By Michael R. Abramowitz
2 June 2006

It’s back to school time, which means the height of the sports season. Baseball is gearing up for the playoffs and World Series … college and pro football are kicking off … and basketball season is not far away.

But Generation Y is all about alternative sports and physical fitness, right? So, let’s check out the pros and cons of some sports-related investments that are on the cutting edge of the athletic arena. Remember, stock investing is risky, and sports stocks are extremely volatile with the changing moods, attitudes and spending power of the American consumer.

So, while these stocks may appeal to jocks and lovers of sport and fitness, you should always consult with a trusted financial expert to see if these investments are potential pay dirt for you … or whether they could put a sleeper hold on your portfolio.

Nike, Inc. (NKE)

Snapshot: The Nike sportswear behemoth corners 20% of the total shoe market. With $12.2 billion in sales projected for this year, Nike is a tour de force for the feet.

Price: $79.94

Pros:

• What better event than the recent Summer Olympics to stir up the weekend warrior in all of us? The end result: a likely large spike in sports shoes sales.
• Nike has consistently beat earnings forecasts by as much as 5 cents a share during the past year. Thanks to the home runs, Nike is projected to expand its earnings per share by 53 cents to $4.04 in fiscal 2004.
• The company projects a whopping $12.2 billion in revenues.

Cons:

• The $43 million acquisition of the parent of sports apparel maker Starter means a new unit is born with the funky name: Exeter Brands Group LLC. Can Nike’s management make a seamless transition … or will the corporate marriage cause the company to stumble and fall?
• Recent recall of 9,000 toddler and children’s shoes is a hiccup. However, since the shoes were manufactured overseas in Indonesia, will the media take another fine-tooth comb look at Nike’s worldwide factories?
• Three of the company’s oldest board members are retiring on Sept. 20. Nike’s new senior management team has some, um, pretty big shoes to fill.

World Wrestling Entertainment, Inc. (WWE)

Snapshot: Smackdown! The company’s World Wrestling Federation division matches might be staged, but the profits are legit to the tune of $48.2 million in the past year.

Price: $12.06

Pros:

• Now that the ill-fated XFL football league is out of the World Wrestling Federation’s financial hair, investors can remove that albatross from the share price of the WWE.
• Loyal fan base never seems to flinch when it coughs up to $100 a pop for each Pay-Per-View Smackdown! event or video.
• Stable of popular stars, including The Rock, brings “wrasslin’” fans out in droves. In return, the WWF raked in a healthy $374.9 million in annual sales.

Cons:

• The company disappointed investors by lowering fiscal 2005 earnings estimates by as much as 17 cents a share. This comes on the heels of a 2 cents per share earnings miss for the just-closed out fiscal 2004.
• While a cash cow for revenues, company management has struggled to live up to expectations. In turn, the stock has nose-dived for the most part of the last four years.
• If there is another recession, will fans really have enough disposable income to continue to throw money at all the PPV events and stadium circuses, er, wrestling matches?

Speedway Motorsports, Inc. (TRK)

Snapshot: The owner of seven super speedway racetracks is a staple on the big money NASCAR circuit.

Price: $33.64

Pros:

• Diversified portfolio of racetracks, condos, hotels, advertising, and broadcasting properties, all tied to NASCAR. Add in Speedway Motorsports’ robust marketing and licensing engine machine, and you have a powerhouse that brings in $58.5 million a year in profits and $404.5 million annually in revenues.
• Settlement of Federal Trade Commission lawsuit means that Speedway Motorsports was able to acquire its seventh major track.
• Fan base is beyond loyal—they eat, sleep, and live NASCAR 24/7.  Now that NASCAR is branching out to the mainstream through expansion to major metropolitan areas as well as through sponsorship deals with NBC and NEXTEL, the fastest growing sport in popularity is likely hitting a sweet spot.

Cons:

• NASCAR wants to draw a more mainstream audience by expanding to major metropolitan areas. Will the gamble to turn their backs on NASCAR’s “Good ‘Ol Boy” fan base come back to haunt the circuit and Speedway Motorsports?
• The stock is directly tied to the schedule of big racing events. If any event is cancelled or postponed, it can potentially crimp souvenir and product sales.
• How will the new wave of racing fans react differently the next time there is a fatal crash?

Price quotes are from September 27, 2004.

Michael Abramowitz is the Media and Distributors Analyst for Weiss Research, Inc. He is also Assistant Managing Editor for Dan Ascani’s Skeptical Investor investment service (www.profitswithoutborders.com). To avoid any conflict of interest, he does not personally own shares or receive compensation from any of the companies analyzed above.

© 2008, Young Money Media, LLC. All rights reserved.

By
2 June 2006

Dear YOUNG MONEY,

My name is Cathy and I’m a university student. I was wondering if you can help me with a project that I have to do for one of my classes.

The teacher has asked us to select five stocks using an online screening program and then justify our selection criteria. I’m not really sure how to do that and on what to base my criteria selection.  Would small-cap, growth stocks be better than large-cap value stocks for a 1 year term investment?

I hope you can help me cause I’m really stuck. Thank you!

Cathy

###

Dear Cathy,

The answer to your question depends on how much risk you are willing to tolerate. If your assignment is to pick five stocks to hold for one year without regard to risk, then the quality of the instruction is questionable because the relationship between risk and return is at the heart of understanding investments.

Since risk essentially is the possibility of a negative outcome, if you are going to assume a higher risk, then you logically expect the investment to make this risk worthwhile. To do this, the investment should offer a higher potential return. This leads to the general rule that in investing, risk and return are intertwined. If you are offered a high potential return, you should expect the investment to have a correspondingly high risk.

Generally, stocks are riskier than bonds and short-term investments (such as money market funds, certificates of deposit and Treasury bills) and small caps are the riskiest category of stocks (when grouping according to market capitalization, i.e., large caps, mid caps and small caps). On the other hand, stocks have historically provided the highest returns — over the long term. Within the categories of stocks, small caps provide the highest returns — again, over the long term. A long-term investment is considered to last more than one year.

Having said all that, diversification into different types of stocks will reduce risk. Whether you hold stocks for one year or 20 and whether you own five stocks or 100, you should diversify your stock portfolio by owning several different types of stocks. As you probably know, you should not put all your eggs in one basket by investing all your money in one security or one group of stocks, such as small caps. If your assignment permits you to hold only five stocks for a year, spread your risk by choosing stocks from large caps, mid caps and small caps.

