Andy January 28th, 2008

I’d like to personally thank Angie for her comment on credit card debt and college spending. To read the whole comment you can click on http://www.collegespending.com/2007/10/17/quick-facts-about-students-and-credit-cards/

To summarize, Angie discusses how credit cards are on the bottom of the list of worries for college students. I agree that many students are “lucky” enough that credit cards are on the bottom of the list of financial worries. Still, you have to remember many students pay for EVERYTHING with credit. These are usually the students who have no job, no savings, no support. Most students will not resort to credit card spending until after their financial situation has really deteriorated and they have no other avenues to survive. (For a good portion of students this is an unfortunate reality)

Many of my friends from college, including myself, will use every single penny in their name before moving on to the credit spending. This is because the majority of students know the risks of credit card debt. The problem is that these bills amount so quickly, that by the time they realize they are over their heads in CC debt it is too late. As well, many students have troubles keeping to their budget and will splurge on certain items from time to time. That will add up!

When I was in college I used every bit of cash I could find for food, drinks, entertainment, and transportation. When it came to the larger ticket items (books, travel, dorm supplies, etc.) I just didn’t have the cash resources available, so I had to use credit cards in order to survive. I think this may be a typical situation for college kids who are without financial support.

I agree with Angie’s point that keeping a job is very difficult in college, but most of my friends had some sort of part time job so that they could afford to eat and go out once in a while. I had many days where I would attend 3-4 classes in the morning followed by work till 10pm.  It stinks, but you have to do what you have to do to survive and get your degree.

There is nothing easy about college… the educational, social, and economic pressures all hit you at once. This is usually the time in life you realize you are responsible for your own financial decisions, and that can be very stressful. Luckily when college is over you may have positioned yourself to move up the financial ladder and hopefully repay your debts.

• Credit Cards
• Comments(1)

Andy January 24th, 2008

This is a great list compiled by FastCompany.com and highlighted on Yahoo Finance today.  You can go to  http://finance.yahoo.com/career-work/article/104272/Ten-Jobs-You-Didn’t-Know-You-Wanted

to see the whole list. Below is the list of what they call “Ten Jobs you Didn’t Know You Wanted”

1)Flavorist

2)Brewmaster

3)Sensory Brander

4)Carbon Coach

5)Sleep Instructor

6)Metaverse  Evangelist

7)Interaction Designer

8)Roller Coaster Engineer

9)Animator

10)Travel Writer

Click the link for a detailed description of these jobs.  They are pretty interesting jobs, and some of them can actually earn you a lot of money.

The key point I took from this article is that if you have a passion, don’t be afraid to follow it.  You will be a much happier person making 30k a year doing something you love, compared to making 50k doing something you hate.  What this article officially proves is that there are jobs that not only can help you fulfill your passion, but can also make decent money.

• General
• Comments(0)

Andy January 3rd, 2008

The great thing about the holiday season is that I finally had some time over the past few weeks to relax and watch some television. When retail stores, restaurants, and gyms are closed, what else is there to do?

Here is the natural progression of my channel surfing… I start by flipping to ESPN/ESPN2 to see what bowl game is on TV. Next, I check to see what else is being broad-casted in High Definition. Assuming nothing entertaining is being shown on those 15 or so stations, I always end up checking out what is on MTV, and the other similar stations I probably should have stopped watching 5 years ago. How can you not get addicted to shows like “Run’s House”, “Made”, and my favorite “True Life”???

What has really caught my eye is a series of annoying student loan commercials I have seen on MTV. These commercials are really just cheaply produced, poorly animated, and aimed to desensitize college kids to the student loan process. Does anybody else think it is funny that these commercials appear as if I could call them today and have a check in my mailbox for $40,000 tomorrow? That is enticing and misleading to any college aged kid.

The Most important information they happen to leave out of the commercial can be found on their website in small print….

