THE MAGAZINE
MIND ON MY MONEY
MARCH–APRIL 2014
MONEY ON MY MIND
MAD MONEY SKILLS + SPEND SMART + FINANCIAL APPS
EDITORIAL Publisher Edward Davis Editor Christopher Young Managing Editor Janelle Scudder Editorial Committee Jeff Collins, Adrienne Grant, Sandra Tucker Advertising Cindy Allen Art Direction and Design Chuck Beatty
MARCH–APRIL 2014
GET A HEAD START THIS SUMMER WITH DECA’S EMERGING LEADER SUMMIT
DECA NATIONAL OFFICERS President Carter Christensen North Atlantic Region Vice President Jack Fenton Central Region Vice President Connor Brashear Southern Region Vice President Lexy Parsons Western Region Vice President Trevor Dickerson
HAVE A SUCCESSFUL #SUMMEROFDECA
Michael Santillan
BOARD OF DIRECTORS President Jim Brock President-elect Ev Vaughan Secretary Lynore Levenhagen Treasurer Mary Peres Members Marsha Bock, Jacklyn Schiller, Dave Wait, Brycen Woodley NAB Chair Roger Glenn Ex-Officio Members Edward Davis, LeAnn Dinsdale, Wayne Kutzer
EDITORIAL CORRESPONDENCE DECA Direct Magazine 1908 Association Drive Reston, Virginia 20191-1594 communications@deca.org
SUBSCRIPTIONS & CHANGE OF ADDRESS DECA Direct Circulation 1908 Association Drive Reston, Virginia 20191-1594 DECA Direct (ISSN 1080-0476) is published four times each year—September/October, November/December, January/February and March/April. Copyright ©2014 by the Distributive Education Clubs of America, Inc., 1908 Association Drive, Reston, Virginia 20191-1594. All rights reserved. Annual non-member subscription rate is $5.00. Periodicals postage paid at Herndon, Virginia and additional mailing offices. $1.00 of membership fee goes toward subscription to DECA Direct, a publication of DECA, (USPS 566-200), Volume 2, Number 4. Postmaster—Send form 3579 for change of address to: DECA Direct, 1908 Association Drive, Reston, Virginia 20191-1594.
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GET MORE DECA DIRECT ONLINE
COLLEGIATE DECA NATIONAL OFFICERS President Cara Gooch Vice President Thomas Fitzpatrick Vice President Brittany Keating Vice President Alexander Louden Vice President
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CHAPTER BUZZ
FEATURES THE SECRET TO MONETARY GROWTH Discover the key factor to achieving monetary wealth and how you can start your own journey to financial literacy.
TAKE DECA TO COLLEGE Wouldn’t it be nice to have a special part of your high school experience with you as you begin your new journey in college?
FINGERTIP FINANCE Thanks to mobile technology, it’s easier than ever before to manage your finances right from your smartphone!
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THE PRE-COLLEGE CRASH COURSE FOR FINANCIAL SUCCESS Learn four, easy ways to use your summer break to set yourself up for financial success in college.
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4 TIPS FOR MAD MONEY SKILLS No matter what stage you are in life, these four tips can help you make the most of your financial situation and grow your wealth.
HOW TO SPEND SMART The act of spending money is pretty easy—but spending smart can be trickier. Learn how to get smart about your spending habits.
MAKIN’ IT RAIN WON’T HELP YOUR GAME
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Members of J.P. Taravella DECA created a home-run financial literacy campaign that scored a touchdown with fellow students and their community.
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CHAT
@DECACarter
TIMELINE MARCH 1 I CDC competitors’ final membership eligibility
3 Advisor scholarship applications postmark deadline
7 National Officer Candidate applications due
26 I CDC registration and hotel rooming list/deposit due from chartered associations
MAY 3–6 DECA International Career Development Conference, Atlanta, Ga.
JUNE 19–22 DECA Train the Trainer Certification Course, Reston, Va.
24–27 “ Best Practices to Enhance Student Achievement” Chapter Advisor Summer Institute, Providence, R.I.
30–July 3
GET A HEAD START THIS SUMMER WITH DECA’S EMERGING LEADER SUMMIT CARTER CHRISTENSEN | DECA NATIONAL PRESIDENT What an amazing year we’ve had! After all the DECA conferences, events and activities, it’s time for the big break we’ve all been waiting for: summer! While summer break provides a time for relaxation with friends and family, it is also an opportune time to start planning ahead for the next DECA year. How better to do that than by attending an innovative and unique DECA experience that gives you the tools you need to succeed? This is exactly what DECA’s Emerging Leader Summit is all about! It’s an event like no other that brings together high school chapter and association officers with your National Officer Team, as well as eager members ready to take on these positions in the future. DECA’s Emerging Leader Summit is designed with you in mind. The summit will teach you how to lead your chapter efficiently and effectively as you create your program of work, design workshops, learn professional etiquette, implement social media into your chapter’s communication plan and develop advocacy and project management skills. Additionally, it is an opportunity to network with DECA leaders and members and make connections that will last a lifetime. I wish every DECA member and advisor the best of luck as you continue to Make It Count to the International Career Development Conference in Atlanta, Ga. Don’t let your DECA year stop there though. Rally your members and officers together to begin planning your trip to Phoenix, Ariz., for DECA’s Emerging Leader Summit in July 2014! MARCH–APRIL 2014
“Bring Your Classroom To Life With DECA” Chapter Advisor Summer Institute, Denver, Colo.
