Managing Your Money

Did you know that 40% more college students drop out school due to financial reasons than failing grades? [1]

This includes student-athletes.

The good news is that as an athlete you know how hard work and dedication can pay off. 

The same is true when managing your money.  If you practice building your money skills now, when it comes time to use those skills in the “real world” it will come as easy as making a lay up or spinning out of a tackle.

As Pacific Islanders it is also important to remember that our ancestors were the best resource managers this world has ever known.  Isolated by the vast Pacific Ocean, they were able to gather resources necessary for their local communities to prosper without depleting the natural environment or harming their neighbors.

Today, this spirit and these skills are alive within all of us, only now we are called to take on the additional responsibility of managing our “financial resources” (money and assets).

Start building your money management skills by following 6 easy steps!

1. 1)Make Wise Financial Decisions
2. 2)Know Your Needs and Wants
3. 3)Track Your Spending
4. 4)Increase Your Cash Flow
5. 5)Set Savings Goals
6. 6)Create a Spending Plan (Budget)

Make Wise Financial Decisions

Money management all starts with one basic action – making decisions.  To make sure your decisions give you “the most bang for your buck” you can follow the lead of your ancestors and weigh the advantages (benefits) and disadvantages (costs) of your actions. 

For example, if you need transportation to get to and from the university campus, you might have the choice of buying a car, riding the bus, getting a moped, or carpooling, to name a few.  For some, riding the bus may have more advantages than buying a car or getting a moped, because it saves on money for gasoline, insurance, monthly car payments, regular maintenance, and is “greener” because it emits less pollution into the environment.  For others, buying a car or getting a moped is necessary to keep up with busy schedules. Either way, no one can ever make the “right” decision all the time, but by understanding your options you can see how your actions today will impact you tomorrow.

Take Action

Use this simple Tree of Decisions to weigh the advantages and disadvantages of an important financial decision you plan to make soon.  You can also reuse this Tree of Decisions for other important life decisions as well.

Know Your Needs and Wants

We have all done it – stepped into a store and seen the latest cell phone or newest HIC shirt and bought it on the spot.  When you buy goods without thinking it is called impulse buying.  In order to manage your money wisely you can not get caught in these “buying traps”.  This takes discipline and means knowing the difference between your needs (items we need to survive) and wants (items we desire, but do not need to survive).

Take Action

Start a Needs and Wants List so you can begin preparing yourself to use your money wisely.

Track Your Spending

What did you buy over the last month?  How about the last week?  Do you even know what you bought today?!

The truth is most of us don't know how we spend our money.  In fact, statistics show that teenagers spend approximately 98 cents of every $1 they earn. [2]   That would leave you with only 2 cents of every $1 you work hard to earn!

The first step in knowing how you spend your money is very simple – write it down!

Take Action

Use a Spending Tracker Worksheet and Monthly Spending Summary to track how you spend your money for the next 4 weeks.  Do you spend more on needs or wants?  How much money would you if you cut spending on your wants in ½? 

Remember – every little bit can add up.  For example, if you spent $7 on a plate lunch 4 times/week, you would spend $28/week, $112/month, and $1344/year!  Now that’s a lot of cash, especially for a college student-athlete!

Increase Your Cash Flow

Money management comes down to a simple idea – you cannot spend more than you earn.  A cash flow statement helps you see money is flowing in or out of your pockets.  If you have negative (-) cash flow then you are spending more than you earn and quickly pushing yourself into debt.  However, if you can keep your cash flow positive (+), or increase it, you can be sure to use your money wisely and for goods you need, not want.

Take Action

Complete an Income Summary and Cash Flow Statement to measure how your money flows.  If you have debt or owe someone else money, complete the Debt Tracker Worksheet.

Money Making Tips

Local teenagers have shared different ideas with Hawaiian Community Assets on how young adults in Hawaii can bring in more money each month without getting a job.  Here are a few of them:

Tutor               Teach surf/swim lessons        Babysit            Designated driver

Recycle           Paint houses                            Fix bicycles    Create websites

Clean houses   Mow lawns/Trim trees           Pet sit              Umpire/Referee

What are your abilities and skills besides sports? Can you add ideas to this list?

Set Savings Goals

Just as goal setting is an important part of improving as an athlete, setting savings goals is crucial when managing your money.  With a savings goal in mind, you can begin to use your skills to achieve the impossible.  With hard work and dedication, you can follow through on reaching those goals and set yourself up for greatness.

Take Action

Think of three savings goals – short-term (3 months), mid-term (3 months – 1 year), long-term (> 1 year) – you have and fill in the Savings Goals Table paying attention to (1) the total cost of the goal, (2) a target date for when you want to reach it, and (3) how much money you will need “pay yourself” (save) each month to make it happen.

Money Savings Tips

Local teenagers have shared different ideas with Hawaiian Community Assets on how young adults in Hawaii can save more money each month.  Here are a few of them:

            Do not carry cash       Open a savings account          Direct deposit your paycheck

Put change in jar at end of each day              Start saving small amounts - $2/day

Pay-Yourself-First – when you get money, give yourself a set amount to go toward your savings goals

Create a Spending Plan (Budget)

Imagine you wanted to try out for the college football or volleyball team, but have not been following a workout plan.  When it came time to suit up for try-outs do you think you would be the best you could be?  Of course not.

Without a plan you cannot set yourself up for success and without a spending plan (budget) you are less likely to save money and more likely to spend your money as soon as you get it. [3]  

Take Action

Create a Monthly Spending Plan (Budget) by including the information from the worksheets and tables above.  Remember to include money you will be “paying yourself” (saving) for your savings goals and your current expenses.  Rework the budget each month as necessary.

Important: Before heading off to college, be sure to prepare yourself for the college life.  How will your spending plan change when you live on your own?  Will you have to pay rent or for a meal plan?  How much will tuition cost?  Will you have to cut down on things like going out to the movies or

Learn More About Money Management - Purchase Kahua Waiwai, Opio Edition© Today!

Content and information included on this webpage is provided by local nonprofit, Hawaiian Community Assets (HCA) with worksheets and tables taken directly from Kahua Waiwai, Opio Edition©, a fully-illustrated financial education handbook developed by local communities in 2008 for the specific needs of Hawaii teenagers.

HCA’s Kahua Waiwai, Opio Edition© handbook comes complete with information on:

• Employment and paychecks
• Budgeting and saving
• Opening and using bank accounts
• Building credit and credit reports
• Using credit cards wisely
• Buying and owning cars
• Insurance, consumer fraud, and identity theft
• Post-secondary education and building careers
• Filing taxes
• Starting a business
• Buying or renting a home
• Living trusts and wills
• Available community resources and websites

Order your own Kahua Waiwai, Opio Edition© handbook for only $12!*

For more information about Hawaiian Community Assets’ youth financial education program call 1-866-400-1116.

*All revenue from purchases of Kahua Waiwai, Opio Edition© directly supports free community-based youth financial education programs in Hawaii!