Adulting 101 by College Heights Herald

November 27, 2018

Nicole Childress Creative Director

Mariah Southers Writing Director

Grace Pritchett Multimedia Director

Craig Ostertag Art Director

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Content

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Control your finances Useful tips and resources

Building credit with Franklin Bank

A weekend for free Thriving while broke

Trending up One student shares stock advice

Car buying 101 with Jim Johnson Nissan Hyundai

Tips for financial success with Independence Bank

Christmas on a budget Affordable gift ideas

ADULTING 101

Tips to get control of your finances By Abbey Norvell

College is hard, and stressing about money makes it even harder. With tests, presentations and extracurricular activities, there is no time to fret about finances. But fear not, there are on-campus and online resources that exist to help you become a good steward of your finances. A great on-campus resource offered to students for free is the WKU Center for Financial Success. The WKU Center for Financial Success offers financial coaching; all you have to do is sign up to be a client on their website: wku.edu/ cfs/. The financial coaches help you develop a written plan that allots how you will spend your money, specifically tracking expenses. A unique service that financial coaches offer includes helping students figure out exactly who their loan servicer is, said said Program Coordinator and Lead Financial Coach Zach Jones. “Many students don’t know who their loan servicer is so we help students find that out” Jones said. This helps students become informed and develop a plan to repay loans.”

A loan servicer is the liaison between the federal government and the students themselves. In meetings with a financial coach, students can also develop a plan to repay loans and discover ways to minimize loan costs. A tool financial coaches also utilize is a Career Financial Reality Check. The reality check takes into account a student’s job, city and cost of living post-graduation. If a student’s loans are more than what they will make when they exit school, then they need to devise a way to pay student loans back monthly. This is where a financial coach with money expertise would help students tremendously. Financial coaches are overseen by professors with years of experience in the field. Another great way to keep track of your finances is on your phone. There are many banks in Bowling Green that have mobile banking applications. Franklin Bank and Trust Company, US Bank, PNC and American Bank and Trust all offer helpful apps. Through these apps, you can view your transfers, deposits, balances and more.

Staying logged in on these apps and turning on their notifications allows you to always be updated on your financial standing. Another handy tool some banks offer is a text message system that sends a text to your phone whenever a transaction is approved or declined on your account. If you

were to ever lose your card or have your information stolen, you would know almost instantaneously. After taking advantage of the self-help tips and resources detailed above, you will be a balanced college student. Rather than fretting over finances, you will find success and stability in your spending.

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The building blocks of good credit By Abbey Norvell

Credit scores, cash-secured loans, and reward cards all sound intimidating and overwhelming to the majority of college students. These terms, and many more, can be simplified and understood when talking to knowledgeable people in the finance industry. The staff of Franklin Bank and Trust Company are available to help clients set up a credit card, take out a loan, establish a checking account with online banking and much more. Loan officer Drew Hubbard gave a few tips on building credit, utilizing loans and managing a budget, all while being a college student. Hubbard says it’s never too early to start establishing your credit score. Your credit score comes alive as soon as you take out a loan, obtain a credit card, co-sign on a loan or accumulate any sort of debt. Once you have obtained a credit history, there are many different factors that can affect it. Transactions and expenses are a couple of factors. Another factor is the length of time it takes to make loan payments or any other monthly payment, like utility bills or rent. Payments made on time present a positive history. Payments made after the due date can show negatively on a credit report, with the possibility of your credit score lowering due to the delayed

payment(s). Even shutting down a credit card after a short period of time could potentially lower your credit score. When it comes to choosing a credit card, various companies try to persuade college students with bold promises of rewards. Opening a credit card is not necessarily a bad idea, as long as students are confident enough in managing their money to pay monthly bills and expenses. Some credit cards are intended specifically for students and have lower credit limits so that you can avoid incurring significant debt while learning how to manage credit wisely.

