Ka Wai Ola - Office of Hawaiian Affairs, Volume 28, Number 11, 1 November 2011 — KNOW THE ISSUE: Financial success for titure generations [ARTICLE+ILLUSTRATION]

KNOW THE ISSUE: Financial success for titure generations

Native Hawaiians have traditionally attained lower incomes compared to all other ethnicities. The AKAMAI Finance Academy is working to change those statistics. Here, two 'ōpio share the importance of budgeting and investing for linaneial success. Cody Howland and Caitlyn Laborte are participants of the AKAMAI Finance Academy and the Kamehameha Scholars program.

"Effectively managing finances is essential to hnaneial stability and success, especially during these difficult times. Knowing how to budget and invest wisely ean save money. Mismanagement of finances could lead to the overuse of credit cards and loans. This ean lead to

serious debt. The nahonal average credit card debt per household is approximately $15,799 according to the Federal Reserve. "By starting good habits early, nipping the bad ones, and having a good understanding in finances, individuals ean reduce and avoid debt. Finances

should be taught to young individuals so that they ean have a strong foundation in the world of hnanee and avoid bad habits that end up producing disastrous results. With knowledge comes understanding, then from understanding, comes better decisions." — Cody Howland, junior at Le Jardin Academy "Managing money is important. It allows me to set aside funds for short-term spending ( so I ean still enj oy being a teenager) and long-term savings (for college). Leaming how to invest will make the money I save

grow ai a iasier raie. "Most students splurge all their money on discretionary items, such as drinks from Starbucks, keeping up with the latest fads or purchasing video games and apps. These habits continue into their adult years using credit to make bigger purchases like a flat-screen TV or car. Eventually

they accumulate so mueh debt that they can't qualify to buy a home. If people learn about hnanee at a younger age, they'll make better choices on how they spend, save more and invest longer. They have the advantage of a longer period of time to invest, thus earning a higher return." — Caitlyn Laborte, Pearl City High Sophomore For information on the AKAMAI Finance Academy or Kamehameha Scholars, visit akamaifoundation. org or apps.ksbe.edu/kscholars.

Howland

Laborte