Category

Money Management

Sep 08
Love0

Infographic: The Real Cost of College

By College, Money Management, Saving No Comments

So, where does a student’s money go over four-years in college?

After four years of all-night study sessions with friends, countless early morning classes, and semester after semester spent learning — with a dash of blowing off steam here and there — what does that piece of paper (degree) actually cost?

In honor of National College Saves Month in September, below is a cool infographic by AffordableSchools.net about the real cost of college and where the money goes.

[us_single_image image=”5516″ align=”center” size=”full” link=”url:http%3A%2F%2Faffordableschools.net%2Freal-cost-of-college%2F” onclick=”custom_link”][us_separator icon=”fas|dollar-sign” type=”default”]

The Tried and True Expenses: Tuition and Loans

The bulk of student expenses come from school tuition — and heavy student loans for students that aren’t eligible for scholarships, grants, or other financial assistance.

  • $23,410: The average cost of in-state tuition for a public university in 2015.
  • $46,272: The average cost of in-state tuition for a private learning institution in 2015.
  • $35,000: The average amount of loan debt a 2015 graduate will have to face in the coming years.

Graduate students tend to have higher loan debt than their undergraduate counterparts, with 65 percent of 2012 graduates racking up$50,000 in student loans.

  • 59 percent of students end up not finishing their undergraduate degree, and may have up to $10,000 in debt that they are struggling–or don’t want to–pay back.

Hitting the Books

Once students have set their schedule for the semester, it’s time to purchase the required course materials.

  • One course worth of books = hundreds of dollars. Students spent an average of $313 per course on books, according to The National Association of College Stores.
  • The College Board found students paid anywhere from $1,146 to $1,244 for books in the 2014-2015 school year.
  • The cost of books continues to rise. One study found the price of books jumped 82 percent in the last 10 years alone.
  • Where to buy? Approximately 66 percent of students still buy their textbooks and college materials from their local college bookstore.
  • Other students value short term leases on learning. According to a Student Watch survey, 40 percent of college students preferred torent their textbooks rather than purchase them outright.

Plugging In

With more classes than ever going mobile, many students may prefer a tablet or laptop to keep up with class notes, research and term papers. In 2013, technology purchases for educational purposes reached $13 billion.

  • 81 percent: The average amount of students who prefer to study digitally. This marks a 40 percent increase from 2013.
  • Of 1,700 students surveyed, 77 percent indicated they felt they scored higher by using a tablet or laptop than simple class notes. Approximately 48 percent said that digital-based studying actually saved them time in the long run.

Food and Drink, A la Carte

Everyone needs to eat–and college students are typically strapped for cash. That doesn’t mean they don’t dole out cash for not-so-smart eats.

  • The price of pizza stacks up. The average college student could spend $2,000 on pizza over the course of four years, according to Mark Kantrowitz at FinAid.org.
  • Oodles of noodles: still a student staple. At 13 cents a package, ramen noodles remain a favorite for many students–it’s Japanese nickname gakusei ryori translates to “student food.”
  • Party on…to an empty wallet? Over a four-year time period, the average college student could spent $500 a year on alcoholic beverages.
  • The freshman five. Freshman typically drink five alcoholic beverages per week–which could negatively affect their academic performance.

Getting Around

Having a place to crash and a way to get around town is essential for every student.

  • $9,804: average cost of room and board at public university
  • $11,188: average cost of room and board at private university

The College Board estimates that college students spent between $2,609 and $3,242 during the 2014-2015 school year on transportation, among other personal expenses, including clothing or entertainment.

Test Time

Prepping for graduate school may begin before many college students even cross the stage to collect their undergraduate degree. Graduate level tests such as the GRE and GMAT take precious hours of study–and extra money–to ace.

  • GRE: $195
  • GMAT: $250
  • LSAT: $175
  • MCAT: $300

Other fees may also apply, including paying the testing site, or having to reschedule. Both the GRE and GMAT charge $50 to reschedule a test date.

Share your comments below.

Sep 02
Love0

7 Smart Financial Moves for New (and Experienced) Parents

By Debt Management, Estate Planning, Insurance, Money Management, Saving No Comments
[us_separator type=”invisible” icon=”fas|star”]

It is important to plan for many of the important events in our lives, like marriage, children, as well as retirement and leaving a legacy for our family. As you plan for your significant life events, Matt Hoesley of LifeHappens.org shares some financial steps to help secure your financial future of your family.