If you prefer, there are other ways to diversify your stock holdings, such as by industry group (Basic Industry, Capital Goods, Consumer Durables, Consumer Services, Energy, Financial, Transportation, Utilities, Miscellaneous), market behavior (cyclical stocks tied most closely to the overall health of the economy or specific industry vs. defensive stocks of companies making staple goods such as food and beverages) or investment objective (growth stocks vs. income stocks; generally growth stocks are more volatile and income stocks provide steadier income but less opportunity for significant appreciation).

Best wishes with your class assignment.

Carl Surran

Carl Surran is the managing editor for Military Money magazine, a financial education resource for military families. For more information, visit www.militarymoney.com.

© 2008, Young Money Media, LLC. All rights reserved.

By Amanda Pressner
19 July 2005

Leigh Anne Hunt, 23, clutched her one-way ticket as she prepared to board the 747. In a few hours, she’d arrive at JFK airport, a short cab ride from her new apartment in midtown Manhattan.

Although friends cautioned she’d never find affordable housing in New York City, Hunt had been determined to prove them wrong. When a former co-worker agreed to rent her a room in his apartment, she quickly sealed the deal with a $2,600 check for the deposit and first month’s rent.

Before boarding, Hunt received a call that shattered her plans. “I’m sorry, Leigh Anne, but my roommate has decided to stay. You’ll have to find someplace else to live.”

Several months, three temporary residences, multiple real estate brokers, and 43 apartment showings later, she has advice for anyone moving out on their own. “Never sign a lease with a handshake. Always get it in writing.”

While no one may be fully prepared to get dumped five hours before move-in, you can avoid the possible pitfalls of landing a first apartment by doing homework. Knowing how much you can spend on rent and where you want to live are first steps. Understanding the credit-check process and lease terms can save time and frustration.

The rent

“A good rule of thumb,” says real estate agent Peggy Aguayo, “is about 32 percent of your gross salary, or the amount you make before taxes. If you make $30,000 per year, you shouldn’t spend more than $9,600, or $800 per month, on rent.”

While there’s no magic to this equation, devoting an excessive amount of income to rent could cramp your lifestyle. Beyond the rent, you’ll still have to pay for groceries, cable, phone, electricity, car, insurance, gas, household supplies, books, CDs, clothes, laundry, dry cleaning, entertainment, and countless incidentals.

The neighborhood

Whether you’re seeking a three-bedroom share near a college campus or a studio in the heart of a metropolis, look for neighborhoods that fit your location and budget.

“Get a sense of rent by looking in the classified section of the local newspaper,” says Aguayo. “Determine the areas of town that are within your budget, and then create a list of the features and amenities you’d like.” And consider:

• Crime rate. Check statistics on the Web pages of local news stations or through the county police department.
• Commute time to and from school or work.
• Access to public transportation, like buses and subways.
• Neighbors. (Will you be surrounded by families, students, or singles?)
• Nearby supermarkets, dry cleaners, shops, and gyms.

The search

Track down leads through friends, newspapers, Web sites, and local apartment publications.

“Apartment guides can be useful because they offer the prices, floor plans, complex amenities, and contact information,” says apartment finder Brittany Marler. “The Web is a great resource, since most apartment publications are online.”

If you’re moving to a new city, consider apartment locator services, which are usually free.

Brokers and real estate agents also are helpful. However, they may charge a fee that can be as much as one month’s rent, paid either by you or your new landlord. Find out who is responsible and get it in writing.

Locator services, brokers, and real estate agents can be found in newspaper or classified online ads and in phone book yellow pages.

The visit

Once you narrow the list, set up appointments to view apartments in person. Go through each room and record the positive and negative features.

• Look at closet space, electrical outlets, bathrooms, and kitchen appliances. Check for smoke detectors; find out who replaces the batteries.
• Make sure there’s adequate outdoor lighting and that locks on doors and windows are in good shape.
• If repairs are needed, ask the landlord or management company to put promised changes in writing.

Also ask these questions:

• How long is the lease?
• What is the deposit?
• Are utilities included in the rent? Which ones (gas, electric, water, cable)?
• Are pets allowed?
• What sort of security does the complex have?
• Does it have laundry facilities?
• How are repairs handled?
• Do I need special permission to make cosmetic changes, such as painting or putting nails in the walls to hang pictures?
• Can my roommates co-sign the lease? Or can they each have separate leases?

Before you leave, talk to current residents. Often, they’ll tip you off to hidden factors, like rowdy neighbors or nearby nightclubs.

Finally, even if you’ve found the perfect place, don’t jump on it right away.

“It doesn’t matter if it’s the last available apartment in a particular complex; always give yourself a day to think before renting,” says Marler. “You can usually put down a deposit to hold the apartment, which is refunded once you make your decision.”

The application

The fastest way to lose an apartment is to arrive without the right documents. Bring a folder containing your bank statements, most recent tax return and personal references.

If you don’t meet the income requirements or have credit problems, you may need your parents to sign a guarantor form. This document states that if you or your roommates default on the rent or cause damage to the property, your parents can be held legally responsible.

Once your application is accepted, you’ve negotiated the rent and have agreed on the lease, you’re ready to sign on the dotted line.  Well, almost ready.

The lease

“Really read your lease before you sign it,” emphasizes Lisa Trosien, founder of an online apartment finding service. The lease is a binding contract that includes your monthly rental price, payment due date, length of the lease, and what happens if you break the agreement.

“If you don’t understand it, sit down with someone who does,” Trosien says.

If you are renting with roommates, make sure they also read it carefully. In fact, experts recommend that each of your names be on the lease or, better yet, on separate leases.

If everything looks good, close the deal.

“It’s a thrilling experience to secure your first apartment,” says Hunt, who finally landed a one-bedroom on New York’s Upper West Side. “If you’re willing to put in the time and energy, you’ll get exactly what you want. It took wading through 43 bad Manhattan apartments, but I finally found the perfect one.”

Reprinted from U.25, a young adult publication produced by USAA, a financial services company committed to serving members of the military and their families since 1922.

By Sara Faiwell
6 June 2005

Todd Masonis and Cameron Ring have one piece of advice for college entrepreneurs: just go out and make it happen.

