College | John J. Bowman Jr

Tag: College

May 21, 2020

Tips for Starting a College Fund

For many industries, a decent college education is a requirement. However, college isn’t exactly easy; from picking a major and career path to writing detailed term papers and theses, plenty of challenges stand in a student’s way. One of the greatest obstacles is the cost. Similar to buying a house or car, investing in a college education is one of the biggest financial moves that anyone will make.

College may be rewarding in terms of education, but it can destroy someone financially. However, it doesn’t have to be that way. If you establish a college fund, you can get the ball rolling and enjoy less debt.

Here are a few tips to start a college fund.

Determine the Best Way to Save

Starting a college fund isn’t as simple as it may seem. Most people can’t just throw over $60,000 in a bank account and call it a day. They need to have a savings plan in place if they want to keep things simple.

There are multiple types of saving plans to choose from including:

529 Plans
Uniform Gift to Minors Act (UGMA) Accounts
IRA Accounts
Coverdell Education Savings Accounts

It’s important to remember that not every savings plan is for everyone. For instance, one might have an easier time having a 529 plan than an IRA. Do your research before investing in any of these plans.

Apply for a Scholarship

Because college can be so financially demanding, scholarships are the way to go. Scholarships are essentially how people can pay for college without going into debt. Furthermore, a scholarship can range from anything such as math and gymnastics.

For parents, it’s crucial to encourage a child to apply for a scholarship, so they don’t have to worry about the hardships that come with debt. With all the options out there, you’ll be hard-pressed to not find a scholarship that fits your interests.

Put in Time for Work

Getting a job is a surefire way to make money to put towards college. Aside from paying for tuition, a job also gives a person experience in a specific field that they can put on a resume later on. This is a great starting point for those looking to get hands-on experience for their dream job as well.

Being able to afford a college education isn’t always easy, but it is possible with a little advanced planning and strategic thinking.

March 25, 2020

How To Plan For Student Loan Payments

Many students get out of college and realize that they need to pay off their loans. With colleges sticker prices on the rise each year, it’s easy to feel overwhelmed by student debt. However, if by applying these tips, students can plan for debt and pay off their loans as quickly as possible.

Consider Refinancing Your Student Loans

Some people may not know where to start, especially if their student debt is going to be quite high. If you fall into that camp, you could look into refinancing your loans. Refinancing your loans means that you use another loan to pay off your student loans.

If you have a stable job and you can find loans with lower interest, then you may want to refinance. This way, you pay off the student loans and then don’t have to pay as much money over time when you work on the other loan.

Set Money Aside Each Paycheck For Your Loans

You should focus on budgeting your money so that you can set aside some of that income from each paycheck. This way, you can always pay off that set amount with each paycheck. Such a consistent system will go a long way in helping you pay off those loans.

Some people may worry that it would take too long to use this approach, but consistent payments do offer a tremendous benefit. Yes, it may take some time, but this method helps you calculate when you’ll have that debt paid off by. As your financial situation changes, you can accurately pivot and recalculate to get a clear picture of your debt payment schedule.

Prioritize Your Student Loan Payments

People tend to push their loans to the side, but you need to prioritize your loan payments. Sure, you can buy a new phone or gourmet coffee, but you should consider putting that extra money towards your loans. If you prioritize your payments, then you can put all your extra money towards your loans. This will help you to pay them off sooner and reduce interest.

Conclusion

While student loans are scary to think about, keep in mind that you can pay them off with careful planning. Look at how much money you make, set aside specific amounts and continue to prioritize your loans until you pay them off. This way, you can overcome your loans and start saving money for life’s next big adventure.

September 15, 2019

Personal Finance for College Students

You’re finally living on your own, attending classes and joining new clubs and organizations. In college, it’s easy to overlook personal finance when focusing on your studies, but proper money management is vital for a successful future. If you’re new to college and money management, here is some personal finance advice.

Consider Your Credit

Swiping a card is convenient, but that money has to come from somewhere. If you’ve fallen victim to overspending on your card, try to set up a system to evaluate your spending habits. Perhaps you could limit card spending and use more cash. Or, perhaps you need to change your card limit to dissuade yourself from making unnecessary purchases. In addition, you should keep track of when your credit card payments are due—missing those payments can harm your credit score, which can be difficult to improve later down the line.

