Mormon Life - College tag

Dave Says: Protection from Credit Sharks?

Tue, 27 Mar 2012 00:03:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: Can I put a block on my child's credit report before college to protect from credit hustlers?

Dear Dave,

Is there some way to put a block on a credit report prior to sending a kid to college, so that the credit card hustlers can’t get to them?

Trevor

Dear Trevor,

No, there’s not. Unfortunately, in today’s culture that’s part of becoming an adult. When you hand them car keys there’s no way to put a block on how they drive. And when they turn 21, there’s no way to put a block on what they ingest.

About the only thing you can do is to teach your kids to the best of your ability, and be a good parent and good example. Teach them why debt is dumb, and show them how it eats away at their ability to save money and build wealth.

And for goodness sake, don’t use credit cards yourself. Kids can smell a hypocrite a mile away!

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: Hunt Down the Money!

Tue, 27 Mar 2012 00:03:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: I have a partial scholarship to law school, but I can't work in the meantime. How can I make it out without debt?

Dear Dave,

I’m 24, and I don’t have any debt except for a small student loan. I’m going to law school to study international law, and I have a scholarship that pays 25 percent. However, I won’t really be able to work much while I’m studying. How can I do this without taking on more debt?

Amy

Dear Amy,

If I were you I’d do some online research on all the governmental agencies out there. I’ll bet there’s one that’s willing to pay for your law school if you would agree to work for them for a few years after you get out. It’s kind of an indentured servitude deal, but that’s a lot better than taking on $150,000 or more in debt.

The scholarship is a good thing, but we both know it will only scratch the surface when you’re talking about law school. Think about this, Amy. You got the scholarship by finding a good opportunity and asking for it, right? There’s a ton of scholarship money out there, and millions of dollars of it goes unclaimed every year.

If I were you, I’d get into the business of hunting money. Track down every possibility you can, and use every honest thing to your advantage!

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: What's in a Name?

Tue, 21 Feb 2012 00:04:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: What should I tell my son if he wants to transfer to an expensive college?

Dear Dave,

My son is a sophomore at a local college, and he wants to transfer to a very prestigious university. If he did this he would incur more than $100,000 in student loan debt, and that’s with us picking up half of the cost. What do you think I should tell him?

Will

Dear Will,

I’d have a hard time telling anybody that one school is $100,000 more valuable than another one. The fact is unless he has $100,000 lying around somewhere, he shouldn’t go to that other school for one very simple reason – he can’t afford it!

We hire people every week at my company, and where they attended college is a very minor deal. There will always be a few corporate types out there who play games and try to turn the office into some kind of snooty country club, but the fact is most employers don’t care where you went to college.

It’s what you learn and being able to use that knowledge in the marketplace that’s really valuable, Will. Knowledge is king, and we live in a knowledge-based economy. If you can’t retain and apply what they’re teaching, then the only thing more worthless than a college degree is a college pedigree!

—Dave

For more financial help please visit daveramsey.com.

{Lifestyle} Food Storage Tips for Singles and College Students

Wed, 07 Dec 2011 00:04:00 -0700

by SarahJo Ciotti
source: MormonLife.com

Mormon Life says: Most young adults think of food storage as that thing their parents do. But regardless of how settled you are, food storage is important for any independent person. Here are some essential "getting started" tips.

College students and singles know what they can and cannot live without. We can live without a working stove; we cannot live without a new sweater that would finish off an outfit for that job interview or date perfectly. Okay; maybe that’s just me.

But when you’re in college, priorities can be different than they perhaps should be, and food storage is a perfect example of things we think we can do without.

I don’t have to worry about that until I’m older and officially a “grown up,” right? Wrong!

In my college and post-college experience, I have witnessed the crazy things that can happen to anyone, anytime, and food storage can be an incredible comfort in these times. Even when faced with the challenges of limited money and space that college presents, food storage is still doable.

Planning

When I think of food storage and trying to build my own, I imagine a giant drum of 1000 pounds of cracked wheat barreling down a hill with me running for my life in front of it.

But planning out your own storage does not have to be so scary. The important thing to remember is to think of the foods you like and use. You don’t need cracked wheat if you don't know how to use it. Keep track of how much and what type of food you use for a week and start planning from there.