JULY 19–21 DECA Emerging Leader Summit, Phoenix, Ariz.
AUGUST 12–13 New Advisors of Chartered Associations Training, Orlando, Fla.
14–16 Chartered Association Management (formerly SAM) Conference, Orlando, Fla.
DECA DIRECT
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CHAT
@CaraCDECAPres
TIMELINE MARCH 3 Leadership Passport Award submission deadline (chapter and individual) Community Service Award submission deadline Chapter Leadership Award submission deadline Advocacy Campaign submission deadline Advisor of the Year Award submission deadline Advisor Scholarship Applications postmark deadline
17 National Officer Candidate applications due
24 ecipients of student, advisor and R chapter recognition programs posted online at www.collegiatedeca.org. I CDC Registration (to DECA Inc.) and Housing (to Hotel) due
APRIL 23–26 Collegiate DECA International Career Development Conference, Washington, D.C.
HAVE A SUCCESSFUL #SUMMEROFDECA
AUGUST
CARA GOOCH | COLLEGIATE DECA NATIONAL PRESIDENT
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12–13 New Advisors of Chartered Associations Training, Orlando, Fla.
School may wind down during the summer, but Collegiate DECA is just heating up! Summer break is the perfect time to reflect on the past year and begin planning for the fall. One great way to keep your chapter engaged and get a head start on your year is to hold an officer retreat over the summer. Once the fall semester begins, it is hard to find the time to meet and plan out the rest of the year. Instead, getting together during the summer, when everyone’s schedules are more flexible, gives officers the perfect opportunity to plan chapter events, social activities, community service projects and discuss chapter goals. This would also be a great opportunity to integrate team-building activities to help your officers bond. During this time, you can learn everyone’s individual strengths and see how each person will contribute to the chapter’s success. My three tips to a successful summer of DECA that will prepare you for the year ahead are: 1. Plan all recruitment activities. 2. Define officer roles and discover everyone’s strengths. 3. Create a chapter calendar for the year including chapter, association and DECA Inc. deadlines. Have a successful #SummerofDECA by following these planning tips that are sure to help your chapter start off strong this fall. Watch your chapter achieve more than imaginable next year! MARCH–APRIL 2014
Chartered Association Management (formerly SAM) Conference, Orlando, Fla.
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TRENDING
@decainc and @collegiatedeca
#DECA TWITTER STREAM
@DECA_DOHS: Happy Monday! Remember that everyone has the same 24 hours, so make something out of yours #success #deca #dohsdeca #nevadadeca @tylerjamesdyer: @WWUDECA is in a session with Greg Sullivan @Microsoft’s @windowsphone Director of Marketing Communications! @CollegiateDECA @Kadir_Pappu: DECA was an awesome experience this weekend! @DECAOntario
GET MORE DECA DIRECT ONLINE 2014 INTERNATIONAL CAREER DEVELOPMENT CONFERENCE SPECIAL In honor of the DECA and Collegiate DECA International Career Development Conferences happening this spring, here are a few ways you can stay connected with DECA the months leading up to and during your ICDC experience!
DOWNLOAD THE DECA ICDC APP AND HAVE THE ENTIRE CONFERENCE PROGRAM PLUS AWESOME APP EXCLUSIVE CONTENT AT YOUR FINGERTIPS
MAKE SURE YOU’RE FOLLOWING @DECAINC AND @COLLEGIATEDECA ON TWITTER SO YOU NEVER MISS AN INSTANT UPDATE OR BREAKING NEWS
USE #DECAICDC IF YOU’RE ATTENDING THE HIGH SCHOOL DECA CONFERENCE AND #DECAINDC IF YOU’RE ATTENDING THE COLLEGIATE DECA CONFERENCE
TAG YOUR INSTAGRAM PHOTOS WITH #DECAICDC OR #DECAINDC FOR A CHANCE TO BE FEATURED ON DECA’S VARIOUS SOCIAL MEDIA PAGES Leave your comments on DECA’s Facebook pages at facebook.com/decainc or facebook.com/collegiatedeca. 6
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@DECAUOIT #ThanksGuys #DECA #MissingTheOthers @m_wieber16: ONLY 35 MORE DAYS till DECA States #DECA @TJBishopDECA: Have passion for everything you do... All of a sudden it isn’t work #deca @ClaudiaTischer: Thank you to my @WisconsinDECA State Officer Team for sending me lovely get well soon flowers!!! #DECALove @ameliabakz: Preparing for @CollegiateDECA means business professional Thursdays! Basically just an excuse to look like Elle Woods @itsisaababy: Went from 8th at districts to 2nd.. I’ve got to say, I’m proud of myself #deca #hardworkpaysoff @virginiabeliebs: Last week I co-hosted my DECA chapter’s fashion show. Truly one of the best nights of my life. #marketing #DECA @cjardine21: Love how my newsfeed is filled with #TipTuesday :) #decalove @drewshay15: It’s great to meet people who love DECA just as much as I do #DECALove
Tweet: What’s the best piece of financial advice you’ve ever heard or received? Tweet @DECAInc and share your insight with all of DECA!