“Be strategic about choosing a card that benefits you.” Drew Hubbard Loan Oﬃcer Hubbard said students should focus on building credit rather than accumulating rewards. Each card is designed with specific rewards and limits, so it takes time and knowledge to choose the best card for you. “Be strategic about choosing a card that benefits you,” Hubbard

said. Hubbard gave the example of a card reward that can help pay back student loans. Essentially, paying your bills on time results in a reward of $5, or whatever given amount, going straight toward paying your student loans. A card with this kind of straightforward reward would be ideal for college students. One stipulation to applying for a credit card is you’ll need to show income for repayment. Since not all college students have a steady job, you might consider being added as an authorized signer on someone else’s card. If you’re added to a parent’s credit card, you can make purchases and pay your parent back. Then when they pay the bill on time, you’ll start to build a credit score too. At Franklin Bank and Trust Company, they believe knowing your banker provides the ultimate banking experience. A banker who cares about your financial situation will be able to serve as a trusted mentor when you’re making financial decisions. “Building a relationship with a banker is important,” Hubbard said.

ADULTING 101

A weekend for free in Bowling Green By Sam Chumbley

Let’s be honest, being a college student isn’t cheap. Since Student Publications doesn’t pay much, I had to find ways to ball on a budget. I’m here to share some ideas and experiences, so you too can get outside and not break the bank. Whenever you wake up (I started at 12 p.m.) breakfast is the most important meal of the day, so grab that pizza you left out overnight. That’s not a real meal, you say? I’m sorry, I can’t hear you over the wind in my ears from this high-speed, low-drag lifestyle.

Dinner 6 - 7 p.m.

Hike Noon - 1 p.m.

Finish off that Red Bull on your desk and strap on some athletic shoes or boots. Don’t forget any spare change and pick up any you find during the day too: You’ll need it. Now get in, we’re going hiking. I checked out Low-Hollow trail in Weldon Peete Park. It’s a solid two-mile hike, so you can get your steps in to convince yourself that you’re healthy even if you eat a whole cake while crying in your room later. The trail is pleasant and gives you a view of the aptly named Barren (like my soul) River.

Photos by Sam Zitelli

Humane society 1 - 3 p.m.

After taking a pleasant morning walk, take a short drive to the Bowling Green Humane Society. You can talk to some of the volunteers and play with the animals. I spent some time with Grizzly the dog. He’s been adopted now, but there are plenty of animals that need some love. Just because the wild college student is miserable doesn’t mean the animals have to be. I recommend volunteering; it’s genuinely fulfilling.

Read 3:30 - 6 p.m.

Lunch 3 - 3:30 p.m.

There is such a thing as a free lunch, you just have to get creative. I went out to Sam’s Club. If you hit every free sample, you get appetizers, a main course and dessert. You’re welcome.

Now that I had worked out, helped the animals and enjoyed a nice meal, I decided it was time to relax. I visited Half Price Books. You can grab any book and find a seat. Nobody is going to stop you. I hear the “why not just go to the library” complaints. Because nerd, I’m not supposed to read a whole book for free in Half Price Books.

Let’s cap this day off. Remember that spare change? Hopefully by now you have a dollar or two. Head on over to the hungover or pre-hungover college student’s best friend: Waffle House. You can get a $1 burger at Waffle House, and they’re pretty good for a dollar. I know I promised free, but I define free as when my bank account numbers don’t drop.

You may think what I recommend wasn’t particularly exciting, but Bowling Green is what you make out of it and even I, sultan of salt and kween of the cynics, had a good time, without spending anything but the change I found while I was out.