There are also online blogs that offer lists and other tools to help you get started. Shelfreliance.com provides help with their Q Planner: you add in your information, budget, and food preferences and they create a plan just for you. “This is the perfect solution for students or single households, because it requires very little time and effort,” says J. Bart Mills of Shelf Reliance. “With a few easy clicks of your mouse, you can begin building a quality food storage you know you will enjoy.”

Building

Sometimes building a supply of food can be intimidating, especially when on a budget. “We suggest that you just start small,” Mills says. “You can begin by purchasing food you are familiar with and would be able to prepare and eat if necessary.” You do not have to buy everything at once. Now that you’ve kept track of what types of foods you use in a typical week, pick up one or two extra of those items each time you go shopping. If you typically use three boxes of macaroni and cheese a week but notice one time that they are on sale when bought five a time, save the extra two as food storage. “The key is to keep things simple,” says Mills. “If you are placed in situation where you need to use your food storage, storing items that you already know how to use will make things easy and not nearly as intimidating.”

Storing

Storage space in temporary housing is tight without adding a year’s supply of food storage. Books, clothes, and recreational gear all take space, and if you’re sharing a kitchen with two to five other people, things can get cramped quickly. Try raising your bed with cinderblocks and storing some of your less-used items in a plastic bin, using a dresser drawer or two for some items, or putting lighter items on those high-up shelves in closets that you can never really reach without great difficulty and thus probably aren’t currently using.

Timing

Don’t worry about trying to collect a full year of food storage; it’s unrealistic for college students to hold on to more than a three-month supply of food since they are often moving from one place to another. The typical length of a semester is only three months, and you don’t want your car to be packed full of food and have no room for your other belongings when you leave at the end of the school year. Plan for a few weeks to a month of storage rotating out regularly.

For single households, life may be a little more predictable. Perhaps you have a job and an apartment with more than a three-month lease. In that case, it would be more feasible to gradually build a supply up to three months, again, rotating regularly, and then continue as you are able.

Dave Says: Let's Wait a While . . .

Tue, 11 Oct 2011 00:03:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: I'm in college and have a good amount of money saved. Should I use it as a down payment for a house?

Dear Dave,

I’m a sophomore in college, and I earn about $1,500 a month at my job. My rent is $500 a month. I don’t really have a credit history, but I’ve saved $20,000, and I’m thinking about using it as a down payment on a $140,000 home. Would this be a good idea?

Gil

Dear Gil,

I wouldn’t do it. I love the fact that you’re working while you’re in school. Saving that much money is fabulous, especially for someone who’s not even 20 years old!

I almost did the same kind of thing when I was in college. I was into real estate, and I really wanted to test my wings and buy something. Looking back on it, though, I’m glad I didn’t. It would have been a huge mistake.

College can be a bumpy enough ride, even for the most responsible student. If you lost your job you’d be in a real mess, and with your stated income you wouldn’t have a lot of breathing room. Plus, the two years following graduation have the potential to be the most permanently life-changing period you’ll ever experience. You could move across the country for a new job, get married, or decide to attend graduate school. In any of these situations, a house would turn into an anchor around your neck.

Being a renter is a great thing while you’re still in school. In the meantime, keep piling up cash until you’re ready to settle down!

- Dave

* For more financial help please visit daveramsey.com.

{LDS How-to} Survive and Thrive at a Non-LDS University

Tue, 30 Aug 2011 13:03:00 -0600

by Molly Gray
source: MormonLife.com

Mormon Life says: Deciding to go to a non-Church school isn't easy, but, to borrow a common phrase, it can definitely be worth it.

“So, are you excited to go up to BYU?”

I so wanted to lie to the sweet old woman who had watched me grow up in her ward, but, alas, I knew that if I was making this decision, I had to stand by it or no one would ever understand why I did it.

“Well, no actually. I decided to go to Ohio State University in Ohio. But I’m really very excited to head out there!”

It seemed as if everyone was dumbfounded that I had chosen to attend a non-LDS university and that, out of the goodness of their hearts, they were concerned about what might happen to me.

Luckily for me, I thrived in college—I was a walk-on varsity athlete for a year and the managing editor of the student newspaper, I graduated with two majors and I had both ward and stake callings. I saw everything from the power of the world’s influence on those around me to the power of the Savior’s love to change people’s lives.

But it wasn’t easy. I had a lot to learn along the way and I was far from perfect. Here are my best tips for surviving and thriving at a non-LDS university.

