Chapter 1

Starting Your Financial Journey

IN THIS CHAPTER

Seeing why money matters

Creating good money habits

Deciding how to plan for the future

Looking at an overview of this book

We get it - money, that is. More importantly, we (Athena and Mykail) get how confusing and overwhelming finding out about money can be. With that in mind, we plan to give you all the tools you need to get your money started off right! Because no matter how confusing money may seem, there is always a way to figure it out.

Personal finances are so much more than spending money on all the fun and cool things that you like. Money is the resource that you can use to completely change your life. Luckily, you have not one but two money friends here giving you all the details on all things money.

Personal finance is a bit like mastering a complicated board game. The rules can be confusing at first, but once you get the hang of them, winning (aka reaching your goals) becomes a lot easier. Think of this chapter as your sneak peek at the game board: We'll touch on everything from budgeting to taxes, but we won't dive into the nitty-gritty just yet. By the end, you'll know exactly where to turn in this book for detailed guidance on each topic.

In this book, you'll explore why money matters at every stage of your life, especially from middle school to adulthood. But before you jump in, let's take a quick tour of what you can expect.

Mastering Your Personal Finances

Money might seem scary at first (numbers, bank accounts, taxes, oh my!), but getting a handle on your personal finances is a powerful way to take control of your life. This section explains why financial literacy matters, then guides you through the essentials of budgeting, saving, and spending.

Discovering why financial literacy matters for teens

They say, "money makes the world go 'round," and while that might be a slight exaggeration, having a solid handle on your finances definitely keeps your world from spinning out of control. When you start building healthy money habits now,

• You stress less: Knowing where your cash is going (and why) can save you from late-night panic over bills.
• You dream bigger: Want to save for a first car or an epic post-grad adventure? Budgeting early on makes that possible.
• You stay flexible: Life changes, like going to college or starting a side hustle, feel more doable when you have a financial foundation.

You don't have to master every topic right away; that's what this book is for. Take it one chapter at a time, and celebrate each win.

Exploring the basics of budgeting, saving, and spending

Think of budgeting as a roadmap for where your money goes. To build a budget, you must do the following:

1. Track your income from allowances, jobs, or side gigs.
2. Plan your expenses for essentials like food and optional fun stuff like movies.
3. Set aside savings for future goals or emergencies.

Saving means paying yourself first. Even setting aside a few dollars each time you earn money can grow your savings over time. Spending wisely means balancing what you want now with what your future self will need. It is crucial to practice good money habits today to create a foundation for lifelong financial wins.

Unlocking the Benefits of Good Financial Habits

Building strong money skills early unlocks a future filled with possibilities. Here's how good financial habits can make your life easier and more fulfilling.

Lowering financial stress through smart planning

Having a plan for your money turns chaos into clarity. By setting up a simple budget (Chapter 4 digs deeper), you know exactly where your cash is going, leaving less room for anxiety. Plus, planning helps you avoid last-minute scrambles, like struggling to pay for surprise expenses.

Improving your life with thoughtful money choices

When you make intentional spending decisions, it's easier to afford the things that truly matter, like a hobby, a trip, or an emergency fund for peace of mind. Good financial habits encourage you to say "yes" to meaningful opportunities instead of being tied down by unnecessary debt or spending. Chapters 2, 3, and 4 focus on building those good habits early.

Handling taxes and what they mean for you

Even if you're a teen, taxes can affect your paycheck or side hustle earnings. Taxes might seem boring, but they're unavoidable, so knowing the basics helps you keep more of the money you earn (turn to Chapter 22 for more tax tips). Don't be nervous about taxes; as working citizens, we have to pay them, too, and we also explain why they are required.

Saving for short- and long-term goals

Saving short-term can mean setting aside cash for things like a concert ticket or new sneakers. Long-term goals might include paying for college, starting a business, or even investing for retirement (yes, that's something teens can do!). Good habits now set you on a smooth path for later. We chat more about money for future you in Chapters 8 and 20.

Claiming your financial independence

Imagine being able to make life choices (like studying abroad or moving out) without money worries holding you back. Solid financial habits build a safety net, giving you the freedom to explore, take calculated risks, and follow your dreams. Chapters 11 and 19 focus on helping you decided what your financial independence will look like.

Confronting the Challenges of Managing Money

Nothing will come easy to anybody who is learning about money. There are so many mindset shifts and new terms you will discover to better manage your personal finances. Even with all this information, you can still make money mistakes. This is totally normal and 100 percent okay. Even as adults, we still make money mistakes. Your journey won't be perfect, and that doesn't make you a bad person.

Deciding your financial path

Financial literacy is for everyone because everyone needs to understand money. However, we all have different financial paths and goals. Your financial path is specifically for you. We all find out about and see money differently; finding what works best for you is half the battle. Throughout this book we encourage you with our advice and give you different options to tackle problems you may face.

Aiming for financial freedom

Ask yourself: Do I want to rely on others forever, or would I prefer making my own decisions with my own funds? If you're aiming for independence, a solid financial plan is your ticket to freedom. Financial freedom looks like have great credit (Chapter 5), building a solid budget (Chapter 4), destroying debt and bad habits (Chapter 6), making money (Chapters 14 and 15), paying bills (Chapter 18), and spending your money things that make you happy.

Launching your first budget or savings plan

Still on the fence? Starting small helps you see quick wins. Even a mini-budget, such as saving $5 a week, can be a game-changer. Turn to Chapter 3 to dip your toes in the water of money management or Chapter 4 for a full budget breakdown.

Mapping Out the Journey (aka This Book's Roadmap)

Here's a taste of what you'll find in each part of the book.

• Part 1: Learning How to Build Your Financial Muscles. We start with the basics, like creating a financial workout plan and discovering the building blocks of budgeting. These chapters show you the value of flexing your money muscles early.
• Parts 2 and 3: Money Matters for Middle Schoolers and Money Matters for High Schoolers. Whether you're just discovering how to manage lunch money or planning to find a part-time job, we've got you covered. These sections guide you through the financial challenges (and opportunities) you'll face before graduation day.
• Part 4: Making Money Like an Adult. Ready to step into the working world? We'll show you how to read your paycheck, what to watch for in a job offer, and how to handle the real costs of working (such as transportation or uniforms).
• Parts 5 and 6: Being an Adult the Dummies Way and Preparing for the Big Things. Now it's time to protect your money and handle those bigger life expenses, from paying monthly bills to buying your dream car. We'll also help you set long-term goals like investing and getting insurance.
• Part 7: The Part of Tens. Looking for a quick reference or top tips on taxes, creating a win file (a brag-worthy record of your achievements), or other key concepts? This section's got you covered.

It might sound like a lot, but fear not! We'll tackle each subject in a fun, accessible way, giving you the confidence to take charge of your finances regardless of your age.

With a sense of what's coming, it's time to roll up your sleeves and dig into the details. Flip ahead to the chapters that pique...