You wake up, grab a cup of coffee, listen to the news, and say "bye" to your parent(s); as you catch the bus and worry about your clothes. School is filled with excessive amounts of pressure, and you can't wait for that last bell to ring. I can relate to it. We are teenagers. We live and breathe for drama, sports, and of course myspace. Wait, lets rewind this. Drama. While you were grabbing your cup of coffee, you heard it on the news, "The $700 billion bailout plan has just been voted through the House of Representatives...".
Now, this is dramatic. What does this bailout mean to you? You, with your cup of coffee, happily going to the movies later on tonight. Have you ever thought about what it would be like if our stock markets drop even lower than what they already are? What about another Great Depression? By the looks of it, the $700 billion bailout plan does not seem to be taking any affect in your life. How wrong you are. It can effect your future investments, your way of life and, in general, your future.
If there is one thing that I can throw in to help you make sense of this "bailout" is the stock market. There are two things that you need to know; when its up, that is good, when it is down, that is BAD. The bonds, the trust funds, and (in simpler terms) our banks run off of one another." When banks and insurance companies are scared to share their money...", we begin to see repercussions. Just watch this video from, "The New York Times" where I quoted that statement.
We, as young Americans, need to evaluate this problem in our lives and create a picture of what our future is going to be like. The way that we see prices for insurance, gas, and college are extremely important. For instance, gas.
About a year ago, today, gas costs estimated $2.80 per gallon and today is estimated "3.60"; based upon my own averages in North Carolina. If the stock markets drops so low that we are in a recession, and averaging the consumption of gas, and (possible) oil drilling off of the U.S. Coast in about five to ten years, I am strategically planning that gas will cost around four to six dollars. This is how the youth of this nation should be thinking in terms of gasoline. With the roller coaster rides of foreign policies, the stock market and warfare, our future lifestyles are led by Wall Street.
Think about it, your future in America is based on the economy. Without our economical structure we would, literally, have nothing. The scholarships that you are planning to apply for to get into college, the gas money you use to go from place to place, the very food that you eat; all comes from our economy. We need to watch Wall Street as analytically as possible, and plan out our futures. One day when you wake up in the morning, you might not be able to get that cup of coffee, but at least you planned to cut that out so that you could purchase your own home.
Security 101
Four things that you should do today:
1. Avoid unnecessary debt. As in, do not apply for a credit card to Victoria Secret, or American Eagle, if you know that you cannot pay them back on time.
2. Pay your bills on time. Going back to number one, if you can afford it, then pay them.
3. Plan your future lifestyle conservatively. This means develop a plan to do things; like a road trip, parties, etc... and save your money for it.
4. Save your money. Depending on how this bailout plan works, I would personally begin to save about a months worth of spending (including bills, and utilities); but still keep your bank account running.
Stocks are unpredictable, but with this trend, just keep a close eye on it and we will see where it will lead. Remember, act with reason and spend each dollar as if it is your last.
I like your blog. You seem to have a pretty good grasp on what is actually happening out there. I wish more of us teens had a clue. I'm looking at my classmates and wondering what the future holds for us, and I'm scared. Scared of their ignorance, scared to think some of them will be our leaders someday. I hope my classmates that will later lead now have some semblance of an idea about what is happening in the world today.
Living is easy with eyes closed, misunderstanding all you see.
I'm glad to know that someone else agrees with me about this issue. I understand completely about the fears you have for our future leaders and business owners. Its quite scary to think that someone from your class, who you know is doing terrible things, or not being the mature adult they are supposed to be. Thank you for your comment. =]
I am glad that you are concerned about our future economic status. What are your current views on our presidential candidates on their ideas about their plans for economic stability?
Two comment on the details: gas where I live went over $4 for a while, and now it's back to about $4. I live in one of the few pockets in the country where, for some reason, the gas is way more expensive than other places. I've heard a few theories on why this is so, but so far none have really stuck.
And my part-time job is at Starbucks, we get a free pound of coffee a week =) so I won't ever run out as long as I work there at least part-time.
On a more serious note, I like your summary of things and I would like to add a few points:
1. Don't plan on buying anything big right now, unless you have the money for it now.
2. Find some creative ways to make money (secret shopping, the internet, free advertising on your car, etc.).
3. Think about ALL the small purchases. Yeah, it may just be a $10 shirt, or even a $3 sandwich, but later when you need $30 for a bill, you're going to wish you had forgone the unneccesities.
Thank you for your reply, and extra pointers! I am extremely happy to know that you have a job that gives you coffee (I would get a job there if they offered that around here!). I recently found out that my city is now in a recession; hopefully we get help from Ft. Bragg, quickly! My future blogs will be based around pointers and advice for the "younger generation", and I'll be sure to post yours there!