Budgeting | Michael R Lewis, ASJA

September 16, 2013January 1, 2024

5 Financial Tips for Recent College Graduates

This article first appeared on the Beyond.com website on July 30, 2013.

College graduation is one of the more memorable moments of a person’s life. Parents beam with pride, thrilled with the knowledge they can at last begin to save for retirement. Many graduates, those who have accomplished good grades and academic honors, see their futures as best expressed by Buzz Lightyear in the movie “Toy Story”: “To infinity and beyond!” Others console themselves with the words of our 43rd president, George W. Bush, in his 2001 commencement address at the Yale University: “And to the ‘C’ students, I say you too may one day be President of the United States.”

While graduation marks the end of one period of your life, it is also the beginning of a much longer period of achievements, failures, triumphs, and disappointments. What you make of your life and the path you choose are measures of your values and integrity; in the words commonly attributed to another president, Theodore Roosevelt, “A man who has never gone to school may steal a freight car, but if he has a university education, he may steal the whole railroad.” Con man or corporate mogul, the choice is up to you, but your decision will be easier if you understand and master the role that money will play in your future.

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September 6, 2013January 2, 2024

7 Ways to Reduce the Cost of A College Education

According to a report from the Bureau of Labor Statistics, approximately two-thirds of high school graduates enroll in college the fall following graduation. While most experts agree that a college education affects annual earnings by at least $20,000 (an estimated $1 million over the course of a working career), a 2011 Pew Research poll reported that more than 75% of Americans think a college education has become too expensive to afford.

In a May 2013 interview with US News & World Report, former U.S. Secretary of Education William Bennett advised parents that they shouldn’t “automatically or reflexively send their kids to college,” noting that there are 115,000 janitors in the U.S. with bachelor degrees today. His recently published book, “Is College Worth It?“, notes there will be 14 million jobs available in 2018 requiring more than a high school education, but less than a college diploma. Bennett also claims that a community college graduate, on average, makes more today than a graduate of a four-year university. That said, according to the Pew Poll, 86% of college graduates believe that college was a good investment, with 7 out of 10 stating the experience gave them maturity and intellectual growth, as well as job preparedness.

Whatever your feelings about the value of a college degree, there’s no denying that education is expensive. If you or your child wants to pursue a degree, there are ways to reduce educational expenses and avoid the long-term financial burden of extensive student loans.

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August 24, 2013January 3, 2024

Relocating or Remodeling – Deciding Whether to Stay or Move

Historically, almost two-thirds of households in America live in a place they own. Homeownership is a key prong of the American dream, and according to a American Housing Survey by the U.S. Census Bureau, some 9 out of 10 Americans achieve it during their lifetime.

Also key to American homeownership is the notion of moving up – i.e., buying a home, living in it for a few years, then selling to reap the profit in order to purchase another property, either a higher-value place or one that better suits the owners’ current living situation. This was particularly popular in high-growth areas like California and Las Vegas. But that was before the recent economic downturn and a massive slump in housing prices. Now, the decision to sell your house and trade up is not as clear-cut as once thought, and owners are left wondering, Should we stay, or should we go?

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August 18, 2013January 3, 2024

All About the Health Savings Account (HSA)

An inability to pay medical bills is the single greatest cause of personal bankruptcies in the United States. While this result may not be surprising since the American health care system is the most expensive in the world, the study paradoxically found that three-quarters of the people filing a medically-related bankruptcy have health insurance. According to Steffie Woolhandler, M.D. of Harvard Medical School, “Many of them were bankrupted anyway because they had gaps in their coverage, like co-payments, deductibles, and uncovered services.”

Due to the continued increase in the cost of insurance premiums, employers are transferring a rising percentage of the cost of health insurance to their employees by raising the employee’s share of premiums, increasing co-payments and deductibles, and restricting access to specific providers. In fact, the passage of the Patient Protection and Affordable Care Act may accelerate this process. Barron’s, a leading business and financial publication, declared that the impact of the law will be “a new wave of rising prices or a rationing of medical care – or both.”

Considering the dire predictions, an HSA may help you to best afford and adequately protect yourself and your family from a devastating medical event.

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