THE SECRET TO MONETARY GROWTH Saving up for something big? Want to get to ICDC, but don’t know how? Robert Kiyosaki, the richest man in Hawaii and author of, “Rich Dad, Poor Dad,” may just have the answer for you! In his book, “Rich Dad, Poor Dad,” Kiyosaki notes one key factor in achieving monetary wealth: knowledge of personal finance. Discussion is everything when it comes to increasing your knowledge on this sometimestricky subject. Whether it is with friends, families, co-workers or financial advisors, exchanging ideas, advice and skills on money management tactics is sure to set you on a path of monetary growth. CONNOR BRASHEAR No matter what point you are at in your life, investing some time in CENTRAL REGION VICE PRESIDENT understanding the subject is crucial. Luckily for you, this DECA Direct issue is @CONNORDECA full of resources from some of the biggest names in the finance industry such as H&R Block, the American Institute for CPAs and SpendSmart. The articles and resources inside this issue can help you start your journey to a better understanding of financial responsibility. Over the next few years, this knowledge will become critical. There are thousands of books on personal finance and financial literacy, as well as mobile applications, that can assist you in expanding your knowledge on the topic even more. Regardless of your current financial situation, engaging in more discussions about money management is a great way to start your journey to financial literacy. You just have to get out there and learn! MARCH–APRIL 2014
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Tweet: Make sure you’re following @CollegiateDECA on Twitter to receive all the latest Collegiate DECA news and updates! #TakeDECAtoCollege
TAKE DECA
TO COLLEGE Graduating high school and starting a new chapter of your life at college can be scary. Wouldn’t it be nice to have a special part of your high school experience with you as you begin this new journey? Then take DECA to college! Whether you attend a two-year, four-year or even an online program, make DECA part of your college experience! There are more than 15,000 Collegiate DECA members in over 200 chapters across the United States, Canada and abroad. Collegiate DECA has the same great conferences you loved in high school, such as the International Career Development Conference, as well as competitive THOMAS FITZPATRICK events. Collegiate DECA even offers opportunities to earn scholarships and COLLEGIATE DECA VICE PRESIDENT internships from some of the most prominent corporations in the world. @TOMFITZIV So what’s the difference between DECA in high school and Collegiate DECA? Collegiate DECA is student driven, which means you have the ability to determine your chapter’s fundraising events, community service projects and more. It is open to every major or academic program and includes the opportunity to earn recognition for yourself and your school through competitive events and Collegiate DECA’s Passport Program! As a freshman in college, I helped colonize my Collegiate DECA chapter at the University of Massachusetts-Dartmouth just three years ago. We now have over 76 members, two first place plaques and a second place award from ICDC, and have been recognized each year for our community service and leadership skills through the Passport Program. Your Collegiate DECA national officers have unique experiences and stories of how joining Collegiate DECA impacted our lives after high school. Connect with us and we can help you make the most of your transition from high school to college, plus get you set up to excel in your new Collegiate DECA chapter. Find out if your college or university has a Collegiate DECA chapter by visiting http://bit.ly/ cdecachapters. If your school does not have a chapter yet, don’t worry! Starting a Collegiate DECA chapter on your campus is as easy as: 1. Becoming a recognized student organization on your campus. 2. Designating your chapter’s advisor. 3. Growing your membership! Ready to take DECA to college? Visit www.deca.org/membership/college and begin your Collegiate DECA journey today! Have questions about joining Collegiate DECA? Contact your national officers and let us help you make your collegiate experience count! Find us at www.deca.org/about/8. MARCH–APRIL 2014
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Tweet: What’s your favorite finance app? Tweet @DECAInc and let us know how you stay financial fit using the latest technology.
FINGERTIP FINANCE 5 APPS TO HELP YOU MANAGE YOUR MONEY Whether you’re saving up paychecks from your afterschool job, getting ready to manage your own finances for the first time while in college or preparing to graduate and begin your life as an independent professional, personal finance is an important part of any responsible lifestyle. Thanks to mobile technology, it’s easier now than ever before to manage your finances right from your smartphone. Ready to take control of your personal finances? Then check out these top-rated* finance management apps:
MINT | Powered by Intuit, Mint offers a fully comprehensive view of your finance health. After synching your bank accounts to the app on Mint.com, you will be able to track your expenses, income and spending habits through the app. The ability to categorize your spending allows you to see exactly where your money goes. Plus, Mint will notify you of large deposits, send you unusual spending alerts and give you detailed monthly spending reports. Available on Google Play, the App Store and the Windows Store.
BUDGT | Like Mint, BUDGT allows you to track your income and spending, but without having to synch any bank accounts to the app. Based on your spending entries, BUDGT will tell you how much you can afford to spend each day and can project your month-end savings if you maintain regular spending habits. BUDGT also allows you to categorize spending JANELLE SCUDDER and gives you reminders to update your account. MANAGING EDITOR @JJSCUDDERDECA Available on the App Store only.
DOLLARBIRD | Dollarbird contains many of the same features mentioned above but from a unique perspective. Its calendar view allows you to see how much money you’re spending each day, an important part in watching your financial health. Monthly balance reports and bill reminders also allow you to stay on top of your expenses. Lastly, Dollarbird can help you plan for future expenses by importing your past spending history. Available on the App Store only.
NEXT | Next is the simplest of all the personal finance tracking apps—it only keeps track of your expenses. Without having to synch any bank account information, you simply select the category of your spending and enter the amount. You can customize your home screen categories icons to fit your usually spending habits. If you want a easy way to see how much you’re spending and on what, Next is the app for you! Available on the App Store only.
