Bad Credit Sends More Students Packing Than Poor Grades
According to a survey of student loan applicants by loan provider Nellie Mae, 83% of college undergrads use credit cards and the average card debt was $2,327 in 2001. Furthermore, the college students surveyed steadily increased usage rates and balances. From freshman to senior year, the average debt load more than doubled and number of cards held nearly tripled.
It’s easy to see why more students drop out of college because of debt than for poor grades.
But don’t forget that credit cards are designed for people with income—solid cash flow. Most young teens and college students don’t have much income. While using credit is not a beginning financial skill, teens do need to learn how credit works.
How can parents ease young teens into the eventual freedom of credit cards? Allow a debit card tied to a checking account or a fixed-amount card such as Visa Buxx, designed especially for teens. Or, try a credit card with parent supervision and low limit—$500 or less.
Before teens become regular credit users or abusers, encourage them to:
1) master a checking account, write checks, and reconcile statements
2) show responsible debit card use and understand ATM fees
3) compare credit card offers and read the fine print
4) understand interest rates and billing cycle.
Credit cards do remain an attractive alternative to cash for four reasons, providing it’s used wisely.
1) Credit is handy—and safer—to carry.
If teens don’t ever see cash leave their wallets, however, it’s difficult for them to understand the reality of expenses, budgeting, and cash flow.
2) Buy now, pay later.
Paying later also makes it easy to overspend, and not be able to pay when credit card bills arrives. It’s not easy for anyone to have the willpower to curb credit card spending once the habit is started. Teens need maturity to overcome the “I-want-it-now” syndrome.
3) A credit card is good for emergencies, when you have no cash.
But buying daily lattes, new clothing every trip to the mall, or pizza on weekends doesn’t count.
4) Using credit establishes a credit score.
Yes, frequent use of a credit card does build a credit history—good or bad. But overspending and irresponsible use can tarnish a credit score for years and affect interest rates for future loans.
Tuesday, May 31, 2011
Tuesday, May 24, 2011
TIP OF THE WEEK - MAY 24, 2011
Time Management Tips For Students
Does it seem like there's never enough time in the day to get everything done? Feel like you're always running late? Here are some tips for taking control of your time and organizing your life.
1. Make a "To Do" List Every Day.
Put things that are most important at the top and do them first. If it's easier, use a planner to track all of your tasks. And don't forget to reward yourself for your accomplishments.
2. Use Spare Minutes Wisely.
Get some reading done on the ride home from school, for example, and you'll kill two birds with one stone.
3. It's Okay to Say "No."
If your boss asks you to work on a Thursday night and you have a final exam the next morning, realize that it's okay to say no. Keep your short- and long-term priorities in mind.
4. Find the Right Time.
You'll work more efficiently if you figure out when you do your best work. For example, if your brain handles math better in the afternoon, don't wait to do it until late at night.
5. Review Your Notes Every Day.
You'll reinforce what you've learned, so you need less time to study. You'll also be ready if your teacher calls on you or gives a pop quiz.
6. Get a Good Night's Sleep.
Running on empty makes the day seem longer and your tasks seem more difficult.
7. Communicate Your Schedule to Others.
If phone calls are proving to be a distraction, tell your friends that you take social calls from 7-8 p.m. It may sound silly, but it helps.
8. Become a Taskmaster.
Figure out how much free time you have each week. Give yourself a time budget and plan your activities accordingly.
9. Don't Waste Time Agonizing.
Have you ever wasted an entire evening by worrying about something that you're supposed to be doing? Was it worth it? Instead of agonizing and procrastinating, just do it.
10. Keep Things in Perspective.
Setting goals that are unrealistic sets you up for failure. While it's good to set high goals for yourself, be sure not to overdo it. Set goals that are difficult yet reachable.
Consider these tips, but personalize your habits so that they suit you. If you set priorities that fit your lifestyle, you'll have a better chance of achieving your goals.
Monday, May 16, 2011
TIP OF THE WEEK - MAY 15, 2011
Four Ways to Graduate in Four Years
If you think four years of college is expensive, try five. You may hear jokes about fifth-year seniors, but the extra time and money you’ll spend on an additional year in college is serious. Not only will you pay another year’s worth of tuition, textbook costs, campus fees and other education expenses, but you won’t be earning money in your first job or getting started in graduate school.
Don’t count on graduating in four years without putting some effort into making it happen. Less than four in 10 students earn their bachelor’s degree in four years. Here are four things you can do to graduate on time.
1. Decide on your major early. The sooner you decide on a major, the sooner you can complete the requirements. Start thinking about your major the first day you arrive on campus or earlier. Don’t rush selecting a major; if you aren’t happy with your selection, changing majors later could set back your four-year plan. Declare your major as early as possible, but no later than the end of your sophomore year.
