What topics have we not covered? What topics effect you? What financial situations do we need to cover more?

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For some, it may be welcome news because they did not want to go to college in the first place… however, for a great many of you, it’s a harsh reality.

Why Did I Get Rejected?

Unfortunately, they don’t tell you exactly why you were rejected on the ever-so-friendly rejection letter. You cannot call them to find out why, either. It’s a “secret” of the trade. Sometimes they give you statistics about how many applied and how many were actually accepted - but that does not make you feel any better. And honestly I think that there should be a more open system because of all the trouble they make students go through to apply, but there is no incentive for colleges to reveal their “secrets” to reviewing applicants. They would probably have a lot of lawsuits on their hands if they did.

What is even more utterly confusing is that you can be a star athlete, have an awesome GPA and be involved with all kinds of extracurricular activities (clubs, community service, etc), but not have colleges kissing your feet.

This is (in part) due to the economy. As the recession deepened last year, people of all ages and status decided to return to college to learn new skills or develop old ones. In a way, college is perceived as a safe haven because people are spending time learning a new skill to be used when the economy recovers, rather than remaining unemployed and searching for a job that does not exist.

This makes it incredibly difficult for new high school graduates to secure their undergraduate education, never mind a decent scholarship when/if they are accepted.

I know this because I have a family member who is facing the same reality. He’s a scholar athlete, the leader of his high school ROTC unit, does countless hours of community service every year, and still has time to be a track star and his class Vice President. He’s a great kid and well recommended by all of his peers and teachers. But somehow, out of all the colleges that he applied to, only two out-of-state colleges accepted him, but did not award him enough money for it to be affordable (another factor that many graduates must face). Even from the state colleges he applied to, he only received a wait-list agreement from one.

We found out that part of the problem was with his applications - his guidance counselor went on maternity leave prior to his application due dates and due to an oversight, his transcripts went out three weeks late. But there is nothing that he can do about it now. And the high school cannot be held responsible.

His is a unique situation, but a long conversation with him made me think about how many other students may be facing the prospect of life after high school without college.

Facing the Music

What do you do if you are graduating this June and have no college plans? First, pick yourself up out of the rut and dust yourself off. Nobody ever accomplished anything by feeling bad for themselves!

Contrary to popular belief, it’s not the end of the world. Although college is important, it’s not for everybody. And actually, a large percentage of students that start college will drop out. But this is not to discourage you from getting an education! You may just have to start with other options. And the best way to do this is by evaluating what your interests are.

When you applied to college, did you have a particular major in mind? Or was it for “General Studies” because you have no idea what you want to do with your life? Some graduating seniors know what they want to do with their lives - they have an amazing skill or an incredible desire for a particular career path and they go for it. But they are more of the exception, rather than the rule. So if you are one of the undecided, perhaps those rejections were a blessing in disguise.

Opportunity

Take the college rejection letters and burn them. Not only will you feel better, but it will get it off your mind faster.

Following you graduation (enjoy it!), this will be the time for you to figure out what you want to do with your life without wasting tens of thousands of dollars on a general education. Instead, pick a subject that you really, absolutely like - not just one that you are good at - and find an avenue to learn more about it.

I say this for two reasons 1) I went to college for something “practical” and something that I was “good at” rather than something I was passionate about and now I am not using the degree in my career (except in terms of this blog!), and 2) doing something that you truely like will make it ten times easier to get up in the morning, even if you are not paid a lot to do it. My father explained this to me and I didn’t believe him. Now I know better and I am actually taking his advice. Learn from my mistake!

Finding an avenue to develop your interest or potential career path can come in several forms:

• Community College

The less expensive alternative to a traditional 4-year college. By starting here, you can take some college classes to experiment with your subject of interest. If you figure out that it’s not for you, no harm done! Just pick something else and make sure that you truely like it! Then after you get enough credits to transfer to a traditional college, go for it! By then you should know about all of the top programs for your major at other colleges and be able to make a better decision for where to go.

The common mistake is that students enroll and slack off because it’s a “community college” and it’s perceived as “easy”… only to realize that their credits will not transfer because they did not get good enough grades. This is a complete waste of time and money, since you will have to start over and accrue more loans. If you take this seriously, it will reflect on your transfer application and your efforts will be rewarded.