Search For Perks

Many colleges and surrounding businesses offer benefits to students. From dining halls to student discounts, you’re bound to find ways to save money. For instance, shops close to your school may offer student discounts, allowing you to pay a set percentage less for meals and clothes. In the same vein, your school may offer textbook rentals as opposed to purchases, which can save money. Or, if you can find those books online at Amazon or from other e-commerce sites, you may be able to save bundles.

Build a Budget

Understanding and implementing a budget can have positive long-term effects. If you’ve struggled with overspending or other money-related issues, budgeting can be a huge benefit. Calculate the amount of income you’ll make in a given month, including rates for on-campus jobs, and figure out your expenses. You’ll want to save a percentage of that income and avoid going over it. The sooner you establish a budget and learn to stick to it, the sooner you’ll save money and build your personal finances.

Find a Job

Colleges often have part-time jobs available for even the busiest of students. From cooking in the dining hall to operating an office desk to providing prospective students with campus tours, student jobs abound in academia. Taking on a job for just a few hours each week can help you better understand time management while generating income. If you want to earn academic credit while you work, internships and work-studies can be a great use of your time. Plus, any campus job is a terrific resume-builder for your post-grad job search.

April 24, 2019

Student Loan Myths

Many people take out student loans in an attempt to ensure they earn more over their working lives. Overall student loan debt in the US is now more than $1.5 trillion. Those in such debt generally have a great desire to pay it off. This leads to many myths around the subject of student loan debt. Here are a few to avoid.

You Can’t Pay Student Loans Early

There is a common myth that says you have to pay the stated amount each month and that it’s impossible to pay off student loan debt early. This is not the case. It is indeed possible to pay extra and take care of student loans before the actual term of the loan is finish. There’s no penalty for paying early, and you may be able to save thousands in interest costs in the process.

You’re Stuck With Your Interest Rate

Student loans can come from the government, and they can come from private lenders. Those who take out loans from multiple lenders will likely get stuck with a variety of interest rates. Private loans can come with higher interest rates, but there’s no need to be stuck with a bad rate. It’s possible to refinance these loans and save money in the process. There is the possibility to consolidate the loans into one loan if you have a good credit score.

You Can Skip Payments

Some borrowers are stuck with very large student loan payments each month. There is an option for income-based repayment plans. Others might think skipping a payment or two is a good idea from a cash flow standpoint. Actually, this idea could not be further from the truth. Going into default on a student loan will hurt your credit score. Additionally, the interest will continue to compound on the unpaid amount, which will increase the amount of debt you actually owe.

Public Service Forgiveness Is Free Money

There is a program in place that allows borrowers who work in public service to have their student loan debt forgiven after spending 10 years serving the public. However, contrary to popular belief, this is not free money. You’ll have to claim the amount of the debt that gets discharged as income on your tax return, and you’ll owe taxes on that amount.

Student loans can be scary. The amount that college students are willing to borrow has grown in recent years. There are many myths that surround repayment. Don’t get caught up in believing them. They can wind up costing you even more money.

June 13, 2018

Strategies for Quick Debt Repayment

It’s a warm Saturday afternoon, and you’ve decided that you deserve a day out on the town with your friends. You’re exhausted and burned out from a too-long work week, sick of the grind and needing a break. You’ve been so thoughtful lately, you think, minding your budget, that you deserve to splurge a little. You hit the mall with a gaggle of friends and start swiping; more than a few bag handles circle your wrists as you reach for your credit card to pay for overpriced popcorn and soda at the complex’s theatre. You haven’t gotten your paycheck yet, but that’s okay – you know that your credit will cover you for now. When you check your banking app the next day, though, you can’t quite believe the number that blinks up at you. How can your credit balance be so high?

Sometimes, using a credit card to cover purchases can feel like playing with Monopoly money. We spend and spend and spend, knowing that we don’t have to pay back our debt right now. The fact that the money will need to be paid back at some point is a concern for later…until later rolls around to the present, and we face a veritable mountain of debt. According to a 2017 nerdwallet study on household debt, the average American consumer owes $15,983 in credit card debt. Totaled across the nation, that’s $931 billion owed by US consumers. Paying off this debt is an intimidating endeavor, but not an impossible one. Here, I provide a few strategies for a quick and efficient debt repayment.