2 Undergraduates may choose to defer repayment of principal and interest until six months after graduation or ceasing to be enrolled at least half time. Immediate repayment and interest-only repayment options are also available. Graduate repayment is automatically deferred. Continuing education borrowers begin repayment the earlier of a) 180 days after the student graduates or earns a certificate; b) 180 days after the student ceases to be enrolled; or c) two years after the date of the loan disbursement. K-12 loans are immediate repayment loans.

Too many students are entering into unfavorable student loans , please make sure to not make such important decision based off of television commercials. You need to do your homework. I hope that this and future blog entries can help guide you to make more educated decisions.

• Student Loans
• Comments(0)

Andy January 2nd, 2008

Happy New Year! By now you have made your resolutions to completely turn your life around for the better.  Let me guess… you are planning to pay off ALL your bills, be nicer to ALL your friends, and even loose ALL of your excess weight. Does this sound like a familiar resolution?

Now that you have had 2 days to question your motivation, I’d like to propose a new idea. Alter that resolution and make some goals you can actually obtain, something that won’t drive you crazy in the process.

Example 1 (Debt): Lets say you are 6 thousand dollars in debt, how about resolve to pay off half of that debt in a year? If you save $250 a month that resolution is possible. That is a number that will not freak you out when restructuring your new budget.

Many people think that by saying you will pay off all your debt in a year that this is a good resolution. To me that just means you might be setting yourself up for failure and disappointment in the end. Imagine how happy you will be to say “I just paid off half of my debt!”.

Example 2 (Weight Loss): Want to lose 30 pounds this year? Try your hardest and aim for 15. Anything above 15 will be a huge victory, and will make you excited when you start to see the pounds continue to come off.

You get my point, aiming for the stars is great, but most of the time unrealistic. It is when we set realistic goals that we are most likely to achieve them. If you are lucky enough to obtain these realistic goal by the middle of the year, make some new ones around summer time.

Good Luck.

• Budgeting
• Comments(0)

Andy December 12th, 2007

Pick up your remote and get ready to set your Tivo/DVR for this Saturday. The show is called Big Spender and it is on the A&E Network. Not only is this show extremely entertaining, it is also educational, and it may just help you get your financial life back on track.

http://www.aetv.com/bigspender/index.jsp

Here is the general premise of the show: A person, who has a lot of debt, has noticed their financial and person lives spiraling out of control.  The several episodes I have seen have highlighted consumers that not only owe creditors money, they may owe their own family members thousands of dollars!

At this point they turn to financial expert and motivational speaker, Larry Winget, to put them into a financial boot camp regiment. Usually this show comes with a lot of emotional heartache (meaning very entertaining “waterworks”) when the person realizes they need to change their spending habits and mend broken relationships in their life. Larry monitors as this person attempts to make changes in their life, then he grades them on their improvement several weeks later before sending them on their way.

For those of you who are unfamiliar with Larry Winget, he is basically what you would get if you could genetically mix Doctor Phil and John Wayne. He is no nonsense financial cowboy, and takes no prisoners as he tosses his clients back onto the right track. Larry will tell his clients how it is, and that these changes had to have happened yesterday.

If you are in debt, know somebody who is in debt, or just like a good dosage of reality television, set your Tivo’s for this Saturday morning.

Let me know what you think of this show…

• Budgeting
• Comments(0)

Andy December 4th, 2007

Happy Holidays from Collegespending.com!

I wrote last month on how to most effectively create a holiday budget. The goal of that post was aimed to help you prepare your holiday shopping list without sending your bank account into shock. Hopefully you have taken my previous advice into consideration. Now that your shopping planning is complete, have you given thought to your own holiday wish list?

All gifts are not created equal, and some will have better long term financial and emotional value. The latest trendy gifts are generally short lived, then tossed in the corner never to be seen again. When deciding what you want for the holidays, consider asking for gifts that fall into one of the following categories…

1)A gift that has large sentimental value. No matter what the retail price is of this gift, it represents something much bigger and more important in your life. These are gifts that will make you happy to look at for years to come. (Ex: Pictures, Charms, Music, A “coupon” for a romantic dinner from the gift giver) Remember, these are gifts have greater value than what the price tag says.

