Personal Finance 101: Notes from Talking Money, Part 2

Last Wednesday night, I went to one of the most informative Career Center events that I've ever attended - which is saying a lot, considering that I've worked here for 3 years now. Stuart Paap's second installation of his "Talking Money" series - a group of events focused on personal finance for recent college graduates - finally demystified some of those ethereal concepts that I've never really known much about, like "401(k)" and "investing" and "surviving on a first job salary". Stuart was not only an engaging speaker, but an incredible source of knowledge on subjects about which many members of our generation know little. Since some of this information is crucial to a healthy and secure future, I thought I'd share my biggest takeaways from the evening:

The extent of my financial knowledge before this event.

Allocate your income. When it comes to determining how much to spend and how much to save, it seems like everyone has a different rule: put 20% of every paycheck in the bank, put 30% of your income towards your rent... it's hard to keep up with all of them. Stuart broke it down pretty simply, and gave a few hard-and-fast rules that everyone could follow, regardless of income. He sketched out a rough breakdown of your income: 50% goes to necessities (rent, bills, food, etc.), 25% goes to priorities (paying off debt, saving up for big purchases, grad school nest eggs), and 25% goes to wants (things you could in theory go without). These percentages could change over time - for example, cut back on the "wants" spending if you're going through a tight financial period - but lay the foundation for keeping yourself in check when it comes to your income.

Start saving for retirement immediately. I've always heard my parents and other real adults talk about saving for retirement, and throw around seemingly random combinations of letters and numbers in reference to different ways of doing it, but I've never really paid attention to the conversation. Now that I'm on the cusp of entering the working world, I've realized how important it is to start investing in your future. Stuart encouraged all of the workshop's attendees to start putting up to 20% of our monthly income into a retirement account - whether it's a 401(k), a 403(b), or an IRA. (Google all of these to find out the differences and which one is right for you!) This is such an important action, particularly for our generation; now that people are living longer and retiring younger, and the future of Social Security is questionable with the aging Baby Boomer generation, it's more important than ever to ensure that you have money to live on in the last stage of your life.

A popular reference during the workshop - and a real fear of mine on most days.

Get insurance. Being of the "Young Invincible" breed that insurance companies and health policy professionals detest, insurance has always seemed like an afterthought rather than a priority. But Stuart put it this way: insurance is meant to protect you from devastating loss. That protection is worth more than spending money on frivolous purchases, or even saving up for emergencies (which you may not be able to cover with your savings alone). He encouraged everyone to obtain health insurance, renter's insurance, car insurance (if applicable), and liability insurance. It may seem like a drain on your income, but it will be worth it in a worst-case scenario.

As you might be able to tell, Talking Money, Part 2 covered a lot of ground, and I've just scratched the surface here.There's a lot to know about personal finance after college, but it doesn't have to be overwhelming. A 2015 Tufts grad came with Stuart on Wednesday, and she emphasized that small steps, one at a time, will get you to a place of financial well-being. To all the soon-to-be graduates like myself: make sure that you are educated on financial literacy before you enter a world powered by money.

Until next time,

Sean Boyden
Class of 2017

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We Think She's Cool Because She Thinks We Matter: Author Joan Snyder Kuhl's Campus Visit

Last week, I attended a workshop, "Jump Start Your Career," sponsored by the Tufts Bookstore’s parent organization, Barnes & Noble College, that featured millennial career expert Joan Snyder Kuhl. After working in business and corporate management for over a decade, Joan went on to found Why Millennials Matter, a New York-based organization whose mission is twofold: first, it seeks to inspire and empower millennials to achieve their career goals, and second, it works with employer organizations to encourage their investment in the younger generation. Joan’s workshop was an amazingly informative and eye-opening experience, and she touched on many ideas that are at the core of the Career Center’s goals. For those of you who missed the workshop, what follows is a quick run-down of the event, infused with little bits of wisdom that Joan imparted to the attendees to help us jump-start our careers.

Joan prefaced her lecture with a discussion on the negative talk about millennials that is running rampant in the job market today, and how stereotypes about young people lead some to the conclusion that millennials are setting “unrealistic expectations” for their career goals. Why Millennials Matter works to challenge these notions, and demonstrate that with the right skills, millennials can realize their full potential. Joan broke the workshop down into three segments, and talked about ways young people can integrate their interests and passions, simplify decision-making, and discover their dream careers.

Brand

As Joan pointed out (and most of us probably know), our generation doesn’t devote too much time to building a personal brand. Some college students might not even know what it means to have a “personal brand” - to us, it might sound like Jack Donaghy-esque professional jargon that doesn't really mean anything. Simply put, a personal brand is your way of presenting yourself in a professional manner to colleagues, network connections, and mentors. Joan explained that there are three ways that people do this: in person, online, and on paper. The number one piece of  advice that Joan gave was to have a powerful introduction. This means being mindful of the impression you make, whether it's in a face-to-face meeting, a resume or cover letter, or a professional email. Be mindful of your accomplishments and goals as well - what have you done, and where are you going? These are questions that professionals will want to know before they hire you.

Hey, it's his brand. Still, I'd go for something a little less cool.

Relationships

Forging relationships with professionals (aka networking) is a very intimidating concept to many millennials, but it doesn’t have to be. Joan presented a word cloud she had created to show us the many people to make relationships with – ranging from professors to the Career Center counselors to peers. Joan talked a lot about finding a mentor, or someone in your future career field (maybe even the same position) who can offer you advice, wisdom, and network contacts. It can be scary approaching professionals in this manner, but Joan had two major pieces of advice: (1) realize that you have things to offer mentors (a chance to impart wisdom, make new connections) just as they have things to offer you; and (2) go into the relationship with a “yes” attitude, asking people what you can do for them or what you can do to improve yourself - and be willing to listen to their responses.

To paraphrase, say yes.

Skills and Experience

According to a survey of employers across job industries, there are four ubiquitous skills that every employee needs to have: communication skills, problem-solving abilities, initiative, and good judgment. The best way to garner these skills and any others that you may need for your career path of choice? Gain experience! Experience can come in many forms, and as Joan pointed out, they are not limited to ultra-official internships. Millennials tend to think that internships are the only way to gain valuable experience and stand out in the application process, but there are more ways to build your skill set than getting internship-ed out. These experiences include career fairs and networking events (many of which are hosted by the Career Center), part-time jobs, shadow days, and volunteer experiences. So the next time you attend a career fair or volunteer for a cause you believe in, think about the skills you’re taking away from that experience and how it will make you a better professional.

Joan closed her outstanding workshop with a message that I think everyone needs to hear: you will always feel like time is working against you, that you just need to make it through the next week or next test or next class unscathed before even thinking about yourself. But one of the most important things you can do for yourself is take time to detach from the everyday craziness for a while and reflect on what you want out of this world. By taking this time to explore yourself and your passions, you’ll find a career that you’ll love and know you made the right choices.

Until next time,

Sean Boyden

Class of 2017

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