The Great Recession

 The Great Recession

Written by: Gabby W. 

From 2007 to 2009, the economic activity took a sharp decline. It was considered one of the most devastating economic downturns since the Great Depression in the 1930s. The devastation was felt all over the world, but it hit hardest in the United States, so how did we get out of this period of stagnant economic growth?

To understand how to get out of this recession, government officials and economists first needed to understand what caused it. There was a great housing boom from the early 2000s to the mid-2000s. This period was called the housing bubble. People turned to the banks for loans in order to pay for their newly-bought houses. Banks became more lenient on who they lent their money to. People who had poor credit were receiving these loans as the bank's standards were lowered, but these high-risk loans had drastic consequences. As interest rates increased, these borrowers with poor credit were unable to pay their mortgages, or sell their houses for a profit. As a result of this, banks went into crisis. Since the housing market fell and the banks were in crisis, the stock market eventually crashed causing one-quarter of American families to lose at least 75 percent of their wealth, and more than half of all families lost at least 25 percent of their wealth.

How did the government respond to this now-formed recession? They implemented two key fiscal policy programs.

The first program that was set into place was the Troubled Assets Relief Program or TARP. This program focused on flooding money to troubled banks and businesses through purchasing assets and equity. The government planned to spend upwards of $700 billion on this program, but the amount later got reduced to $425 billion. This program halted the bankruptcy of major companies across the country such as American International Group (AIG), GM, Chrysler, Ford, and multiple banks. This in turn allowed for millions of people to keep their job and keep unemployment rates from rising substantially. Funds also went towards the Homeowner Affordability and Stability Plan which allowed for homeowners to make adjustments to their mortgage payments so that they were able to consistently pay and ward off any additional foreclosures. 

The second significant program that was put into place was the American Recovery and Reinvestment Act, or ARRA. Under the Obama administration, they introduced this program to stimulate consumer spending and restore confidence back into the economy. This act was composed of three main components. The first part of this act was to cut taxes for individuals, families, and businesses. Individuals saw tax cuts of $400 and families saw cuts of $800; small businesses got more tax deductions for equipment and more tax credits when they employed veterans and students. The second part of this act was increased spending on assistance programs. Social security benefits were increased by $250 and extended for an additional 33 weeks. It offered tax credits to students for college tuition, improved access to healthcare, and funding for several educational programs. The final major part of this act was to create jobs through infrastructure. It funded several public works projects such as transportation and mass transit projects, modernizing federal buildings, and water projects. 

Economic recovery didn’t happen overnight; it took five years after these fiscal policy programs were implemented for the country to be mostly recovered. The process was slow and uneven, but eventually, in 2013, household wealth had climbed to $66.1 trillion. This number represented a 91% recovery from the devastation. 

Personally, I feel that these packages were necessary to stimulate the economy. Without them, the economy wouldn’t have been able to get back on its feet. Thousands of both large and small businesses would have gone bankrupt and closed causing millions of Americans to lose their jobs. Unemployment rates would have skyrocketed and it would have been difficult to bring them down. Also, the housing market would have continued to be in crisis potentially leaving thousands without shelter.

Recessions are inevitable; they are a natural part of the economy. Sometimes, they come as a complete surprise as did our current recession as a result of the pandemic. As we see, similar to the recession in 2008, the government implemented fiscal policy; this time in the form of stimulus checks and the American Rescue Plan. There is a large chance that we will experience one again, but it is unlikely that we will see a recession identical to the one we experienced in 2008, but the economy is ever-changing so we must expect the unexpected.

Works Cited

Amadeo, Kimberly. “Did Obama's Stimulus Plan Work?” The Balance, 4 Oct. 2020, www.thebalance.com/what-was-obama-s-stimulus-package-3305625.

Amadeo, Kimberly. “Did TARP Help You or the Banks?” The Balance, 27 Nov. 2020, www.thebalance.com/tarp-bailout-program-3305895.

Amadeo, Kimberly. “The Great Recession of 2008: What Happened, and When?” The Balance, 1 July 2020, www.thebalance.com/the-great-recession-of-2008-explanation-with-dates-4056832.

Amadeo, Kimberly. “What Did ARRA Really Do?” The Balance, 17 Nov. 2020, www.thebalance.com/arra-details-3306299.

Cathie Ericson is a freelance writer whose work has appeared in a wide range of publications. “What Caused the Great Recession in 2008-and What Can We Learn From It?” Acorns, www.acorns.com/money-basics/the-economy/what-caused-great-recession-of-2008/.

History.com Editors. “Great Recession.” History.com, A&E Television Networks, 4 Dec. 2017, www.history.com/topics/21st-century/recession.

History.com Editors. “Troubled Asset Relief Program (TARP).” History.com, A&E Television Networks, 1 Feb. 2018, www.history.com/topics/21st-century/troubled-asset-relief-program.

Segal, Troy. “Did the Troubled Asset Relief Program (TARP) Save the Economy?” Investopedia, Investopedia, 29 Sept. 2020, www.investopedia.com/terms/t/troubled-asset-relief-program-tarp.asp.

Sep 13, 2018

The Great Depression in Economics: A Breakdown

 The Great Depression in Economics: A Breakdown

Written by: Geoffrey X. 

The Great Depression is known as one of the worst economic depressions for the US and worldwide, lasting up to 10 years in the world. From the Great Depression rose new paradigms and theories for economics, like Keynesian economics -- which advocated for the government to actively adjust for recessions and inflations, contrasting the “classic” approach of letting the market fix itself. In this article, I’ll explore several major decisions that ultimately led to the Great Depression, as well as some choices that got us out of it.

* Here is a document explaining the graphs shown below.

The first indicator of the Great Depression started from WWI. WWI created a demand for food and basic necessities for the war. While these were government purchases, the effects rippled throughout the market. The government buying these materials en masse acted as a “consumer” for supplies, shifting the aggregate demand for those years rightward. Since producers observed more demand, they naturally expanded their production to compensate. While products were sold for a lesser price because of availability, more was sold, increasing the GDP for an economic upswing.

As the war settled down, however, food originally feeding 2.1 million active, hungry soldiers (also foreign supplying) had no more demand. While producers could technically lower prices, basic necessities needed for war typically reached a saturation point and couldn’t really be sold anymore. This lack of demand and market saturation resulted in farmers slowly looking elsewhere to make a profit.

As devastating as this was for the agricultural sector, it was really only a portion of the US’s aggregate supply, and didn’t heavily impact the overall economy. However, there were enough problems elsewhere that compounded this fault in agriculture. The stock market growth exploded during the 1920s as more looked towards investing, with the dollar losing value quickly from high inflation. Government tariffs, taxes, and contractionary policies, combined with some overvalued stocks in crippled industries from WWI, all led to the stock market crash. As a result, consumers had little savings and no motivation to spend, starting the Great Depression period.

Low demand meant products not selling, and products not selling meant unemployment. New farmers trying to make a living in the Midwest created the Dust Bowl from bad farming practices. There was no safety net for economic stress, and millions were unemployed. The government offered no help, with economists relying on “classical” economics, or the idea that the market would eventually return to the original market potential over time. However, as time passed, there was no economic upswing in sight.

