March 2011 Archives

I just got my first e-reader this weekend: a Kindle. As an avid reader, I'm really excited to start using this device. It's so skinny and lightweight—it got me thinking how I would have loved using one of these in college rather than lugging around a bunch of heavy textbooks. Plus, it seems that it would be much cheaper to buy electronic copies of books.

I did little online research and quickly saw that e-readers are not necessarily a popular replacement for textbooks. I can see that for more technical subjects, e-readers may not be ideal. But for the sociology, psychology, and literature reading I did in college, I think they would have worked pretty well.

I'm curious about what you're doing, so please take our poll and tell us know how you handle your reading!

What do you use to do the majority of your college reading?

Old-fashioned textbooks

A typical e-reader (Nook, Kindle, etc.)

An iPad or other tablet

A computer/laptop

Other (Tell us in comments)

View results

College students, I have an assignment to add to your list: Take some time to think about the debt you are acquiring during college.

Go ahead and roll your eyes—I certainly know the feeling. Your debt is probably the last thing you want to think about. Most students say, "I'll deal with that mess after graduation." But debt management while you're in school is an important step in safeguarding your current and future finances.

Understanding your debt isn't rocket science. Think of it more as a game. A game you can't win unless you understand the rules. Once you know the rules, you can avoid the penalties. Managing your debt wisely comes down to these key rules:

1. Student Loans: Only borrow what you really need, (not want) and pay only for educational expenses. Don't pad your loan so you can go on spring break or get a new college wardrobe or have "a little extra spending money". It's important to learn about the real cost of your loan. Loan calculators can show you what your borrowing really costs. Plug in some scenarios and see how much interest you will pay during the life of your loan. It might surprise you.
2. Credit Cards: Use with caution. Credit cards can be a great way to establish a responsible credit history, and can also provide you with emergency funds when you need it most (think ER, not late night pizza). The downside of credit cards is that high balances and revolving debt can quickly get out of hand and get you into trouble. If you miss a payment, the mistake will stay on your financial record for 7 years. Remember, a credit card is not a loan; paying the balance in full every month is your goal.
3. Know your budget. You need to know precisely how much money is coming in and how much money is going out. And the obvious point here is: the amount going out needs to be smaller than the amount coming in. Usually it's the smaller expenses that can escape your attention and really add up over time. Keeping a list of what you spend during a week or a month can show you where the money is going.
4. Plan for the future. What's your plan? Be honest with yourself and assess reality. "Can my chosen career path support my debt?" Don't think about what you will earn in 10 years; think about the first two years out of college. Do you want to be a college graduate that is living like a college student?
5. Be Cheap! It's OK to live frugally while you're in school. Really! This is not the time to keep up with the Joneses. While some students might seem to have unlimited funds, the vast majority are struggling to keep afloat. Keep your lifestyle simple and don't worry about what other students are doing.

Thinking about these points will keep your head above water. Trust me, it's a sound investment.

There are a lot of jobs for college students out there. Some are fabulous, some aren't much fun at all. When you're considering where to work during college, have you ever considered starting your own business?

I recently saw The Social Network, which obviously represents the apex of successful college-age entrepreneurs. And while you wouldn't know it by reading about the 10 most successful college entrepreneurs, you actually don't have to be a computer genius to be one.

Check out this story of a high school student who just recognized a need in the marketplace and has created a successful international business by meeting the need.

With the state of today's economy, some college students would rather create their own jobs, rather than look for a job. Although according to this article, fewer students are taking that route since the recession began.

Have you ever considered starting your own business after college? Or are you running your own business while you're still in school? Tell us about it.

Last week I was reminded of Wells Fargo's history. Each morning I woke up in San Francisco, I could see the old stagecoach in the Wells Fargo museum across the street—a stagecoach that actually used to be an integral part of Wells Fargo's business.

As a team member, I know a bit about Wells Fargo history, but curious minds wanted to know a bit more. Turns out that today is actually when Wells Fargo was founded in New York (PDF)*. So, happy birthday, Wells Fargo!

If you're curious about the bank's history, check out the Guided by History® blog. (It had a birthday just a few days ago, too.) Or see if you're close to one of the museums that house those stagecoaches. And if you're in the company's founding city, know that today one of those stagecoaches will be unveiled at the Wells Fargo store at Madison and 55th.

Have any of you seen a Wells Fargo stagecoach in person before? I've seen two, but have been looking for another reason to travel back to New York.

* You will need Adobe® Reader® to view PDF files. Download Adobe Reader for free.

