Thursday | February 09, 2012
Answers to Top Student Money Questions (Part 2)
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By
Sanyika Calloway Boyce, YOUNG MONEY Columnist
18 January 2006
Thanks for taking me up on my offer to help you answer your questions about money, credit, debt, romance and finance and landing (or keeping) a job. For all of you who were courageous enough to ask your questions, I applaud you. For those of you who still have questions that need answering, I hope what follows will offer you some insight and direction.
MONEY
What’s the best way to lower my credit card interest rate?
It’s simple, call the credit card company and ask them for a rate reduction. If you’ve been good about paying your credit card bills on time and not maxing them out or going over the limit, then you’ll be in a much better position to ask for an interest rate reduction. The bottom line is that credit card companies don’t want to lose your business. So if they have to lower your interest rate by a few points to keep you as a customer, they usually will do so. Always remind the creditor that there are other companies who want your business and have them look for ways that they can keep you as a customer. They may even offer fee reductions or waivers as a way to keep you satisfied.
ROMANCE & FINANCE
I want to buy my girlfriend/boyfriend nice things but how much is too much?
It’s hard to put a dollar amount on how much to spend, especially when it comes to birthdays and holidays. Often we want to impress and get the big WOW reaction, but I have been guilty of breaking the bank and maxing out credit cards only to pay the hefty price tag later. The best advice I can give is to set spending limits upfront on gifts, this will take off the pressure and turn on the creativity. When you stop focusing on the amount you’re spending and put the attention into the thought behind the gift it’ll last a lot longer and mean a whole lot more. Also, reduce the pressure to produce that one-of-a-kind gift by giving smaller gifts more often rather than putting all of your energy into the big gift.
DREAM JOB
How soon should I start putting money in my 401k plan after I get a job?
As soon as your company allows – it’s free money! Even if you can only save $50 per paycheck, you have to start somewhere. There is no such thing as playing “catch-up” if you don’t discipline yourself at the beginning. It’ll be much harder to make the switch later on. Also, look into other pre-tax benefits such as travel allowances, flex-spend accounts and any other opportunities that your company offers to lower your taxable income. On average every $1,000 you put in (the max is $5,000 per year) cuts your tax bill by about $300.
I know it sounds corny, but it’s true; the only stupid question is the one you don’t ask. So please email me at questions@collegestudentusa.com with any question you may have and I’ll do my best to answer it or point you in the direction of the help you need.
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 www.financialfitnesscoach.com.
© 2006, Young Money™, LLC. All rights reserved.
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I can empathize with your new client. As a child, as for many years as an adult, I had no real confidence in myself, regardless of accomplishments. When I was a child, my parents tried to teach me the lesson of the ‘Little Engine That Could.’ As you recall, it could because it though it could. Whenever they told me that, I say: “but I don’t think I can”, as that was a far as it ever went.
When I was in college I read a science fiction novel in which the main character (if I recall, I don’t really remember the details) was consumed by fear. So he learned this small poem, which I memorized and said it over and over to myself:
“I must not fear.
Fear is the mind-killer.
Fear is the little-death that brings total obliteration.
I will face my fear.
I will permit it to pass over me and through me.
And when it has gone past I will turn the inner eye to see its path.
Where the fear has gone there will be nothing.
Only I will remain.”
Recently I looked it up. It is from a book by Frank Herbert in the Dune series. Regardless of its origins, it really helped me; it helped that I memorized it and repeated it to myself a million times a day.
Well, there are other things that helped my in conquering fear and in ability to be confident, but that was one of the first steps.