That’s what the two young Stanford University graduates did when they started Plaxo, an Internet company that eliminates the hassles of updating e-mail address books. After a quick download from their website, the free service integrates with Microsoft Outlook and lets people send a personalized e-mail to friends, family and colleagues asking them to correct and update their contact information.

"We wanted to start something that helped when your address book is out of date and all the contact info has changed," said Masonis, who earned a bachelor’s degree in Symbolic Systems from Stanford.

With Plaxo, users can make updates by simply replying to the e-mail message and correcting the contact information in the body of the message. Once the e-mail is returned, the contact information is automatically updated on your computer for future use.

Although the two say that being young businessmen has it perks, it’s definitely hard to balance college life and professional tasks at the same time.

Ring, 25, was still finishing his masters degree in computer science when Plaxo was taking off. The two spent nine months building their product and trying to raise money. The Internet company always took precedence over school, Ring said, forcing him to skip half of his classes.

"It’s really hard to focus on more than one thing," Ring said. "Work was just a lot more exciting."

Since it’s inception in November 2002, about 2.8 million people have subscribed to the Plaxo network and the company says it is gaining about 10,000 to 12,000 members a day. The two originally started the business with Sean Parker, who was a co-founder of Napster, the ground breaking music file-sharing website.

It’s based in Mountain View, Calif., and is backed by some of the most reputable investment firms and business strategists in the industry including Sequoia Capital, Globespan, Cisco Systems, Yahoo!, Netscape, and Amazon. The company has raised more than $20 million so far.

In May, Plaxo offered a premium service where "VIP" customers can pay about $20 a year for special services like group calendaring, expanded note-taking capabilities and a commercial license to use Plaxo. The new service is the first attempt to charge people for the use of Plaxo.

But before Plaxo took off, the two started an unsuccessful Internet company in 19999 called netElement, which served as a plug-in to Internet Explorer that allowed users to meet and chat with each other on any Web page. However, both say that the experience they got helped them to establish their current company successfully.

Masonis, 24, said he advises college students to think outside the box and go for any ideas they might have. Once you leave the safety net of school, he said it is hard to deal with financial and job-related pressures.

"You have access to people when you’re at school," said Ring. "People are actually willing to talk to students."

For more information, go to Plaxo.com

© 2008, Young Money Media, LLC. All rights reserved.

By Lauren Berger
6 June 2005

A pair of childhood friends, fresh out of college, have invented their own software and put together a mock-interview kiosk to help students obtain their dream jobs in a more modern and convenient fashion. Winning the award for Best New Product Introduction of 2004 from Kiosk Magazine proves that creators Randy Bitting and Miles Munz are on top of their game.

“Our motto is, ‘Go big or go home,’” boasts Bitting.

Bitting and Munz developed RezFuzion in the summer of 2003. The idea was to place these kiosks in university career centers across the nation. Students would then make appointments to take the virtual interviews as many times as needed.

The duo knew that normally, mock interviews were only available for students once or twice a year. The new kiosk system would enable a student to complete the mock interview and review their session as many times as needed. Students can pick the questions they are asked or just follow the randomly selected questions provided by the system.

The kiosks can be programmed to ask detailed questions pertaining to certain majors as well. For example, if Suzy is a marketing major, then she can program the kiosk to ask her marketing-related questions. The system is intended to analyze your communication, presentation and articulation skills. The machines can also monitor a user’s eye contact and how confident he appears.

The kiosks are designed so that students who complete mock interviews can review those sessions online by the time they return home. The interview tapes can also be sent via e-mail to employers, parents and career counselors.

“We want employers to see the person behind the résumé,” says Bitting.

It is important to remember that these young entrepreneurs were just students looking for a career after college. They found themselves job searching and sending résumés like everyone else but soon realized that they wanted to change the traditional employee hiring process.

Bitting and Munz have been friends since the age of 12. Separated after high school (Bitting went to the College of Charleston and Munz attended Denison University) the duo teamed up again after graduation. Bitting had majored in business administration and Munz studied economics. They saved up money and started the business in a small bedroom that served as their office. Knowing that this project can help their friends who are still in college helps motivate the two business partners.

“We have the opportunity to explore lots of different markets,” explains Bitting.

“One of the hardest aspects of business has been knowing when to say no,” adds Munz.

“We love to compel younger people to chase their dreams. We definitely put in the hours of work, usually working from 8 a.m. until 10 p.m., but it is worth it.”

Both partners agree that achieving success is all about taking risks.

“Take your idea and take the risk,” says Bitting. “Believe in your product and money won’t be an issue. It is all about the excitement you have for your idea.”

Editor’s Note: RezFuzion job interview kiosks are currently featured at the following schools: Villanova, Rutgers, St. Josephs, Savannah State, University of Cincinnati, Brigham Young University of Hawaii.

Copyright © 2004. YOUNG MONEY®

By Casey Toner
3 June 2005

With a gray, one-handed sword perched over his big red shoulder, a menacing, crudely drawn Hellboy stares down would-be customers and guards the local comic book store in DeKalb, Ill.

"Read comic books!" commands his just-obvious-enough word bubble.

Graham Cracker Comics manager and former art student Rick Berg painted the dark homage himself; he sits hunched inside, behind the store’s counter listening to a boisterous heavy metal jam.

Berg has read comic books his entire life he said; he knows the intricacies and subplots of most comic books better than Superman knows his tights. And, he said, comics sell faster now than in recent years. Due in part, perhaps, because of blockbusting Hollywood epics.

"I know for the Hellboy movie, sales for Hellboy in trade paperbacks almost tripled at our store," said Berg. "We couldn’t keep it in stock and still can’t."

While the store manager claims that comics have become more popular, he also believes that they still haven’t eclipsed the comic book explosion of the 1930s and 1940s.

"A lot of people who stopped reading have come back because of the movies," said Berg. "The overall quality of the comics coming out is extremely high, too."

Movies Draw New Comic Fans

Steve Roman, founder of the DeKalb Public Library’s graphic novel library program, echoed a similar sentiment regarding the popularity of films based on comic book characters.

"The movies make the larger mass of pop culture aware of this particular aspect of pop culture," said Roman.

The library clerk has seen the trend boom in recent years. Of the 250 graphic novels he purchased under a $3,000 Illinois state grant, they have circulated 1,600 times.