Last week, I made myself at home in San Francisco. This Midwesterner got a bit of a shock on Friday morning. I'm used to hearing about tornados and blizzards that could affect me, but earthquakes and tsunamis? Yikes.

I couldn't imagine going through the devastation that's happening in Japan (I was anxious to get back to South Dakota just seeing the damage in California). On my way home, I talked with many fellow travelers about the news coverage which was on nearly every television in the Denver Airport. Those conversations usually turned back to how to we can help.

Obviously Japan—and those who know people there—have been top of mind for me this week, but I also learned about ways to help financially.

If you're a Wells Fargo customer, you can choose to donate to the American Red Cross Japan relief efforts through one of our over 9000 Wells Fargo branded ATMs . You will not be charged any fee for using the service—100 percent of the donation is sent to the American Red Cross. If you're not a Wells Fargo customer, please consider donating via the Red Cross website.

I wanted to quickly alert you to an interesting chat I heard on Minnesota Public Radio (special shout out and I heart you to Kerri Miller!)

Here's the link to a conversation with the two authors of Not Quite Adults, a book about 20-somethings and how our path to adulthood has changed, and (this is what I love) how that might not be a bad thing.

Let me share some of my favorite sound bites/thoughts:

• Folks tend to stereotype the generation. It's not that we don't want to grow up; it's that we can't afford to grow up in the traditional sense.
• A slower course is not at all a slacker course.
• We can't advise our kids based on a world that we knew.
• Young adults, even if they're living at home, are being responsible.

I realize, on a very regular basis, that I am a fortunate outlier of this group—a few who called in were in the same situation. I graduated with no student loan debt, found an internship that turned into a good job, and added "homeowner" to my list before hitting a quarter century.

However, I also have many friends who have made decisions to move back in with parents, take lower paying jobs that boost their resume and not their pocket book, and postpone major purchases until they have a better handle on their finances. Those are smart choices that can help their futures and the uncertainty of what is to come.

What I don't really have are friends who are slacking off, thinking jobs are beneath them, or mooching off their parents.

Take a listen and let me know what you think about the slower path. Are you taking it or do you know someone who is?

Since it's barely spring break time, you probably haven't given much thought to summer. But if you want to make the most of those three luxurious months, now is the time to start planning.

Lots of students will be competing for summer jobs—if you don't have one locked down, it's time to start looking at your options. Wait until the end of the school year, you'll be wrapped up with finals and moving. Wait until school is out, you'll lose precious earning time, and your choices will be much more limited.

Think about what you want over the summer. Earning money is probably a biggie—it is for most college students. But what about the experience? College summers are precious opportunities to spread your wings, try new places and new things—all while earning money at the same time. So before you head back home to pick up your high school job again, think about your options.

Are you interested in checking out another part of the country? Maybe you could find a job at a vacation hot spot, or a kids' summer camp. If you do move away from home, consider the rent factor. Could you live with a relative for the summer? Bunk with a few roommates? Find an inexpensive dormitory-style place to live? Be sure you're not breaking the bank just to have a new experience.

Ideally, you want to build up a cushion of savings to get you through the next semester.

Looking to build experience in your field? You're not too young for some kind of internship. If you really want to break into your field, it's never too soon to start. If you can find a job that pays, great. If not, don't give up. You may just have to take a second job that pays. It's a sacrifice now, but when graduation day rolls around, you'll probably be miles ahead of your classmates who didn't make the effort to make those contacts and gain the experience.

It might be that your summer is all about living at home and making as much money as you can for next year. That's great too. When I was in college, I had one summer that was all about earning money, one summer where I moved away and saw another part of the country, and one summer where I worked an internship in my field.

Whatever you decide to do with your summer, just start planning early to make the most of it!

In Part 1 of my Most Valuable Classes post, a few of us Student LoanDown bloggers shared a specific class that really left an enduring impression with us. Here are some more of our MVCs. Have you shared yours, yet?

Caroline
Journalism 201. It was my most intensive journalism class. My teachers were tough, fair, and critical in a helpful way. I learned a ton from them, one of whom was a former Des Moines Register journalist

Angel
A political science class that explored race, ethnicity, and identity politics in America. I studied with a well-regarded political scientist who dissected some of the most relevant books on these topics during the eighties. His instruction and analysis were keen and his frameworks helped me when I was working as a program intern for a private foundation in Chicago. One of the authors we studied was Dr. William Julius Wilson of the University of Chicago. While at the foundation he approached us for a major grant for a multi-million dollar research project, which I was asked to review and recommend for funding. Having read his work, I was able to ask Dr. Wilson tough questions during a proposal meeting we had with the foundation president. Dr. Wilson was impressed with my questions and so was the president. Guess what happened? Shortly thereafter I received a promotion to program officer where I became a member of the team and shed my "intern" status. How about that for serendipity?