2)A gift that appreciates in value. Certain items will actually gain value over the years. I am not recommending this type of gift so that you can turn around and sell it, but these type of items are great to collect and watch how they grow in value. (Ex: autographed items, antiques, memorabilia)

3)Money/Gift Cards. Over the years I have received many checks from family members. The thrill of opening an envelope with a check inside is far less exciting than unwrapping an xbox or a new outfit. Here is my advice for gifts such as cash, gift cards, and checks… Take at least half and put it towards bills or necessity items, such as food or household items. Doing this will really help you out in the long run. With the leftover money, go buy yourself something you have been wanting. By doing this you have helped your financial status and bought yourself something nice for the holidays.

Time is running out on holiday shopping, so go drop your family and friends some hints. Maybe this year instead of just asking for the trendy holiday items, ask for something mentioned above.

• Budgeting
• Comments(0)

Andy November 28th, 2007

A study by the Caldwell Banker College Home Price Comparison lists the most and least affordable college towns to live in. If you love your college town so much that you hope to live there after school, take a look at the list and see if you can afford these average prices. In my opinion there are not too many surprises on this list. The cheapest homes are generally in small towns, while the most expensive are all big cities.

Looking for a healthy medium? Read my old post on starter cities. Starter Cities

Is your college town on this list? Let me know how you find the cost of living to be where you go to school.

The top 10 most affordable college markets for home prices in 2007 are:

1) Ball State University, Muncie, Ind. $150,000;

2) Texas Christian University, Fort Worth, Texas $151,250;

3) University of Tulsa, Tulsa, Okla. $153,750;

4) Oklahoma State University, Stillwater, Okla. $162,000;

5) Texas Tech University, Lubbock, Texas $163,250;

6) University of Toledo, Toledo, Ohio $163, 278;

7) University of Louisiana Monroe, Monroe, La. $164,499;

8 ) University of Houston, Houston, Texas $169,736;

9) Rice University, Houston, Texas $169,736;

10) Utah State University, Logan, Utah $172,978.

The top 10 most expensive college markets for home prices in 2007 are:

1) Stanford University, Palo Alto, $1,67 million;

2) Boston College, Chestnut Hill, Ma. $1.38 million;

3) University of Southern California, Los Angeles, $1.3 million;

4) University of California, Los Angeles, Los Angeles, $1.3 million;

5) University of California, Berkeley, Berkeley, $1.28 million;

6) San Jose State University, San Jose, $1.14 million;

7) University of Hawaii, Honolulu, Hawaii $843,750;

8 ) Northwestern University, Evanston, Ill. $708,000;

9) Florida International University, Miami, Fla. $638,333;

10) University of Miami, Miami, Fla. $638,333

• Budgeting , General
• Comments(0)

Andy November 20th, 2007

As my previous blog entries have mentioned, there is a large problem with students getting into credit card debt.  There is no denying that credit cards play an important role in our society, but please understand that it is not necessarily a bad one.  I was always told it is important to have a credit card for emergencies and to compliment modest spending habits.  I don’t think it is a bad idea to give young kids credit cards with VERY low credit limits, aimed to teach credit responsibility at a young age.  It is better to be $100 in debt as a high school student than $8,000 in debt as a college kid.

With so many options to pick from, what was the deciding factor in picking your card? How did you find the credit cards that you currently have?

Just like most twenty-somethings, I do most of my research and shopping on the Internet.  By going to Google and typing in “Credit Cards” it quickly becomes apparent that the decision to pick a certain brand is far from obvious.  The organic search results mainly turn up credit card guides, and the paid ads are all the major credit card players.  At first glance of the results I was completely overwhelmed.  Some of the guides helped me decipher the different benefits, but each guide had different cards.  I still found myself overwhelmed at the number of options.