The Great Depression gave way to Keynesian economics or a new model where the market potential was actually a curved slope itself. This meant that the economy would never actually return back to the original “market potential,” but rather stay at a crippled state. This new model called for government fiscal policy to force the aggregate demand back upwards. While this model has always been controversial, a middle ground between classical and Keynesian has been accepted as the standard today.

From 1932 onwards, Franklin D. Roosevelt became president and moved forward with several expansionary policies. For the initial steps of the New Deal, FDR paid farmers to cut production and guarantee prices, thereby reducing the uncontrollable supply -- at least temporarily. Other government expenditures, like spending money on alphabet agencies, relieved financial stress with an opportunity for work, encouraging consumers to buy. These changes helped recover consumer demand, bringing the economy back to the original market potential over time. And as WWII began to ramp up, demands crept up again, curing the economy of the decade-long depression.

Works Cited

Domitrovic, Brian. “Why Did People Buy Stocks In The 1920s?” Forbes, 15 Dec. 2020, forbes.com/sites/briandomitrovic/2020/01/09/why-did-people-buy-stocks-in-the-1920s/.

Duignan, Brian. “Causes of the Great Depression.” Encyclopedia Britannica, britannica.com/story/causes-of-the-great-depression. Accessed 16 Mar. 2021.

Karmakar, Diptimai. “The Great Depression of Aggregate Demand (With Diagram).” Economics Discussion, 30 Nov. 2015, economicsdiscussion.net/demand/aggregate-demand-curve/the-great-depression-of-aggregate-demand-with-diagram/15816.

Saylor Academy. Policy Interventions and the Great Depression. 24 Mar. 2015, saylordotorg.github.io/text_macroeconomics-theory-through-applications/s11-05-policy-interventions-and-the-g.html.

State Historical Society of Iowa. “Great Depression and Herbert Hoover.” IDCA, 18 Sept. 2020, iowaculture.gov/history/education/educator-resources/primary-source-sets/great-depression-and-herbert-hoover.

The 16th Amendment Explained

 The 16th Amendment Explained

Written by: Max C. 

One of the most prominent powers of the United States Government is its power to tax its citizens. It uses that money to fund all sorts of things. These departments thus provide services to those citizens. The national Park Service takes care of land to be preserved for the sake of nature. The Postal Service provides a system where mail can be sent anywhere in the country.

There are many ways that the government collects said taxes. One of the most notable sources is income tax. This type of tax is quite unique. After earning your paycheck, there will be a certain amount of cash taken out for the government, federal and state (not all states have state income tax). 

But how did this come to be? The United States didn’t always have income tax. In the early 1900s, under president Woodrow Wilson, the 16th Amendment to the constitution was passed. Under Wilson, the government expanded controle considerably. The other impactful example of this is the Federal Reserve, also known as the Fed. This was a national banking system meant for monetary policy, such as printing money. The 16th amendment was in the same range, but it is more closely related to physical policy, as this was more about handling revenue, rather than it was about handling something such as inflation. The 16th amendment allowed for income tax. This meant more revenue for the government to use on those things mentioned before, departments that are meant to help the citizens. 

Not everyone pays the same though; this is where tax brackets come into play. Rates range from 10% of income to 37% income. The amount one owes to the IRS depends on yearly income. The more made, the more taxed. Though that isn’t the only factor. Deductions and write offs can lessen the amount owed. Things such as marriage and things bought for the purpose of your employment can lessen the amount owed. Since this happens automatically, and not directed by congress every tax season, this is an example of an automatic stabilizer. The percentage stays the same and only changes when congress authorizes it. It is consistent regardless of the economy, whether it’s inflating or receding.

As you can see, this tax is not as simple as it seems. There are multiple brackets, with multiple ways to pay less. Though this is one of the most important taxes; not just in the topic of funding, but also in the topic of politics. How much is the right amount? What kind of tax breaks and write offs should be allowed? This is still a heated topic of political discussion today.

Work Cited

Cornell Law School, Cornell, https://www.law.cornell.edu/constitution/amendmentxvi. Accessed 

March 2021.

2021 Tax Brackets, Tax Foundation, 2021, 

https://taxfoundation.org/2021-tax-brackets/#brackets. Accessed March 2021.

Steps You Can Take To Avoid Credit Card Problems

 by Hayley T.

Steps to Keep your Credit Score Stable!

Many people our age have not yet opened up a credit account, but it is something that many of us see in our future. Although this might seem scary, as your credit score holds a lot of power, it can be quite manageable if you follow some key steps. 

Credit Scores

Before I tell you about some of the steps needed, it is super important that the basis of credit scores is understood. A credit score is a numerical representation of how trustworthy someone is with their money, and oftentimes people will be judged by their credit scores when they apply for loans, mortgages, etc. as credit unions want to make sure that they get their money back. Credit scores go from 300 to 850, and as you can see in Fig. 1, (DeNicola), there are already many people with poor credit scores, so it is important to make sure that you are part of a good bracket. You may wonder why it even matters to have a good credit score, well having a good credit score will help qualify you for the best interest rates, this will lead to you paying lower finance charges on credit card balances and loans (Irby). The less that you are in charge of paying in interest, the faster you are going to be able to pay off the loans that the credit union gives you!

Figure 2 (Irby)

Step 1- Make Sure to Pay Bills on Time

One of the largest factors that contribute to someone having a good credit score is having a good payment history. Your payment history, ability to pay bills on time, make up 35% of your credit score. In comparison to the other 4 main factors, this is an astonishing amount greater, as those range from 10% to 30% (White). 

Now that you understand how important payment history is, how do you make sure you never miss a payment? Utilize autopay, calendars, notifications to the best of your ability to remind you when bills are due. When you set these alarms and fill out your autopay, make sure that you set it up to give your payment enough time to process, the earlier the better. Doing this you will be guaranteed to have every payment in on time, as this will affect your credit score as well.

The hope is that by doing these things you will be able to maintain a good timeline which will improve your chances of keeping a good credit score!

Step 2- Start Early!

Not that you should rush to getting your first credit card but starting earlier can oftentimes be beneficial. Having a credit card for longer can often give you more time to accumulate a good credit score. Although having a credit card may be scary, the length of your credit history makes up about 15% of your credit score (DeNicola). Even though it is a large portion of your credit score, it is important that you maintain good standings by following the other steps. 

Figure 3 (Resendiz)

Step 3- Spend Within your Means

It may seem really appealing to upgrade your phone, buy a new car, etc. but those things could actually end up hurting your credit more than helping. This has multiple aspects come into play, but an important thing to remind yourself is that credit scores will take into account your credit card balance vs. your credit limit, or your credit utilization (Irby). If you spend too much relative to your credit limit then it will appear as though you are spending more money than you actually have, while spending too little won’t give a credit union an opportunity to see you being responsible enough to handle a larger loan payment. If you have questions about this it is super important to talk to your credit union, as they will consider a good number. 

This is a really important thing that people our age should be wary of, as the price of college, cars, and mortgages have gone up significantly within the last decade. Now people are having more trouble handling the debt that they will be put in because of this, the maintenance of a budget, and paying on time to get a better credit score regardless.

There are many more factors that you will need to be cautious of as you enter the world of credit cards but I hope that this will give you a good foundational understanding of the scary concept that credit card management is. If you have questions when you start a credit account, the most important thing that you can do is talk to the credit union that you will be working with. They are the ones who specify their rules and regulations, so they can provide you with any further needed information, but do not be afraid to ask because it will only hurt your credit score.