VENMO | Never worry about splitting a check or bill again! After you synch Venmo to your bank account, simply search and find your friends, then enter in any dollar amount and easily send money through the app. You can keep track of the payments you’ve made through Venmo, save money in your Venmo account or cash out the money paid to you and watch it go directly into your bank account. Available on Google Play and the App Store. *DECA does not endorse these apps. 12
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THE PRE-COLLEGE CRASH COURSE FOR FINANCIAL
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ou never thought it would actually come, but the end is near. High school is winding down and new challenges are ahead as you prepare for college. With the transition to the collegiate world comes increased responsibility. Money management is one of the most important—and difficult—aspects of your newfound independence. Fortunately you have an entire summer to set yourself up for financial success! H&R Block Dollars & Sense, a program dedicated to teen financial literacy, has the tips and resources to help get you there.
GET A SUMMER JOB Although you still have a couple months to go, now is the ideal time to begin scoping out your summer job. At the very least, it is time to think about what you would like to do. You might think of it as just a paycheck, but a summer job is an exceptional way to both identify and hone skills you already have, whether it is being a great leader or your social skills. 14
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SUCCESS
Once you have identified the right job for you, utilize online resources to both market yourself and find open positions. LinkedIn allows you to create a professional identity online, and job board websites are great resources for both part-time and seasonal work. Whether it is your first or fourth job, you are strengthening your résumé with positions that allow you to validate what you see as your greatest strengths for future job interviews.
MAKE THAT JOB COUNT Create (or finally pay attention to) a savings account. The primary financial objective of a summer job is to build up money for your arrival to the collegiate world, which comes along with expenses like school supplies, books, a new wardrobe or items for your dorm. According to, “Check Yourself Before You Wreck Yourself,” a budgeting workshop at www.hrblockdollarsandsense.org, one of the first steps is to set a savings goal that you can stick to. The best way to achieve your goal is by paying yourself first. Aim to put a percentage of each paycheck directly into your savings. While expenses are down, shoot for the 20 to 25 percent of each paycheck savings goal recommended in our workshop. “Check Yourself Before You Wreck Yourself” also recommends spending no more than 33 percent of your income on rent, if you are skipping the dorms. That rent, combined with the 20 percent devoted to savings, will leave you with less than 50 percent remaining for other expenses, increasing the importance of a sound financial plan. To help make the most of those remaining dollars, learn about the many resources you have at your disposal to save – many of which can be accessed using your smartphone!
BUDGET FOR TODAY AND YOUR FUTURE
www.hrblockdollarsandsense.org
Now that you have an idea of how much you want to save, make the most of your remaining dollars by creating a budget. First, identify where you would like your discretionary income to go. Would you like to allocate more toward your entertainment budget, or would you prefer to have more money to shop? Print and fill out the worksheet included in “Check Yourself Before You Wreck Yourself” to reflect your own spending habits. Subtract what you would like to save with each paycheck and identify how much of the rest you will devote to both entertainment and required expenses. Regardless of how you choose to spend your remaining income, there are numerous tools to do so efficiently. Those who like to shop can use apps like RedLaser to compare prices at other brick-and-motor and online stores. You can also ensure you are staying on your budget by tracking expenses using apps like OneReceipt to scan and keep record of receipts. While it may look great on your bank statement, do not defer monthly expenses by using a credit card. If you check out the credit workshop, “Life in Plastic… It’s Fantastic?” at www.hrblockdollarsandsense.org, you’ll find credit cards are a great way to build your credit reputation. But, the workshop also details the impact of interest when you don’t pay off your balance each month and the importance of knowing key terms like annual fee, minimum payment and credit limit. MARCH–APRIL 2014
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Tweet: Want more financial advice? Follow @HRBlock on Twitter and receive tips for a financially successful future!
The best way to achieve your goal is by paying yourself first. Aim to put a percentage of each paycheck directly into your savings. BRING YOUR FINANCIAL SAVVY TO CAMPUS After a summer of working and budgeting to save, your money management skills will be put to the ultimate test when you first arrive at college, especially if your bank account was cushioned with student loans. To dispel the idea that you were blessed with free cash, understand where that loan came from and the implications of it. Unfortunately, the world of student loans is more difficult than it should be, so check out our loan workshop, “I Got 99 Payments and a Loan is One,” also at www. hrblockdollarsandsense.org. First, it is crucial to know if your loan is subsidized, meaning the government pays the interest on it while you’re in school. If it is unsubsidized, the interest clock is already ticking, so you may want to add a small loan payment into your budget worksheet to offset interest after school. In the loan workshop, check out the “Blueprint” to get an overall idea for your estimated costs of college and how you may be able to lessen that impact before you put on the gown and cap. Unfortunately, temptation to blow your budget is plentiful on campus, so take advantage of resources that keep it intact. For one, get acquainted with your student union for anything from discounted event tickets to free, on-campus events. And avoid unnecessary expenses by shopping for books online when time permits and avoiding ATM fees, for example. Although you are in a new environment, a summer spent practicing money management will help you identify and embrace these opportunities, leading to your own financial success. By participating in any of the three workshops at www.hrblockdollarsandsense.org, students will be eligible for as much as a $7,500 scholarship. H&R Block Dollars and Sense will also have additional tips, tricks and resources throughout the year.