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Student shares advice on finance blog By Ryan Goodlett

WKU senior Kyla Scanlon has more insight than most her age when it comes to finances. Scanlon sits on several administrative councils for the college of business, including the fiscal committee and strategic planning council. She is also an economics and data analytics student researcher and the founder and president of the Women in Business Club at WKU. Scanlon has three majors: finance, economics and data analytics. Scanlon has been in the finance realm since she was 16 years old. Her father trades options as a full time job and she took an interest in it as well after seeing him trade one day. Throughout her high school carrer, she traded options constantly. Scanlon explained that options are smaller trading portions that are derivatives of stocks, meaning that they get their value from the stock price. Scanlon completed an options trading course through TD Ameritrade that allowed her to begin trading at age 16. While Scanlon got involved in finance before coming to college, WKU has allowed her to further pursue her interest, grow her knowledge and develop her skills. Students in

the Gordon Ford College of Business are required to take beginner finance courses, however, that’s not a requirement for most WKU students. Scanlon said she thinks classes on personal finance should be a requirement for every college student. Scanlon developed her own blog, “Scanlon on Stocks,” in 2017 with the aim of making trading more accessible, particularly for college students. “The blog was created for options trading, but I do a lot of macroeconomic research as well,” she said. “I write a lot about how the industry operates, for example — millennials and how they operate and also Americans in general and how they invest.” She explained that although the blog was geared towards college students, it has evolved into more of a tool for those with industry experience. One of her posts had over 25,000 views and over 300 comments. Scanlon offers a unique perspective due to her age. She is also a published author on the financial news website Seeking Alpha. Scanlon is particularly interested in the investment patterns of millennials, specifically why there isn’t a huge millennial presence in trading, as only 20 percent of millennials are invested in stocks and options. Scanlon suspects the reason millennials don’t invest is largely because of the student loan debt crisis. Students may not have savings to buy stock or they may not be educated about how to go about doing so. A lot of millennials refrain from investing because of fear, as they have bad memories of watching their parents endure the 2008 recession. Scanlon explained that not investing in stock would mean missing out on an opportunity for the creation of wealth. “Stocks are risks,” she said. “It is a risk-reward ratio, and you have to be comfortable in taking the risk.” WKU senior Kyla Scanlon created the finance blog, “Scanlon on Stocks,” in 2017 in order to help other people, especially college students, learn about trade. (Photo by Pheobe Alcala)

ADULTING 101

To get your feet wet in stock trading, Scanlon recommends doing research and reading various financial news sites to get exposure to companies youâ&#x20AC;&#x2122;re looking at investing in. She also said that Robin Hood is a helpful app that can be used to buy and sell stock. Scanlon said that trading stocks can teach many lessons, such as how to keep your ego in check and evaluate decisions. â&#x20AC;&#x153;When I first traded stocks, I was really full of myself, and I thought I was like the best stock trader ever,â&#x20AC;? she said. â&#x20AC;&#x153;Then I made one really stupid trade, and it wiped out my account.â&#x20AC;? Scanlon will graduate in May and has accepted a job with The Capital Group in Los Angeles where she will be doing fixed income analysis and continue trying to figure out the stock market puzzle. â&#x20AC;&#x153;You think youâ&#x20AC;&#x2122;re gonna be right, and then youâ&#x20AC;&#x2122;re really wrong â&#x20AC;&#x201D; I think itâ&#x20AC;&#x2122;s fun,â&#x20AC;? she said. â&#x20AC;&#x153;The opportunity I have out in California will allow me to experience that on a huge scale, so itâ&#x20AC;&#x2122;ll be super cool.â&#x20AC;?

One of Scanlonâ&#x20AC;&#x2122;s blog posts reached over 25,000 views and over 300 comments, and she is now a published author on the financial news website Seeking Alpha. (Photo by Phoebe Alcala)

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Driving into your future By Sam Chumbley