Bibliography

DeNicola, Louis. “What is a Good Credit Score?” Experian, 11 February 2021, https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/. Accessed 22 March 2021.

Irby, Latoya. “8 Steps to Avoid Bad Credit.” The Balance, 9 September 2019, https://www.thebalance.com/steps-to-avoid-bad-credit-960095. Accessed 22 March 2021.

Irby, Latoya. “How a Credit Score Influences Your Interest Rate.” The Balance, 21 October 2020, https://www.thebalance.com/how-your-credit-score-influences-your-interest-rate-960278. Accessed 22 March 2021.

Irby, Latoya. “9 Benefits of Having a Good Credit Score.” The Balance, 12 May 2020, https://www.thebalance.com/having-good-credit-score-960528. Accessed March 22 2021.

Lexington Law. “2020 Average Credit Card Debt Statistics in the U.S.” Lexington Law, 4 January 2020, https://www.lexingtonlaw.com/blog/credit-cards/average-credit-card-debt-statistics.html. Accessed 22 March 2021.

Resendiz, Joe. “What's A Good Credit Score To Have? How To Get It?” Value Penguin, 10 Novemeber 2020, https://www.valuepenguin.com/whats-a-good-credit-score. Accessed 22 March 2021.

White, Alexandria. “Want a good credit score? This is the most important factor.” CNBC, 30 August 2020, https://www.cnbc.com/select/this-is-the-most-important-factor-that-determines-your-credit-score/. Accessed 22 March 2021.

Gas

Gas

Written by: Nolan T. 

Gas is something that everyone needs but why do the prices fluctuate so much all the time? When you stop to get gas in your car you might see the price at $2.37 not think or care about the price and the next time you fill up it's $2.72.

Higher gas prices mean consumers pay more at the pump and less on other things that people might want to buy. Retailers suffer when shoppers have less money to spend at their store because high gas prices lead to more online shopping. When the gas prices go up online shipping goes up also because they need gas to deliver your goods. auto manufacturers have started making smaller and more cost effective cars for people to buy so they don't need to spend a lot of money on gas all the time.

Folger, Jean. “How Gas Prices Affect The Economy.” Investopedia, Investopedia, 3 Feb. 2021, 

Best Ways To Save Your Money

 Best Ways To Save Your Money

Written by: Ashton J. 

Money, whether you want to admit it or not, is the basis of everything for us citizens here in America. There is a greediness for money deep in all of us, no matter if it’s large or minimal, we all still have it in us. Although money doesn’t buy you happiness, it sure can buy you freedoms that others simply can’t have. So how do you make lots of money? Well first and foremost you need a job of some sort. Whether that’s a 9-5 job, being an entrepreneur, being your own boss, or doing some type of work that gets you a regular inflow of money. Now that you have a job with regular pay, how do you maximize that money? Sure investing is a great idea for most, but another alternative that is just as effective and sometimes better than investing is saving your money. Saving you money sounds simple but in reality is one of the hardest things to do for American citizens today. Despite it’s rather simple basis, it can be very hard to commit to saving your money, but if you want to see your money one day be able to buy you the freedom that you have longed for for so long, you might want to consider saving your money before it’s too late. In this article, I will be giving you four tips on how to effectively save your money and set yourself up for financial success for today, tomorrow and many more days to come. 

1. Create a Budget

Unfortunately, many Americans don’t make budgets for themselves and their money even though this is arguably the most effective way to save your money. Budgets help you map out what you’re spending your money on which in turn ensures that whatever money comes out of your pocket, is actually supposed to be coming out of your pocket. In addition to this, budgets take care of the necessary expenses that you have such as your house, car, phone, food, etc. and then whatever is left over after those expenses are mapped out in your budget, is the money you can freely spend on vacations, new clothes, shoes, etc. that aren’t considered needs, and aren’t important to have. Budgets help you prioritize your money from most important expense to least important expense which in turn helps you save your money. 

2. Find ways to cut your spending 

Saving your money in simple terms is not spending as much money as you usually would. This goes hand in hand with tip #2. Finding ways to cut your spending is vital if you want to successfully save your money. The best way to do this is to prioritize your wants and needs. In other words, what do you need to have and what would be nice to have, but don’t completely need. An example of this would be insurance. In today’s world insurance is a need for most things. You need car insurance to be able to drive your car which is a vital part of almost everyone’s daily lives here in America. A want would be the latest shoes to come out from Nike. Would it be cool to show up at school with the new Lebron’s and impress all your friends? For sure, but do you need that? Absolutely not. Cutting down on purchases like these are vital to being able to effectively save money because the less you spend, the more you save. 

3. Make saving automatic

Another effective way to save your money is to do it subconsciously without you ever seeing it or knowing that that’s where your money is going. This is possible through your bank, or wherever you store your money. One of the main things banks offer are savings accounts. These accounts do exactly what you would expect, in that they are a place you can put your money in order to effectively help you save your money. As a bonus to having a savings account, you can set your account up so that a specific percentage of your paycheck goes directly to your savings without you having to press a button or sending it there in the first place. Over time with a portion of every paycheck of yours going directly into your savings account, that amount will grow and grow and when you need to take it out due to emergency, last minute vacation or some other reason, the hope is that you won’t have to break a sweat about not having enough money to cover whatever expense you need covered because your savings account will have all the money you need.

4. Watch your savings grow

The overall goal of trying to better save money is to expand your overall money and have more money available to you to spend down the road. Staying motivated and seeing results is very important in this process. People want to know that them saving rather than spending is actually paying off and seeing your savings grow is a very rewarding feeling. As I mentioned in tip three, having a savings account is an important account to have set up and this helps you accomplish the goal of watching your savings grow in two ways. The first way is due to the fact that you can clearly see your balance in your savings accounts whenever you want. Over time, the balance in that account will grow and grow which will be a very reassuring feeling. Secondly, in savings accounts, although small, they have interest rates. Interest rates help multiply and compound your money when it sits in a bank. This is the bank's way of “thanking you” for choosing them as your bank. As I mentioned, the interest rates are low, but since you leave your savings balance untouched unless there is money being added to it, the more money you have in the account, the more money that interest rate can make you which in turn helps your savings grow. It’s definitely a win win.

Although saving your money can definitely take a lot of work and dedication, it is a very doable thing and something that all Americans should seriously consider doing if they aren’t already doing so. I hope you found the four tips mentioned in this article helpful and insightful as you begin thinking more about how you can go about saving your money for the future. Money can’t buy you happiness, but it sure can buy you freedom and saving your money is one of, if not the best way to make that freedom a reality. 

Works Cited

Better Money Habits. “How to Save Money - 8 Simple Ways to Start Saving Money.” Better Money Habits, Bank of America, 3 June 2020, bettermoneyhabits.bankofamerica.com/en/saving-budgeting/ways-to-save-money.

Jespersen, Courtney. “How to Save Money: 17 Tips.” NerdWallet, 10 Feb. 2021, www.nerdwallet.com/article/finance/how-to-save-money.

Ramsey Solutions. “How to Save Money: 20 Simple Tips.” Daveramsey.com, Ramsey Solutions, 3 Sept. 2020, www.daveramsey.com/blog/the-secret-to-saving-money.