After pondering where I would go from here I realized that my eyes tended to shift towards the credit card companies I was familiar with.  Didn’t I just see a Discover Card tent at a football game?  Don’t my parents have Chase credit cards?  Capital One has some funny commercials, is that the best option?

This explains the emphasis on credit card grass roots marketing.  There are some differences in APR rates, minimum payments, credit limits, and so on… but “Mr. Average Consumer” will go towards the name they hear/see/are told to trust.

To be the smartest of consumers you need to look past the marketing campaigns and start to put together an excel spreadsheet with the following categories side by side.

-Name of Card

-Intro APR

-Intro APR Period

-Regular APR

-Annual Fee

-Balance Transfers

-Reward Type

By putting the important factors side by side you will start to really see what card works best for you.  Find the card that has the best rates and rewards.  You may realize that the cards with the best marketing have some of the most uncompetitive rates and rewards.  Aren’t you glad you decided to shop around?

• Credit Cards
• Comments(0)

Andy November 16th, 2007

Have you booked your tickets to return home for the Holiday break, or are you already looking ahead to a spring break trip? Now that your fall classes are coming to an end, it may be a great time to think ahead to future travels plans.  By searching online you will be able to find the best deals possible.  Always remember to use credible sites, and read user reviews so you know what to expect.  Below are two credible sites that I have used in the past and have worked out well.

These sites are catered to college students but always remember to check the obvious websites like Orbitz.com and Expedia.com to make sure you are getting the lowest possible deal.  Remember that when booking travel plans, timing is everything.  Make sure you book early to guarantee your tickets and a low price.

www.StudentUniverse.com-  A popular site that has been around for years.  Student Universe shows deals from Universities to very likely destinations for that student population.  Example, many New Yorkers go to college in DC.  Student Universe clearly shows on their homepage that if you go to George Washington University and need to get home to New York City that will only cost you $52!  Want to go to Europe?  Student Universe has information on hostels that can come in handy while watching your budget overseas.

www.STAtravel.com- A fully comprehensive travel agency geared towards student travel. STA Travel has physical locations on many campuses so that speaks well for their credibility.  They offer spring break packages, hostile information, and student tours.  There are also travel blogs and forums where you can ask STA experts.  This site is a great resource for the student traveler.

Happy Travels.

• Tip of the Day
• Comments(1)

Andy November 13th, 2007

The winner (or loser) is………Seton Hall University

According to America’s Best Colleges 2008, Seton Hall has the highest amount of students exit college in debt. A whopping 61% of graduating students have to pay back loans. As well, the average loan payback is $37,724! That is about $17,000 higher than the national average.

COLLEGES WITH MOST DEBT

School / percentage of graduates with debt / average amount of debt

Seton Hall University / 61 percent / $37,724

New York University / 61 percent / $34,417

Worcester Polytechnic Institute (Mass.) / 83 percent / $34,409

University of North Dakota / 72 percent / $33,032

Pace University (N.Y.) / 72 percent / $32,980

COLLEGES WITH LEAST DEBT

School / percentage of graduates with debt / average amount of debt

Princeton University / 26 percent / $4,965

California Institute of Technology / 34 percent / $5,156

Harvard University (Mass.) / 42 percent / $9,717

Howard University (D.C.) / 88 percent / $10,868

Utah State University / 25 percent / $11,040

• Student Loans
• Comments(0)

Andy November 8th, 2007

This is not a sports blog… but if your college has a winning football team you know it can influence a large portion of your college experience. How does this tie into college spending and finances? Hang with me and I’ll explain.

In a matter of weeks you will know your school’s bowl destiny. Is your school good enough to make it to a BCS bowl this year? If so you are very lucky. Maybe your team will only be invited to the PapaJohns.com bowl in Alabama. (Yes that is a real bowl)

Either way, if you are a hardcore fan you are going to want to make that trip to watch your team. Planning a trip to LA to see the Rose bowl can be significantly more expensive than going to Detroit to see the Motor City bowl, but if you follow some universal tips you can make any bowl trip affordable, and still a lot of fun.

