myRA Might Be the Solution for High School and College Students

myRA

If you’ve read “10 Things College Students Need to Know About Money” you know that I am a HUGE advocate of young people investing from retirement as soon as they have earned income. For many people that time is while in high school or college while you’re working part-time or eeking a living out of financial aid. Often, young people don’t know how to open an Individual Retirement Account (IRA) or don’t think they have enough money to open one (get my list of investment accounts you can open for less than $100 here).

The United States government is here to help with the new myRA (my retirement account, get it?). According to the U.S. Treasury,  these accounts are:

  • Easy to set up (you can have the money deducted from your payroll check if you wish)
  • Designed to help people with little money or no access to a retirement plan from work.
  • No risk of losing money (funds are invested in a Thrift Savings Plan-like account)
  • The funds you invest are NOT tax-deductible but you also can take them out whenever you like without penalty.

The best part? There is no minimum amount required to start an account and according to Forbes, ” additional contributions only have a minimum of $5.” The goal is really to get you into the habit of investing when you are young and have few dollars. The return isn’t great (think 1% or 2% per year) compared to a regular traditional or Roth IRA or 401(k)/403(b) but starting now with a few dollars and little interest is better than not doing anything.

Fool.com also notes:

Account holders can contribute up to $5,500 per year ($6,500 if over 50) and may continue to contribute until their total account balance reaches $15,000. All funds are invested in a newly created Treasury bond

Once you’ve grown a nest egg big enough to open a traditional or Roth IRA, or you have a job that provides a 401(k) or 401(b) hopefully with matching, you can roll the money over into a new account.

Click here to find out more about myRA accounts.

 

 

Virtual Book Launch June 8th

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As you all know, I am ecstatic about the printing of the 2nd edition of 10 Things College Students Need to Know about Money! I’m so excited that for the first time ever I’m hosting a virtual book launch on Facebook. What is a virtual book launch you ask? Good question.  *wink*

A virtual book launch is an opportunity for you to ask me about the book, win some cool gifts and score an AMAZING discount on the book. I’m so excited.

Sign up to receive my emails and get another gift.

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See you Wednesday, June 8th between 6:30pm and 8:30pm Pacific Standard Time.

10 Things on Kindle for $3.50! Order Now!

I know you’ve been thinking about ordering copies of 10 Things College Students Need to Know About Money for your children, grandchildren, cousins, neices and nephews but you wanted to read it first, right? You wanted to make sure that it was a good read with real information about personal finance. Well, here’s your chance! 10 Things College Students Need to Know About Money is now available on Kindle for only $3.50 per download!

Download yours on Amazon.com now.

 

 

 

Click the image to read more about Shay speaking at Cal State Long Beach.

Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, NBC Latino and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com

Improving Every Year

Abby Ulm, Foundation Manager at SCE Federal Credit Union, and Shay Olivarria at the Los Angeles Federal Reserve during a field trip with local high school students.

More great news! SCE Federal Credit Union Foundation (now the Center for Financial Empowerment) works with several high schools around the San Gabriel Valley and in the 2012 National Financial Capabilities Challenge 24 of the 415 students nationwide (that’s about 6% of ALL the students across the nation) were students that SCE Federal Credit Union Foundation worked with!

In 2012,  35 schools in California took the challenge (that’s about 67% of all schools in California) and the students that SCE FCU Foundation worked with scored really well. In fact, there was an increase of students that scored in the top 20% in year two.

In 2011, the SCE FCU Foundation had 10 students that scored in the top 20%. This year that number increased to 24 students. That’s more than 100% increase!  There were:

12 students from Baldwin Park High School

7 students from Duarte High School

5 students from Colony High School

 

Congrats to all the students and the team at the SCE Federal Credit Union Foundation!

 

Millennials and Financial Literacy

Just read this article in USA Today about young people that have graduated from college and are flying through life with little knowledge of personal finance. It doesn’t surprise me because this article just came out from Society of Human Resource Management (SHRM) that ranks each state in two categories: knowledge of personal finance concepts and application of those concepts in everyday life.

$15 on Amazon

Buy a copy of 10 Things College Students Need to Know About Money for the student in your life.

The parental instinct to provide for your children can actually be detrimental to preparing them to be financially independent. Beacham says it’s an “unintended consequence” that leaves adult children unprepared to handle their own finances. “You feel like a good parent if you’re taking care of your child,” she says. “(But) the reason kids on college campuses don’t know anything about money is because they have no skin in the game because their parents are still paying. Their child is going to pay a much higher price for the lack of experience and knowledge they have on graduation day.”

