Cutting Workplace Costs

March 27, 2013 By Leave a Comment
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We work hard for our money – but how much does your work itself cost you? Expenses like work attire, eating out, transportation, and morning coffee can eat away at that hard-earned paycheck. Make sure you’re not sabotaging your paycheck, and check out these tips to decrease your work expenses and increase savings for your personal life:   Affordable Work Attire   If you’re fresh out of college, or transitioning from a casual work environment to a more professional one, building the necessary work wardrobe can cost quite a hefty sum. To cut back on costs, invest in a few staple pieces, like suits and shoes. Although they can be expensive, high-quality garments that you will wear everyday are good investments. A pair of $100 shoes that will look nice for a few … [Read more...]

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You Don’t Need Luck for a Great FICO Score

March 12, 2013 By Leave a Comment
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As St. Patrick’s Day approaches, I see more and more green merchandise in the stores with sayings that tout the “luck of the Irish”.   Personally -- and I am part Irish-- I find this reference confusing as history (including the recent financial meltdown) would indicate a race on the lower end of the “lucky scale.”  There is one school of thought that these phrases originated in America during the period of large scale Irish immigration where the likelihood of being a successful citizen of Irish nationality was thought more the result of luck versus hard work and intelligence.   Thankfully, that stereotype has gone away and everyone regardless of heritage can be Irish on St. Patrick’s Day.   But the good news is you don’t need a leprechaun … [Read more...]

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12 Ways to Keep Student Loans to a Minimum

February 21, 2013 By Leave a Comment
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In 2012, the Institute for College Access and Success reported that two-thirds of the 2011 graduating class had student loan debt - and the average amount was $26,600.   As pointed out by FICO experts, student loan debt is a growing problem for two major reasons: consumers are carrying more student loan debt than ever before, and more federally-backed student loans are being offered to consumers with questionably low FICO Scores.   Plus, with the unemployment rate for the under twenty-five crowd hovering at twice the national average, $26,000 in student loans can become a huge burden post-graduation.   It is possible, however, to graduate college with a bright future and very little – or even no – student loan debt. It just takes more work and planning … [Read more...]

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Dark Clouds Looming Over Student Loan Industry

January 30, 2013 By 2 Comments
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My earlier blog post quantified some of the trends we have been seeing in the US student loan industry, namely the precipitous increase in student loan debt.   Our ongoing analysis has found another disturbing trend: recent vintages of student loans have noticeably lower FICO® Scores than earlier vintages.   This chart illustrates the score distribution trend for consumers who have recently opened a new student loan.     Here we see a clear shift toward lower scores. In fact, the median score has dropped 17 points from 659 to 641.     These findings indicate that in recent years, student loan lenders have made student loans available to more consumers with lower credit quality. Since private student loan lenders were … [Read more...]

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Student Loan Debt and FICO Score Trends

September 26, 2012 By 2 Comments

  As students incur more student loan debt, lenders and investors in student loans are asking how this is affecting US consumers’ FICO Scores. New FICO research provides interesting insights.   With education costs rapidly outpacing inflation, more consumers are taking out student loans to pay for their education. Looking at a large data sample from a credit reporting agency, we found that 6.2% of US consumers had two or more open student loans on their credit report in 2005. By 2012, that number grew to roughly 11.8%.   Consumers also have a greater amount of student loan debt today. In 2005, consumers with an open student loan on file had an average student loan debt of $17,236. In 2012, that number increased 54% to $26,549. This has outpaced growth for … [Read more...]

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Financial Lessons for Kids at Any Age

September 4, 2012 By Leave a Comment
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It’s never too early to start teaching your kids about good personal finance.   A few key, simple lessons about money at even a very early age will create a strong foundation of good financial habits that will benefit them for years to come.   Here are some quick tips for easy finance lessons at any age:       PRESCHOOL   Food isn’t free. Take your children with you while you grocery shop and tell them what different items cost. Explain that you can only buy what you can afford.   Start a piggy bank. Give your child his or her own personal piggy bank and make rules about when it can be emptied.       GRADE SCHOOL   Money must be earned.  Start an allowance in exchange for … [Read more...]

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Personal Finance for Artists

August 21, 2012 By Leave a Comment
Personal Finance for Artists

When I was in high school, I dreamed of a career on the stage. I threw myself into intensive dance and singing lessons every night after school, and spent hours in studios rehearsing musicals. I envisioned myself on a Broadway stage, rehearsed my Tony acceptance speech in the mirror, and practiced my signature for the day fans would ask for my autograph.   Senior year, college decisions forced me to think about the logistics of my future, and suddenly my idealized vision of starring on Broadway clashed with real, pressing decisions about money, college, and my career. Understanding the harsh reality of “making it” as an actor, while also feeling the immense weight of a lifelong dream on my shoulders, I was torn. I began considering other possible careers and grappled with … [Read more...]

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The Hidden Costs of College

August 9, 2012 By Leave a Comment
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With all the recent buzz about student loans, the skyrocketing price of higher education is a hot topic – but the financial impact of college goes far beyond just tuition. Plenty of secondary expenses aren’t factored into college "sticker prices," and many of them don’t become apparent until after students get to campus. From parking to Greek life, students should take note of these expenses when figuring out a sustainable budget for the school year:   Dorm Room: Most college dorm rooms come with a bed, a desk, and a few drawers. Students are responsible for providing everything else: lamps, rugs, pillows, bedding, hangers, etc. Take advantage of back-to-school sales and reach out to your roommate/s to split the cost of shared items. Go to your school’s Facebook page and … [Read more...]

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College Students: Study These Tips to Build Good Credit

July 16, 2012 By Leave a Comment
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Is a friend or someone in your family going off to college soon? Here's some credit advice to pass along to the college-aged loved ones in your life:     One card is enough. Students should establish a responsible credit history before adding additional cards. Browse good choices for student cards.   Be diligent with payments. Be sure to emphasize credit decisions can have a critical financial impact later in life. Understand the effect of late payments.   Keep a low balance. Start early, and encourage the habit of using only a small portion of available credit. Read more about the effect of amounts owed.   Learn about credit. Add Credit 101 to the curriculum. Read this free booklet "Understanding Your FICO Score" for a great … [Read more...]

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