Blog Post

 by Katie G

Have you ever wondered when you should start saving for retirement? Or even how you should be saving for retirement? Retirement funds are something that will become extremely important to you when you plan your retirement. Picking the right saving/investing methods and the right time to start can be confusing, but will only end up benefiting you in the long run. Since these things are so important, it’s extremely important to start saving for your retirement when you are young in order to make sure you have stocked away enough money for yourself to be able to live with no income. 

So when is the best time to start saving? ASAP!! You can start saving in a retirement fund at the age of 18. You can also talk to your parents about opening up a custodial Roth IRA so you are able to start saving before the age of 18. The earlier you start saving, the more money you will have to live off of after retirement. 

Once you have a secure job, most businesses offer 401K’s for their employees. This is a retirement fund that allows employees to dedicate a portion of their pre-tax income to a savings account (a pre-tax salary is your salary before you pay the required taxes). There are many tax benefits to 401K’s. The money that is invested into a 401K will not be taxed until you withdraw the money at retirement. Your tax contributions are not considered to be a part of your overall salary. This means it could potentially put you into a lower tax bracket, allowing you to be able to pay less in taxes. Lastly, normally in a regular retirement account, your savings are taxed; however, in a 401K your savings are kept tax free, allowing it to grow to a larger size than in a regular investment account. 

So why should you start saving at such a young age? By saving money as early as possible, it gives you the highest chance for your money to grow as large as possible. Even if you start saving at a young age and stop after 10-20 years, all the money you have already saved will have grown interest, making the total money you have available after retirement larger. A visual of this situation is shown in the graph below. This allows you to be able to enjoy your retirement. Who knows? Maybe you want to move to Hawai’i and live on the beach for the rest of your life. Who doesn’t want that? 

In conclusion, start your retirement fund as soon as possible! Talk with your parents about opening up a custodial retirement fund if you are under 18 so you can jump ahead of your savings. Find out what account works best for you, whether it be a Roth IRA, 401K, etc, and save up as much money as possible so retirement will be a breeze for you!

Works Cited

“Benefits of Starting Early.” Capital Group, americanfundsretirement.retire.americanfunds.com/planning/benefits-of-starting-early.html#:~:text=When it comes to retirement,take advantage of compound earnings.

By, et al. “Meet the 18 Year Old Who Has More Retirement Savings than the Average 50 Year Old.” NewRetirement, 21 Mar. 2019, www.newretirement.com/retirement/meet-18-year-old-retirement-savings-average-50-year-old/.

Folger, Jean. “The Benefits of Starting an IRA for Your Child.” Investopedia, Investopedia, 19 Mar. 2021, www.investopedia.com/articles/personal-finance/110713/benefits-starting-ira-your-child.asp.

Loudenback, Tanza. “Here's How Much More Money You'd Have for Retirement If You Saved $100 a Month Starting at 25 Instead of 35.” Business Insider, Business Insider, 26 Apr. 2019, www.businessinsider.com/personal-finance/retirement-savings-start-at-25-vs-35-2019-4.

Segal, Troy. “The Complete Guide to the Roth IRA.” Investopedia, Investopedia, 19 Mar. 2021, www.investopedia.com/terms/r/rothira.asp.

Swinney, Andrew. “A Beginner's Guide to Understanding 401ks.” Accounts with Big Rewards and Small Town Service, www.kasasa.com/blog/401k-guide/.

“When Should I Start Saving for Retirement?” Chris Hogan, www.chrishogan360.com/investing/when-should-i-start-saving-for-retirement.

How To Save Up to Buy Your First Home

 by Jenna M

Saving up for your first home can feel impossible, especially if it’s your first time. While a house will likely be one of the biggest purchases you’ll ever make, saving for a house is actually simpler than you would think. You need to remain open-minded and yet have some strategy to begin effectively saving. With these 5 tips I’ll go over, you’ll have enough money before you know it!

1. Open a Savings Account

It is important to have a place to set money aside actively when saving up for a home. This money could go towards the down payment. Having a savings account would be ideal to do this

Your savings account should be separate from your other accounts and it should be dedicated to your expenses for your home. Try to steer away from withdrawing money from this account and rather focus on depositing as much possible. By doing this alone, you’ll see the account grow immensely!

Keep in mind that all of your money should be sourced when depositing it into your savings. Accordingly, put any floundering cash into the account as soon as possible and prepare to make large deposits at least two month prior to putting an offer on a house.

2. Create a Monthly Budget and Stick to it

When saving up for a home, it would be smart to stick to a realistic monthly budget. In order to do this, you will have to calculate how much rent, utilities, groceries, and other routine expenses cost and try to plan accordingly how much you will spend each month. 

Having this monthly budget will help you avoid any extraneous expenses, therefore, you will have more money saved towards your house in the long run.  

3. Eliminate Large Expenses

By eliminating any large expenses, you will naturally accumulate more in your savings. Instead of spending money on subscriptions, vacations, electronics, or any grand items, set aside that cash to go towards your house. By doing this alone, you’ll see your savings increase at a faster rate.

4. Seek Out New Sources of Income

Increasing your income is another effective way to save up for your first home. This could possibly mean picking up a shift or two at work, getting a part time job, or working overtime. By supplementing your income, you will have more money to contribute to your home savings account. 

5. Take Advantage of Opportunities to Reduce Your Expenses

If you have the opportunity to live at home, rent out the space you were currently living in! Even carpooling rather than driving your own car can simply allow you to accumulate so much more money into your house savings account. 

I’m sure these options wouldn’t be everybody’s first choice, but they are super effective in the long run. Just keep your eyes on the prize!

Works Cited

“How to Save For Your First Home: 7 Tips From Top Mortgage Brokers.” Maple Tree Funding, 26 July 2019

“What Experts Say About Saving for a House Before You Plan to Buy.” Google, 13 May 2018.

Who Inherits Your Wealth if There’s No Will?

 by Katherine N.

Something I’ve always wondered about was who inherits your wealth if you die? Very weird but it’s an interesting thought to have if you end up passing away suddenly and didn’t write will, who will be taking your assets? Imagine if you had to write your will as the last prerequisite to graduate high school. After you submit that, you get your diploma. It may sound really strange to most people but after this milestone, it goes on to graduating college, getting married or living with your committed partner, you’ve established an estate by then. You never know what could happen to you so it’s always good to have something prepared when you’re young so you can skip the long process I’m about to tell you. 

Before we carry on, here’s some definitions of the vocab highlighted: 

Estate: all the money and property owned by a particular person

Intestacy: the condition of the estate of a person who has died without having a valid will or other binding declaration 

Beneficiary/beneficiaries: a person/group of individuals who have the advantage of something like a trust, will, or life insurance policy

Probate: the legal process that takes place after someone passes away

One key thing to know about this topic is what an intestate is. It refers to dying without a writing will. When the person passes away under these circumstances, intestacy determines the distribution of the deceased’s assets which becomes a responsibility of a probate court. If it is decided that the person died “in intestacy”, there will be a court-appointed administrator who will gather any assets of the deceased, pay any liabilities, and allocate the remaining assets to those parties deemed as beneficiaries.

The probate process to distribute the assets depends on each state’s laws but once the court appoints an administrator to look more into the estate of the deceased, they will act like an executor (legal representative named in the will).  They will receive legal claims against the estate and pay off any outstanding debts like bills. 