? QUICK QUESTIONS Discuss some reasons why it is crucial to have a savings plan in place before you leave for college. What are some other ways you can bring your financial savvy to college besides the examples given in the article? 16
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First Class.
NIAGARA UNIVERSITY’S COLLEGE OF HOSPITALITY & TOURISM MANAGEMENT
The Villa d’Este on Lake Como, Italy. One of many work abroad locations.
• Nationally ranked program • World’s first bachelor’s degree in tourism • Founding Member of Leading Hotel Schools of the World
HOTEL SCHOOLS OF THE WORLD
• Student Consulting Teams at The Waldorf-Astoria. • Cruise Course with Carnival Cruise Lines. • National/International internships and job placements. MANAGEMENT MAJORS IN HOTEL/RESORT, TOURISM, FOODSERVICE, SPORT
Education That Makes a Difference
www.niagara.edu/hospitality
Instagram: Do you have mad money skills? Share a photo on Instagram of you demonstrating the tips in this article and tag @DECAInc.
You already know that building your academic and leadership skills have value, but it’s equally as important to build your personal finance management skills. Without them, you can easily get into financial trouble, and it can happen fast if you’re not careful. So, start on the right path today by reviewing these financial tips—they’ll help you develop the skills, knowledge and habits you need to manage your own money, now and into the future.
TIP #1: MANAGE PAY FROM A PART-TIME JOB Getting a part-time job and managing your pay is a great way to build your personal finance skills. Here are some things to consider when you start working: • Decide how your pay should be used. Will your parents expect you to help out with your monthly phone bill, car insurance or clothing expenses? Do you want to set aside part of each check to save for college? • Look at how much pay goes towards taxes. To get a clearer picture of what you really have to save and spend, look at your paycheck to see how much is taken out in FICA and regular income taxes. ERNEST A. ALMONTE • Pay yourself first. Always deposit a portion of every paycheck into a AICPA NATIONAL CPA FINANCIAL savings account before spending any of it. It’s a good habit to develop LITERACY COMMISSION CHAIR now that will lead to greater freedom in the future. • If you’re too young to get a job, babysit or do odd jobs for pay. This money can supplement any allowance you receive, and it will also help you build your personal financial management skills. 18
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TIP #2: DEVELOP A BUDGET Developing a budget can help you learn how to achieve a balance between money coming in and going out. First, list all sources of regular income you have, like an allowance or paycheck. Next, write down your regular expenses, not including things your parents normally pay for. Finally, subtract your expenses from your income. Do you have enough to meet your expenses? If not, discuss with your parents what you can do to make up the shortfall. Here are some ways to build budgeting skills: • Ask for a monthly, rather than weekly, allowance. When you need to make your money last for the whole month, you’ll learn to manage it better. • Resist buying items right away. Waiting for an item to go on sale can save you money, as well as comparing prices. Or, find cheaper ways to do or buy what you want, like watching a movie online rather than in a theater. • Categorize your expenses into needs and wants. Needs are things that are unavoidable, but wants could be cut if necessary. • Ask for help. If you think you’re in trouble, or could run into it, ask your parent or another trusted adult for information sooner rather than later.
TIP #3: SAVE FOR THE FUTURE When you were young, you may have saved up for a short-term goal like buying a toy. But now that you’re older, you likely have bigger goals, like buying a car or saving for college. Start by opening a savings account. If you haven’t already done so, then follow these tips. • Write down your savings goals to make them more concrete. Also, review them to make sure they are based on your values, not others. • Ask your parents if they would match your savings for a long-term goal. For instance, for every dollar you set aside for college, your parents might contribute 50 cents or $1. • Negotiate an increase in your allowance if you’re not old enough to get a parttime job. Offer to take on additional responsibilities around your home. MARCH–APRIL 2014
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• Open an investment account. Find an institution that will let you start with a low initial contribution and offers information that will help you learn about basic investment terms and concepts. If you are a minor, this will be a custodial account, which means a parent will need to set it up for you.
TIP #4: USE CREDIT WISELY Before you turn 21, a parent must co-sign your credit card application—this means, if you do not make the payments yourself, your parent agrees to do so. If you get a credit card, ask for a low credit limit, such as $300. This can help you learn to manage credit without getting into serious debt. Here are things to discuss with your parents before using a credit card: • Decide what the card can and can’t be used for. • Review the credit card agreement. How much interest will accrue on the unpaid balance? Do you understand what grace period applies, and what fees will be charged? • Agree with your parents on how the bill will be paid, and what will happen if you can’t pay it. • Find out how long it will take to pay off a credit card balance if you only make minimum payments. An online calculator can help you learn this, or you can review the estimate provided on each month’s credit card statement. • Use a prepaid spending card before or instead of a credit card. It looks like a credit card, but is different in that you load it with a dollar amount. Your purchases are deducted from the card balance, and you can transfer more money to it if needed. There may be fees associated with the card, but no interest or debt accrues. Prepaid spending cards can be helpful because they allow you to gradually get the hang of using credit. Smart financial behaviors last a lifetime. For more tools and tips for saving and achieving your financial goals, visit www.feedthepig.org. If money management and accounting come easy to you, find out more about careers doing just that at www.StartHereGoPlaces.com.
Without personal financial management skills, you can easily get into trouble—and it can happen fast if you’re not careful.