"In essence, every time a book goes in, it goes right back out," said Roman.

Roman has circulated several graphic novels - Spider-Man, Hellboy, X-Men - that are now major motion-picture films.

And although the films spike interest in the pulp fiction, comic book fan Tim Harvey said the movies might also, for better or worse, determine what you read.

"If that’s what intrigues you about the comic books, you’re probably going to read junk," said Harvey, an English major at Northern Illinois University.

But cool junk, or at least junk cooler than it used to be.

"Until recently, with the Hollywood push, there wasn’t a cool factor for reading comic books," said Derrick Wright, who is studying journalism at Northern Illinois University.

Berg said the stereotype, immortalized in poignant arrogance by the Comic Book Guy character from "The Simpsons" TV show, repels only the weak minded.

"If you’re worried about being the Comic Book Guy so you won’t read comics, you have a problem for yourself," said Berg.

Why We Like Comics

Comic books and graphic novels continue to intrigue us, from the teenage wistfulness of Spider-Man to the brooding darkness of Batman.

We read comic books for their ability to draw and weave us into the spell of imagination, according to Joe Bonomo, an English literature professor at Northern Illinois University.

"[Students] are attracted to the escapist nature of the medium," he said. "It allows them to enter a fictional place in a different way than both conventional prose and film do."

Bonomo taught Daniel Clowes’ "Ghost World," for his film and literature class. The graphic novel, which later became a feature film, captured not only the particularities of female relationships, but also the attention of most women in his class.

Ghost World chronicles the friendship between two young women, Enid and Becky. Their friendship grows during high school; it breaks apart the summer before Becky leaves for college.

Bonomo thinks that graphic novels catch our attention purposefully and reasonably. They persevere in a suit tailor-made for the age of the Internet, a generation hot-wired into quick-hit, instantaneous information.

"The more disposable and visually-literate our youth becomes, the more they’ll be attracted to complex, challenging, and entertaining graphic novels."

© 2008, Young Money Media, LLC. All rights reserved.

By Tara Brannigan
3 June 2005

When I was approached to write this article several months ago, I had it in mind to write about the lack of avenues and education available for young girls and women today with regards to becoming a female entrepreneur.

After some thorough researching and Web crawling though, I decided that I would have to abandon that route altogether. "Why?" you ask, appalled at my apparent lack of vigor for the topic. Well, that’s because there are actually a great deal of wonderful opportunities and events designed specifically for young women looking to start their own business or other entrepreneurial venture. It’s all a matter of knowing where to look!

Just taking a look around your public library can provide you with a plethora of resources in the form of books and resource guides written specifically on the subject of women entrepreneurs making their way throughout history and the modern day. A simple online search for "women entrepreneur" at the local library turned up a stack of books nearly as tall as me.

Some of them are broader in their scope and focus on women who have achieved throughout history, regardless of whether through entrepreneurial spirit or societal impact. Others, such as "Girls and Young Women: Entrepreneurs," by Frances A. Karnes, Ph. D, and Suzanne M. Bean, Ph. D, focus more specifically on "true stories about starting and running a business" and "how you can do it yourself."

Such books offer a more personal look at actual individuals that have succeeded in their attempt to start their own business or personal venture. It is here that we see that the women who start these wonderful businesses are not super human captains of industry, do not all hold MENSA level IQ scores, or have some inside knowledge of how the business world works.

Most of the girls and women who start their own business are just everyday adults, teens or kids living normal lives. But these women all dare to strive for something they’re passionate about, and the learned abilities that come along with the trial and error of pursuing your own small business and dreams.

Some women are motivated by a sense of adventure and a desire to make a better living for themselves. Other women just like the thrill and challenge of it all. Some entrepreneurs start a business out of concern for their fellow human beings. While others simply have a desire to leave their mark on the world in some fundamental way.

As far as learning experiences go, nothing beats the experience gained by hands-on challenges and in-depth education from those who actually know what it’s like to start and manage your own business.

An ever-growing number of hands-on programs, competitions and summer camps help to encourage young women across the country to imagine and actualize their dreams and plans of becoming an entrepreneur.

Listed below are some of the organizations that offer a great opportunity to get real world experience and practical knowledge on how to become a young, independent, female entrepreneur.

Independent Means

This organization offers a variety of programs and conferences for both younger and older women looking to start down their own entrepreneurial path. Helps teach business and leadership skills, while helping young girls gain a sense of independence and empowerment from their achievements. For more information, visit IndependentMeans.com or call (805) 965-0475.

E-Magnify

The official website for Seton Hill University’s National Education Center for Women in Business, creators of the much applauded Camp Entrepreneur. This website serves as a wonderful free tool for the young woman either beginning or managing her entrepreneurial venture. An amazing amount of content combined with a sense of style, helping to network independent women business owners around the world.

Small Business Administration

While not gender specific, the a U.S. Small Business Administration is a great resource for any beginning entrepreneur. With a branch office located in every state, the SBA can help you with the basics of starting up, to the problems associated with marketing and employees. For more information, visit SBA.gov or contact your state office.

Although I have touched on just a few resources here, I’m certain that as you begin your search, you’ll be able to find a multitude of exciting, interesting and inspiring stories, tips and tricks, and advice from those who have accomplished what they wanted to in the business world. It’s a big world out there, and girls and women alike have really begun to make their mark!

© 2008, Young Money Media, LLC. All rights reserved.

By Jose Vazquez
29 May 2005

Every year, millions of college students are awarded scholarships, stipends and student loans. It is often tempting to spend this money on things students think they need NOW, rather than saving those funds. However, with a little financial discipline, anyone can learn to plan for the leaner financial times. Financial aid recipients can also help build their credit in order to be prepared for life after graduation.

Spending Financial Aid: Know Your Cash Flow

The key to financial health is being able to plan your spending. First, students need to know when they are going to get their aid or stipend. For some, such as graduate students, stipends are paid monthly throughout the school year. For those receiving scholarships, they are often paid out just once per semester. The same goes for federal financial aid.

With all these different forms of aid, it is important to keep track of what money is coming in and when. Knowing this information can help you set up a spending plan.

Secondly, students then need to know what bills they have throughout the year and plan them out accordingly. This job includes identifying those expenses that are essential and which are not. For example, while an X-Box may seem like normal college gear to some, it isn’t necessary in order to live. Tuition fees, room and food, however, are not optional expenses.

