding Money for School - 7/09 or 7/16

The earning power of an education should be highlighted so teens understand the importance of an advanced education. Teens must also understand savings plans, grants, scholarships, work-study, and loans for financing an education. Searching and applying for scholarships and grants will be covered. College money management tips will help them keep the spending money they have saved during their college years.

Serious stuff -- and critical if we expect this generation to do a better job managing its money than past generations.

Don’t fall behind. Build your resume and get a $200 VISA card with the completion of 7 of the 9 classes. Get your Money Smarts now!

Stay tuned for a course for parents – “Talking to Teens about Money”. This class will lay the groundwork for all parents to speak with their teens about money. Dates and locations will be posted on this www.moneysmarts4teens.blogspot.com website at a later date.