Create a will and contingent trust. This is one of the most important first steps. Choosing a guardian for your children helps make sure they are raised by someone who you think will share the same values. A contingent trust helps ensure that the money your child receives from all of your hard work and planning is distributed according to your wishes instead of giving them complete control over everything the minute they turn 18.

Update beneficiary forms. Make sure you double check all of your retirement plans and insurance policies so something doesn’t fall through the cracks. Many accounts with beneficiary designations never pass through your will, so it is important that these are also updated.

Begin saving for college. There are various options available. You should consult a tax advisor and financial advisor to help determine what is best suited for your family’s financial situation. I opened a 529 plan for our daughter. The money in this plan can be used at almost any accredited higher education institute in the world.

Purchase life insurance. My wife and I both increased the amount of life insurance we have. We did a combination of term and permanent insurance to make sure we have the total amount we need at a price we can afford.

Buy disability insurance. When you are young, your future earning potential is your biggest asset. Get as much … (continue reading … 7 Smart Financial Moves for New (and Experienced) Parents)

[us_separator type=”invisible” icon=”fas|star”]
Aug 24
Love0

How America Pays for College

By College, Money Management, Student Loans No Comments
[us_separator type=”invisible” icon=”fas|star”]

Figuring out how to pay for college can be a challenge. You know other families accomplish it, but how?

How America Pays for CollegeThat’s the question asked — and answered — in the annual study, How America Pays for College. For eight years, Sallie Mae® and Ipsos have interviewed undergraduate students and parents of undergraduate students to uncover how they’re funding higher education, the choices they’re making, the value they place on education, and more. The 2015 study reveals that:

  • College spending is up. Families spent an average of $24,164 on college — including tuition, room and board, and other direct and indirect expenses. That’s 16 percent more than last year and the most significant increase in five years.
  • Mom and Dad are #1. Parent income and savings were the top source of funding, surpassing scholarships and grants for the first time since 2010.
  • Not everyone borrows. Sixty-two percent of families reported they did not borrow for college in academic year 2014-15.
  • Students are doing their part. Working students are now the norm — 74 percent of students worked at some point to help cover costs.

According to How America Pays for College 2015, families overwhelmingly agree college is a worthwhile investment and they’re willing to stretch financially to meet the cost.

See the full report and related infographic at SallieMae.com/HowAmericaPaysForCollege and join the conversation on social media at #HowAmericaPays.

[us_separator type=”invisible” icon=”fas|star”]
Aug 11
Love0

5 things every Woman should know about … their Finances!

By Credit, Debt Management, Estate Planning, Insurance, Investments, Money Management, Retirement, Saving, Taxes No Comments
[us_separator type=”invisible” icon=”fas|star”]

Three in four adults agree that they could benefit from guidance and answers to everyday financial questions from a professional, do you agree with them too?1

Since women control or influence the handling of the household finances, here are five things every woman should know about their finances, including a few tips from New York Life to get you started on the path to Financial Freedom.

#1 Maximize your tax credits 2:

Each year the deductible amount you can contribute to a retirement account is increased for inflation, and there are catch-up contributions for those 50 or over.

  • You can receive a $1000 tax credit for each of your qualifying children, in addition to each dependent’s personal exemption. Don’t forget to take this credit-it’s like receiving $1000 tax-free in your pocket, as long as your income doesn’t exceed the limitations.
  • The child and dependent care credit will cover up to $3,000 of qualifying expenses if you pay a babysitter or day care center so you can work or go to school.
#2 Become a S.M.A.R.T. spender:

Set S.M.A.R.T. financial goals (Specific, Measurable, Achievable, Realistic and Time bound) and create a spending plan in 4 steps3:

1. List your income

2. Compare your income and expenses

3. List your expenses

4. List your resources and set priorities

#3 Develop a savvy investment strategy:

Finding the right mix of investments depends on your available assets, your financial goals, your time horizon, and your tolerance for risk. It is important to ensure a balance between three things: liquidity, return, and risk. Start systematically investing as soon as you are able so that a reasonable amount is saved, even after just a few years. The compounding effect can help to speed up your savings4.