The administrator’s responsibilities is to locate any legal personals like surviving spouses, children and even parents. The process gets even more complicated when things need to go through the probate court on who will get the money and how the assets could be equally distributed. In most states, they divide the property among any surviving spouses and children. According to Investopedia, “a resident of Arizona, New Mexico, California, Texas, Idaho, Nevada, and Washington, who dies without a valid will, will have their estate divided according to community property laws in the state”. The distribution hierarchy starts with the surviving spouse where they can receive at least half of the estate, they can even earn all of it if there’s no living children or grandchildren. If they were unmarried or widowed at the time of the death, the assets would be divided to the children before reaching out to any relatives. If there’s no next to kin, the person’s closest living blood relative, the assets become the property of the state. You may be thinking, “well they could give it to my close friends”, they are not considered on the list of beneficiaries under the state’s probate laws for intestate estate. This only works out if they have a JTWROS (joint tenants with right of survivorship), where they have equal rights to the account’s assets. Owning a property jointly with them too will get you the rights for their estate as well. 

So after learning about intestacy, please prepare a will or have a will on behalf of your estate lawyer. It’s extremely important to have this ready so your loved ones don’t have to be stuck with figuring all this out because it takes a while to get everything settled down. 

To learn more about this topic, check out this link for more information and resources on estate planning: 

https://www.nolo.com/legal-encyclopedia/intestate-succession 

Works Cited

“Intestate Succession.” Www.nolo.com, www.nolo.com/legal-encyclopedia/intestate-succession.

“Intestate vs. Probate - What Is Intestate?” Trust & Will, trustandwill.com/learn/intestate.

Kagan, Julia. “Intestate.” Investopedia, Investopedia, 14 Dec. 2020, www.investopedia.com/terms/i/intestate.asp.

Stop Living Paycheck to Paycheck

 by Braeden L.

“I get paid on Friday, then I can spend my money.”

This is what many people say when they are living paycheck to paycheck. About 78% of American workers live paycheck to paycheck; a study by Ramsey Solutions found 47% of Americans have less than $1,000 saved for emergencies. Especially now that 2020 has hurt many people around the world, living paycheck to paycheck is very “normal” for people in today’s world. 

One easy way to help manage your money is to create a budget. Creating a plan for your money so that each dollar has a job to do; you should know where each part of your paycheck is going and how that is affecting your life. First, start making a list of your income and expenses (rent, food, internet, etc.). Subtracting your expenses from your income should hopefully leave you with enough money to put elsewhere in your budget. Using the 50-30-20 rule is a perfect way to start out your planning and budgeting. Buying a cheap BUT SAFE used car is another way to save money and to make sure that you aren’t spending too much on car costs. 

Living paycheck to paycheck means that you probably want to bring money in consistently. Having a full time job that pays well and always going after promotions is key, but having another form of income is sometimes better. Some ways to increase your income that many people do is: uber, lyft, doordash, side hustle, etc. These are easy and quick ways to boost your income. Starting a side hustle can be challenging sometimes but, if you involve your interest and talents, it can become fun and potentially turn into something more. 

Housing across America can be really expensive, especially if you want to live in an area where there is high land value. Many young adults want to have indepence and that means living in a place by yourself and where you want. But this causes many people to have financial problems later on. Finding a neighborhood or area in a city that is SAFE and affordable if you must live on your own but finding roommates that you can have pay rent is also an option when it comes to getting a place. 

Being financially strong and stable is really important when trying to not live paycheck to paycheck. Taking your paycheck and automatically putting the bill payments away so you know what money to get to “spend” in a month is essential. Being caught in living paycheck to paycheck doesn’t have to be a permanent lifestyle, using these tips can help you live your best life. Also, don’t eat out that much, it's not healthy and it’s very expensive.

Works Cited

Lake, Rebecca. “7 Tips For Moving Beyond Living Paycheck To Paycheck.” Personal Finance, ForbesAdvisor, 27 02 2020, https://www.forbes.com/advisor/personal-finance/moving-beyond-living-paycheck-to-paycheck/. Accessed 21 03 2021.

Ramsey Solutions. “How to Stop Living Paycheck to Paycheck.” Debt, Ramsey Solutions, 23 02 2021, https://www.daveramsey.com/blog/stop-living-paycheck-to-paycheck. Accessed 21 03 2021.

Don’t Forget to Budget!

 by Jimi H

Students who have just graduated high school are now relaxed and eager to continue on with their life and studies, but let their relaxation distract them from what they will find to be one of the most important things in their lives; budgeting. Budgeting is a skill that will teach you to cut back on financial stress, overspending, as well as teach you overall responsibility with funds in the real world.

Let’s Talk Money

Before jumping straight into making a budget, there’s a few prerequisites. Usually if your parents are helping pay for your college education then you most definitely should have them around. Doing a discussion beforehand can help make sure everyone is on the same page and there’s no surprises. This will also assist you in gaining confidence in managing yourself and your finances.

Consider brainstorming about these topics first:

People involved in your payments (can be you or a collective amount of people like your parents): Who is going to pay for your college and living?

What Expenses Should I expect in the near future?: Will you have to pay for transportation and/or books and supplies?

Taxes: Do you file for your own or do your parents claim your taxes?

Banking: Discuss whether or not you have attained a stable and manageable income, and whether or not you will be able to maintain it whilst attending college.

What to expect

Expenses will catch you off guard and cause stress, so it is important to spend your funds wisely and anticipate bills and extra expenses. 

Materials for your class course can be surprisingly hefty on your wallet. According to collegeboard.org, on average in 2020-21 college students in the USA pay $1240-$1460 in books and school supplies. 

Second highest in expense amount is paying for room and board. On average you should expect to pay as low as $9k or around as high as $13k.

Typically, would you walk, bike, or drive to school? Can you afford it? If you live on campus, it would be smart to obtain a bike, skateboard, or just walk to school. Paying for car insurance, gas, and on top of that car payments would be detrimental to your wallet. Probably a smart one to just ‘take the extra mile’.

The expendable things like clothing and entertainment you can do whatever you please with. There are all types and price ranges for clothes, so really you can wear according to what you can afford or what someone else like your parents purchase for you. Participating in things like social and recreational activities after studying hardly can help relieve stress and clear your mind. 

Don’t Get Buried Alive Upon the Mounds Of Spreadsheets! Be Proactive with your Own Future Needs in Mind!

The fundamental principles of budgeting involve lowering your standards and habits still should matter even if your source of money is greater than your peers. No matter how much money you make or how easily you make it: budgeting and keeping a grip and sense on your money is always a useful tool and skill.

Most believe budgeting involves heavy amounts of ‘homework’ and tasks that are unneeded. Setting aside just one day out of the month can greatly impact your spending and tracking of your money. Using a spreadsheet from Nerdwallet.com, or using apps such as Venmo or Cashapp can ease your effort into budgeting. Once you have started monitoring and managing your budget, you can effectively decide your needs and wants.

Congrats! You Have Now Educated Yourself on Budgeting!

Works Cited

Admin. “College Students and Budgeting: the Basics.” Winds of Change, 22 Jan. 2015, woc.aises.org/content/college-students-and-budgeting-basics.

“College Budget: How to Save Money & Cut Expenses in College.” Debt.org, 28 Jan. 2021, www.debt.org/students/college-budgeting-101/.