Here are some tips you can follow so that you can follow your team to glory…

1) Look for travel packages through your university. Your college will have a certain number of tickets available at a discounted rate or free. If you don’t have to pay for the tickets it makes the trip much less expensive.

2)See if your school has any deals worked out with local hotels near the stadium. If not, look for hotels near the closest airport. Airport hotels are usually cheaper and geared towards professional travelers.

3)Shack up with as many of your friends as possible. Splitting the room fees between 4 people will make a huge difference in your overall total spendings.

4)Eat/drink cheaply. I will never recommend fast food because of the lack of nutrition, but there are plenty of restaurants where you can get a full meal for about 10 dollars. Sports bars are a great place to get a burger for about $6 bucks.

5)If you are over 21 remember these three words- Cheap Domestic Beer.

6)Don’t buy souvenirs at the stadium. These items will always be marked up. Buy your commemorative t-shirts and hats online when you get home or from a street vendor. You are very unlikely to wear this t-shirt more than a handful of times. Especially if your team loses.

• Budgeting
• Comments(0)

Andy November 6th, 2007

Times are changing for credit card companies. Gone are the days of handing out free gifts and hoping you take the bait and sign up for a new credit card. I know this makes you college students very upset to know you will now have to buy your own XXL t-shirts and plastic coffee mugs. Nowadays credit card companies are well aware of their negative press on campuses and are trying to counteract that with financial education geared to college students. Don’t be fooled though, their ultimate goal is still to get you to fill out that credit card application on the spot.

Since new legislation has been passed by many states and campuses, credit card companies have had to adapt to the changing times. Students are now more aware than ever of the credit card scams that can destroy their credit forever. Big round of applause to the national media as well as student groups who have done a great job passing along that message.

Counter Marketing the Marketers 

Volunteers from the Public Interest Research Group have created a program called Feesa (yes, that is a play on the company name Visa). This group of students is determined to “counter-market” credit card scammers on campus. Their tables look just like the average credit card manned table, except these tables are stocked with education materials with a built in warning to be weary of credit card marketers.

Look for these Feesa tables on your campus in the near future. This program is ramping up over the next 18 months. If you see a Feesa table on your campus, stop by and say hello. After all these guys have your best interest in mind.

• Educational Programs , Legislation , Credit Cards
• Comments(1)

Andy November 1st, 2007

It’s hard to imagine that it is already November 1st. Maybe that is due to the fact I am in Phoenix, Arizona and it is still over 90 degrees outside. Or maybe it is due to the fact that I am somewhat in denial that the holiday season is right around the corner. Didn’t we just have the holidays? Do we really have to do this same drill every year???

I know what you are thinking… my Halloween pumpkin isn’t even moldy yet. Why are you talking about the holidays?

It is simple, let this blog entry be a wake-up call to all you out there. Holiday spending is right around the corner. If you listen hard enough you can already hear the Christmas jingles on the radio… Don’t hear them yet? Just give it another week or two.

The holiday season can be so much fun, but so darn expensive. Now is the time to figure out a budget to determine how much money you are able to spend on the holidays. Seriously, take some time to go through your bank account and friends/family list. Figure out how many of your friends/family you will by buying gifts for, and how much you will need to spend on each.

Ok, do you have that total ready yet?

Well take that number and add about another $100 just to be safe. You will always end up spending a little more on gifts than you planned for. The basic rule for holiday planning is plan for the unplanned. I know it is a mouthful to say, but its important to understand.

Why is that?

You will always have a friend or family member you didn’t think you would be receiving a gift from, come to you with a last minute wacky present. For that reason be ready with a crazy excuse why you didn’t get to go holiday shopping yet. And also, be ready to shell out a few bucks here and there to reciprocate those holiday wishes.