1. Be loud and be proud. When I first moved into the dorms and started classes, I was pretty quiet about my faith. I thought that people would judge me and I wouldn’t make any friends. Once I was unafraid to address my faith in casual conversation (it took a little practice), I was pleasantly surprised by the reaction from most people. And I realized that people who wrote me off weren’t people I wanted to associate with anyway.

2. Attend institute. This might seem trite or like an advertisement for the Church Educational System, but truly, attending institute was the best decision I made during college (outside of regular church attendance, of course). The institute building itself is usually more conducive to studying than any library on campus, and I made many friends and future roommates in class.

3. Pray for missionary experiences, but be okay when people turn you down. I saw many conversion stories of wonderful people while I was in Ohio. But I also had many friends meet with missionaries and have no subsequent interest in the Church. At first that was painful to take, but I had to remind myself that because I was a daily example and friend, I was planting gospel seeds.

4. Have good friends. I think this tip holds true for LDS schools as well, but find good friends who will support you. I made many good friends in the Church while I was at school. But I also had several good friends outside of the Church who knew my standards and always made sure that I felt comfortable with what we were doing.

5. Keep a journal. Often times, at a non-LDS school, you might feel like no one around you understands your trials and tribulations. Aside from prayer, I have found that keeping a journal was one of the best ways to debrief—to unload all of the drama, worry, pain and concern and move on.

6. Stay away from sororities and fraternities. As Ice-T once put it: Don’t hate the playa, hate the game. I have met many wonderful people who happen to be “Greek,” but the fact of the matter is that Satan has a lot of power in those places. Just stay away. Plus, singles wards pretty much act like a co-ed fraternity—and the activities are uplifting!

7. Do service. I think college students can be some of the most selfish people on the planet. You can’t blame them, it is human nature. When you are young and single you really don’t have to think much about anyone but yourself. To avoid this casualty of the single life, engage in service! It will bring you closer to others and closer to the Lord. And it will always bring missionary experiences.

So there you have it. A foolproof (well, almost) way to survive and thrive at a non-LDS school. Now go out and be examples to the world!

---
Molly is a 2011 graduate of journalism at Ohio State University. She is now getting a master's degree in digital journalism at the University of Southern California. She loves blogging, reading, crafting and meeting new people.

Dave Says: College or the House?

Tue, 26 Jul 2011 00:02:00 -0600

by Dave Ramsey
source: MormonLife.com

Dear Dave,

My wife and I make about $100,000 a year combined, and we’re debt-free. Recently, we got an insurance settlement of $95,000. We have an $89,000 mortgage and a 19-month old baby. Should we use the settlement money to pay off the house, and use the rest to start a college fund for our son?

Michael

Dear Michael,

Absolutely! Then, if you guys save the equivalent of a house payment until your son is ready for college, he could travel the world while he’s studying. If I’m in your shoes, I’d pay the house off tomorrow. In fact, I do it today if there’s still time to get to the bank.

Being completely debt-free, and with your income, you guys have the money to do just about anything. You can start the kiddo’s college fund, save for retirement, and you’ll have the money to build wealth, too.

Don’t let this great opportunity to change your family tree pass you by, Michael. You two have the chance to live great lives and retire early—and wealthy!

—Dave

* For more financial help, please visit daveramsey.com.

Northwest College and LDS student recruitment

Fri, 12 Nov 2010 12:12:00 -0700

source: fairblog.org

Recently there has been some commotion about a recruiting letter to LDS at Northwest College in Powell Wyoming. You can read about it in the Billings Gazette here and here.

Working at a college myself, I recognize that some of the issue has nothing to do with Mormons but was a way to express displeasure with the College President who happens to be LDS. Nevertheless, the comments as represented in the press, certainly pose some troubling questions. Is it a violation of state law to send recruiting material to students if those students belong to a religious organization? Did some faculty and students use this opportunity to vent their anti-Mormon feelings? Does this now create a hostile educational environment for LDS students at Northwest College? Is Northwest College showing intolerance toward the LDS?

Working Isn't Child Abuse!

Tue, 21 Sep 2010 00:03:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: Is it okay to take out student loans if you have no other income to live on while you’re in school? Dear Dave,

I’ll be starting college next fall. Is it okay to take out student loans if you have no other income to live on while you’re in school?

Mandy

Dear Mandy,

Wait a second! What do you mean you don’t have any other source of income to live on while you’re in school? Didn’t anyone ever teach you about a little thing called work? I worked 40 to 60 hours a week all through college, and I still graduated in four years. Nowadays, many people would call that child abuse. It’s absurd!