While many students have this all taken out of their aid at the beginning of the semester, graduate students and those living off-campus must pay rent monthly. In addition, a food budget comes into play when you live off-campus, in addition to water, heat and electricity. Bills can pile up very easily when you aren’t careful, and those unpaid bills may haunt your credit rating for a several years after graduation.

Fortunately, setting up a budget based on what money you will be awarded can help save you from a financial disaster. In fact, you can grow your financial aid money by using one of the following savings tools.

Saving and Investing Financial Aid: Make Your Money Grow

The average school year is only nine months long. Because of the way financial aid works and is distributed, students are often on their own financially for the summer months. Even if they set a budget, students can still break with their intent and spend money when they shouldn’t. However, there are some strategies that can help make sure there is cash waiting for them when they need it. Even better, you can earn some extra cash on the money you save for rainy days.

Certificates of Deposits (CDs) - This form of savings allows you the opportunity to make a little money on your cash while it sits in this form of deposit. A CD is a deposit investment that runs anywhere from six months to 30 years in length. During the specified time period, the money earns a set interest rate from the bank, and this interest is compounded over time.

The advantage of this savings tool, beyond the interest you earn, is that you cannot withdraw any money before the period expires without incurring a financial penalty. While the investment may only offer a low interest rate, it is the early withdrawal penalty that may keep a person from taking out the money too early.

Money Market Accounts (MMAs) - An MMA has many of the same features offered by a checking account and a savings account put together. While you can withdraw the money anytime you wish, it would still earn interest on the money you deposit. The more you deposit, the more interest you earn on the amount. This is a great tool for those students with a little more discipline who wish to help their money compound while they save.

Holiday Club Accounts - While not a traditional idea, this type of account has some of the same advantages of a CD with a shorter time limit. Holiday club accounts are often set up before Christmas to make sure people save up enough for the holidays, while making sure they don’t spend the money too soon.

Like a CD, Holiday Club accounts do earn interest and also involve certain time factors. Unlike a CD, however, the time period investment must be held isn’t a set six months or year. Typically, you can set up the account at any time and there are no limits on the number of deposits you are allowed to make.

While everyone should speak to a professional advisor before investing, students should make the time to sit down with their banking office or advisor to plan out their financial needs in advance. A little time spent on planning can save you many headaches down the road.

Jose Vazquez is a graduate student in higher education and college student personnel at Southern Illinois University, and has been awarded more than 30 scholarships, amassing more than $150,000 in aid to date. He is the author of the book "Free Cash For College: The Everyday Students Guide To Financial Aid," available at vazquezmedia.com. Vazquez is also a public speaker that gives seminars on financial aid and scholarship strategies for colleges and university groups, as well as student loan providers.

© 2008, Young Money Media, LLC. All rights reserved.

By Darin Shebesta
3 May 2005

Wouldn’t you like to get back some of that hard earned money you spend everyday? Well, I have been doing just that for a couple of years simply by using a credit card. Sounds too easy, right?

Please note that in order for the credit card companies to pay me back, I have to first use their card by making purchases of some sort. Banks offer reward/cash rebate cards that pay you back a certain percentage of the money you spend. However, there are some steps that need to be taken to ensure that rebate cards are right for you.

Finding the right rebate card

For those of you who do not pay off your credit card balances every month, this type of card is probably not right for you. That’s because the Annual Percentage Rate (APR) tends to be higher on rebate cards. If you were to carry a balance on a rebate account, the interest rate typically tends to be higher than for a non-rebate card. For those who carry a balance, using a card that offers a low APR is appropriate so you’ll pay less interest charges. There are plenty of 0% APR cards available, but be careful to check how long the low interest rate introductory period lasts before your rate is raised.

For those who are still interested in rebate credit cards, here is more important information. Some rebate cards require you to carry a monthly balance to earn cash rewards. This defeats the purpose of using a rebate card because you end up paying interest on the balance carried (the APR is usually higher on a rebate card).

If you don’t carry a balance to the next month, no rebate is accumulated. I spent at least six months trying to figure this out with a so-called "rebate" card. I stopped using the card for my purchases once I realized there was no incentive for me to do so.

Rebate award rules

Credit card users should be aware that some rebate cards use a "tiered" system to calculate the designated rebate percentage. For example, if you spend $25-$50 per month, you qualify to earn a certain rebate percentage. If you spend $51-$100, you can earn a higher rebate. Spending $101-$150 will allow you earn the highest rebate return available. Warning: The spending level needed to earn the highest rebate percentage can be very high.

Look for a card that doesn’t use spending tiers, just one flat rebate percentage. From the very first dollar spent to the last, you’ll always receive the same rebate percentage. Be aware that some cards pay a bigger rebate if items are purchased at gas stations, supermarkets, and home improvement stores.

You can choose between several types of rebate cards: gift certificates, airline miles, cash back, etc. I choose cash rebates because I can use the money for anything. It all depends on your situation.

Using credit cards of any sort requires smart and logical decisions. If you can’t afford to pay for purchases in cash, don’t charge them. In essence, don’t buy an item at all if you don’t have cash to pay for it in full (rare exceptions can be made for long term investments such as a house).

Credit card debt should be avoided whenever possible. Do not buy unnecessary items to earn a rebate. Also, keep in mind that if items are returned, your rebate is lost along with the goods.

With some credit cards, the rebate earned the month before is applied to the following month’s balance. Other cards may require that a certain award level be reached before a rebate can be awarded. It is important to find out the details on how the rebate is distributed before you sign up for any credit card.

Here are some more tips for keeping credit card costs low:

* Sign up for online bill paying. Ask your bank set up an account to pay the monthly credit card balance automatically. Not only is this quicker and safer, but you will also save money on checks and postage.

* Avoid cash advances. Fees for cash advances vary, but fees can be very costly. If you must get an advance, avoid using ATM machines. ATMs charge an additional fee for advances. The financial institution that owns the ATM charges this fee.

* Compare credit card fees. You may pay a variety of charges to use credit cards, including annual fees, late fees, over limit fees and transaction fees. Learn about hidden fees to find the best lender.

© 2008, Young Money Media, LLC. All rights reserved.

By Dave Mathews
19 October 2004

Like any other technology product, the lowly home stereo has gone through many a revolution since it was introduced as a piece of furniture in the 1960s. It grew up from tubes to transistors then from two to four channels with Quadraphonic sound - the rage in the 1970s.