Picture this: You’re driving your beautiful brown ‘98 Dodge Avenger, the one with the broken driver side handle and blown out front speakers. It’s the treasured car you’ve been rolling in since high school. One day it doesn’t start, so you fix the problem: the battery. But then the oil light won’t go off. The check engine light follows suit, and then you recline in the seat, and it doesn’t come back up. It’s time to get a new car, but who would you trust to make sure you leave with an affordable, reliable car? Jim Johnson Nissan Hyundai dealerships have been a part of the South Central Kentucky community since 1972. Johnson is former WKU Board of Regents member and has two daughters who have graduated from WKU. Jim Johnson Nissan Hyundai dealerships are dedicated to their customers and the people of Bowling Green. Their motto — “Whatever it takes” — refers to their customer’s experience, peace of mind and family. If you’re near graduation and looking to buy your first car or replace your old ride, Jim Johnson Nissan can offer special financing. When you are six months from graduation, or if you have graduated within the past two years, you qualify for the Nissan College Graduate Program. If you have graduated within the past two years, you just need to provide your diploma as proof. As long as you don’t have negative credit history — and even if you have no credit history at all — you qualify for their special finance rates. The college grad program can be used to purchase or lease a new or certified preowned Nissan. For future vehicle purchases in the Nissan program, you automatically qualify for new loans as long as your previous payments are made without any problems. Jim Johnson’s sales team understands that buying a car can be stressful said Amy Schneider, the director of human resources and marketing. “We try to make the purchase as easy as possible,” she said. There are multiple ways to shop so that customers can negotiate in whichever format they feel most comfortable. Customers can email the sales team, meet in person or use the web chat on the Jim Johnson Nissan website. Nissan sales manager Jay Fritz said the goal is to allow customers to negotiate prices in a setting where they won’t feel pressured.

Fritz is committed to a family atmosphere and not making any high-pressure sales. “The sales team is as transparent as we can be,” Fritz said. Being in college brings a lot of challenges and big purchases. The last thing you need is someone

pressuring you into buying something you don’t need or passing off a deal that is riddled with fine print. Schneider and Fritz both stressed that at Jim Johnson Nissan Hyundai, you can rest assured that they have your best interest and the best interest of your family in mind.

Jim Johnson Nissan offers a special finance option for soon-to-be or recent college graduates. As an alumnus himself, Johnson strives to provide a top-notch experience for all of those who come to his dealerships. (Photos by Lauren Pestoff)

ADULTING 101 SPONSORED CONTENT

Three tips for financial success

By Ryan Goodlett

Figuring out your finances while balancing school, work and activities can be tricky. Luckily, places like Independence Bank want to make it easier. President of Independence Bank in Bowling Green Brad Howard worked his way up in the banking industry after starting off as a bookkeeper. Howard said the biggest issue he sees with college students managing finances is the impact of student loans. For example, when graduates apply for a home loan with $40,000-$300,000 of outstanding student loans, it’s difficult for them to qualify for another loan. Howard said education is the most important tool students have when making decisions about the amount of money to borrow, how often to borrow and what to spend that money on. He explained some students obtain loans not only for school but for their basic needs as well. But that creates a snowball effect

that increases the amount of the loans exponentially. “Instead of getting enough money for their rent, their food, and everything to sustain themselves, student loans should be for tuition, books and things of that nature,” Howard said. “Students may consider a paid internship or part-time job to help supplement their basic needs outside of the school-related necessities. Independence Bank has employed many students over the years that have used the money they earn for living expenses as well as paying down their student loan amounts at the same time. When they graduated, they do not have the large student loan balances that may affect their future financial situation negatively.” Howard said that students need to start learning how to save and budget early on. He gave three tips for how students can take control of their finances and start planning for a successful future.

Seek advice

Plan your career

Live within your means

Start asking financial questions early. Howard recommends taking advantage of campus resources for financial guidance as well as career counseling. He also recommends students talk to their parents about budgeting and learning how much they spend on things like insurance, cars and other debts. It is important to understand what future expenses can be like. “It’s common for students not to ask questions and for parents not to talk about it,” Howard said. Howard explained that he has always been open with his kids about finances and the reality of the future choices they will have to make.

Howard suggests students find a mentor in their desired career field. Ask questions about what that mentor enjoys the most and the least about their job, as well as the benefits, expected hours and income range. This may allow students to determine if that career is what they want to pursue, or it could possibly change their course before they invest too much time and money in that field of study. Finding a mentor or an internship program will provide students with employable skills and experience. Gaining experience is important, as many employers require applicants to have some sort of experience within their field of study.