So what can parents do to help students learn about personal finance? Take advantage of teachable moments, attend events that reinforce financial education principles, and provide resources to help students understand personal finance concepts.

 

Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com

Wonderful people

This doesn't really have to do with anything, but I liked the title of the album. It fits, no?

 

I met some great students today. Great students. I won’t share their names because I didn’t ask, but today I met:

An architect

A poet

A writer

An investor

 

I know that they are just beginning their journeys, but I’m loving their energy and I want to publicly proclaim that they are amazing!

I don’t usually post things written by other people, but I met this guy today and I couldn’t not share is genius. Since he’s a published writer I don’t feel bad about sharing his name. Please take a look at the articles Anthony Turner has written and share them with a friend.

Trayvon Martin, Unarmed and Innocent on the NYTimes blog

As a young black male myself, I sometimes get the sense that other people judge me on my appearance. The fact that I’m a black kid in a hoodie is a mark against me (even though I don’t do anything “suspicious” at all). At times I feel self-conscious, wondering if people on the subway or street automatically wonder: “Is he a troublemaker? Should I hold onto my phone tighter?” It makes me feel bad to think that these kinds of thoughts surface in people’s heads when they see a black person.

 

Foster Teen: ‘I Needed Emotional  Support, Not Medication” on The Huffington Post

My caseworker came to my foster mom’s house and told me that he would take me to KFC and then to a “nice place to get help.” I thought, “OK, that sounds cool. I get my favorite food and I go to a center to feel better.”

The next stop we made was a psychiatric hospital for kids. We went through door after door, and it dawned on me that every door had a lock. Once the door shut you couldn’t open it. The doors locked you in. They intended to keep me here. That realization gave me a panic attack. I started running and the security tackled me. I was forcibly dragged in.

 

Huffington Post – “Foster Teen: I Was  Put In A  Psych Ward. I Wasn’t Crazy” was picked up on the Citizen’s Commission on Human Rights International website

I felt forced into signing a bunch of papers. I didn’t realize I was signing consent to take medication.

The first things they prescribed were Depakote and Risperdal. I didn’t get a say in what I wanted, and that made me feel powerless.

At the hospital, staff joked about it in a perverse way. “Hey kids, come and get your happy pills!” “Come right up for your Skittles, it makes the world a better place!” I was disgusted that the staff were making light of my situation. I wondered how they’d feel if they were forced to take pills in a lockdown facility.

Kids are awesome and I’m soooo looking forward to seeing all the good things they do in the  world!

 

PEACE,

Shay

 

Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com.

Books on Kindle

You’re wishes have been answered! Now, all three of Shay’s amazing personal finance books are available for Kindle.

All My Mistakes: Money lessons for emancipating youth on Kindle

All My Mistakes: Money lessons for emancipating youth in print

Click here to read about why Shay wrote this book.

In this autobiographical personal finance book for emancipating foster kids, the most dynamic financial education speaker working today, Shay Olivarria, shares money lessons that she learned during her life while experiencing the physical, emotional, and sexual abuse that led to her being placed in foster care.

Everything from finding an apartment and getting the utilities turned on to paying for college and saving for retirement are covered. Resources for emancipating youth shared from organizations across the country are also included.

This edition includes a bonus chapter on resumes, interviewing, and career advice.

10 Things College Students Need to Know About Money on Kindle

10 Things College Students Need to Know About Money in print

This simple book provides clarity in understanding the 10 things every college student needs to know about money, including money attitude, compound interest, credit unions, retirement accounts, credit, the CARD Act and net worth, with humor and brevity. A glossary of common personal finance terms is included.

Money Matters: The Get It Done in 1 Minute Workbook on Kindle

Money Matters: The Get It Done in 1 Minute Workbook in print

Finally, a workbook that makes money management simple! This easy-to-read workbook from personal financial literacy coach and professional speaker Shay Olivarria explains topics such as savings, goal setting, credit reports, credit scoring, net worth and retirement vehicles for the everyday person. As the old saying goes, “time is money” and with this workbook you can save quite a bit of both. The enclosed worksheets help you understand your financial situation and provide the necessary guidance to get your finances under control. In these tough times we must be proactive with our own futures and take control of our money; with Money Matters: The Get It Done in 1 Minute Workbook we can do just that.

Read a book review of Money Matters here.