In 1990, Dolby Surround, a modern version of Quadraphonic, took the lead in the "must have" category. These days we have MP3 playback driving the cool factor of home stereos with small and shiny replacing big and bulky of yesteryear.

If you only listen to MP3s, Internet radio or music from the online music stores, your computer makes a decent playback device. Make sure you have good speakers with a subwoofer attached and plan to leave the machine on all the time. Waiting for a PC to boot after four minutes before you can play a four-minute song doesn’t sound like fun to me.

For a great, and free, program to manage your music download try iTunes from Apple.com. You can "rip" CDs into your computer (import at 160kbps MP3) and manage your library with a great interface. Playlists are a party’s best friend and Apple automatically tracks your favorite songs, too!

Audio-only Stereos

If you still have a collection of mix-tapes from high school that you don’t want to part with or just love the character of local radio, then you need a stereo system. There are two main flavors of the smaller "shelf audio" systems - ones that are audio-only and a new category called "home theater in a box," which play back DVDs in addition to CDs.

Due to their small speakers and low power range, style is the primary driver of the shelf audio systems. Glass CD doors, silver finish and blue backlighting make these look extremely cool on your desk. Just make sure that the audio quality matches the looks. You do not want an underpowered, shiny paperweight on your desk.

If your tape library is important to you, this category of player is the only one that will play cassettes, but not all units have that capability. If the stereo you fancy includes a tape deck, then make sure that the remote will control that portion of the unit, too.

Some systems will only control CD and tuner functions remotely. MP3 playback is an option and multi-disc playback can be found on some units as well. Expect to spend around $150 to $250 for a good quality unit. My favorite systems come from Aiwa and Panasonic.

Home Theater In a Box (HTIB)

HTIBs came on the scene to ease the endless cable nightmare that traditional home theater components created. These combination CD/DVD players have at least single disc capability and can sometimes hold a handful of discs. MP3 playback is nearly always included as is an AM/FM tuner. These systems all include five satellite speakers - three for the front of the room and two for the rear - as well as a subwoofer for the corner to produce low-end bass.

Simply plug the receiver/amplifier into the speakers then into the TV set and you can have full audio and video with surprisingly good sound, considering their small size, thanks to the subwoofer. Expect to spend between $200 and $500 for the feature-packed units. Sony and JVC make some of my favorite systems.

If space is a premium, and when is it not in a dorm room or apartment, keep in mind that the bookshelf systems are tall and skinny with only two speakers. The HTIBs are typically wide and low, much like a VCR and they are suited to be placed on top of your television. You’ll enjoy having four more speakers with the HTIB, which will sound great for movies, but don’t even try to attempt surround sound on your music. You might get dizzy from the extra reverb effects.

Bring a favorite CD to use for a test play before going shopping for a new stereo. Also, take along a list of features that are important to you like easy access FM presets, cassette playback, or multiple CD capabilities.

Remember to stick to your budget and don’t get overwhelmed by the features and buzzwords while shopping. Good luck and rock on!

New Stereo Shopping Checklist:

• Bring a favorite CD.
• Write down options that are important. [Tape/Multi-CD/etc.]
• Stick to your budget.
• Don’t be afraid to ask questions.
• Choose the best player between two or three units.

What to look for:

Auxiliary input - RCA input jacks for your PC, iPod or satellite radio.

Easy to use remote - Tiny buttons are a pain to use in the dark.

Full function remote - Make sure your remote does more rather than less.

AM/FM Tuner - Some HTIBs do not include a radio tuner.

MP3 Playback - Burning MP3s on a CD-R disc gives you 10+ hours of music.

Good bass - Subwoofers or ported speaker cabinets offer rich deep sound.

Dave Mathews used to rock his dorm room with four 15" subwoofers before his neighbors four floors below and three floors above complained. Now living in a house, hundreds of people are sleeping well through the night. You can find more stories from Dave at DaveMathews.com.

Copyright © 2004. YOUNG MONEY®

By Sanyika Calloway Boyce
19 October 2004

Money and love. Somehow the two just don’t seem to go together harmoniously. I mean of course we need it, but it’s not very romantic to talk about. In fact, when it comes to money, men and women view it, spend it, and invest it very differently.

Even in the 21^st century; despite more and simpler ways to manage money, tons of books on the subject, and just plain having more access to wealth, there is one thing we seem dead set against doing with our money, and that’s talking about it.

With money being the unspoken taboo, it’s little wonder that disagreements over the green stuff are the leading cause of divorce nationwide. It might not be romantic to whisper words like "interest rates," and "free checking" in your partner’s ear, but keeping quiet about money can put a damper on your love life faster than forgetting what your girlfriend wore on your first date.

"Money is an emotional-laden thing; we spend because others are doing it," says Tahira Hira, a finance professor at Iowa State University who conducted a study comparing men’s and women’s financial behaviors.

The study found that women were far more likely to buy something without needing it (36 percent vs. 18 percent), buy something because it’s on sale (24 percent vs. 5 percent), shop impulsively (36 percent vs. 18 percent) and shop to celebrate (31 percent vs. 19 percent).

"The shop-‘til-you-drop syndrome is more than a harmless female pastime; it also deprives woman of the opportunity to grow money through investing," says Hira. "In their 20s and 30s, when their male counterparts are buying homes and investing in mutual funds, many women are spending on clothes, cars and decorating their apartment."

According to the study, "46 percent of male respondents said money worries interfere with their relationships and 55 percent of the women said managing money troubles interferes with their lives and work."

There’s no right (or romantic) time to talk about money, but as soon as you start getting really serious (i.e., talking about getting married, moving in together, going on vacations, etc.) that’s the time to have "the talk."

Here are a few pointers to get you prepped to talk about money with your honey:

• Have a calculator and make a list of all joint expenses. Be very specific about what each of you will need to pay.
• Read the fine print on lease applications and rental agreements. Know your rights.
• Be realistic about how often you’ll go out, how much you’ll spend and who will be responsible for paying.
• Be open and clear about what will happen if the arrangement doesn’t work out as planned.
• Always keep at least one credit card, checking and/or savings account in your name only. Having access to your own money in case of an emergency, and establishing a good personal credit history will ensure you can bounce back from a break-up or any other setback.

