As high school graduation approaches, most seniors have probably decided what their next step is. For many it will be college or a technical school of some sort. For some, it will be the military. Some are deciding they’ve had enough education and are ready to get out and start making some money. They are tired of school and tired of not having any money. I can identify with that. Though I had planned on going to college all through high school, a full time construction job that summer after graduation lifted me into a new economic status. Even if the pay was only $2.25 per hour. But after three months of pouring concrete and hanging steel, I was sure college was for me. Continue Reading…
Between You and the Kids, Take Care of You!
Recently I had a former student in my office who was a proud new daddy. As we talked about the challenges of raising kids, including financial challenges, he told me he was going to start a college fund for his child and would begin funding it pretty heavily. To put in the money he wanted to contribute each month, he would need to cut back on funding to his 401(k) plan. While I admired his selfless parental instincts, I advised him against this and told him to be more selfish! Continue Reading…
Odds and Ends On the Economic Stimulus Plan
In the previous column, I wrote about how you’ll get an extra $8 per week in your paycheck due to what I described as a payroll tax cut. One reader properly noted to me that the $8 is coming from an income tax cut, not a payroll tax cut. So instead of the $8 coming out of the Social Security leaky bucket, your extra funds will actually be coming from the U.S. Treasury’s seemingly bottomless pit. Bottom line, you’re still getting to enjoy the extra pizza or movie each week, one that your grandkids will eventually pay for. Continue Reading…