• Trade School

Costs for these schools vary - especially with private trade schools like the Art Institute or DeVry, which tends to be on the higher end. However, this is an opportunity for someone to develop a talent or interest that they may not be able to on their own, such as with video game design. Often, traditional colleges will not offer the hands-on programs that trade schools do. Trade schools also have accelerated degree programs, so that you spend two to three years for a full bachelors degree vs. a four year program. It gets you out into the “real world” and making money faster. Plus you spend more time on classes that you’re interested in (your major), whereas in a traditional college you may spend the first two years taking your “core” requirement courses and not taking courses related to your major until your third year.

• Military

This has become an option for many who cannot afford college, as well as those who seek more direction in their life. If you do not know what you want to do, the military can serve as guidance and help you develop skills that you can use in a career once you complete your service. Each branch has their own incentives, adding sign up bonuses or cash after service. Once you’re out, the current GI Bill  will pay for a four-year degree. Plus you receive Veterans benefits, such as free or low cost health care for life and cheap home loans, that can make your life easier later. But military service is not for everyone and how much the experience will benefit you will depend on your ultimate goals and personal morals.

• Apprenticeship (or finding a Mentor)

Some skills simply cannot be acquired by reading a textbook or through traditional education methods. Instead, you may need to immerse yourself in the trade and gain experience on the job. A good start would be to find someone who is looking for an apprentice or who is willing to be your mentor. Some examples of this may include a young entrepreneur who works under the wing of an experienced business owner, or someone who wants to learn a rare trade.

• Independent study

Independent study is more for someone who has a hobby or talent that they can make a living off of. Here you can take the time to become an expert in your field by learning anything and everything that has to do with your interest. This is probably the most difficult path, since most people lack the discipline and motivation to concentrate on becoming an expert. It is very easy to procrastinate or lose direction. It can be difficult to make this into a viable option, as most of the time it requires a sense of entrepreneurship and clear goals. But it is definitely doable and it is an option for the right personality type.

Student tend to shy away from these options because they are not as “glamorous” or “ideal” for those who aspired to go to their favorite college right out of high school. But they can still be a perfect start.

How to Avoid Embarrassment

If you’re not going to college, what do you tell people in the interim? I know that it’s on the minds of many high school seniors - so don’t feel alone. At the very least, you know that you will have to face friends and family that ask where you are going for college…

But if you were rejected, how do you avoid the embarrassment?

• Come up with a plan, make your aspirations known by explaining your goals to anyone who asks, or
• If you are unsure about what you want to do, say that you are researching your options and at the very least, plan to take a few classes until you figure it out.
• Discuss your options with your parents, expressing your interests and the importance of enjoying what you will do.
• Do not say that you are just going to “take a year off” to figure things out.

Taking a Year Off

This is probably the worst idea. First, it shows that you have no direction or ambition. And as tempting as it is, don’t do it. Once you graduate and start a job, rather than keeping with an academic schedule, you will find it very difficult to go back. You will find yourself becoming reliant on the money that you make from the interim job and lose motivation to adjust your schedule for school again.

I know too many of my peers that went this route, only to get stuck in a dead-end job that they hate. The job is never anything that they can develop a into life-skill and they burn themselves out working full time for meager wages. The worst of it is, they end up living with their parents for a long time because they don’t make enough to support themselves.

Stick To It

Once you decide what you are going to do in the fall (or as soon as you graduate), stick to it. Don’t lose the motivation to do what you need to do. At the very least, get yourself into some classes on a part-time schedule (two to three classes) and try to find a job related to what you are interested in. That way you can find out if you like it, while you are building your resume with some job experience. If you figure out that college is not for you after all, then you can continue working towards something you like to do.

And finally, find a friend or family member that will keep on you to motivate you. There will be times when you will take a class that seems pointless, or you may hit a rut and lose direction. Ask that person to be the “tough love” that you need to keep going.

~K

Since I pursued a degree in Computer Science I decided to make this centric to CS majors. In reality, the majority of the following can be applied to any field.