How to Start Investing On a Budget

 How to Start Investing On a Budget 

Written by: Cole Miller 

Investing can be thought of as a scary and risky task, usually only done by the wealthy. But I’m here to tell you that couldn’t be further from the truth. No matter how much money you have to invest it will continue to grow with compound interest. 

The first step to start your investing journey is developing and using good saving habits. This could mean sacrificing your 6 dollar coffee in the morning for the homemade alternative. Once you have saved up a bit of spare cash you are ready to invest. Everything nowadays appears to be controlled by a smartphone or app. Investing is no different. You could use a Robo-advisor savings account. You could also throw some money into a stock trading app and allow yourself to play and learn about your money. It can be a daunting task to try and zero in on which app will work for you. Well I have broken down 3 forms of investing to fit just about everyone's wants and needs 

The Cookie Jar Approach

Saving money can be very closely related to investing. Like said before to start investing you have to have some spare cash. One way to do this is with cookie jars, if you know that you are someone who struggles to save this can be an effective method. This method involves you setting aside a set amount of money every week. For example, if you choose to set aside just 10 dollars a week over the course of a year it will add up to just over $500. This may sound silly and underwhelming but in most cases, it is a necessary first step for many. There is a similar online alternative to this method called the savings account. This account won’t be linked to the debit account and should be withdrawn from very often. 

Using a Robo-advisor 

Once you have some money saved up it's time to begin investing to hopefully multiply your money. Robo advisors make investing simple and safer. Robo-advisor apps work by asking simple questions to try and finger out your economic goals and risk levels when it comes to your money. Then based on this information your money is invested in low stakes and low costs stocks and bonds. These apps make investing easy and quick for your everyday life. Most of the apps and services require 500 dollars or less to get started. There is one small yet important piece of information about Robo-advisors. On average Robo advisors take a .25% yearly fee. This means if you have 1,000 in your account with them every year they will take 2.50 dollars. Even these small fees can be avoided with the final investment strategy. 

Self Run Stocks 

Now thanks to the internet virtually everyone has access to participate in the stock market. In the news, we constantly hear about stocks like Tesla, Gamestop, and Amazon. These giant players in the stock market have the huge initial investment to get involved, but thousands of small penny stocks can be used to practice and understand how the stock market works. Using these cheap and lower-risk stocks is a great tool to learn about stocks before you get involved in longer and more costly investments. Apps have now made it even easier to get involved in the stock market. Apps like Robinhood and Public have allowed you to monitor, buy, and sell stocks all in the palm of your hand. Most of these apps can be used completely for free without any fees involved as long as you have a bit of patience and are ok with a basic package. 

With all of these ways to help save and grow your money why haven’t you started yet. Investing can be daunting but with a little bit of research and a little bit of money, you can drastically improve your financial situation within your level of risk. 

Works Cited

Davis, Chris. “Robinhood Review 2021: Pros, Cons & How It Compares.” NerdWallet, 8 Feb. 2021, www.nerdwallet.com/reviews/investing/brokers/robinhood.

Larkins, Jason. “6 Small Investment Ideas When You Have Less Than $500.” GOBankingRates, GOBankingRates, 11 Feb. 2021, www.gobankingrates.com/investing/stocks/how-start-investing-with-less-500/.

Sabatier, Grant, and DDD007 says: “15 Ways To Start Investing With Little Money.” Millennial Money, 4 Feb. 2021, millennialmoney.com/how-to-start-investing-with-little-money/.

The Apple Card

 The Apple Card 

Gavin Long

Apple is a company that pretty much is known by everyone. Whether you are a businessman with a Macbook or a teenager chatting on their phone, almost everyone uses an Apple product a day. Also, many people use Samsung products. According to Verto Samsung vs Apple, “Over 89.3 million people use Apple, whereas 61.5 million use Samsung. Apple has made many great products from Iphones to Macbooks to the more recently released Apple Card in 2019. I want to make it clear that the Apple Card is not Apple Pay. However, Apple Pay is interconnected with Apple Cards. They are made of a titanium metal that has your name laser-engraved on it. Here is an example image of one.

Seems pretty cool, right? You get a fancy, metal, credit card with your name on it. You get a number of benefits too. 3% on purchases made directly from Apple, 2% when you use the digital Apple Pay and 1% when you use your physical card. It's pretty neat the whole 3,2,1 idea. However, you get the highest amount of cash back for only Apple purchases. It's nice when you use it a couple times. But, how often do you need to buy an Apple product? People buy a new Iphone every 3-6 years. Occasionally you will purchase an Ipad for school or a pair of Airpods for entertainment. That is only about 3 purchases every once in a while. This compares to other companies and their benefits. For example, the PayPal Cash Back gives you 2% on any purchase. 

I stated earlier that there are still a large number of people in the world who use Samsung devices which are unable to use the Apple Card and Apple Pay. You are required to have an Apple Iphone to use this card and get these benefits. Is this Apple Card really worth it? When you only get the maximum amount of cash back through only Apple products, is it worth it? Or would you rather stick with a different card and get a better rewards system that branches out to different technology brands and companies?

Sources

Hwong, Connie. “Apple, Samsung, and U.S. Smartphone Market Share.” Verto Analytics, Verto Analytics, 21 Feb. 2018, vertoanalytics.com/chart-week-samsung-vs-apple-owns-smartphone-market/. 

The Battle of Liberal Arts and Finances

 by Kyle P.

As a senior who plans to major in music, the cost of getting into a college that offers education for a competitive industry can be a challenge. Post-secondary school can also bring fear to many. For most of my high school career, I was surrounded by STEM trying to fill my schedule with it as much as I can. Wanting to go into the medical field for both the money aspect and the selfless aspect as well. But this sudden shift in wanting to go to this year has gnawed me nonstop. Though yes, there is no post-secondary education required to become a musician, others like me finally found out they want to fully commit to this line of work that college is a fail-safe to help get our names out there. The problem is… finances get in the way and post-secondary employment.

The music industry is a competitive industry that yields drastic results. Many liberal arts colleges such as Belmont University, Columbia College Chicago, Julliard, etc. have skyrocket costs for one year. For example, Belmont University's average cost after aid is $36,000 per year. Which can be an influential deterrent to going to college in itself. However many can agree that once you start studying, you instantly start your journey within the liberal arts field working with industry professionals, and professors who’ve spent years studying everything about their major. The networking of these colleges they offer such as Columbia College Chicago can help you make a name for yourself much easier. At Columbia, you work with a consultant that will help you get gigs and part-time jobs during your stay in Columbia. The problem is, yet again, the average cost per is $31,000. So people who genuinely want to work in the field of liberal arts face a dilemma of going or not going for the quality of the education or the cost. Not to mention the post-secondary school stress of finding a job. (Graph taken from mellon.org)

It is said that the expected job growth of musicians according to the Bureau of Labor Statistics from 2019 to 2029 is 1%. In 2019, liberal arts fields were facing a “high unemployment number, at 6.7%, and an underemployment rate of 54% according to government figures.” with only a median early-career annual income at $33,000. Though, this number has surprisingly come down to 4.3% unemployment when COVID was at an all-time high in 2020. According to the National Center for Education Statistics, “Enrollment numbers have also decreased for many liberal arts degrees. Philosophy degrees declined 21% from 2010-2016, while English degrees dropped 19%. In that same period, social sciences and history saw a 9% dip, while liberal arts and sciences degrees as a whole fell 7%.” So with such outstanding quality of education and high cost to pay for college, liberal arts has been a high risk, high reward major that leads many to unemployment or other means of generating income. (Table taken from newyorkfed.org)

Although these facts and views have mostly negative, do not let these cold facts dissuade you if you are going into something like music, psychology, journalism, human resources, etc.  The liberal arts do have value in our society. “Liberal arts study helps students develop strong foundational competencies. It gives them tools to succeed beyond their first job.”--Paul Timmins, Director of Career Services at the University of Minnesota in Minneapolis. Thus, studying liberal arts helps students strengthen their creativity, research, and creative problem solving to help communicate with diverse groups of people. In the end, if you’re thinking of going into liberal arts, you’ll never know what the future has in store for you, and just taking that risk is more valuable than not knowing at all. 