Love and money can go together nicely. If you take time to cuddle with compound interest and snuggle up with a savings plan, it’s not only smart…it can be sexy, too!

Sanyika Calloway Boyce is the author of four books, she travels nationwide to educate, empower, entertain and enlighten students about money, credit and debt. This former debt-strapped college student shares real and relevant money messages that young adults can relate to and understand. Visit her online today at FinancialFitnessCoach.com.

Copyright © 2004. YOUNG MONEY®

By Alexandra Moss
19 October 2004

One of the most wonderful parts of an adventure abroad is the opportunity to try delightful new foods, from the local pastry to special festival dishes. If you’re traveling on a tight budget, however, it’s often difficult just to meet your daily nutritional requirements, let alone splurge on the more exotic entries on the menu.

This is mostly an issue in Europe, since in much of the rest of the world, food comes pretty cheap. Still, even in Paris or Prague, it is possible to calm those hunger pangs, get your vitamins and minerals, and even leave room for barnacles or bull’s tail (or, if you’re not quite up to that, paella-a traditional Spanish rice and seafood dish), as long as you keep your mind on the prize - and your eyes off the fries.

Value Meals

A great way to start is to calculate mentally the value of any dish before you order it. Think about how much food you’re going to get, and how healthy it is going to be, taking the price into consideration. If you’re in Hungary, a heaping bowl of beef goulash, crammed with protein, vegetables, and a delicious kick of flavor, and served with bread or dumplings, is a great example of something that will fill your stomach without emptying your wallet.

In Spain, try an ensalada vegetariana - as long as you aren’t actually a vegetarian - this salad often consists of not just lettuce, tomatoes, and other vegetables, but also chunks of tuna and hard-boiled egg. In France or Belgium, quiche is usually made with vegetables or meat and served with salad on the side, all for less than the cost of most entrees.

Throughout Europe, the cheapest food around that’s still filling (and not oozing with grease) can be found at the kebab or gyro stands. For as few as two dollars in some places, you can find a pita sandwich piled high with lamb, chicken, or falafel, and as much tomato, onion, and tahini as can fit.

Buffet Bargains

Want even more for your money? Another option is to go the buffet route. In almost any city on the Continent, you’ll be able to find a Chinese or Indian restaurant that charges a set price for an all-you-can-eat lunch buffet. These always include various vegetable dishes, starches, meats, and usually tofu or cheese, as well as soup or dessert. It may not be the most unique adventure for your palate, but it will keep you going strong for an afternoon of sightseeing or biking from village to village.

In some countries, like Austria and Switzerland, you may also find buffets that serve local dishes. These are often more expensive than the offerings of Asian immigrants, but they frequently feature food cooked right in front of you, as well as the key fact that the fare is unique to the place you are visiting.

Discount Groceries

If you want to keep your food bills as low as they can go, don’t forget the classic backpacker trick of going grocery shopping on vacation. Many hostels offer free use of a kitchen, and if you split costs with some friends or fellow travelers, you can cook your own multi-course meals for only three dollars or so.

One of the most interesting places to buy food when traveling, whether to cook or to eat on the run, is the local market. These are often fascinating places filled with locals going about their business and colorful produce (and vendors). As you travel, each city’s market begins to take on its own character, and gives you unique insight into what it must be like to live - and eat - there.

By doing any combination of these three things, you’ll save a bundle on food during your trip, while still satisfying all your nutritional needs. Taking a daily multivitamin brought from home won’t hurt either, and will keep you in top shape for running from museum to monument and for dancing the night away in one of Europe’s gigantic clubs. With the money you save, you can travel for longer, stay in nicer accommodations, buy more souvenirs, or, even shell out for a fancy dinner every once in a while.

Alexandra Moss is the editor of LET’S GO: Spain & Portugal. She is a 21-year-old New Yorker who will be a senior at Harvard University this fall and is majoring in literature. She spent last fall studying abroad in Madrid, followed by a month of traveling in Eastern Europe (Slovenia, Hungary, Austria, Czech Republic, Poland, Germany).

© 2008, Young Money Media, LLC. All rights reserved.

By Ryan Kelley
19 October 2004

In hindsight, perhaps three-ring binders and reality television are an odd combination. For 12 college interns, however, the pairing was a fact of life this summer. The students were hired to work for UniKeep, an office product manufacturer based in Hilliard, Ohio, a suburb of Columbus. But here’s the twist: Their entire internship would be filmed as part of a new reality television show.

The project was the brainchild of award-winning entrepreneur Ross Youngs, founder of UniKeep. Drawing on local resources such as Ohio State University and the Columbus Academy of Art and Design, among others, Youngs stepped into a strange, surreal world with his young employees.

Together with Allan Farst, director and executive producer of Niche Productions in Dayton, Ohio, Youngs created Internship Productions, LLC to create a reality television series following the interns in New York City. Their goal: to raise product awareness for the UniKeep View Case Binder - a streamlined, stackable, modern take on the standard three-ring binder.

If the interns were unable to achieve that goal, Youngs would shut down UniKeep, which has lost $2 million since opening in 2001. The reality show, however, plans to continue next year with a new company.

The interns started work in early June and then headed to New York to begin a series of client meetings and promotional campaigns for the binder. The result became six episodes of the series and a primer for young people on the pitfalls of the business world.

Not Your Usual Summer Job

The group embarked on a guerilla marketing campaign that saw them everywhere from national morning news shows to walking down Times Square wearing sandwich boards. From the outset, many interns were left wondering whether they were marketing the binders or the TV series.

"It’s a show about getting on shows," said intern Julie Slader of the group’s almost fanatical struggle to gain TV air time for their product. The Ohio State journalism major felt that the purpose of their job was often confused: "It was just a weird, complicated process. Is it to sell binders or promote the show?"

Slader added that most people that learned of the show had the same reaction: "Oh God, not another reality show."

So the interns kept the reality show aspect a secret, saying instead that they were filming a documentary. Adding to the pressure of the constantly present cameras was a lack of set goals for the group.

"The biggest thing about this whole internship program is confusion. People were not being told exactly what they should be doing and how they should be doing it," said Farst, who along with a team of four editors sifted through 250 hours of film to make the six yet-to-be-released episodes.

Farst said that the interns were told that they were working for UniKeep from the beginning. However, many of them failed to grasp that they were not there just to film a reality show.