2. Figure out what classes you’ll take. Once you’ve decided on a major, get organized. Figure out what classes you’ll need to complete your major requirements in four years. Get your general core requirements out of the way first. Talk to your advisor to help form your four-year class plan. Once you’ve created a plan to graduate in four years, check in with your advisor at least once a semester to discuss your progress. Some classes are harder to get into than others, so sign up for them as early as possible to secure a spot. If you followed your graduation plan and run into trouble getting into a class that you need to graduate, you may be able to appeal to the department head.
3. Take at least 15 credits per semester. Take enough credits each semester so you can complete your graduation requirements in four years. This usually turns out to be around 15 credits per semester. Don’t drop classes. If you fall short, make up the credits right away — either over the summer or during a winter session. It’s not enough to sign up for courses worth 15 credits; you must do well enough in them to pass or you won’t earn the credit.
4. Look into four-year guarantee programs. Some schools have four-year graduation guarantee programs. These programs, like the one at University of Colorado or the University of Wisconsin, require students to pledge at the start of their freshman year that they are committed to graduating in four years. Students are often required to declare their majors during their first semester and agree not to change majors. The school agrees to make this happen by providing advising resources and facilitating registration. See if your school has a program like this during your first semester on campus.
With a little planning, you should have no problem earning your degree in four years.
If you think four years of college is expensive, try five. You may hear jokes about fifth-year seniors, but the extra time and money you’ll spend on an additional year in college is serious. Not only will you pay another year’s worth of tuition, textbook costs, campus fees and other education expenses, but you won’t be earning money in your first job or getting started in graduate school.
Don’t count on graduating in four years without putting some effort into making it happen. Less than four in 10 students earn their bachelor’s degree in four years. Here are four things you can do to graduate on time.
1. Decide on your major early. The sooner you decide on a major, the sooner you can complete the requirements. Start thinking about your major the first day you arrive on campus or earlier. Don’t rush selecting a major; if you aren’t happy with your selection, changing majors later could set back your four-year plan. Declare your major as early as possible, but no later than the end of your sophomore year.
2. Figure out what classes you’ll take. Once you’ve decided on a major, get organized. Figure out what classes you’ll need to complete your major requirements in four years. Get your general core requirements out of the way first. Talk to your advisor to help form your four-year class plan. Once you’ve created a plan to graduate in four years, check in with your advisor at least once a semester to discuss your progress. Some classes are harder to get into than others, so sign up for them as early as possible to secure a spot. If you followed your graduation plan and run into trouble getting into a class that you need to graduate, you may be able to appeal to the department head.
3. Take at least 15 credits per semester. Take enough credits each semester so you can complete your graduation requirements in four years. This usually turns out to be around 15 credits per semester. Don’t drop classes. If you fall short, make up the credits right away — either over the summer or during a winter session. It’s not enough to sign up for courses worth 15 credits; you must do well enough in them to pass or you won’t earn the credit.
4. Look into four-year guarantee programs. Some schools have four-year graduation guarantee programs. These programs, like the one at University of Colorado or the University of Wisconsin, require students to pledge at the start of their freshman year that they are committed to graduating in four years. Students are often required to declare their majors during their first semester and agree not to change majors. The school agrees to make this happen by providing advising resources and facilitating registration. See if your school has a program like this during your first semester on campus.
With a little planning, you should have no problem earning your degree in four years.
Monday, May 9, 2011
TIP OF THE WEEK - MAY 9, 2011
Internships Create an Advantage
Not only do internships reveal viable career paths through hands-on learning experiences, they give a student an edge over their competition when it comes to applying for jobs. You may have a killer cover letter, a stellar grade point average and glowing recommendations from your professors, but in today’s competitive market, employers are ever watchful for the new hire that knows how to jump right in and start running with the ball. "Internships have become key in today's economy," says Melissa Benca, director of career services at Marymount Manhattan College in New York City. "Graduating students with paid or unpaid internships on their résumé have a much better chance at landing a full-time position upon graduation. Students are doing internships as undergraduates, and it is now not unusual for recent grads to take an unpaid internship with hopes of turning it into a permanent position or at least making some contacts and building their résumé." Internships allow a student to explore and experiment while gaining professional experience and exposure. Additionally, interning helps participants develop essential skills and build the confidence to secure a first job or graduate school opportunity.
Interning makes sense to high school students as well. Upon applying to colleges, students that intern are showing that they are able to bridge the gap between wanting to become a professional and taking steps to become a professional.
Actual benefits besides getting a foot in the door with a potential employer and looking good on a résumé, internships have other advantages:
Not only do internships reveal viable career paths through hands-on learning experiences, they give a student an edge over their competition when it comes to applying for jobs. You may have a killer cover letter, a stellar grade point average and glowing recommendations from your professors, but in today’s competitive market, employers are ever watchful for the new hire that knows how to jump right in and start running with the ball. "Internships have become key in today's economy," says Melissa Benca, director of career services at Marymount Manhattan College in New York City. "Graduating students with paid or unpaid internships on their résumé have a much better chance at landing a full-time position upon graduation. Students are doing internships as undergraduates, and it is now not unusual for recent grads to take an unpaid internship with hopes of turning it into a permanent position or at least making some contacts and building their résumé." Internships allow a student to explore and experiment while gaining professional experience and exposure. Additionally, interning helps participants develop essential skills and build the confidence to secure a first job or graduate school opportunity.
