It seems like forever ago when we first started the challenge, but looking back at everything now, I am thankful to be a part of this program because I have gained so much from this experience, and learned an abundance of information that I am taking with me in my future.
What I’ve Learned
The luncheons have been a great help to me throughout the challenge, as a source of information that I didn’t have the slightest clue about before. The first luncheon we talked about the difference between a bank and a credit union. Yes, there is indeed a big difference between the two.
A credit union is a financial cooperative that is NOT driven by profit, which ties into the credit union motto, “not for profit, not for charity, but for service---People helping people.” Before this I knew that there was some difference, but if you asked me what the differences were, I would not have been able to answer.
Banks are commercial businesses while credit unions are non-profit. Banks are owned by stockholders and open to the public, as opposed to credit unions who are owned by the members and there are only members involved. The board of directors in a bank are paid, the board of directors in a credit union are volunteers. There are major differences that many people don’t know about that they should seek to find out before they trust either the particular bank or credit union with their money.
The second luncheon I learned how to set SMART goals and the importance of setting smart goals. I found this very beneficial to me after implementing it in my every day. I thought at first it could be a little silly and unnecessary, but I was wrong. Everyone has a goal they want to accomplish and in order to attain this goal; you should develop a plan to ensure that this is a goal you will achieve.
Some steps you can take in order to achieve this goal are to 1) set SMART goals. 2) Analyze information 3) Create a plan. 4) Implement the plan and 5) Monitor and modify the plan. In order to set a “SMART” goal it has to be
Specific,
Measurable,
Attainable,
Realistic, and
Time bound.
Once you have your SMART goal, decipher if it is a short-term, intermediate-term, or long-term. From this you should create a plan in order to achieve your goal. After you have created a plan, make it happen! Ask those for help around you for help to stay on track. I find it helpful to write them down, even though that may seem silly, but seeing them every day helps you not lose sight of them.
Prior to the challenge I knew very little about credit, however after the luncheon regarding credit, my knowledge excelled in this area. I am thankful for all the information I have gained throughout this experience and am grateful that I can take it with me when I go to college.
Before going off on your own it is important to know all the logistics that are involved in credit, like the benefits and risks involved, your credit report and how to manage your credit. Without this knowledge you could potentially mess up your credit, which is something you don’t want to do.
As far as credit goes I also learned about investing in my future and information about insurance. Saving is what people do to meet short-term goals, while investing is setting money aside for longer-term goals. I also learned about the time value of money, the Rule of 72, Risk vs. Reward, stocks, Bull vs. Bear, compounding and diversification.
Kelsey’s luncheons also taught me how important it is to protect your assets. Even if the chances are one in a million, it’s that millionth of a chance that makes protecting your assets worth it because you never know what life will through at you. You need to be prepared in all cases. It's vital to know the terms regarding insurance, such as policy, premium, coverage limit, and a deductable because these are things you should take into account before choosing an insurance company.
I’ve learned the importance of saving throughout the challenge and I’m very grateful for that because I can always find something to spend my money on.
I can’t stress enough how no matter what, it is good to have money saved up because life throws you curve balls sometimes and you have to be ready for the repercussions. If you don’t have a cushion to fall back on in one of these situations it can be really tough. Which is why if you start saving now on a monthly basis from the money you earn, when you have a real job it will be a habit already to allocate that money into your savings.
What I’ve ExperiencedAt the beginning Kim, my savings coach, suggested keeping a register so that I always know my balance….I thought why the heck hadn’t I thought of that before. If I kept track of all my transactions, the date, amount, and location, I could look back knowing that this is how I spent my money.
Prior to the challenge, I would just call the number on the back of my card to find out my balance. However, even then it does not always tell you your active holds of your recent transactions. This also wasn’t the prettiest of situations for me. I would call in to find out that my balance was some outrageous low number.
I thought to myself, where did all my money go, it’s only the middle of the month and my budget is almost gone. When I started keeping a register though, this was never a problem, I always knew what my balance was at all times, which essentially is the only way to effectively budget.
Before when I didn’t keep track, I got into the habit of assuming that I had more money than I did and just swiped away, it’s an easy thing to do! With a register you know where you are spending your money and how much money you have before every single transaction.
Because I had to write everything down and keep a log of my spending, it showed me that I spend a TON of money on food. It really stumped me as to how much I thought I was spending and how much I was really spending.
At the beginning of the challenge, I wrote down an estimate of all the things I spend my money on for example, gas, clothes, nails, food, entertainment, etc, per month. When I wrote all of this out, my numbers were way off. The reason for this was because I had never kept track before, therefore leaving me almost clueless as to the amount, I was really spending and how I needed to cut down in certain areas in order to save.
The first couple months of the challenge I rarely carried cash around with me, I just used my debit card for all my transactions. Most of the time that will make due, but…not for when you go places and they only require cash.
For example I went to a concert in New Braunfels a while back and handed them my debit card to pay and they said, “Sorry, cash only, but there is an ATM inside.” Going to the ATM will get you cash yes, but also charges you a fee of at least 2.00. It’s not that much I know, but if you don’t have to pay it then don’t! There are many places like sports events, concerts, vending machines, and various other places that don’t take anything but cash. Therefore now I always have cash on me just in case!
What I’m Taking With Me!I have absolutely no worries going into college when it comes to budgeting, saving, or anything! Thanks to the challenge I know how to effectively manage and handle my finances. It has taught me so much that I don’t know how everyone else survives without all the things I have learned.
I know what I have to do to keep my credit score up. I also know that when I have a goal to achieve, it only takes 5 easy steps in order to do so. The challenge has prepared me for my future tremendously. Budgeting and saving in high school and budgeting and saving in college are totally different, you are on your own in a way and have to adjust to the new environment.
Essentially I have taken with me a sense of responsibility; it feels good to know that about my self too. I’m proud of myself with how far I have come and plan to take all that I have learned and apply it in my future.
As for everyone who has helped me along the way and granted me this opportunity, THANK YOU. From the bottom of my heart, I really appreciate everything and am glad I got this opportunity.
- Solana D