This is the most expensive time of the year for most people. Whether you are traveling home to be with your parents and see old childhood friends on Thanksgiving, or just staying on campus… you will not be in class, and that usually means many trips to malls, restaurants, movies, and events.

Let me be the first to wish you and your family a happy November and a merry holiday budgeting session.

• Budgeting
• Comments(0)

Andy October 30th, 2007

Do you need some easy answers to your basic student loan questions?  Go to http://www.finaid.org/questions/.  This site will give you information on everything from student loans, to tips for saving for college.  They also have a great section full of calculators.  Check it out.

Here are some examples of the questions you can find answers to on www.Finaid.org

• I probably don’t qualify for aid. Should I apply for aid anyway?

Yes. Many families mistakenly think they don’t qualify for aid and prevent themselves from receiving financial aid by failing to apply for it. In addition, there are a few sources of aid such as unsubsidized Stafford and PLUS loans that are available regardless of need. The FAFSA form is free. There is no good excuse for not applying.

• Are my parents responsible for my educational loans?

No. Parents are, however, responsible for the Federal PLUS loans. Parents will only be responsible for your educational loans if they co-sign your loan. In general you and you alone are responsible for repaying your educational loans.

• I got an outside scholarship. Should I report it to the financial aid office?

Yes. If you are receiving any kind of financial aid from university or government sources, you must report the scholarship to the financial aid office.

Unfortunately, the university will adjust your financial aid package to compensate. Nevertheless, the outside scholarship will have some beneficial effects. At some universities outside scholarships are used to reduce the self-help level. For example, at MIT the outside scholarship is first applied to reducing the self-help level, and only when the scholarship exceeds self-help does it replace institutional grants. At other universities outside scholarships are used to replace loans instead of grants.

• Student Loans
• Comments(1)

Andy October 29th, 2007

Happy Halloween! This can be such a fun time during college with all the parties and events taking place. It can also be one of the more expensive holidays if you get carried away. Halloween does not have to break the bank if you follow some of these tips…

Now that we are in October, the Holiday season is right around the corner. All of it begins with Halloween and then moves right into Thanksgiving and Christmas. The Holidays can put many people into a bad mood because they can be very expensive. The good news is that there are ways to have fun for the holidays without breaking the bank.Halloween costumes can be very expensive. It is very easy to spend $20, $30, $40 or more on a costume. Add another $20 to $30 dollars on accessories and you just spent $75 dollars on an outfit that you will wear once. If you are creative and crafty, you can create costumes for yourself and any little trick-or-treaters that you may have. Here are some easy ideas that you can use to get you started.

Look around the house for things that you already own and use them to make a new costume. If money is short, you can always take an old white sheet and cut some eye holes in it. I know it sounds cliché but you can put your own twist on the Ghost idea. Begin by cutting out holes for the eyes and a small slit for the mouth. Next, dress it up a little. Use eye shadow and lashes around the eyes, and put some lipstick for the mouth. Take your blush and add a little color on the cheeks. Get some cheap costume jewelry from a dollar store and wear earrings and a necklace. For the men, you could color in a beard or mustache. You do not have to use a white sheet you can use a different colored or patterned fabric to make a truly unique ghost.

Another simple costume is a scarecrow. Start by taking an over sized flannel shirt and matching it with some old blue jeans, preferably with patches on them. Use a rope to tie the cuffs of the jeans and the sleeves. Stuff the shirt and the pants with old wads of newspaper and then add a little bit of straw to hang out of the jeans and the shirt. A little bit of make up can finish the outfit off.

Another creative and cost effective costume is to dress up as static cling. Wear any solid color such as white or black. Then all you have to do is use safety pins to pin random garments like socks, underwear, and fabric softener sheets to your clothes. Finish off the look by sticking your hair straight up.

