Eshal Firoze | The Chronicle
From chore allowances to paid hours, students at Mason High School (MHS) are finding new ways to interpret and fulfill financial needs as they become adults entering the real world.
MHS senior Chloe Knight is one of the many high schoolers navigating filing taxes for the first time this spring, after earning a steady income through her part-time job. With the April 15 deadline, Knight has had to learn the right approach to understanding the tax process by herself.
“[Filing taxes] felt like I was preparing for the real world, and it was harder than I thought it was going to be,” Knight said. “I was surprised to see how much I was actually making and how much was getting taken away from my paychecks.”
Knight also said she was able to translate ideas she had learned in financial literacy classes that she’d previously taken, but still felt unprepared and overwhelmed. Knight said that she had to rely on her parents, who were more experienced in the process, to understand the forms and educate herself.
“Financial literacy was helpful in the sense that it provided me with tools for budgeting in my future,” Knight said. “But it didn’t aptly prepare me for how I’d have to use those tools, and I had to do that research myself.”
MHS junior Mohak Gupta has found a less conventional approach to take control of his money early– investing. Fidelity’s 2023 Teens & Money Study found that 75% of teens say that investing is important to them; however, only 23% have started. The stock market lets people purchase and sell shares of a company, allowing them to earn potential profit but also bringing the risk of losing money based on how well a company performs. The MHS Investment Club aims to educate students on foundational knowledge of the stock market and how to begin investing. Mohak Gupta, president of the club, recognized the value in investing early to fund his future. As a leader, Gupta said that he prioritizes bringing awareness to other teens of the benefits of investing their savings as soon as they can.
“Most of my money is invested across ten to twenty different companies. I want to have multiple pillars of income instead of living paycheck to paycheck in the future,” Gupta said. “Learning about investing, I am a lot more literate in knowing how to grow my money and budget properly.”
While some choose to save their money, Gupta emphasized investing now to lay a foundation for the future and establish financial security. Gupta says that over time, he has learned how to analyze company portfolios and make informed choices with his money, investing in companies like Google, Meta, and Pfizer. He prioritizes research and remembers to avoid being impulsive while investing.
“[Students] shouldn’t be too emotional about investing. They should just listen to the facts, read the companies, and analyze thoroughly. If [they are] emotional, they might not be able to make rational decisions,” Gupta said.
Gupta said that he began with $200, investing cautiously at the beginning. Over time, he grew confident and now has around 5k in his investment account. Gupta recognizes the risks that come with investing and understands why young people are often hesitant to start. Nonetheless, he emphasizes that even a small investment can be incredibly beneficial over time and encourages students to start.
“Time is money, and after a long time, a small amount of money will grow exponentially,” Gupta said. “[Students] should invest as early as possible or at least be researching about it.¨
Andrew Goetz, a financial literacy teacher at MHS, recognizes recent trends among high schoolers in spending, saving and investing. Goetz says as a teacher and a father, he understands the importance and necessity of financial planning for students.
“It’s important [for students] to have a clear vision of what they want to achieve with their money. It’s knowing where the money’s coming in and where it’s going,” Goetz said. “It’s about being thoughtful now to serve the vision in the future.”
Financial literacy classes became a mandatory graduation requirement in Ohio in 2022. Designed to promote better financial decision-making, the classes teach students basic financial skills such as budgeting and money management.
While Goetz hopes to give students the traditional financial abilities in order to be successful, he said that the current generation faces a challenge with the growing influence of social media.
Social media platforms like TikTok and Instagram have driven new spending habits amongst teens. Haul culture, influencer obsessions and new trends have changed how teens spend their money.
“Anytime you’re looking at any kind of media, all of it is edited and framed in a particular kind of way,” Goetz said. “We see so-called influencers buy extravagant things on social media and don’t see the repercussions of what it means to own that.”
Goetz said that the habits students are currently developing will be what sets them up as adults, including how impulse buying, a lack of budgeting and failing to look ahead can have negative effects over time. Goetz said that the increased use of credit cards today is another factor that leads to overspending and poor financial choices.
“There’s something very visceral when you see the cash coming out of your wallet,” Goetz said. “Credit cards have changed the landscape, and it has become too easy to spend money without thinking, because you can’t see it.”
Goetz also said that this generation faces a challenge of adjusting to a rising economy, especially when it comes to paying for higher education. A Junior Achievement Teens & Personal Finance Survey found that two-thirds of teens say that rising education costs have affected their plans for additional education after high school.
Senior Lily Altier is among many high schoolers who have taken on the responsibility of self-financing their college tuition. Aiming to pursue a career in occupational therapy, Altier began saving at the start of her junior year. Altier’s main goal is to be able to fund higher education while minimizing future debt.
“The breakdown of how much college actually costs wasn’t something I realized until I looked[ed] into it more specifically,” Altier said. “Then there are other costs you wouldn’t expect to pay for like book fees and transportation. Not enough people talk about how much financial stress that can be, and it should be talked about more.”
Altier said that she has had to learn how to save and be more mindful with her purchases. She recognized that to fund her future, she would have to make changes in her current spending habits. Altier says she uses a budget tracker to ensure that she is setting aside enough money for her savings, but also to avoid unnecessary and reckless spending.
“One of the hardest parts has been seeing my friends and peers who don’t have to worry about [paying for tuition] do more, whereas I have to miss out on doing certain things because I have to save that money for later,” Altier said. “In order to save, I’ve tried to restrict how much I casually spend, like getting a coffee, grabbing a snack after school, and not buying things that I don’t necessarily need.”
Altier emphasized the importance of taking initiative, exploring various scholarships, and reaching out to college counselors when planning the future to make the right decisions. Altier said that it’s essential that students take advantage of all the resources available and educate themselves in every way.
Altier says that amidst the stress that has arisen while saving for college, she remembers to stay grounded and keep her end goal in sight. She says that it’s important for students to keep a clear perspective when facing the growing financial challenge of paying for higher education.
“If you are honest with yourself about where you are and where you need to get to, you are capable of doing it,” Altier said. “When paying for college, it keeps me going knowing that one day I’ll go into a career that I want and enjoy what I’m doing.”
