In this PBS video from Your Life, Your Money, learn about the Get Your Money Right seminar on personal finance. Music mogul and entrepreneur Russell Simmons, along with Hip-Hop artists and other music industry professionals, teach kids about personal finance and managing their money. The seminar participants offer inspiration and guidance, stressing that proper money management is a vital life skill. They also teach young people that financial information is readily available and that being financially literate and responsible is a key component of a solid future.
Making It and Keeping it Transcript (Document)
Understanding how to manage your money is an important aspect of financial security. The truth is, not many people have a strong understanding of financial matters. Though it can be difficult to master, financial literacy is important to learn. Being financially literate can help you make better financial decisions, and similarly, low financial literacy has been shown to lead to poor financial decisions.
What is financial literacy? Financial literacy—also sometimes referred to as financial capability—means having a basic understanding of the concepts involving money and personal finance, including budgeting, saving, investing, and insurance. Other topics that are a part of financial literacy involve those concepts in action, including retirement saving, home ownership, and financial planning.
Being financially literate, or capable, also means being knowledgeable, educated, and informed about those topics to enable the planning and execution of sound financial decisions. It’s about knowledge and action: being knowledgeable about managing money, and utilizing that knowledge to gain personal welfare through financial security. Financial literacy provides tools to navigate the complicated journey through the financial and economic decisions in life.
Having an understanding of personal finance is more important now than ever. The consumer financial world is evolving at an extraordinary pace. The last few decades have seen a boom in consumer financial products due to technology and financial development, popular access to financial markets, and the evolution of consumer banking services. The simple understanding of how to manage a checking and savings account at a local financial institution is no longer sufficient for managing one’s finances. Basic personal financial management more commonly requires the comprehension and utilization of increasingly complex financial concepts and products.
There are a variety of resources available to help you learn about personal finance. For example, financial institutions, community-based organizations, and government agencies all engage in various kinds of financial education. The range and scope of these programs mean that most people have access to financial education. Young people are a primary target for financial education, and schools are beginning to recognize the importance of financial literacy. Although financial literacy can seem difficult to understand, there are outlets to help you manage the financial side of life.
Donald Faison: Here’s a man who can show you a thing or two about making and managing money. Russell Simmons started out hustling on the streets in Queens, New York. Now he’s a multi-millionaire. But he learned about money the same way I did, the hard way.
Russell Simmons: When I grew up I always wanted every toy that I saw. I see young people are the same way today. I made some bad choices early on, but, I was a little conservative, I was lucky enough that my parents taught me some things. You learn about managing your life, you know, kind of a trial and error.
Donald Faison: When Russell began his business career he had little to guide him except street sense and a keen interest in a new music genre that would come to be known as hip-hop.
Benjamin Chavis: When the major labels paid no attention to hip-hop music, Russell wasn’t daunted by that. He sold records out of the trunk of a car, literally.
Donald Faison: In 1984 Russell and a partner launched the first hip hop record label- Def Jam. He went on to manage some of hip hop’s greatest stars but he didn’t stop there, he brought hip hop into the mainstream—creating television shows, films and clothing lines. But he also wanted to start giving back. Russell was determined to give young people the skills to succeed in managing their money.
Russell Simmons: Financial literacy is not taught in schools, and it’s not necessarily handed down from generation to generation. So, we’ve got a supplement for that.
DJ Toomp: One of my financial mistakes? Just being wild with the money.
Bryan Michael Cox: Save your money. Live within your means.
Benjamin Chavis: He's known as the godfather of hip hop, Russell Simmons.
Russell Simmons: If you’re here, you’ve already taken the first step. You know, you’re taking stock in yourself, taking responsibility for yourself.
Benjamin Chavis: Today’s summit would be the 78th summit that we’ve had in eight years. When we first started the Hip Hop Summit, we found out we had underestimated the readiness, the thirst and hunger of young people for this material. Beth Kobliner: The good news for a lot of young people who are starting out is that it actually isn't all that complicated to get your finances in order.
Michelle Singletary: This is all about getting you on the right path now, before you make all the mistakes that your parents made or their peers made.
Kevin Lilies: I grew up with a rusted spoon in my mouth. I was poor. I’m the first generation of money in my family. I started with hard work. I started with getting my mind right.
Bryan Michael Cox: I got signed to Noontime Music when I was 19, and got my first $40,000. The only smart thing I did with that $40,000, I went to the bank opened a bank account.
Asher Roth: The most important thing is discipline. You have to know the difference between needs and wants.
Tracy McGraw: The Louis Vuitton, the Gucci, Prada, that’s not really what it’s about. Life is about being able to create a foundation for yourself.
Young Joc: On my journey, trying to become Young Joc, it dawned on me that, because I didn’t have, I had no choice but to budget.
Benjamin Chavis: Financial literacy and financial responsibility: This is not something you should take lightly. It may not only save your life, it will help you live a better quality of life.
D. Woods: Hang around people who know more than you. And get in groups of people that are likeminded so that you guys can elevate together.
Russell Simmons: You come here now for inspiration. You see that the artists have taken these steps. You see that you have experts here to teach you. And you find out it’s easy. This information can’t get lost. It’s everywhere. You know, no matter how rich you are you need to be able to afford your lifestyle. So that’s something we have to teach young people. The summit has given many people their first steps. They come out empowered, connected, feeling like they can, get their financial situation in order, get their house right, or their money right.
RECAP: It’s Your Life and Your Money.
Start with small steps.
Start when you’re young.
WE should delete the rest:
Donald Faison: You too can get your money right but those first steps are up to you. It seems like a lot to deal with but you’re about to meet some folks who are doing it and profiting from the power it gives them.
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