Children’s costumes can also be made from items you already have around the house. If they have an all black outfit, they can easily become a skunk with a white stripe put down the middle. A pink outfit can be turned into a bunny with a pom-pom on the backside and a set of construction paper ears. A green outfit can magically become a turtle with a piece of green poster board, cut in the shape of an oval and painted to look like a Turtle shell. If you are not into animals, go as bunch of grapes by wearing green or purple sweats and then attaching matching balloons of the same color.

The secret is being creative. If you are not creative then cheat a little. There are websites that have free costume making ideas. This way you can utilize whatever you have around the house. By making your own costumes, you not only get to have the fun of wearing it but you get to have fun making it as well.

• Budgeting
• Comments(0)

Andy October 25th, 2007

We are all familiar with the concept of peer pressure.  Maybe you have only used that term to describe the feeling you felt when all your friends started drinking, smoking, or when they tried to convince you to stay out later than your curfew.  In college a lot of that social peer pressure dissipates, but a new one is born….. Financial Peer Pressure.

Financial peer pressure is common during the college years because the playing field is not level between groups of friends.  Some people come to college with their parents financial support, and other come to college with only the money in their pockets.  That is why some kids are forced to work night jobs, while others can go out and party till dawn.

If you are one of the students who needs to work nights in order to pay your bills, you are probably well aware of the concept financial peer pressure.  There will always be some friend who wants you to come out and spend your hard earned money on food, drinks, or concerts.

How do you deal with this concept? You don’t want to be left sitting in your dorm while your other friends are out partying and enjoying themselves.  You also don’t want to face the embarrasement of being “the poor friend”.

From my college experience, most peers at that age are understanding of peoples financial differences.  You need to be honest with your friends about your financial hardships, but you also need to express how proud you are of yourself to be in college and being financially independent.  While there is some embarrasment involved in not being able to keep up with your wealthy friends, there is always some shame behalf of the wealthy kids as well.

The common misconception is that all wealthy kids are proud to be rich, and live guilt free.  The truth is, deep down most kids know they have had it easy, and wonder if they could have made it if they were not given such fortunate financial circumstances.  Remember that when you feel embarrassed about your own financial situation.  The financial struggles you face while young will benefit you in the long run.

At some point most of those wealthy kids will get cut off from their parents and be forced to learn these lessons long after you have already learned them.  If you are forced to sit out a few nights at the bar, don’t feel sorry for yourself.  It is a very small price to pay for a solid education.

After all, hard earned money is so much more gratifying to spend anyway.

• Budgeting
• Comments(0)

Andy October 23rd, 2007

Be honest, at some point of your childhood you dreamed of becoming a policeman and fighting crime. How exciting did it seem to cruise around in a police car, carrying a gun, and spending your day finding the bad guys? We all played the cops and robbers games, but somewhere along the road you changed your mind and started to aim your career aspirations elsewhere. Probably towards some desk job, in some skyscraper, for some cookie cutter company.

Maybe it is time to regain that passion for public service. That is because the New York City Police Department announced they are offering recruits out of college an ability to have some of their college debt paid off, if you enter the force. This offer can lower a recruits college debt up to $15,000 if they stay in the department for at least 5 years.

Before you start to tune up your gun and donut eating skills, are you aware that New York City Police Officers make about $25,100 for the first 6 months as a recruit? In New York City that barely buys you a cup of coffee to go with those donuts. I won’t sit here and waste your time criticizing the low pay for officers, teachers, and other public servants. That would be another entry for a completely different blog.

What I will say is that New York City seems to realize they need to do something to find educated officers, help reduce graduates college debt and keep them in their force for many years. I’m not sure how successful this offer will be for the city of New York to recruit new people, but at the very least it is bringing new attention to the student debt issue.

Many companies have policies in place to help reduce costs of secondary degrees, but not many employers have benefits in place to help pay off existing debt. With the amount of student debt most first year employees bring to their job, wouldn’t this be a better perk? Also, wouldn’t this be another great way too reduce turnover for entry level employees? Seems like this idea could solve a bunch of problems.