Put the Cards Down

If you want to lower the mountain, why would you add to its height? Stop using your credit cards, and avoid making purchases that would add to your overall balance. Steering clear of credit for a few days or weeks might help you keep better tally of how much you actually spend in a day; the dues feel dearer when you have to pay them immediately, rather than at some hazy later date.

Revisit Your Budget

Take a closer look at your current budget! Can you trim any of your costs? Be tough but fair with yourself; you probably don’t need Netflix, Hulu, and HBOGo. Being on a budget doesn’t require you to give up all entertainment, but treating yourself should only go so far. Once you have a pared-down budget, you can start crunching the numbers and make an estimate of how much you can afford to apply towards your debt each month. Remember, paying off your balance now will greatly decrease what you pay in interest later!

Pick Up a Side Hustle

Trimming a budget can only go so far. In the end, you’ll make more from a part-time job or side hustle than you would ever save by canceling subscriptions or couponing. Find a money-making gig that can fit with your schedule!

Apply Unexpected Income Sources Towards Your Balance

It can be tempting to splurge when you find yourself with an unexpected windfall. However, the money you spend on luxuries now could be handicapping your ability to pay for more basic needs later. Put bonuses, inheritances, and tax refunds towards paying off your debt! Once you live debt-free, you will be able to afford splurging now and again.

Be Consistent

Debt repayment won’t happen unless you hold yourself to a firm budget and repayment schedule. Be consistent! As much as it might hurt to pass on dinners out or afternoons at the mall, your debt-free future self will be much happier and more financially secure for your efforts.

December 20, 2017

3 New Year’s Resolution Ideas to Save You Money

Maybe 2017 was not the best year for you financially. Luckily, you can stop looking at the past and look towards a better financial future in 2018. With the new year brings new goals, and you can make one of those goals focusing on your personal finance or money management.

Invest

A wise way to handle your money would be to invest. As you may have seen recently, Bitcoin has seen a huge rise in their stocks. Although it can be risky, sometimes the investment is worth it in the long run.

Create and Stick to a Budget

Another tip that can really help you with money management is saving your money by formulating a budget. Proper money management is an extremely important finance characteristic to have. Not only is it good to know how to save money for obvious reasons, but it can also be a saving grace for you in case of an emergency.

Impulse buying can be very dangerous. It can lead to you being in insurmountable debt and regretting days if not hours later. Preparing a budget can assist you with saving a great deal of extra cash while steadily maturing in your spending habits.

Save Money By Breaking Bad Habits

A great way to kill two birds with one stone is to save money by breaking bad habits. Create a jar that you will have to place money in each time you perform an action you are trying to quit. Anytime you have an urge to swear, break your diet, or have an urge to smoke a cigarette, put a certain amount of money into your jar. This will help you break free of your bad habits while simultaneously improving your financial situation.

Personal money management and financial woes are something everyone wishes they could live life without, but everybody at one point or another has to conquer. Make sure 2018 is a financially freeing year by trying these New Year’s resolution ideas and see which one works best for you!

December 11, 2017

3 Ways to Rid Yourself of Student Loan Debt in 2018

Student loan debt affects a huge part of the population. In fact, the overall student loan total in America skyrocketed to over $1.3 trillion in 2017. Fortunately, 2018 yields some promising tools and processes that can help citizens rid themselves of it. Here are three personal finance tips for getting rid of student loan debt:

Choose the Right Occupation

One way to get student loan debt forgiveness is to work for a government entity or a nonprofit organization. Doing so will allow you to become eligible for a forgiveness program after 5-10 years as an employee. Public school teachers who work in low-income neighborhoods are eligible for student loan forgiveness, as well. Therefore, you may want to consider putting in an application in those fields.

Choose a Repayment Plan The Works for You

Another personal finance tip for you is to sign up for a reasonable repayment plan. If you have low income or limited income, you can sign up for for a plan that’s income based or income contingent. Doing so will ease the burden for you as you pay down the debt. Eventually, you’ll make it to financial freedom.