Works Cited

“Columbia College Chicago” Google Search, Google, www.google.com/search?q=columbia+college+chicago&rlz=1CAHZJV_enUS942&oq=columbia+&aqs=chrome.0.69i59j46j69i57j46i175i199j46i199i291j69i61l3.2502j0j7&sourceid=chrome&ie=UTF-8&safe=vss&ssui=on.

“Belmont University” Google Search, Google, www.google.com/search?gs_ssp=eJzj4tTP1TcwLEzJqDBg9BJKSs3Jzc8rUSjNyyxLLSrOLKkEAJ7_CvU&q=belmont+university&rlz=1CAHZJV_enUS942&oq=belmont+&aqs=chrome.1.69i57j46l3j46i175i199j0j46i175i199j46j0.3915j0j7&sourceid=chrome&ie=UTF-8&safe=vss&ssui=on.

The Labor Market for Recent College Graduates - FEDERAL RESERVE BANK of NEW YORK, www.newyorkfed.org/research/college-labor-market/college-labor-market_compare-majors.html.

“Musicians and Singers : Occupational Outlook Handbook.” U.S. Bureau of Labor Statistics, U.S. Bureau of Labor Statistics, 1 Sept. 2020, www.bls.gov/ooh/entertainment-and-sports/musicians-and-singers.htm.

O'Connell, Brian. “College Majors with the Highest Unemployment Rates.” Savingforcollege.com, Savingforcollege.com, 7 May 2020, www.savingforcollege.com/article/college-majors-with-the-highest-unemployment-rates#:~:text=Liberal Arts.,career annual income of $33,000.

Writers, Staff. “The Value of a Liberal Arts Education: BestColleges.” BestColleges.com, BestColleges.com, 10 June 2020, www.bestcolleges.com/blog/is-a-liberal-arts-degree-worth-it/.

Is buying collectibles a good financial investment?

 by Lily K.

Most of us when we were younger used to collect things. Whether it was seashells, beanie babies, or even some kind of card collection, since a young age we have collected things we like. What if I told you that some of the items you collected at a young age could be worth a pretty penny? 

That’s right, collecting numerous items of the same kind is a form of investing. According to Business Insider, collectible investments are physical objects — tangible assets that have the potential to appreciate in value and diversify your investment portfolio. So while your seashell collection probably won’t get you any money, other collectibles such as card games like Pokemon or Magic the Gathering, baseball cards, Beanie babies, stamps, even sneakers might be worth something. “Collectibles can be anything anyone collects” Alexis Rhiannon, a writer for Insider and Bustle, states. 

A good example of collectibles that could be worth some serious cash is beanie babies. According to mental floss a valentino bear beanie baby with a brown nose instead of black, white star on the tag instead of yellow, PVC pellets, and multiple typos on the tag sold for $42,300 and even a valentino bear with no errors in mint condition sold for $1,000. (Valentino Beanie baby pictured to the right)

Now before you bring those beanie babies out from the attic and list them all on eBay for exorbitant prices, you must realize that like with any other investment there is risk. Most beanie babies are not worth more than a couple of dollars. This is the same with most other collectibles as well. Most newer baseball cards don’t go for more than a few bucks, pokemon cards can be sold for mere pennies, and comic books are typically worth more in sentimental value than actual monetary value. 

This is not to discourage you from investing in collectibles, as none of us know what the future may hold or how rare certain items will become, however, if you are planning on diversifying your portfolio with collectibles make sure you are collecting something you enjoy. I personally collect pokemon cards and look up and price check most of my cards on a website called pokemonprices.com and while most of them are worth next to nothing, some of my cards can go for $25 and one even goes for more than $100. 

The most important takeaways from all of this information I just dropped onto you is that like all investments, buying collectibles is risky and does not guarantee big profits in the future. This type of investment should only be used if you genuinely enjoy what you are collecting. In time I am sure that toys and cards from our era will be valued highly, but no one can predict which ones and how long it takes for them to increase in value. If this time of investment interests you the best time to start is now. Older products tend to sell better than newer ones so it is never too early to start investing, especially in collectibles. 

Works Cited

Lakritz, Talia. “Here's How Much 10 of Your Favorite Childhood Toys Are Actually Worth Today.” Insider, Insider, 1 Mar. 2018, www.insider.com/what-are-my-old-toys-worth-value-2018-2.

McDowell, Erin. “21 Collector's Items That Are Actually Worthless Today.” Business Insider, Business Insider, 29 Oct. 2019, www.businessinsider.com/collectibles-collectors-items-worthless-not-valuable-today#royal-family-memorabilia-is-mass-produced-and-usually-not-very-valuable-8.

Rhiannon, Alexis. “Investing in Collectibles: 5 Types of Collectibles That Have Historically Offered Bankable Returns.” Business Insider, Business Insider, 31 Dec. 2020, www.businessinsider.com/collectible-investments-valuable-types.

“The 10 Most Valuable Beanie Babies That Could Be Hiding in Your Attic.” Mental Floss, 20 Feb. 2019, www.mentalfloss.com/article/573674/most-valuable-beanie-babies.

Wasted Tax Dollars

by Jack M.

Many of us get very annoyed with having to pay taxes, at least I do. Whether it’s income taxes, sales taxes, or property taxes it's all annoying to pay. Taxes are very needed though. Taxes are what allows the government to run, it pays for public events, goods for citizens, most of our infrastructure, police/firemen, education, and so much more.  Although these are all good things, the government has wasted tax dollars on absolutely ridiculous things. 

The first example “Get Fruved,” is one of the best examples of wasted tax dollars. The government decided to give the University of Knoxville  $4.8 million of taxpayers funds to the “Get Fruved,” movement in 2016. For this movement, college kids bought and made full body costumes of fruit and vegetables. They used these costumes to walk around campus, having chants and telling people to eat fruits and vegetables which mostly targeted kids. I totally agree that eating fruits and vegetables is very important, but we shouldn’t give $4.8 million to create a movement that is probably scaring kids more than motivating them to eat fruits and vegetables. 