Internships
Internships are great ways to obtain work experience and quite possibly some extra money in your pocket. The downfall to internships is you don’t always get paid for your work. Many companies enjoy taking advantage of student interns and the hours they will put towards projects. Upon completing your internship many companies will offer their interns a full position. Compensation for internships can range greatly depending on where your school is.

Co Ops
College co-op programs differ from internships in that the work experience is integrated into the academic curriculum. Co-ops are always paid positions, and they’re set up as sequential, ongoing experiences. Much like in college coursework, the level of learning increases as you progress.

The average co-op student graduates with 18 months of experience from time spent in five to seven paid positions. Earnings from co-op programs are significant enough to contribute to the cost of a college education, if necessary. Consider the average monthly earnings of today’s University of Cincinnati co-op student: $1,700 to $2,500.

Work Study
The work-study program provides part-time employment to undergraduates and graduates to help with college expenses. There are two different kinds of work-study: Federal Work-Study and non-Federal Work-Study.

Federal Work-Study (FWS) is a form of financial aid awarded to students who demonstrate financial need and meet certain eligibility requirements. The work-study program encourages employment in community service and in fields related to your major of study. Job positions can be either on-campus or off-campus. Most off-campus positions will be at private nonprofit agencies or public agencies and will be in the public interest. At the very least, you will earn the current federal minimum wage, but that amount may be higher depending on where you work and the type of work that you perform.

Non-Federal Work-Study (non-FWS) is not based on financial need. If you do not qualify for Federal Work-Study, you should inquire about non-federal student employment opportunities at your school. Working on campus will give you more flexibility than working at an off-campus job because on-campus employers are usually more understanding of your class schedule and school work. At most schools, employment for non-Federal Work-Study is available as funding allows. Your earnings will depend on where you work and the type of work that you perform.

Work a Full Time Job
This happens to be my choice. I signed up for the military with a job in computer systems and communications. Once I finished my technical training I found a college that offered night courses and online courses. Beyond working full time in the military I was taking mini terms of 8 weeks. I took 3 courses per term, CLEPPED out of a full year of courses and somehow finished my degree in 2.5 years while working a full time job. Technically it took me 3 years to complete but there was a 4 month time frame that I was not taking courses because I was in the middle of Afghanistan.

Take up Odd Jobs
Craigslist, and Rent a Coder are among the top choices for odd jobs, even when you are finished with school these two sites are great resources to make a few extra bucks. You will find anything on Craigslist ads from data entry to setting up wireless networks. You can even run advertisements on craigslist to showcase your skills and availability.

Rent a Coder lets you locate and bid on coding projects and questions from around the world!  Rent a Coder also allows you to advertise your skills through their website, and receive emails on new bids that come in. Rent A Coder handles all the money collecting so you can concentrate on what you’re best at…coding. By the time you’ve begun work, the buyer’s money has already been placed into an escrow account, freeing you from the problem of getting ’stiffed’. The Downside to Rent a Coder is the charge. Rent a Coder charges coders a 15% Rent a Coder Fee on the profit from work and questions.

Tutoring
Tutoring can be a great way to enhance your knowledge of a particular subject and make some money on the side. If you are an upper classman or have advanced knowledge of a particular subject you may be able to help underclassman or fellow students in your class. Many graduate students find their understanding of a subject magnifies while being a teachers assistant. The great thing about tutoring is reinforcing your own knowledge of a subject while making extra money.
 
Consulting
This somewhat goes along with taking up odd jobs. However, I consider consulting to be more focused on a particular subject. Consulting can range from programming, database design all the way to network administration. Often time’s large companies will overlook small business because they are looking for larger pay outs. Suggest you have good knowledge of network administration, or network security auditing. Small businesses need these services and chances are they can get it cheaper from a student. Not only does this put money in your pocket it gives you an excellent learning experience in business which is something CS majors often don’t get.

 
Blogging
Although blogging won’t always make you an instant millionaire, it can bring in a few extra dollars. If you have a decent knowledge on a particular subject you can extend your tutoring into blogging. Beyond that, you can start a blog that gives other students a first look at events taking place at your university. The possibilities of blogging are endless, whether you become the voice of your university, the master of Beer Pong blogging can be a great way to make some extra money. Even if your grammar sucks, you can still pull it off. Just look at me!