Youngs thought that too many individuals put themselves first instead of the team. He blamed selfishness for causing much of the conflict within the group.

"We tried to rationalize and reason with them on the importance of working together," said Youngs. "The college experience does everything possible to create the individual. They are taught that their individuality is so important."

"I’m afraid this is going to turn out to look like a bunch of college kids who got an opportunity in New York and blew it," said intern Brent Leaman, a chemical engineering major at Ohio State.

Motivation? What Motivation?

Leaman claims that motivation was difficult for the twenty-something interns, many of whom were in New York for the first time. Another factor was the proximity of working and living with the same group of people who also kept video and Web diaries of the experience.

"You just didn’t have your own space," said Leaman. "That was an enormous problem, the balance of work and play."

Plans are currently being discussed to air the series on the Discovery Channel or MTVU, according to Farst.

"It’ll air somewhere," said Farst. "We have enough interest."

Despite the failures of the group, Leaman believes that valuable knowledge can be gained from the experience: "At this age, to be able to see how bureaucratic a business can be, because it was bureaucratic between us because we were in such close quarters, is valuable. You could see when someone tried to kiss the boss’ ass and if they were lying through their teeth. The fact that we lost is so better than if we won because you analyze what went wrong."

"This group really epitomizes what you have in the workforce," said Youngs. "You’ve got employees that really come out swinging and hit stride, you have others that take advantage of the situation."

Youngs still believes that the interns were successful in filming a compelling reality show. He said the final decision on UniKeep’s future would not be made until the last episode, which the entrepreneur hopes to do live. The final version of the show will likely not feature the binder products.

"This is a show about interns working for a company in New York," he said. "It’s not like the product is highly featured or is ever a cornerstone [of the show]. It’s a part of it. At this point, I’d say it’s a coin toss. UniKeep is still hanging its entire future on what these interns did."

© 2008, Young Money Media, LLC. All rights reserved.

By Leah Gliniewicz
19 October 2004

Justin Gatlin sports the bling around his neck these days - gold, silver and bronze.

At this year’s Olympic summer games in Athens, the track and field star earned a gold in the 100 meter sprint with a personal best of 9.85 seconds, a silver in the 4 X 100 meter relay, and a bronze in the 200 meter run.

Since his triple-medal sweep, the 22-year-old Brooklyn native went on a worldwide month-long promotional track-and-field tour. He’s been on "The View" TV show, made a red carpet appearance at the Emmy awards, and even tossed the first pitch at a Yankees game.

Gatlin recalled his interview on "The Tonight Show" with Jay Leno. He was a bit nervous at first, but he saw how relaxed fellow guest Ellen DeGeneres was before she came on and quickly felt at ease.

"I guess I’m blessed. I’m trying to take it all in right now," he said.

Gatlin turned pro in 2003, after spending the previous two years at the University of Tennessee. While at UT, he learned the ropes from friends including Dwayne Bell, and earned a string of wins and accolades.

He led the UT to a NCAA title by winning the 100 and 200 meter dashes, becoming the first person to win both events since 1976; won five NCAA titles by the end of his sophomore season; was named the Southeastern Conference Track Freshman of the Year for both indoors and outdoors; and was awarded Outdoor Athlete of the Year honors in the South Region by the U.S. Track Coaches Association, according to USOlympicteam.com. Last year, he transferred to Saint Augustine’s College in Raleigh, N.C.

Gatlin is already eyeing the 2008 Olympics. The long-term career goal for this communications major is to become a sports commentator. YOUNG MONEY magazine was able to snag a quick phone call with the mega-busy gold medallist shortly after he arrived at the W Hotel in New York City.

What was the experience like being at the olympics?

JG: It was special for the simple fact …it felt like destiny for me to be there and do great things. The crowd was the most memorable experience. It gave out an electrifying feel. It just felt so electrifying. If you’ve run twice that day or seven times that day when you hear the crowd, all your pain, little wears and tears disappear magically.

What sacrifices have you made to become a world-class athlete?

JG: I guess doing the regular things a 22-year-old would do. Especially being in college, I could not go out with friends as much as I wanted. I had to have the right amount of rest. I practice six days a week. Basically track is my life at this time.

Whom do you admire most?

JG: I admire my parents very much. I admire each one of my coaches very much. They have all contributed to my character. My college coach made me [act] gracious when I won and [act] gracious when I lost. My high school coach showed me my talent and gave me the motivation to be the best in the world. My professional coach molded me.

What pushes you to keep you working so hard to succeed?

JG: I love what I do. I’m the kind of person who can push it to the limit. This year, I went out and ran the fastest a human has run in two years. I’m not a perfectionist, but I want to have the perfect race.

What other interests do you have unrelated to sports?

JG: If I wasn’t in track, I would do something with art or designing clothes - making my creative side stick out more.

How has winning the gold made an impact on your life so far?

JG: I feel almost like I’m running for president. Nothing really changes me. I can walk the streets and people know who I am. Young girls or boys get excited when they see me. It’s amazing to me because I remember being that person. I was like they were. I’m just honored to be able to do that.

Your contract with Nike requires that they pay your tuition after you turn pro. Why did you include this clause in your contract?

JG: For a couple of reasons. I told my mom I would finish college. I put hard work and a lot into it. I saw legendary athletes in sports who didn’t get a degree and still had a hard time getting a job. I didn’t want to be like that. I wanted to get my degree and live comfortably.

Do you plan on returning to Saint Augustine’s College for your junior year?

JG: It’s between NC State and Saint Augustine’s College. But it will probably be Saint Augustine. They’ve treated me very well. They know I travel a lot. My teachers are behind me.

Why did you decide to turn pro?

JG: In my mind it was an easy decision. It was hard for me to leave my friends at Tennessee. When I got to college, I grew as a person.

What was your life like as a student athlete at Tennessee?

JG: It was fun. I’m the kind of person I like everyone to know who I am. Everybody treated me nice there. Being a track and field athlete in a school known predominantly for football, they showed me a lot of respect.

Do you plan on competing in another Olympics?

JG: I want to try to go for two more Olympics. My sights are set on 2008 right now. I know it’s a ways away. I hope to defend my title in the 100 meter with a gold, and get a gold in the 200 meter and possibly break a world record in one of them.

© 2008, Young Money Media, LLC. All rights reserved.