Howard explained the “old” rule of thumb is spending 40-45 percent of your net income on basic needs such as rent, food and utilities. No more than 30-35 percent should be spent on making payments on loans, credit cards or any other types of obligations. He recommends putting at least 10 percent of your remaining income into savings. Independence Bank has staff that discuss budgeting with many individuals as they look to qualify for financing large purchases like automobiles and homes. “It’s important to learn the difference between a need and a want when making a large purchase,” Howard said.

Steve Lalte, a WKU alumnus, receives a debit card with the help of Fahreta Ahmetovic at Independence Bank. Ahmetovic says she especially enjoys getting to help students. “I feel like now kids really don’t know anything. We’ve had kids in here who don’t even know what a debit card is, or how to fill out a check,” Ahmetovic said. (Photo by Sam Zitelli)

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Crushing the Christmas game: College edition By Mariah Southers

It seems as the Christmas season gets closer and closer, Christmas lists get longer and longer. We all want to buy a gift for every loved one in our lives, but sometimes being in college and not having money to spare gets in the way. We came up with a list of five ways you can spread holiday cheer to family and friends, without having to sacrifice next semester’s tuition. These inexpensive presents can be given to friends, neighbors, coworkers, teachers — anyone.

Looking for a gift that will satisfy the sweet tooth on your list? Or trying to figure out how to show your appreciation for a professor or friend in your dorm? Here’s an idea that can check multiple people off your list. Bake three different batches of cookies of different flavors and then divvy them up to make assorted cookie tins! You can give them out using decorative plates, bags or holiday tins, which can all be found pretty cheap at places like Dollar Tree, Hobby Lobby and Walmart. Cookies can be homemade or store bought, but there is nothing like a baked good to make someone feel loved.

Photos by Sam Zitelli

Are you a crafty, DIY type of person? If so, then it is time to put your skills to work! Making a gift for someone is much more meaningful than a store-bought gift and by doing so you also save money — which sounds like the perfect gift idea! Whether calligraphy, painting, knitting or crocheting is your crafting jam, you can make a personalized gift for anyone in your life! Beanies, scarves, blankets, or personalized wall decor all make for perfect gifts. Most materials for these crafts can be found at craft stores like Hobby Lobby or Michael’s and are relatively cheap with coupons and deals. Get on Pinterest and get creative!

If you’re looking for a retro way to show someone you care about them, burn them a CD to listen to in their car. This gift is perfect for a significant other or best friend because you can show them how well you know and appreciate their taste in music. You can buy blank CDs in bulk at any office supply store, Target or Walmart. You can make a different CD for different seasons, months or events in your loved one’s life. Get creative with it and design a cute CD case with a sweet note, picture or funny meme. This gift idea is super simple but can also be super sentimental and special.

ADULTING 101

If you are wanting to give someone a gift right now, but just cannot swing it financially, then plan a “not now but soon” present. This is perfect if there is a future event you would love to go to with a significant other, but the budget just won’t allow it quite yet. You can plan a day out doing something fun: going to dinner, a concert, game or just spending the day with a friend, within the next month or so. It’s the perfect gift because it allows time to save money, gives the promise of quality time spent with a loved one and gives everyone something to look forward to. So plan the date, mark it on the calendar for a future day, and give your loved one a card explaining their “not now but soon” present.

If you would prefer to check off your Christmas list at a store or online, there is still a way to conquer the holidays without breaking the bank. It’s all about being aware of deals and holiday sales going on around you. Sign up to be on your favorite store’s email list and get updates constantly about what sales are going on. Check out the local newspaper, especially around the holidays, to find ads for sales everywhere from Walmart to Target, Best Buy and stores in the mall. Keep up with your favorite stores and brands on social media for the latest retail steals for all of your Christmas needs. You can also utilize apps like RetailMeNot to find daily deals and coupon codes! In order to be the best Christmas elf in the game, you’ve got to strategize and plan to see where you can best spend your dollar.

POST GRADS Let’s get you on the right track. Hank Campbell Associate Agent 270-418-3280 hankcampbell@allstate.com

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