Ernest A. Almonte, CPA, MST, CFF, CITP, CGFM, Chief Visionary Officer and CEO, Almonte Group LLC, is chair of the AICPA’s National CPA Financial Literacy Commission. He founded and serves as the Chief Visionary Officer for Almonte Group LLC., a full service accounting and consulting firm providing tax, audit, anti-fraud, expert witness testimony, forensic accounting and consulting services.
? QUICK QUESTIONS Developing a budget is not only important for your personal finances, but for your chapter’s as well. Discuss some reasons why your chapter needs to have a strict budget and how you as a group can stick to that budget. Brainstorm the pros and cons of having a credit card at your age and then share your list with the class. 20
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Create Conversation: What smart spending tips did you learn from this article? Let DECA Inc. know on Facebook how you plan to spend smarter this year!
HOW TO
SPEND SMART For most people, the act of spending money is pretty easy—but spending smart can be trickier; that requires a combination of motivation, information and willpower. Sounds boring, right? Well the reality is that when you make the effort to learn how to spend smart, you will be able to make your money work smarter for you, the way you want, instead of being at the mercy of your money (or lack of it).
RISKS OF OVERSPENDING Why do you want to avoid overspending? When you overspend, you run out of money to do other things you were hoping to use it for (or supposed to do, like pay your cell phone bill). And no, you should probably not blow your paycheck on a new PS4 or Xbox One if it means you’ll be going without lunch for a month. Overspending can make you feel out of control, guilty because you know you should be more careful with your money and worried about how you’ll pay the important things now that you have no money.
KNOWLEDGE IS POWER The key to smart spending is knowledge. How well do you know your money self? Are your current spending habits helping or hindering you in reaching your financial goals? Staying continually on top of your financial state will arm you against unexpected money surprises, and help you meet your financial obligations. Defining a spending plan and recording your spending is the foundation of good money management, and is essential in making smart money decisions for the rest of your life. If you don’t already use one, start by tracking your spending for a few weeks, saving all your receipts and making a daily record of everything you buy. Add these up to find out exactly how much you are spending per week. Identify which of your expenses are fixed (rent, car insurance, phone) and are usually the same every month, and which are variable (food, entertainment, shopping) that change from month to month. How much money do you need in order to cover your bills? In addition, what are your short and long term money goals, like going on spring break or saving for a car? Are there any upcoming expenses that you need to set aside money for, such as an art class starting next month that requires spending for materials? Defining and prioritizing your financial goals is vital, so that you know exactly how much you have to spend.
TAKE CONTROL OF YOUR SPENDING Before you spend, get in the habit of doing a quick check in with yourself every time, even for the small stuff (which adds up). Is what you are about to buy something you really need or already planned for? Great! Or have you already gone through your fun/entertainment money for the month, but just found out your favorite band is coming to town and you have to buy tickets today? Think it over carefully—unexpected expenses will throw you off your plan. 22
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The fact is, every time you spend money that wasn’t already accounted for, you are taking away from something else. By practicing smart spending habits, you will find a great deal of satisfaction comes in knowing you have enough to cover your expenses and meet or exceed your particular financial goals.
SMART SPENDING TIPS • Use smart tools. Use a prepaid card to help manage your daily spending. The right card will help you track transactions, allowing you to make spending adjustments based on historical proof of how you spend your money. And, you can only spend the money you have! • Control yourself. Once you set your spending limit, deposit your monthly living expense money onto a prepaid card and use it as your primary spending vehicle, so you can keep your spending history in one convenient place. • Stay in the know. It’s not enough to check your balance once in a while—you should always know your balance. Blind, uninformed spending will swiftly deplete your available funds, possibly leaving you in a difficult bind down the road. • Change it up. Need gas money for a long road trip? Look through your transactions to see where you can cut back in another area of your everyday spending (Do you really need huge mochas twice a day?) or get your friends to chip in for the trip. • Shop thoughtfully. Don’t go shopping when you’re feeling bored or emotional. You are especially susceptible to making poor spending decisions you will regret later. • Take your time. Wait a week before buying anything over $100. Even if this item is technically within your budget, it’s a good idea to step back for a bit, think it over, let the shopping rush wear off and give yourself a chance to comparison shop. • Comparison shop. Prices can really vary between stores and online retailers—just make sure to note any shipping costs, as they can sometimes offset the savings. • Frugal can still be fun. Get a snack with friends instead of dinner, go hiking in the park, make a meal for friends at home, or put together a game or movie night for an inexpensive get together. Practicing these smart spending tips will help you take control of your finances and meet your personal financial goals. Remember, while we could all ‘use’ more income, it’s the way you actually spend your money that will define your financial prosperity. Wondering how can you stay on top of your daily spending and ensure you never overspend? Remember, it is difficult to track cash versus paying for things with a prepaid card that tracks all your transactions as you use it. Sign up today for the SpendSmart™ Prepaid MasterCard®*, which can text** your purchase info every time you spend, and helps you identify important spending trends. Friends and family members can easily contribute to your card, and you can also set up direct deposit, while the companion smartphone app lets you manage things on the go. For more info, visit www.SpendSmartCard.com.
Spending smart requires a combination of motivation, information and willpower.