Don’t try to box me into a corner with the ridiculous notion that you have to take out student loans to go to college. You do not! Did you know that only 57 percent of people who start college actually graduate? That means 43 percent don’t. And guess what they have? Student loan debt and no degree!

Here’s what I want you to do. First, apply for every college scholarship you can find. Next, get a job! You may even have to take a couple of part-time jobs, but so what? Once you’re there, live in the dorm and eat dorm food, too. It won’t kill you. And a state college, where you can get in-state tuition, is always a good idea. If there’s one close by you can save even more money by living at home.

Is a college education important? Sure, it is. It’s a great thing, and I recommend going to college. But is student loan debt a necessary part of getting a degree and achieving success in life? Absolutely not!

— Dave

For more great financial advice, please visit davesays.com

Utah vs BYU: A Parent's Dilemma

Wed, 15 Sep 2010 14:24:00 -0600

source: MormonLife.com

Mormon Life says: This is pretty funny--no matter whose fan you are.

Keeping College Costs in Check

Mon, 30 Aug 2010 18:00:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: Should we use our pension to pay for our kids' college, or have them take out loans? Dear Dave,

We live in Boston, and we've got three kids who are almost ready for college. My wife and I make about $114,000 a year combined, and that includes a $34,000 a year pension I receive. Should we use the pension money to pay for their tuition, or should we let them take out student loans?

Geoff

Dear Geoff,

There's no way I'm going to send anyone into student loan debt, especially when the household income is in the six-figure range!

Now, that assumes the kids choose a college you can afford, but with your income you guys could handle tuition at most state colleges. And that means all the kiddos are going to have to pick a reasonably-priced school if they expect you to foot the bill. We've got to use a little common sense here.

You guys are doing okay, but you can't afford to send these kids to $30,000 a year schools. All this will be hitting you at about the same time, so I want you to cash flow this thing, and pay as you go along. College is great, but you need to invest your money into something that fits your budget!

- Dave

* For more financial help please visit daveramsey.com.

Buy a House While in Student Loan Debt?

Mon, 02 Aug 2010 18:00:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: I have 50k in student loans and a salary of 20k a year. Do you think I could work out buying a home? Dear Dave,

I'm 31, single, and I have two college degrees. I have no money to speak of, having just come through a rough patch of unemployment, but I recently landed a job that will pay me $20,000 to start. There's the added possibility of an increase to $40,000 in the first year. I'm thinking about buying a house, but I've also got $50,000 in student loan debt. The good news is that I have no other debt. What are your thoughts on buying a home in this situation?

Trevor

Dear Trevor,

Man, you're broke! There's no other way to describe being $50,000 in debt with a job making $20,000. You don't need to get wrapped up in buying a place right now. At this point, a house would end up being a curse instead of a blessing.

You've been through the valley, and now I want you to come up into the sunlight. I want you to start building a future on something solid, and that solid ground means being debt-free. If I woke up in your shoes, I'd get unbelievably aggressive about paying off this debt. I'm talking about rice and beans and living in a cheap little apartment for the next two or three years while you kill it off.

Whatever you do, Trevor, please don't get complacent about this debt. Lots of times people will play around with student loans. They don't take them seriously, because they have low payments or really low interest rates. The next thing you know, it's still sitting there 10 years later staring at you like some kind of big, dumb pet!

Having a bunch of mortgage payments hanging over your head would completely destroy the foundation of your new financial life. Save up $1,000 for a small emergency fund. Go crazy about paying off the loan. Then, get your emergency fund of three to six months of expenses in the bank. If you get used to living on $20,000 a year, and your income rises like you mentioned, you'll be able to get rid of your student loan fast. After that's done, you can save enough for a 20 percent down payment on a house in no time!

-Dave

School Spending

Mon, 03 May 2010 18:00:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: My son wants to transfer to a prestigious university that would cause him to incur more than $100,000 in debt. What should I tell him? Dear Dave,

My son is a sophomore at a local college, and he wants to transfer to a very prestigious university. If he did this he would incur more than $100,000 in student loan debt, and that's with us picking up half of the cost. What do you think I should tell him?

Will

Dear Will,

I'd have a hard time telling anybody that one school is $100,000 more valuable than another one. The fact is that unless he has $100,000 lying around somewhere, he shouldn't go to that other school for one very simple reason - he can't afford it!