#4 Know your credit score:

Based on the factors below you are assigned a credit score between 300 (low) and 850 (outstanding). Here are the main areas in which you are graded and given credit scores, and the approximate weight that each area is given5:

  • Payment history: 35%
  • Outstanding debt: 30%
  • Credit history: 15%
  • New credit and types of credit: 20%
#5 You are your most important asset:

For most people, human capital is the missing piece of their portfolio. You insure your car, in the event you get into an accident. You insure your belongings, in case they’re lost or stolen. Your biggest asset is your ability to get up every day and provide for your family, whether by working or being the primary care giver. How do you insure your biggest asset? Through life insurance products.

A financial professional is trained to help you select and recommend vehicles that are suited to your protect your specific needs. You might find that working with a trained financial professional can help you to make well-informed decisions and stick with your financial plan — it is important that this is someone you are comfortable working with.

Click here to learn more about how New York Life can help you educate yourself on financial matters and set you on the path to a secure future.

Article by New York Life Insurance Company:

1 The 2014 Consumer Financial Literacy Survey, The National Foundation for Credit Counseling, http://www.nfcc.org/NewsRoom/FinancialLiteracy/files2013/NFCC_2014FinancialLiteracySurvey_datasheet_and_key_findings_031314%20FINAL.pdf

2 http://www.wife.org/taxstrategiesforwomen.htm

3 http://www.pacer.org/publications/possibilities/make-a-spending-plan/68-make-a-spendingplan.html

4 Systematic investment techniques do not assure a profit or protect against a loss.

5 http://www.wife.org/features_bottomline_creditscores.htm

Jul 21
Love0

Upscale Magazine’s “Atlanta Female Entrepreneur” Video Series Featuring Tarra Jackson

By Events, Money Management No Comments

I’m so excited!!! And I just can’t hide it!

I am so honored to be featured in Upscale Magazine‘s “Atlanta Female Entrepreneur” Video Series.

The experience was scary and liberating at the same time.

Scary because of the transparency I exposed, but liberating because of the transparency I shared.

Below is a sneak peak of my response to the question … “How do you know if you are REALLY an Entrepreneur.” 

Click the link below for the full video of my journey as an entrepreneur. Share your Comments below and tell me what you think.

FULL VIDEO -> UPSCALE MAGAZINE’S “ATLANTA FEMALE ENTREPRENEUR” VIDEO SERIES FEATURING TARRA JACKSON.

 

Previously published June 2015.

May 29
Love0

5 Tips for the Paying-for-College Talk

By College, Money Management, Student Loans No Comments

Paying for college may be challenging for some parents to think about or discuss. Sallie Mae shares five helpful tips on how to have the Pay-for-College Talk.

Get the facts

First, you need to know how much a year of college will cost — tuition, books, room and board, and other expenses. Once you have a number, you can begin to figure out how you’ll pay for it — or if your student needs to focus on a less-expensive school.

Make a plan

An online calculator can help you estimate costs so you can develop a plan. College Planning CalculatorSM at SallieMae.com/CollegePlanningCalc is an easy-to-use tool with an added feature for families who are considering borrowing to pay for college: important guidance on loan affordability to help them understand the impact of a monthly student loan payment on a starting salary. It includes a salary guide to help students and their families determine a manageable monthly loan payment that corresponds to the student’s anticipated annual salary.

Engage your student

Don’t make paying for college a parents-only project. If they haven’t already started, remind your student that they can save birthday and holiday gift money. Summer jobs count, too. The more they can save for college now, the less they’ll have to borrow later on.

Be open

Be honest with your student about how much you can contribute to college costs —and that they’ll be responsible for everything else, either through scholarships and grants and/or student loans. Plus, when you create your plan with the College Planning Calculator, share it with your student at each step.

Do it now

Don’t wait till acceptance letters start arriving to have the financial talk with your student. Having a plan in place and knowing how you’ll pay for college will make the overwhelming senior year an easier experience.

Create your paying-for-college plan at SallieMae.com/CollegePlanningCalc.

© 2015 Sallie Mae Bank. All rights reserved. Sallie Mae, the Sallie Mae logo, and College Planning Calculator are service marks or registered service marks of Sallie Mae Bank or its subsidiaries. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. SMSM MKT10284B 0315