The SpendSmart™ Prepaid MasterCard® helps users practice responsible and smart spending habits. The SpendSmart Card is a reloadable prepaid card designed with financial education components for teens, and is a convenient and safe way to manage spending. The company’s financial education resource center provides valuable personal finance tips, and the card can be used anywhere in the world that MasterCard debit is accepted. *The SpendSmart Prepaid MasterCard is issued by Republic Bank, member FDIC, pursuant to a license by MasterCard International Incorporated. The SpendSmart Prepaid MasterCard cannot be used at merchants deemed inappropriate for teens, such as liquor stores, online gambling, etc. Go to www.spendsmartcard.com for more information. **Message and data rates may apply from your wireless carrier.
? QUICK QUESTIONS Why do you think the combination of motivation, information and willpower help individuals when it comes to making smart spending decisions? Discuss the “Smart Spending Tips” listed in this article and how you can begin to incorporate some of them into your everyday life. MARCH–APRIL 2014
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Tweet: Did you love Taravella DECA’s awesome financial literacy campaign idea? Let them know! Give them a shout out on Twitter @TaravellaDECA.
MAKIN’ IT RAIN WON’T HELP YOUR GAME How did two J.P. Taravella DECA members get almost 300 students to participate in an all-day financial literacy event? By looking at financial literacy through the eyes of an athlete. Sophomore Aaron Mitchell and junior Ambalika Tirado-Kangal were inspired to approach the topic of financial literacy this way after they viewed the ESPN 30 For 30 documentary, “Broke,” directed by Billy Cohen, in their marketing class. The film depicts the harsh reality of how many professional athletes wind up in financial despair simply because they never learned the basics of financial responsibility. “We thought it would be a good idea to incorporate the film into our financial literacy project and show the life experience of the people who haven’t had the advantage of financial literacy,” Aaron said. “We really felt it related to our audience, because these are people our [students] look up to.” At J.P. Taravella High School, 10 percent of the 3,200-student body population is involved with the Academy of Finance (AOF), a co-curricular club that is open to any student enrolled in a marketing program or a part of DECA. “We are always looking to see how we can take the financially literacy lessons learned through AOF into the broader population and this project idea seemed like a great way to reach a lot of students,” said J.P. Taravella DECA advisor, Laurie Acosta. Aaron and Ambalika invited all student athletes at their school to attend their “Makin’ It Rain Won’t Help Your Game” event. The all-day event featured an array of programming to keep the students engaged, excited and motivated to learn about financial literacy. The day began with a brief survey to see just how much the students knew about financial literacy. Afterwards, the students watched an edited version of “Broke.” “[After the film] we heard from so many students who realized just how important it is to know how to manage your own money because you can’t trust other people with it,” said Aaron. 24
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J.P. Taravella DECA members and advisors with presenters for the “Makin’ It Rain Won’t Help Your Game” event.
The students were then treated to a Q&A with former Miami Dolphins tight end Ed Perry, Ty Douthard from the Cincinnati Bengals and Tommy Collaro, who played for the Chicago White Sox. All three athletes shared their own unique experiences related to the harsh reality of having too much money and not enough knowledge when it comes to financial responsibility. Also on hand was a CPA who works with pro athletes to share her perspective on ways athletes spend and waste their money. After the Q&A, students transitioned into the gym where 10 different business partners, ranging from credit unions, financial advisors and banks, taught students various lessons related to financial literacy—and the students were ready to learn! After the break out session, the students were then given a test to see what they had grasped from the day’s events. The stakes were high, too; the top 30 scoring students would be able to attend a luncheon with the special guest pro athletes after the event. Beyond just opening students’ eyes to the importance of financial literacy, Aaron and Ambalika also wanted students to realize the variety of resources already available to them at their school. “We’re going to see if the number of students signing up for an account at the credit union in our school increases, as well as if the number of students joining the Academy of Finance increases, as a result of this event,” the students said. In the end, this was way more than just a well-executed project, but a truly rewarding experience for both Aaron and Ambalika, who knew the professional athletes would help bring excitement to this important lesson. “We networked really hard to get all the athletes to attend the event,” Ambalika said. “We talked to teachers, coaches, anyone we thought would have a connection. It was so awesome to put together and really cool to see the students benefitting from it, as well as participating and enjoying the entire thing.” “It was a great opportunity to experience the role of a leader and lead a group of people to accomplish one goal,” added Aaron.
Ambalika Tirado-Kangal prepares retired Cincinnati Bengal, Ty Douthard, for his Q&A with students.
Sam Chesser, from BrightStar Credit Union, addresses students during the breakout session.
? QUICK QUESTIONS Why do you think Aaron and Ambalika’s financial literacy campaign project was so successful in their school? Brainstorm other ways you could make the topic of financial literacy more fun and engaging for students. MARCH–APRIL 2014
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BUZZ
Send a photo and caption of your chapter activity to communications@deca.org.
WHAT’S YOUR CHAPTER BEEN UP TO?
t Worcester Technical DECA (Mass.) members celebrated after completing their first competition of the New Year at the district level.
u Mariemont DECA (Cincinnati, Ohio) participated in the annual Holiday Fair this past December, despite a surprise snowstorm! Members set up a DECA booth with games and prizes and a bake sale booth with all proceeds benefiting the Cincinnati Ronald McDonald House.
p Willard DECA (Mo.) held its annual talent show last November, but with a new twist. This year, each DECA member paired up with a special needs student to escort onto stage and show off their formal wear. The result was truly heartwarming and Willard DECA hopes to continue this new tradition.
p Anderson DECA (Austin, Texas) member Anne Gusler helped her friend Avery pick out the seeds of a pumpkin to get ready for Halloween last October The local grocery store, HEB, donated the pumpkins to make the project possible. u Amador Valley DECA (Pleasanton, Calif.) attended the 2014 NorCal Career Development Conference in San Ramon, Calif. Amador Valley DECA had 150 members compete during the weekend and went home with a record number of seven sweeps!