We hire people every week at my company, and where they attended college is a very minor blip on the radar screen. There will always be a few corporate types out there who play games and try to turn the office into some kind of snooty country club, but the fact is most employers don't care where you went to college.

Here's the deal, Will. It's what you learn and being able to use that knowledge in the marketplace that's really valuable. Knowledge is king, and we live in a knowledge-based economy. If you can't retain and apply what they're teaching, then the only thing more worthless than a college degree is a college pedigree.

This is a kid who needs guidance from his dad. Step up and explain it to him. Letting him walk out of school with a six-figure debt around his neck would be a huge mistake!

-Dave

This Dave Says is a reprint of a previous column that originally ran on April 15, 2008.

College Student with Inheritance

Mon, 05 Apr 2010 18:00:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: How should I invest my inheritance? Dear Dave,

I'm currently a junior in college. I don't have any debt, and my school is paid for through scholarships. Next month, I'll receive an inheritance of almost $50,000. I don't want to blow it, but I don't know much about stocks, mutual funds, or investing, either. Do you have any advice?

Jessie

Dear Jessie,

Putting money into something you don't understand is the easiest way in the world to lose it all. I'm glad you're asking questions, and want to do the smart thing with the money that's coming your way. I've always said personal finance is 80 percent behavior and only 20 percent head knowledge. So, you don't need to change your major to finance to make this happen. However, you will have a $50,000 responsibility that you didn't have before.

For now, I think a simple savings account is fine. I'd park about $40,000 in there, and just forget about it for a while. Then, take $5,000 to set up an emergency fund. Put it in a good money market account with check writing privileges. After you've done these things, take the remaining $5,000 and use it just for you. Have some fun! After all, spending and having a good time is one of the great things you can do with money.

But here's something to think about once you've educated yourself on investing. If you move the original $40,000 you set aside into a good, growth stock mutual fund, you'll have millions sitting there waiting when you retire. Talk about being able to retire with dignity, and change your family tree!

-Dave

A Lot of College

Mon, 22 Jun 2009 18:00:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: We have five kids under five, and would like them to go to college. What's our best bet for college savings? Dear Dave,

We have five kids under the age of five. We'd like for all of them to be able to go to college, but we're not sure how much it will cost. Our household income in about $90,000 a year, and we have no debt except for our home. What's the best route to go with our college savings plan?

Laura

Dear Laura,

Whew! Boy, you guys have got a house full and your hands full! You've also got a nice income, and that's going to help a lot. Right now, the most you can put into an Educational Savings Account (ESA) is $2,000 per year. If you did this annually for each kid, you have a little over $100,000 per child when it comes time to send them off to college. Pretty sweet, isn't it? That will buy a good education at just about any state school.

For the first $2,000, an ESA has more flexibility than a 529 plan. They're very similar in how they act, but with an ESA you're in total control of the investment. You can move it around, and put it into almost any mutual fund. If you use the ESA or a 529 for anything other than college you'll get hit with a 15 percent penalty, plus the tax rate, so start brainwashing the kids now; it's for college only!

- Dave

* For more financial advice, plus special offers to our readers, please visit www.davesays.org.

Yet Another Student Loan?

Mon, 15 Jun 2009 18:00:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: Should we take out another loan to help our daughter through her last year of college? Dear Dave,

Our daughter has one year left in college. She's going to a state school here in Texas, and we've already taken out two loans to help her out. She's living in nice apartment off-campus. She doesn't work so she can concentrate on her studies. Should we get another loan for her last year?

David

Dear David,

I've got a better idea. Keep in mind I said a better idea, not an easier idea.

She needs to be working full-time and then some, all summer long. If she does this and also works part-time during the school year, and you guys chip in a little, you may not need to think about another loan.

I really don't give a hoot about her lifestyle while she's in college. No college kid, especially one that's not working to help make things happen, deserves to be put up in a fancy apartment while her parents go into debt or break their backs working to support them. I worked all the way through college, and so did thousands of other people.

Statistics show that the average, in-state cost of tuition for college in this country is about $6,000 a year. It costs about $5,000 to live in a dorm, plus you've got books and food and a few incidentals. So, the average total will be between $12,000 and $15,000 year. That means you guys have to come up with about $1,000 to $1,200 a month. I really believe that if you'll all work together, and involve everyone in the process, you can make this happen without taking another loan!

In the long run, you'll all be happier if you do it that way.

- Dave