Book Seller – Ebay Specialist
I’m amazed that people have yet to figure out how they can sell things on Ebay or half.com. There are store fronts which charge upward to 25% of the selling price for your items that have sprung up throughout my city. These store fronts take care of everything once you bring it into the store, from pictures to the listing and collecting the money. Between random stuff that fellow students have lying around and text books you can start up a small gig in your dorm. This is pretty simple, fellow students bring their stuff to include text books to you to resell. You then take 10% off the selling price and everyone is happy. This may be a little harder to pull off in a college since most college students have the technical savvy to sell things on the internet.

CNN Money’s comment on the site is completely accurate: “The reality is
that you don’t really need the Web site to make the right moves.” Resources such as this site, making goals and sticking to a budget is all you need.

Dave Ramsey will be taking questions by phone, email, Twitter, Facebook, YouTube and more!

Find a Location near you to interact with others in your community and get straight talk on the economic situation in the U.S.

If the uninsured were a political lobbing group, they’d have more members than AARP.

Crazy, right?

Actually, it’s kind of sad. But it’s a true. The Associated Press makes the point that the uninsured are a very large and underrepresented group. Given all the banter in Washington about health care reform, I thought that this may be an interesting topic to develop further.

the Problem

For an estimated 50 million persons, the recession has an additional dilemma as people lose their jobs, their homes, their cars… and their insurance. For the most part, the article focuses on the older age groups (don’t they always?) but it made me think.. How does this hit home for twenty-somethings?

Simply put: Most twenty-somethings are uninsured. However, there is a lucky group that are still floating on their parents insurance (under the age of 24 and in college full-time) or actually have a job that offers insurance. However, if your parents recently lost their job or if you lost yours, you are probably feeling the squeeze. Herein lies the relevance.

And unfortunately, I know the feeling.

Hi. My name is Kristin Savage and I am uninsured…

It sounds like a sad meeting of AA, doesn’t it? Well, it kind of is - although it’s more like UA (Uninsured Anonymous).  If you are uninsured, you have two options: 1) pay out the wazzoo for a terrible individual policy that barely covers a regular doctor visit, or 2) forego insurance and hope for the best because insurance is too expensive.

the Idea

Organize! The Obama Administration already has a lot on their plate, trying to fix the economy and what not. But if the uninsured organized into a lobbying group, then we might see more action in terms of health care reform.

It does not have to be anything fancy, expensive or time intensive - such as the AARP and old-school lobbyists do. Twenty-somethings have a powerful voice in other ways. Think in terms of viral lobbying. I’m talking about an “Uninsured Anonymous” Facebook group, a MySpace page, a Twitter… get more and more people on board by starting with a squeak.

Skeptical? Au contraire. The last election proved otherwise: Twenty-somethings accounted for 87% of the Democratic victory (according to the preliminary election data and my math - check it!). And what medium (or media) did we use to “spread the word?”

Yep - the Internet.

So what is the potential? Why not find out?

Now apparently there is a larger “Tea Party” planned for April 15th - the final day to submit your taxes to the IRS (without an extension). There are supposed to be anywhere from 300 to 500 protests across the nation.

Why?

There are a lot of disgusted people out there who don’t like taxation without representation, among other things. It was all organized over the Internet (sounds familiar), enabling groups of people to randomly gather without much organization at all - called “flash crowds” or “smart mobs.”

Similarly, there was an impromptu pillow fight earlier this month, and I missed it.

Interestingly enough, the leaders of the “Tea Party” events are not allowing “professional politicians” to speak… and I cannot help laughing, because it’s so simple and smart that it’s genius. People want to be heard and they’re doing it in a way that’s completely throwing off the government.

I mean think about it… any other way of organizing takes months and a lot of brainpower. It’s also more susceptible to losing power in the element of surprise when the media gets a hold of the story. “Flash crowds” are genius.

Catchy Idea

Websites have popped up all over the place, including ones like StopSpendingOurFuture.org.

I am wondering how many twenty-somethings are participating in these events? If any of our readers are, please email or Twitter either Eric or I.

I know that there is going to be one in Austin, TX. There are 181 people attending (as of 11:30pm, April 14th). As much as I know that I shouldn’t be surprised, it is still absolutely amazing. They even have a list of planned future dates.

