What is Credit? 

You have probably seen your parents paying the bills at one point in your life. You might have wondered, “Why are my parents paying for my Xbox controller now when they bought it for me a month ago? Wouldn’t the $1,000 they paid be automatically deducted from their card then? 

The answer is credit– a form of payment that provides one with the ability to borrow any goods or services as long as they are intent on paying them back within a certain period. 

For example, a new home buyer is interested in a $500,000 home but does not want to pay for it fully in cash. Then, they would apply for a 30-year mortgage—a form of credit.  Assuming they put a down payment of 20% at $100,000, they are left with a $400,000 mortgage payment, which they are expected to pay back within 30 years. They may pay off their mortgage in monthly payments (most common), or they can choose to pay it off in full eventually. 

There are three main types of credit: revolving credit, installment, and open credit. 

Revolving Credit: 

Revolving credit is an open and ongoing line of credit. A revolving credit account consists of a credit limit–which is the maximum amount that can be spent. There are no fixed payments with a revolving credit account. In addition, one can choose to make only the minimum fees charged with revolving credit to remain in good standing with the creditor. 

Credit Cards: A credit card is an example of a revolving credit account. There are no monthly fixed payments and one is expected to pay off the card balance by the due date, preferably earlier. One can also opt for paying only the minimum payment each month, but they would have to pay extra interest within the next payments to compensate. This can negatively impact one’s credit score as well, making it difficult to apply for loans in the future. 

Installment Credit: 

On the other hand, installment credit accounts are loans that must be paid back in increments throughout a certain time frame. The repayment structure consists of monthly fixed payments along with an interest rate. Some examples of installment credit include mortgages, student loans, and car loans. 

Suppose a student chooses to take out a $50,000 loan for college for 10 years. Assuming a 4% interest rate, they will be making monthly payments of $526 until their debt is completely paid off. 

Open Credit: 

Open credit is a form of credit that is due in full each period (typically each month). Open credit payments can include cell phone bills and utility bills (electricity, water, heat, etc). 

For example, if an individual owes $100 in electricity bills for January, they would be expected to fully pay the amount by the end of the month. 

You will probably gain exposure to revolving credit, installment, and open credit throughout your life which is why it is so important to learn about them from a young age! Learning about the different types of credit is an excellent way to financially prepare yourself for adulthood! 

By Navya Nagelli

 Cómo ganar dinero siendo adolescente en 2022

¿Eres un adolescente que está ansioso por comprar su propio coche? ¿O para empezar a ahorrar para la universidad? ¿O simplemente tener algo de dinero extra para gastar? Si es así, ¡hay muchos ajetreos secundarios que pueden ayudarlo a lograr estos objetivos! Muchos no requieren experiencia, no tienen límite de edad y, lo que es más importante, brindan oportunidades para ganar dinero extra y responsabilidad financiera.

Aquí hay 10 de las mejores maneras de ganar dinero siendo adolescente:

1. Trabajo a tiempo parcial

Una de las formas más comunes para que los adolescentes ganen dinero es a través de trabajos de medio tiempo en la industria alimentaria o minorista. Muchos de estos trabajos comienzan desde $13 por hora y llegan hasta $18 por hora. Las horas son flexibles, así que usted puede trabajar alrededor de su horario. Por ejemplo, algunos adolescentes solo eligen trabajar durante el verano, o algunos solo eligen trabajar los fines de semana para poder participar en la escuela y otras actividades. Los trabajos a tiempo parcial son una forma potencial para que usted, como adolescente, ahorre miles de dólares mientras adquiere experiencia laboral, y todo lo que necesita es postularse en los sitios web de carreras de las tiendas. 

2. Cuidado de niños

El cuidado de niños también es una excelente manera para que los adolescentes ganen dinero. Si bien las tarifas pueden variar, la niñera promedio se lleva a casa aproximadamente $20-30 por hora. Puede comenzar cuidando niños dentro de su familia o grupo de amigos y luego expandirlo lentamente a un negocio. Puede publicar letreros en su vecindario o incluso a través de las redes sociales para publicitar su negocio y hacer crecer su lista de clientes.

3. Pasear perros/cuidar mascotas

Pasear perros y cuidar mascotas también son formas excelentes para que los adolescentes ganen algo de dinero extra. Al igual que cuidar niños, pasear perros o cuidar mascotas puede convertirse en un negocio. Si bien la tarifa promedio para los cuidadores y paseadores de mascotas comienza en $20, ¡existe la posibilidad de llevarse a casa $30 o más por hora! Ganar algo de dinero mientras pasas tiempo con animales adorables: ¡habla de ganar-ganar!