To sign up for the special repayment plans, you just have to visit the website and complete an application. You may have to mail or upload some information so that the debtor can assess your income situation. Once they do that, they will let you know if you qualify for a specialized repayment plan.

Pick up a Second Job

Finally, you could always pick up a second job to pay down your student loans. Many retail stores hire at an accelerated pace during the holiday season. If you have some time to spare, you can put in a few hours every day and use everything that you earn toward those loans.

You deserve to have financial freedom, and you can get it if you handle your loans intelligently. Try these methods and watch your student loans decline in the blink of an eye.

July 6, 2017

Welcome to College! Finance Tips for Freshman

The time has finally come! You are off to college and are beginning to experience many of the freedoms that go hand in hand with adulthood -no one telling you what to do, where you have to be, or what to do with your finances. However, as we all know, “with great power comes great responsibility. And how to properly handling finances is one of the greatest lessons you will ever learn.

Balance is key. It will be tough to juggle your schooling, new responsibilities, and financial freedom. So, here are a few tips to help make the transition a little bit easier.

Economics, accounting, investments, oh my!
One of the first steps in learning how to handle your new found financial freedom is to enroll yourself in some sort of finance course at your university. Depending on the knowledge you already possess, you can opt to enroll in a basic finance course or advance. It is suggest that no matter what you already know, you should begin with a basic course. In doing so your memory will be refreshed or you will learn:

Financial principles
Create and balance a budget
How credit card interest works
The best to ways pay off debt
How to be money savvy

These invaluable basic principles will assist you immensely in years to come.

Say NO to credit…for now
It’s difficult to receive those generous credit card offers in the mail and not be tempted to apply. DON’T! Using credit the wrong way will not benefit you in the long run and can possibly damage your credit in the long run. Before you apply for credit cards try:

Living on your own for a minimum of one year
Have experience successfully living within a budget you have set for yourself
Successfully demonstrate financial restraint

Did you say budget?
Yes, now that you are on your own it is essential that you understand how to properly budget your finances. Creating a budget is simple. All you need to do is:

Make not of your net income
Make note of your expenses (including rent, utilities, food, travel, laundry, etc.)
Add a miscellaneous section for recreational activities (movies, dinners, etc)

Pay close attention to your budget to be sure that you do not overspend. The whole point of a budget is to help you save money you do not necessarily have to spend.

The paths of your new found freedoms will take you on the most important journeys of your life. Embrace it all. Do not be afraid. Instead, Do your research and take your time. You are going to be just fine.

July 9, 2016

Finance Degree vs Accounting Degree

Students looking to get into finances of any sort are often faced with the dilemma of getting a finance degree of an accounting degree. Each one comes with it’s own unique difficulties and job opportunities. Educating yourself on the difference will give you the knowledge to make a decision that makes sense for you.

Money

Typically, finance degrees yield a higher payout. Wealth managers statistically receive higher salaries because they receive commission off of the portfolios they manage. Accountants on the other hand charge a flat fee for the service they provide. If money is your main motivator – finance may be the better major for you.

Education Requirements

In order to take the CPA exam for accounting, there tends to be a requirement of credit hours that succeed a bachelor’s degree, but fall just short of a masters. If you go this route, it may make sense to continue on your education for a master’s degree for a better understanding. Finance majors on the other hand can get away with a bachelor’s, but will have better job opportunities with a masters. Either way, accounting or finance, a master’s degree seems like the way to go.

Job Opportunities

Both degrees provide graduates with a multitude of job opportunities, but they fall into two separate categories. Those with finance degrees will find themselves with jobs managing wealth and investments. Accountants handle more of the tracking financial data. Again, this comes down to a personal choice of which avenue you will have more of an interest in.

Stress

Who is more stressed – those with degrees in finance or accounting? When it comes to stress, each field has its opportunities to provide stressful work environments, but it all depends on the job you pick. Accountants who tackle tax season may work longer, more stressful hours during tax season but see a significant break for the rest of your year. Those finance majors with wealth management jobs carry their own unpredictable amount of stress depending on the clients and the investments.
Overall, when it comes to picking a major, it all depends on what side of the fence you fall on. Do you want to help people manage and grow their money or track and analyze financial data to create budgets and maintain retirement accounts? Depending on what you choose will be the deciding factor of what degree you will pursue.