           A second example is the cost of some aircrafts that the USA created. The graph to the left shows how much is spent on each single aircraft in the millions. Having a very strong military is very important for many reasons. It ensures our safety and much more, but I feel like spending around $250 million on a single aircraft is excessive  considering we aren't at war. Some people could claim that it is needed because this is one of the plains we use to drop bombs or missiles. That is a fair argument, but then yet again we created 195 of them when many of them havent been used besides test flights and training. Less than half of those have been used in combat. This is just the price of developing the plains. It cost a lot more for the whole program and fight costs. If you were to add that into the price it would roughly be a little more than $300 million per plain. Yet again this is only a plain way more is spent everywhere else such as last year we built another aircraft carrier that cost just over $12 billion and $3 billion for a new submarine. In 2016 the military budget was $610 billion dollars. When you would look at China, Russia, Saudi Arabia, France, United Kingdom, India, and Germany their military budget combined would be less than ours alone at $601 billion. Like I said before, it is very important we have a strong military for a lot of reasons, but in my opinion we have been going way too overboard and wasting a lot of money that could be helping us more in other needed areas.

Overall the US government waists way too much of our tax money and the list could go on and on. Some more examples are we spent $1.5 million on a program that created a robot that folded laundry that no one uses. Spend $500,000 to study the immune system on a shrimp running on a treadmill. Spent $863,000 on a program to eradicate brown tree snakes in Guam in fiscal year 2019. For that we didn’t study the snakes or do anything besides remove them on an Island that didn't have anything to do with the US. A Special Inspector General for Afghanistan Reconstruction report shows the Overseas Private Investment Corporation loaned $85 million to a contractor for construction of a hotel and apartment complex in Kabul, Afghanistan which the  project was never completed. Finally, they spent $1.04 billion to expand the San Diego trolley 10.9 miles that less than 60,000 people use a day.

None of this will get better anytime soon until people start speaking up. I wish I never looked into this because on top of the examples I gave, I found many other waste of tax money and I find it very annoying this is where my money is going to be going. Do you think we need more taxes to provide more for the people or can we do it with the taxes staying the same but just spending it smarter?

https://americansforprosperity.org/5-outrageous-ways-the-federal-government-has-wasted-your-money-part-iv/

https://www.cnsnews.com/mrctv-blog/curtis-kalin/top-20-worst-ways-government-wasted-your-tax-dollars

Affording College

by Ashley A.

 As current high school students, taking the ACT, receiving a plethora of homework/tests, and stressing about what colleges we want to attend are many of the factors that high school students are faced with. Not to mention, the stress of getting into colleges and affording them in general can be a giant headache! However, taking a deep breath and sitting down to look at all of the resources available, is the best thing one can do before stressing themselves out. In today’s blog post, I will be discussing the ways you can afford college without getting overwhelmed. 

Scholarships

One of the best and most common ways to obtain money for college is by applying for  scholarships. According to U.S News, “In 2019-2020, college students received an average of $7,626 in scholarships and grants to cover about 25% of the total cost of college”. There is no doubt that applying for scholarships can help students earn money to put towards college -- not to mention, you can apply for more than one scholarship! Although, it is common for students to get discouraged when thinking about scholarships. “I’m not smart enough” or “I don’t play any sports” is the typical response of a high school student. However, do not worry! Every single student has something special to offer and when applying for scholarships, the organizations look for that special something about each student! “Scholarships open the door to a college education for talented students who might otherwise be left thousands of dollars in debt, or not attend college at all” as stated by the Foundation Education student responses website. As well, below I have provided a chart in which you are able to get some inspiration for your own scholarships. In other words, don’t be afraid to apply for scholarships, because doing so could both open the door for your future and earn you money to pay for tuition as well. 

Loans 

Another way students are able to afford college is by taking out loans. This should be your LAST resort when affording college, but it seems to be a very common way to pay for college amongst most college students. An organization that is knowledgeable about loans, Student Loan Hero, stated that, “Among the class of 2019, 69% of college students took out loans, and they graduated with an average debt of $29,000.” It is clear that taking out loans leads to a lot of debt. You should only take out loans to pay for college tuition if you don’t have a big source of money. Considering your financial situation, if your parents are chipping in to the cost, or other factors, is what you should consider before taking out a loan. 

Parent and Student Income/Savings

Taking a close look at the income both you and your parents are making as well as the amount of money you have saved, is a crucial step in the process of affording college. According to NerdWallet, “The typical family covers 43% of college costs that way”, proving that nearly half of a student’s college tuition is covered off of the money they have already saved. This is another reason as to why it is crucial to start saving NOW rather than later. Currently, there are several ways people can save for college -- prepaid tuition plans, a job, and 529 college saving plans (more information on the 529 plan here: www.savingforcollege.com)  just to name a few. Paying for college is no easy task, so making sure you have a cushion of savings to rely on is extremely important! 

Relatives and Friends 

The last way you can obtain money to afford college is through your relatives and friends. Have you ever received money for birthdays, holidays, or special occasions? Well that’s good news for you! One of the best ways to add to your college savings is by taking this extra earned money and putting it directly into your savings account. Each dollar saved adds up, which is why it is important to stash away the extra money you’ve earned so that you can put it toward college expenses. 

In all, when people hear the word “college” they think of stress, school, competition, expensive, etc. However, it doesn’t have to be this way! Instead of overwhelming yourself with the thought of college, take a deep breath and consider all of these options when trying to afford college. Establishing yourself and ensuring that you can afford your tuition, will help take a lot of additional stress off your shoulder. I hope this post helps you in your future endeavors and good luck with your college applications! 

                                                          Works Cited 

"How to Pay for College Using Overlooked Strategies." U.S. News & World Report. U.S. 

        News & World Report. Web. 14 Mar. 2021.

Nykiel, Teddy. "How To Pay For College: 8 Tips." NerdWallet. 05 Feb. 2021.

ONeal, Anthony, and Ramsey Solutions. "How to Pay for College Without Student 

        Loans." Daveramsey.com. Web.14 Mar. 2021.

The Good News Is That Most Students Receive Some Financial Help Paying for 

        College. "7 Ways to Pay for College without a Scholarship." Web. 14 Mar. 2021.

"U.S. Student Loan Debt Statistics for 2021." Student Loan Hero. 27 Jan. 2021. 

Saving for Retirement

Written by: Elise Keesler 

Saving for retirement. Something that many of us probably do not consistently think about which we should. Another reason is when we think about retirement, it scares us because that means we are getting “old” right? Well, there is no need to be afraid if we figure out a plan BEFORE you get to retirement age. One way is to nvest 15% of your income into tax advantaged accounts such as a 401K or Roth IRA. Now let’s explain what those are. 

Some things about 401k’s...

A Roth IRA is an individual retirement account under United States law that is generally not taxed upon distribution, provided certain conditions are met.  This is also a retirement savings account that lets you pay taxes on the money you put into it right away which means the growth in your account and any withdrawals you make after age 59½ are free of tax. 

(^^Here is a good way to look at the difference between these two. You can go through your job to create a way to good saving or make one on your own! )

More than 80 million workers actively participate in 401ks. There are more than a half million different company plans in place, according to a January 2019 report by the American Benefits Council. In total, $5.7 trillion in assets are held within 401ks in the U.S.

IRA contributions must be made by April 15th which is the standard tax filing date. If you are above the limits, you can still add to the post-tax income to a traditional IRA and take advantage of its tax-free growth. 

Some final thoughts, take the time to create one of these accounts whether that be now or in a few years. It will be really valuable in the long run to do this. Thank you for reading! 

https://www.daveramsey.com/blog/how-to-save-for-retirement 

https://www.investopedia.com/terms/t/traditionalira.asp