4. Palear nieve

La nieve es todo diversión y juegos, hasta que llega el momento de palear. Palear es a menudo una tarea difícil y que requiere mucho tiempo, por lo que muchas personas están dispuestas a pagarle a otra persona para que haga el trabajo por ellos. Como adolescente, puede ofrecer palear la entrada de la casa de sus vecinos y luego expandirse a un negocio completo. ¡Publicar letreros en su vecindario y parques locales es una excelente manera de ganar algo de tracción para su negocio y comenzar a acumular cientos o miles de dólares!

5. Cortar el césped

Al igual que palear la nieve, cortar el césped es otra forma de ganar dinero en la adolescencia. ¡Puede comenzar ofreciéndose a cortar el césped de su vecino y luego expandirse a un negocio completo!

6. Enseñar a otros estudiantes 

Los adolescentes también pueden ganar dinero extra dando clases particulares a los estudiantes, tanto en persona como de forma remota. Puede establecer sus propias tarifas y publicar folletos en las escuelas y bibliotecas locales o incluso en las redes sociales para anunciar sus servicios de tutoría. Si no está interesado en iniciar su propio negocio de tutoría, puede configurar un perfil en sitios web como Tutor.com o Chegg.com. ¡Estos sitios web lo conectarán directamente con un estudiante que necesita ayuda de tutoría y puede comenzar a ganar dinero de inmediato!

7. Tomar encuestas en línea

¿Sabías que te pueden pagar por realizar encuestas en línea? Muchos sitios web como Swagbucks pueden pagar hasta cientos de dólares por realizar sus encuestas o jugar sus juegos. A medida que completa más actividades en Swagbucks, comienza a ganar puntos, ¡que se pueden convertir en dinero real!

8. Venta de artículos

¿Tienes ropa que ya no te queda? ¿O algún bolso que esté tirado en tu armario? ¡Puede ser una buena idea venderlos! Puede vender sus artículos a través de Poshmark, Marketplace o eBay. Incluso puede crear una cuenta de Instagram para anunciar sus artículos e incluso puede conservar el 100% de las ganancias. Por ejemplo, muchos adolescentes han abierto una página de Instagram donde solo publican sus artículos de lululemon para la venta, lo que atrae a miles de compradores potenciales.

 9. Trabajador con redes sociales

Como adolescente, probablemente pasas mucho tiempo en las redes sociales. Bueno, ¡ahora puedes usar tu amor por Instagram o Tiktok como una forma de ganar dinero extra! Dado que muchas empresas utilizan las redes sociales como estrategia para hacer crecer su marca, buscan activamente a alguien para administrar y mantener sus cuentas. De hecho, según los datos de Linkedin, la demanda de habilidades pagas en las redes sociales aumentó un 116,4 por ciento. Puede postularse para puestos de administración de redes sociales a través de Linkedin o sitios independientes como Upwork, Ziprecruiter o Fiverr.

10. Escritor independiente o blogger

¿Te encanta escribir? Bueno, puede poner en práctica su creatividad y sus habilidades de escritura y obtener algunos ingresos potenciales. Muchas empresas y blogs buscan bloggers para desarrollar contenido para sus sitios web. Puede postularse para puestos de escritor o blogger a través de sitios independientes como Upwork, Ziprecruiter, Fiverr e incluso Linkedin. Además, siempre puede configurar un sitio web que consista en una cartera de su trabajo anterior; esta es una excelente manera de comercializar sus habilidades de escritura y atraer posibles empleadores.

¡Nunca es demasiado pronto para comenzar a ganar dinero, incluso si solo es un adolescente! ¡Los ajetreos secundarios pueden ser la base de un adolescente para comenzar sus viajes financieros y acumular riqueza!

By Navya Nagelli

How to Make Money as a Teen in 2022

MONEYMINDS

Are you a teenager who is eager to buy your own car? Or to start saving up for college? Or to just simply have some extra spending money? If so, there are many side hustles that can help you achieve these goals! Many require no experience, no age limit, and most importantly, many opportunities to gain extra cash and financial responsibility. 

