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29 Aug

Mixed Bag Monday – Getting Started On a New Semester

Posted in Mixed Bag Monday, students by Roger, the Amateur Financier | 1 Comment

Well, it’s just about that time (or perhaps it’s past that time, for some of you): time for school to start again. With it comes all the fun of learning, combined with all the fun of trying to deal all the requirements that come with schooling, from books and other physical objects to the need to study and practice your skills on a regular basis. It can be a surprisingly tough situation, even if you aren’t trying to balance your schooling with research work, writing a thesis, and keeping up with a personal finance blog (just as an example…).

So, this week’s Mixed Bag Monday will take a look at some of the issues faced upon the start of a new semester. Hopefully, you (or your children or other relatives who are about to return to school) will be able to take advantage of the advice contained within and have a happier (and less expensive) semester.

Q: How Can I Save On Textbooks?

A: Luckily for you, there are options for getting text books other than buying new books from the campus bookstore. Buying used is a good option, allowing you to save big if you can handle a little highlighting. There’s also the internet, where you can buy online from any number of appropriate retailers. You can also see if anyone you know has a textbook you could borrow. Lastly, try asking your professor if you REALLY need the newest edition of the text; if you can use an older edition, you can save a bundle.

Also, try selling your books back when you are done with them; you'll earn a little dough, and not have to lug around tons of books you barely read when you were in class for the rest of your life.

Q: What Should I Get to Go Back to School?

A: Depending on what classes you are taking, you might need any number of items. You should probably stock up on the essentials, pens, pencils, notebooks, folders, if you don’t have a supply already. Beyond that, the best approach is probably to wait to find out from your professors (or teachers) what you’ll need. If you do need something, see if there are options other than purchasing the needed materials that will meet your requirements. Most schools provide computer labs and other supplies you’ll need, so you typically don’t need to spend too much out of pocket for supplies.

Q: What Should I Major In?

A: Ah, your college major; it will help set the course of the rest of your life. There are many factors to consider, from your personal skill set to your family’s wishes, and a complete list would take up this entire post, at least. One thing you probably should consider before taking the plunge, though, is the level of income you can expect to make in your post college life. (Hint: for a high salary, shoot for an engineering field.) While not the only (or possibly even the most important) consideration, you should give it a thought or two.

Q: How Do I Balance All My New Responsibilities?

A: It can be tough getting used to how much you have to do in college; there’s plenty of new responsibilities, lots of things to get used to, and of course, each professor seems to think that you’re only taking one class: theirs. The best advice I can give is to keep up with everything. It’s tempting to relax, wait until things are due, but if you do, you’re quite likely to get overwhelmed. Instead, try to keep up with everything, do a little bit each week, and it’ll be easier to handle everything.

Q: How Do I Optimize My Chances of Getting Into a Good College?

A: Maybe you’re not in college yet, but are trying to get into one. As you might guess, how to do so is a pretty popular topic, with parents, educators, and of course, teens all trying to maximize students’ chances of getting into good schools. Some basic advice: do well in high school, participate in plenty of extracurricular activities (colleges eat those up), and volunteer as much as possible. It also doesn’t hurt to emphasize any unusual traits or background that you happen to have; even if it doesn’t get you in, you never know what scholarships might be available.

There you go, advice on college, from getting in to saving money while you’re there. Readers, any other advice you’d like to share with new (or potential) college students?

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9 Dec

How to get Ahead of the Game: Three Tips for Students

Posted in students by Roger, the Amateur Financier | 1 Comment

(This was the first guest post I ever wrote, this one for My Life ROI. You can read the original posting here, as well as all the comments. Although, I certainly hope you will come back here and leave comments here as well. Read, enjoy, and share with any high schoolers you know, both here and on MLR’s site.)

If you’re a high school student, chances are that planning for your financial future is pretty low on your list of priorities, somewhere between studying Latin and mowing the lawn. But if you get started now, you’ll be amazed at how much more prepared you will be with only a few simple steps.

1) Get a job…and save the money: If you’re like most American high schoolers, you probably already have a part-time job. I know I did, working at McDonald’s. You might be tempted to spend every cent you earn; after all, when you’re giving up nights and weekends, and are only getting minimum wage to show for it, you probably feel you deserve to have a little fun. And you should; BUT putting aside part of your money in savings will help you in the future, giving you a cushion to fall back on, without needing to rely on your parents.

Extra Credit: Look into internships, especially during the summer when school’s out. Even if you aren’t being paid (and chances are, if you’re still a high school student, you won’t be), you’ll still gain some experience. Besides looking good on a college resume, this will help you to narrow down your career options; if you don’t like working as lab technician for a summer, how would you handle it for 40 years?

2) Invest in a Roth IRA: I know, I know; when you aren’t even old enough to vote, why should you think about retirement? Well, the answer is simple: you have time on your side. If you can invest a mere $100 a month for two years, starting when you are sixteen and then stopping when you hit eighteen, you’ll end up with $95,000 when you hit sixty-five (with a fairly conservative return of 8%). Invest $200 a month (tough but possible, even working part-time for minimum wage), and you’ll have $190,000 at retirement. Inflation will eat away the real value of this money (by the time you reach this age, expect to order off the Five-Dollar Menu at McDonald’s), but it should still represent a current value of about $40,000. And this of course assumes you never invest a penny after your eighteenth birthday; keep up the investments, and you’ll end up with much, much more when it’s time for you to retire.

Extra Credit: Convince your parents to match your contributions. Tell them it’d be like having your own personal 401(k); if they want to encourage you to save and invest, they might be willing to put up a few thousand dollars of their own. If you put in $200 a month, and get your parents to match that, you’ll be adding $400 a month to your Roth (nearly maxing it out at the current contribution limits), and you will have $380,000 at sixty-five, without adding another penny on your own. Keep up your contributions and your parent’s match through four years of college, and you’ll have over $1,000,000 waiting in your retirement pool. Not bad for six years of investing, hunh?

3) Start your own business: When you’re young and have free time on your hands, it’s the perfect opportunity to spread your wings and try out new things. You’ll still have the safety net of your parents, so why not try to strike it out on your own, try something new, and perhaps even make some money at it? Plus, with all the new opportunities presented by the internet, you don’t have to rely on babysitting or a lemonade stand to make money on your own; try starting a blog, it’s fun and if you’re witty and entertaining enough, could be a decent money maker.

Extra Credit: Keep it up through college. If you find something that works, why stop? If you can maintain a website or keep up the babysitting work, take advantage of the added income opportunity and do it while attending school. Or consider the possibility of turning it into a career right off the bat…

There you go, three pieces of advice you can put into practice as a high school student, which will leave you in better financial shape by the time you hit college. Enjoy!

The Amateur Financier

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