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p Southwest Career and Technical Academy DECA (Las Vegas, Nev.) members celebrated the achievement of being the seventh largest chapter in the nation for 2013. Despite their already large size, SWCTA DECA is always working on new recruitment ideas to increase its membership!
BUZZ t Caesar Rodney DECA (Camden, Del.) conducted a “Stay Alive. Just Drive.” public relations campaign in its community this year. Various members are in front of the high school’s marquee that displays a message encouraging everyone to put down their cell phone while driving.
p Bend Senior High DECA (Bend, Ore.) members u Officers from Appleton East DECA and Appleton West DECA (Wis.) presented a check for the Muscular Dystrophy Association at their joint Black Out basketball game. Each chapter sold shirts specific to their school’s basketball team and conducted a Miracle Minute during the game.
were all smiles at the chapter’s annual Spring Fashion Show, where the proceeds raised went directly to helping the chapter attend DECA’s International Career Development Conference.
Springfield Parkview DECA’s p (Springfield, Mo.) successful financial literacy project, “Lil Bowls for Bucks,” raised $400, which the chapter donated to Major Norman Grainger of The Salvation Army.
p Cascade DECA (Turner, Ore.) visited the Turner Retirement Center this past holiday season to sing carols and visit with residents. Afterwards, the chapter celebrated with a holiday dinner and gift exchange.
u Freedom DECA (South Riding, Va.) held its “Swish for a Wish” event for the Make-a-Wish Foundation to raise money for a local child, Nate. The entire school got involved and wore Nate’s favorite color, blue, to the basketball game where t-shirts, raffle tickets and bracelets were sold.
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BUZZ
Send a photo and caption of your chapter activity to communications@deca.org.
t Stoneman Douglas DECA (Parkland, Fla.) won big at its district competition! All the chapter’s members worked extremely hard and over 115 students went on stage to receive their trophies. Up next: the state competition held in Orlando, Fla.
u Chiawana DECA
Smoky Hill DECA p (Aurora, Colo.) hosted Colorado DECA’s District 2 competition this year. The chapter’s officer team, pictured here, worked very hard to organize this wonderful event for members to further their DECA experience.
(Pasco, Wash.) was awarded a $25,000 grant from State Farm for participating in the 2013 Celebrate My Drive campaign. This event challenged members to think creatively to get students and community members to make a pledge for safe driving. Overall, Chiawana DECA ranked in the top 50 out of almost 4,000 schools that participated.
q Holmen DECA (Wis.) organized multiple events in the fall of 2013 to support a fourth grade student in the Holmen School District who is currently battling Acute Myeloid Leukemia. As a result of the activities, members were honored to present the family with a $9,000 check.
u Herricks DECA (Searingtown, N.Y.) had a lot to celebrate in 2014! Not only did it have most members of all New York DECA chapters but it also broke the record for the number of members attending the Rochester Convention this spring. t Foothill DECA (Henderson, Nev.) used its super powers to raise over $5,000 for the Muscular Dystrophy Association during its “Superheroes 4 MDA” race this past January.
u These Frankfort DECA (Ind.) chapter members are ready to rock their association career development conference this spring!
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BUZZ t Lakeview Centennial DECA (Garland, Texas) members waved while waiting for the train to head to downtown Dallas, where the chapter had an exclusive, behind-the-scenes tour of a Dallas Mavericks basketball game at the American Airlines Center.
u University of Nevada-Las Vegas Collegiate DECA was invited to help critique high school members from East Career Technical Academy DECA on their competitive events. UNLV DECA members had a great time judging and learned a unique perspective of what a judge sees in various competitive events.
p The Texas DECA District 10 Fall Leadership Conference was held at the El Paso Zoo, where attendees could perform community service by feeding and caring for zoo animals for a day. Pictured are (l to r): Diane Ramirez, Joseph Delgado, Albert Avila and Alejandra Duran.
q Hermann DECA (Mo.) hosted its 14th Annual Veteran’s Day Breakfast & Ceremony with Gov. Jay Nixon as the keynote speaker. The event had 100 Hermann-area veterans and students in attendance. Pictured are (l to r): Gov. Nixon, Hermann DECA President Sara Fahrenholtz, Superintendent of Gasconade County R-1 Schools Dr. Chris Neale and commanding officer of the Missouri Army National Guard Major General Steve Danner.
p Chabot College Collegiate DECA (Hayward, Calif.) members attended Chabot DECA’s 4th Annual Conference on Cottage Industries, with other college students and local area DECA members. The conference focused on inspiring students to take on the field of entrepreneurship.
q Reitz DECA (Evansville, Ind.) may be a small chapter, but don’t let its size fool you! This chapter is committed to bringing honor to its school, community and district.
p During the past holiday season, East Paulding DECA (Dallas, Ga.) hosted a “Raider Holiday” event, where kindergarten students were invited to the high school for holiday crafts and a visit from Santa Claus. MARCH–APRIL 2014 DECA DIRECT
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