Kathy
It may sound like a cliché, but the most valuable class for me in undergrad was a Personal Finance course I took my senior year! I learned all about important topics I hadn't really thought about before, like how to manage a budget and plan early for retirement! We covered a ton of great and practical topics during that semester. As luck (or fate or some other force) had it, I took the class with my then-boyfriend/now-husband, so we learned important lessons about money together. The content of that course has stayed with me and proved more valuable in “real life” than pretty much any other class in my curriculum!

Jonathan
When I think back long, long ago to college, the two classes that come to mind as most valuable were both completely random: Art History and Language of Mythology. They were both broad survey courses that exposed me to entirely new ways of thinking, and gave me the insight and freedom to consider different ways of looking at the world. Granted, I didn't become either an artist or a writer, but then again I didn't become an accountant or geographer either. It's fine to know the debits are on the left and what a karst landscape is, but developing an appreciation of the creative arts has benefitted my life in countless ways that I will always be glad to have.

Editor's note: You may have noticed some new blogger names in this post. Stay tuned to learn more about our newest bloggers.

Talking with any student, there always seems to be one class that left a mark on them—whether it was valuable for their future career or valuable for life. Those of us at the Student LoanDown have all had one of those classes and wanted to share ours with you! Here's what some of our bloggers had to say:

Cheryl
The most valuable class I took in college was my Advertising class. I took it the summer between Junior and Senior years. At the time, I had no idea what I wanted to pursue as a career. The professor was a smart, intelligent woman who had built a successful career in the ad world and had so much real-world experience to offer. I was inspired by her class and began searching for ad agency jobs soon after graduation. 10 years later … I've worked at ad agencies and other marketing jobs and still leverage what I learned in class that summer.

Ben
Cognitive Psychology. Better understanding how the brain functionsand memory works still fascinates me to this day. It was hard to swallow that your own memory is completely unreliable.

Dinna
Art History because it was so different from the other classes I had to take for my Econ major! It also inspired me to visit certain museums when I backpacked through Europe after graduation.

Barbara
Random as it may sound I value my American Sign Language class more than any other I took during college. I selected the elective on a whim and had the most amazing semester learning about the language and the people who speak it.

Vikas
The most interesting course I took in college was Principles of Macro-Economics. It helped me contextualize the “big picture” of how economies function and how that helps shape and drive micro-economic policies.

We'll have more MVCs (most valuable classes) for you in my next post. In the meantime, please tell us: What class has been most valuable to you?

You may recall that I made a resolution this month to dramatically curb my habit of eating out. And I'm proud to say it paid off—literally. I know February is a short month, but this month my restaurant bill was about half of what I typically spend.

And I didn't suffer for it. My month included a nice dinner out for a friend's birthday, a pre-planned dinner out with my spouse, and a couple of lapses in my resolution (one unplanned dinner out with the family, and one quick lunch with the kids at McDonald's).

So what did it take to stick to my resolution? A few simple things, in this order: time for planning, organization, and discipline.

Getting 21 meals on the table each week doesn't happen by magic. I had to take the time to plan out those meals in advance. That part wasn't too tough. I typically make a weekly menu and use it as the basis of my grocery list for the week. But this time around I took the time to really do it right. I planned not just three or four meals each week, but all seven dinners. I took the time to grocery shop more precisely to ensure I had everything I needed. And I made sure we had several options for breakfast and lunch each day—no excuses for any meal.

Once I had all the food in the house, I had to stay organized. When I was cooking dinner one night, I'd be sure to defrost anything needed for the next night's meal. (Forgetting to defrost is a biggie for me!)

Then I had to apply discipline. This is where the resolution factor really kicks in. Knowing I was just trying to make it through the month was helpful. Knowing how any lapses would impact my budget was a motivator. Believe me, there were a couple times when I was out running errands that I just wanted to punt and grab my favorite lunch at Chick-fil-A. But I pointed the car home and made a sandwich instead.

And I have to share that in addition to cutting my budget, I also lost two pounds this month without even trying. Seriously. No dieting, no other changes in behavior other than less restaurant food. Just something to think about if you're trying to avoid the "Freshman fifteen."