• Current Events , Student Loans
• Comments(0)

Andy October 18th, 2007

I was reading an article today on MSN about starter cities. According to the author Erin Burt there is a list of second-tier cities that are ideal for young professionals. These starter cities give young professionals an urban setting with plenty of job opportunities, and a place to pay cheaper rent.

The glamorous nightlife of NYC and Los Angeles is the envy of every twenty-something, but it can also put you in debt before you can down that first trendy drink and ask for seconds. This concept of second tier city is something that I believe every college student should take into consideration when choosing a university or a place to move after school is complete.

There are some fantastic universities that offer big city excitement with a much cheaper cost of living. I should have probably read my own blog entry before I decided to go to school in Washington DC. I can speak first hand of the pain caused by overspending to enjoy a premier city. $20 for a cab, $60 for a meal, $10 parking, $12 drinks, $1000+ a month for rent….. the list could go on forever.

Cities such as Baltimore, Cleveland, Pittsburgh, Portland, and Tampa Bay are just a few examples of a place you can live a big city life and still manage to save some money while in college. As Burt mentions in her article, these starter cities are just that…. a place to start your life. Think of them also as a place to start your road to financial freedom for the next 50 years. You don’t have to comitt to these locations forever, but you will thank yourself later for this decision. You can never start to save money too young.

Listen, I love New York, DC, and Los Angeles as much as the next young person. But to me everything can be boiled down to pure logic. A good meal and good company in Tulsa, Oklahoma can be just as satisfying as a meal sitting next to Brad Pitt in LA, or on the veranda of Rockefeller Square.

Back to my pure logic, that meal just cost me $200 less. I can now sleep better at night knowing I saved money. I can also sleep better knowing I no longer have to feel the rattle of subway cars passing underground.

Starter City Article

• Budgeting
• Comments(0)

Andy October 17th, 2007

Here are a few quick facts to digest. These numbers relate to college aged students and their credit cards…

Average Balance- $885

% of Students who keep first credit card- 70% +

Average # of credit cards per student- 2.8 cards

Average # of credit card solicitations per semester- 25-50

*Data compiled by the UCMS

In my opinion, the most interesting statistics from the UCMS is that 8.5% of dropouts cite financial pressure/debt as their main reason for leaving school. That number is higher then the 6% who cited academic failure. Does that mean the hardest part of college is not studying and passing exams? It is possible the most difficult lesson you will learn in college is how to manage your checkbook?

• Credit Cards
• Comments(2)

Andy October 16th, 2007

Welcome to campus! To your left you can find the bookstore, and to your right you will find your dorm. If you follow the path around to the left you will find a swarm of hungry credit card marketers. Just act busy and don’t be tempted by free t-shirts and towels.

This typical college freshman scene may be changing for college students in some states if legislators get their way. Sitting on the desk of California Governor Arnold Schwarzenegger is a bill that would put a stop to credit card companies ability to use free giveaways to entice students to sign up for a card on public campuses. Those free giveaways can be tempting, which is why predatory marketing tactics has proven to be successful on college campuses. If we are calling the credit card companies marketing tactics as “Predatory”… that would make you the prey. How helpless must they think you students are?

Consumer protection groups, such as the U.S. Public Interest Research Group, have alleged that these companies target college students because teens lack significant financial experience, making them especially prone to incurring interest fees and overages. In 2004, the average undergraduate student had a credit debt of $2,169. This number is rising and no end is site with the high cost of college loans.

So when you take your walk through campus and see a tent full of credit card marketers trying to look hip and friendly, just remember that you have a HUGE bullseye on you. They want you, in fact they need you. They have statistics that prove if you sign up for their card while in college, you are highly likely to keep that same credit card for the remainder of your life.

Make educated decisions before filling out a credit card application on campus. Do the research online. Find the lowest interest rate, and best rewards that work for you. After all, long after that free t-shirt has been shredded by you amateur laundry skills, your credit card will still be in your wallet racking up interest.

• Credit Cards
• Comments(0)