Interning makes sense to high school students as well. Upon applying to colleges, students that intern are showing that they are able to bridge the gap between wanting to become a professional and taking steps to become a professional.
Actual benefits besides getting a foot in the door with a potential employer and looking good on a résumé, internships have other advantages:
- The opportunity to "test drive" a career (Would I be happier in marketing or advertising? Am I more comfortable working with patients or in a lab?)
- Chances to networK
- Establishing relationships with mentors
- Possible college credit or certification
- An introduction to the field's culture and etiquette (Are clients addressed by their first name? Are jeans appropriate for Casual Friday?)
- Accumulating new skills
- Gaining a "real world" perspective in an occupation(How much overtime do employees really work? How much time is spent behind a desk versus in the field?)
Monday, May 2, 2011
Tip of the Week - May 2, 2011
Summer Jobs Tips for Students…
1. Start looking now. Employers are already thinking about their upcoming summer staffing issues. One way to beat out at least some of the competition is to start your job search early rather than waiting for the school year to end. “Consider telling them, ‘I can work 10 hours a week now, and then I can ramp up my hours after school gets out.’
2. Get the word out about your job search. Begin actively telling people that you’re looking for a job. Think about all the adults in your life: your teachers, guidance counselors and coaches, your family doctor and veterinarian, your parents’ friends, your friends’ parents, and so on. This approach could turn you on to job prospects.
3. Plan for a repeat performance. The survey of more than 1,000 hiring managers revealed that 65 percent of their summer staffs will consist of returning workers. If you had a job last summer and you didn’t absolutely hate it, consider reapplying again this year. Your past employer will be interested in you because you’re already trained.
4. Be professional. Make sure that everything you include in your job application is spelled correctly and is free of grammatical errors. Don’t use all lowercase or all uppercase letters. Be sure the e-mail address you put down isn’t silly or distracting. The same holds true for the voice-mail prompt on your cell phone or home phone.
5. Do mock interviews in advance. A job interview can be a lot more stressful than you might think. To work out the jitters ahead of time, do a few practice interviews with someone other than a friend or parent.
6. Show some energy. Employers who bring teenagers on board say they appreciate their enthusiasm and eagerness to do whatever it takes to get a job done. Display those traits on your job interview — and on the job, as well.
7. Get appropriately gussied. Dress nicely for your job interview, as if you were about to attend a religious service. Do this even if the dress code for employees is casual. Absolutely remember to send a handwritten thank-you note after your interview — a step many adults routinely forget to take.
8. Play up your strengths. Many teens show a tendency to be hard on themselves and minimize their accomplishments. Remember that a job interview is not the place to beat yourself up. Instead, emphasize flattering details about yourself, such as being an honor-roll student, juggling extracurricular activities and volunteering in the community
1. Start looking now. Employers are already thinking about their upcoming summer staffing issues. One way to beat out at least some of the competition is to start your job search early rather than waiting for the school year to end. “Consider telling them, ‘I can work 10 hours a week now, and then I can ramp up my hours after school gets out.’
2. Get the word out about your job search. Begin actively telling people that you’re looking for a job. Think about all the adults in your life: your teachers, guidance counselors and coaches, your family doctor and veterinarian, your parents’ friends, your friends’ parents, and so on. This approach could turn you on to job prospects.
3. Plan for a repeat performance. The survey of more than 1,000 hiring managers revealed that 65 percent of their summer staffs will consist of returning workers. If you had a job last summer and you didn’t absolutely hate it, consider reapplying again this year. Your past employer will be interested in you because you’re already trained.
4. Be professional. Make sure that everything you include in your job application is spelled correctly and is free of grammatical errors. Don’t use all lowercase or all uppercase letters. Be sure the e-mail address you put down isn’t silly or distracting. The same holds true for the voice-mail prompt on your cell phone or home phone.
5. Do mock interviews in advance. A job interview can be a lot more stressful than you might think. To work out the jitters ahead of time, do a few practice interviews with someone other than a friend or parent.
6. Show some energy. Employers who bring teenagers on board say they appreciate their enthusiasm and eagerness to do whatever it takes to get a job done. Display those traits on your job interview — and on the job, as well.
7. Get appropriately gussied. Dress nicely for your job interview, as if you were about to attend a religious service. Do this even if the dress code for employees is casual. Absolutely remember to send a handwritten thank-you note after your interview — a step many adults routinely forget to take.
8. Play up your strengths. Many teens show a tendency to be hard on themselves and minimize their accomplishments. Remember that a job interview is not the place to beat yourself up. Instead, emphasize flattering details about yourself, such as being an honor-roll student, juggling extracurricular activities and volunteering in the community
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