I think that I might go check it out.

Key points to consider:

• Make your investment decision (to invest, or not to invest… that is the question) based on how much risk you can stomach.
• Take “Hot Stock” tips with a grain of salt. Same goes with any predictions in stock movements, for that matter.
• The Risk vs. Return relationship - the more risk you take, the greater the potential returns… but the greater the potential losses as well. Figure out your balance.
• The worst thing you can do is let your money sit in a savings account. That is, unless you’re account earns over three percent a year. Otherwise you are actually losing money to the devaluation of the dollar (inflation).

Of course, there are many other factors to consider before investing. After all, the stock market is a complicated animal and often is not for the faint-hearted.

You can check out the entire article, as well as my final investment tips here.

Enjoy.

For starters I don’t believe a financial adviser has to be a professional. Granted, I’d like my financial adviser to have more money than me and know what he is talking about but as Warren buffet says “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.” What about friends as financial advisers? I’m not talking advice on hot stocks or mutual funds. Friends can be financial adviser too if you consider it. A few years ago I was heading down a road of debt and spending, one day I somehow ended up in a conversation with a co worker on finances and was astonished to learn he had paid off his mortgage in only a few years. I was intrigued and he advised me that he paid off his debt as fast as he could using the Dave Ramsey book “Total Money Makeover.” A few months later another conversation started with another co worker and the 401k topic was bought up. At the time I was oblivious to my companies 401k. First off, I did not even know what it was and secondly I didn’t know the company gave out free money! He sat down and outlined the pro’s and con’s for retirement plans and guided me into seeing the bigger picture. Since that day I’ve been contributing 15% and that advice did not cost me a dime. Lining yourself up with friends who are not only older, but also doing well can be beneficial to you in the long run. Try to make friends with people who own their own small business this way you can not only learn about personal finance, you may learn a few things about business. I have a handful of friends who own their own small businesses. One of them has had to close down 3 companies before. Each time he learned something new and never repeated that mistake. I’ve learned a lot from his failings and his successes over the years.

Books can be another form of financial advisor. When you go to Borders or Barnes and Noble you may notice the finance section is rather large. Which one do you chose? Which one has the correct information. This title say’s I’m an idiot and the author can prove it. This other title say’s I’m broke because I want to be! The thing is, I don’t want to be broke! There is no shortage of advice in books, especially financial books. The ones to steer clear of are books with titles that imply getting rich quick or anything to do with instant debt removal. Twenties Money Magazine has made a Top 20 list of personal finance book every twenty something should read. These books are no BS, NO gimmicks. Some are excellent reads and others (Security Analysis) You’ll need a pot of coffee, some No Dose and a redbull. Picking up a book such as The Millionaire next door can give you a fair idea of frugality and the importance of budgeting as well as the realistic view of what you should be doing. Your cost? Depending on the sale, $15.00.

When getting advice it comes from many directions, regardless of whether it is wanted. One should always be prudent in performing their own research and never take the outward advice of someone just because they are a professional financial adviser. When being advised to invest in certain types of securities it is desirable to read a prospectus to discover risks, returns, fee’s et certera. Obtaining financial advise is pretty easy for any of us generation Yers who have come up in an information age with ready access to the internet. Reading through blogs, joining online communities and googling to find answers to questions we have. Pick up a few books like Total Money Makeover, The Millionaire Next door. Get a grasp on where you are and decide where you want to be. Continue reading, continue learning and never stop asking questions!

The first item to look for according to Willis is the “Expected Family contribution.” This label outlines the dollar amount your family will be expected to pay out of pocket. From this point your financial situation will determine whether or not you can afford to attend the school. Willis points out that you should also keep in mind the cost of tuition fees, out of pocket expenses such as books and housing, transportation and food.

When comparing financial aid side by side you should look for:

Specifics of the loan offer (interest and repayment terms)
Affordability over time

“Generally speaking, you’ll want to accept grants and scholarships first — that’s free money.”

Secondly, The financial aid package can change. That is, it is not set in stone.

If changes in your finances occur such as losing a job or over somehow your income was overstated you can file paper work to have your financial aid reviewed. This may result in more financial aid.