Here are 10 of the best ways to make money as a teen:

1. Part-Time Job

One of the most common ways teenagers make money is through part-time jobs in the food or retail industries. Many of these jobs start from $13 an hour and go up to as much as $18 an hour! The hours are flexible as well as you can work around your schedule. For example, some teenagers only choose to work during the summer, or some may only choose to work on weekends so they…

View original post 742 more words

How to Make Money as a Teen in 2022

Are you a teenager who is eager to buy your own car? Or to start saving up for college? Or to just simply have some extra spending money? If so, there are many side hustles that can help you achieve these goals! Many require no experience, no age limit, and most importantly, many opportunities to gain extra cash and financial responsibility. 

Here are 10 of the best ways to make money as a teen: 

1. Part-Time Job 

One of the most common ways teenagers make money is through part-time jobs in the food or retail industries. Many of these jobs start from $13 an hour and go up to as much as $18 an hour! The hours are flexible as well as you can work around your schedule. For example, some teenagers only choose to work during the summer, or some may only choose to work on weekends so they can stay engaged in school and other activities. Part-time jobs are a potential way for you as a teen to save up thousands of dollars while gaining work experience, and all it takes is to apply on stores’ careers websites. 

2. Babysitting 

Babysitting is also an excellent way for teenagers to make money. While the rates can vary, the average babysitter takes home roughly $20-30 per hour. You can start by babysitting children within your family or friends and then slowly expand it into a business. You can post signs around your neighborhood or even via social media to advertise your business and grow your client list. 

3. Dog Walking/ Pet Sitting 

Dog Walking and pet sitting are also great ways for teenagers to make some extra cash. Just like babysitting, dog walking or pet sitting can be turned into a business. While the average rate for pet sitters and walkers starts at $20, there is potential to take home $30 or more per hour! Making some money while spending time with adorable animals— talk about a win-win! 

4. Snow Shoveling 

Snow is all fun and games until it is time to shovel. Shoveling is often a difficult, time-consuming task, so many people are willing to pay someone else to do the job for them. As a teen, you can offer to shovel your neighbors’ driveway and then later expand into a full-on business. Posting signs throughout your neighborhood and local parks are a great way to gain some traction for your business and start racking up hundreds to thousands of dollars in cash! 

5. Lawn Mowing 

Just like snow shoveling, lawn mowing is another way to earn money as a teen. You can start by offering to mow your neighbors’ lawns, and then branch out into a full-on business! 

6. Tutoring 

Teenagers can also make extra money by tutoring students–both in person and remotely. You can set your own rates and post flyers around local schools and libraries or even on social media to advertise your tutoring services. If not interested in starting your own tutoring business, you can set up a profile on websites such as Tutor.com or Chegg.com. These websites will directly connect you with a student who needs help tutoring and you can start making money right away!

7. Taking Online Surveys 

Did you know that you can be paid to take online surveys? Many websites such as Swagbucks can pay up to hundreds of dollars for taking their surveys or playing their games. As you complete more activities on Swagbucks, you begin to earn points–which can be converted to real money!

8. Selling Items 

Do you have any clothes that don’t fit anymore? Or any handbags that are just laying around in your closet? It may be a good idea to sell them! You can sell your items via Poshmark, marketplace, or eBay. You can even create an Instagram account to advertise your items, and you can even keep 100% of the profits. For example, many teenagers have opened up an Instagram page where they solely post their lululemon items for sale—attracting thousands of potential buyers. 

9. Social Media Manager 

As a teenager, you probably spend a lot of time on social media. Well, you now can use your love for Instagram or TikTok as a way to make some extra cash! As many businesses and companies are using social media as a strategy to grow their brand, they are actively seeking someone to manage and maintain their accounts. In fact, according to data on Linkedin, the demand for paid social media skills rose a whopping 116.4 percent. You can apply for social media management positions through Linkedin or freelancing sites such as Upwork, ZipRecruiter, or Fiverr. 

10. Freelance Writer/Blogger 

Do you love writing? Well, you can put your creativity and writing skills to use and earn some potential income. Many businesses and blogs are seeking bloggers to develop content for their websites. You can apply for writer or blogger positions through freelancing sites such as Upwork, ZipRecruiter, Fiverr, and even Linkedin. In addition, you can always set up a website consisting of a portfolio of your previous work; this is a great way to market your writing skills and attract potential employers. 

It is never too early to start making money, even if you are only a teenager! Side hustles can be the foundation for a teenager to start their journey in achieving financial independence!