Launch Lady Logic

Proud mom alert: since this is graduation weekend AND Mother’s Day, the Launch Lady is beaming with pride and brimming with gratitude.  I bring you good news!  College can, indeed, be completed in four years.  One of the pictured individuals could have completed it in 3, but they chose to accept an extended internship and take a lighter load in year 4 (he knows who he is).     The other one graduated from community college before transferring to University of Illinois (she knows who she is).     I have known one of them since the day of her birth, and have had the privilege of watching the other one grow over the last 5 years.   Is there a secret ingredient to completing college on schedule?   Well, following are a few of the behaviors I witnessed and the observations that I have made:

Planning begins in high school   If your local high school has dual credit or Advanced Placement courses, encourage your teen to take advantage of them.  It’s an awesome opportunity to begin college with one or more semesters already completed, tuition free!

Become involved in extracurricular and civic activities.  Not only does this provide excellent networking opportunities, but it helps create a well-rounded student.  Another bonus is that the experience enriches and provides interest to the content of scholarship applications.

Apply relentlessly for scholarships.  Both received multiple scholarships.  Setting a goal of applying at least once per week greatly increases the odds of winning.  There is plenty of free money to be awarded and it is not all need based.   Scholarship applications are not a waste of time even if they do not win.  The ubiquitous essays are good practice for selling oneself; much like the skills that will be needed to write a cover letter and resume.

Start by taking the prerequisites first at a local community college.  Work closely with counselors to determine which ones will most likely transfer.  Tuition will be lower and room and board free since they will probably still be living at home.

Maximize the classes taken each semester.   Some colleges charge a fixed price for full time students.  As a result, you can take 18 credits for the same price as 12 credits.   A consistent 16 credits per semester will achieve a 4-year graduation goal.   It may be worth it to forfeit the part time job during school if it can save another full year of tuition, room and board.

Apply for and accept summer internships that are relevant to college major.  Not only will it contribute a good sum towards tuition, but it can also provide spending money during the academic year.  It may also turn into a full time job after graduation.  The very least is that it looks good on a resume and can provide an industry specific reference.

Don’t feel that college has to be done right after high school.   Full time employment is sometimes a good idea for the high school graduate who doesn’t know what they want.  That is better than stretching out college far past the traditionally allotted time to compensate for changing majors. There are plenty of opportunities for adult learners and they can be done in conjunction with a full time job.  I know many who have benefited from this option, including myself.   Many companies offer phenomenal tuition benefits to those who are motivated to go to school while working.

I am very grateful to have a daughter who was motivated to get through college within 4 years and I am sure his parents feel the same way.    I’d like to think that I helped in some way, but the key ingredient I offered was accountability.     One of my greatest gifts is to share in the victory of one of my children.  College is over, kids.  Time to set some new goals; as soon as you get through the wedding and honeymoon!

Happy Mother’s Day to all of the moms as well as those who fill the role of a mom!

I don’t know who to credit for this snippet of wisdom but I think it is pretty sound advice!

“I don’t think much of a man who is not wiser today than he was yesterday”. Abraham Lincoln

Be intentional today. Think about just one aspect of independence that you would like to imbed in your kids. Don’t wait until time for college to teach it all!

“Our job as parents, like it or not, is to put ourselves out of a job.”-The Atlantic

“Adding incremental and age appropriate responsibility helps provide a smooth transition from teen to capable and independent young adult.”  The Launch Lady

http://time.com/money/4745225/what-to-do-in-twenties-to-become-millionaire/?xid=frommoney_soc_socialflow_twitter_money

In addition to teaching your kids independence, we all have plenty of opportunities to point them towards financial success.  They have the ability to achieve far more than their parents ever did; especially if said parents are teaching them to be open to all of the possibilities life has to offer.  Take a look at the linked article from Time.com to hear from some people who achieved financial wealth in their twenties.

Am I the only one who thinks that the cost of using a cell phone is obscene?  Aside from my mortgage, it was my second highest monthly expense.  And what do I get for that?  Well, it keeps me occupied when I am in a public place, relieving me of the responsibility of making eye contact or small talk with other humans. It allows me to transmit my thoughts effortlessly from my brain to the tips of my fingers sometimes more quickly than I have had the opportunity to think them through.  It affords me the luxury of finding the answer to an obscure question about anything at any time and any place.  Could I live without it?  Absolutely.  Do I want to? Not really.  It would have come in handy that one time nearly three decades ago when my car broke down on the highway on a dark winter night.  That was quite inconvenient, but obviously, I survived!

I finally said “yes” to the smartphone when my oldest was a senior in high school with the condition that she had to pay for it.  Apparently, denying your teenager a smartphone is a form of child abuse that hadn’t yet been invented when I was a teenager.  A few years later, daughter number 2 got her smartphone.  At some point, to offset some of the other financial responsibilities they had chosen, I assumed the payments for both.  Eventually, things evolved and I decided it was once again time to put the expense back on the ones who were receiving the benefit. I tried different ways of extracting the payments and I found one that I would like to share for those of you who are interested in splitting the expenses for your cell phone bill.

I found out that my cell phone carrier, which is Verizon, would allow multiple payments per month.  Each person in my family can log into the account and pay their own portion of the bill.  The payments are due on the same day each month.  I am the administration so I let everyone know how much they owe.  I strongly recommend that they use their smartphones as a reminder to make sure it gets paid on time. Everyone understands that any late fees will be paid by whomever didn’t pay their bill on time. Of course, repeat offenders may find themselves shopping for their very own cell phone plan!   The only downside for me is that I had to cancel my auto pay.

This arrangement benefits everyone because:

• They learn the value of things
• They learn that a smartphone is not an entitlement
• They learn to pay bills on time
• I am removed from the role of “villainous bill collector”
• My cell phone bill is no longer my second largest monthly expense

Anytime I shift the responsibilities so my girls can deal directly with the bill collector, that is what I do.  I would not be doing them any favors to allow them to pay intermittently.   Parents do not always make the best collector of funds because sometimes we’re just too busy to keep track.  Fortunately, our cell phone company has an entire staff of people devoted to tracking whose bill is paid and whose is delinquent.

Now that I’ve gotten my cell phone bill down to a more manageable level, I can put the difference in my retirement account.  Or just maybe, I can use it to get to a beach….so I can hunker down in my beach chair and scroll mindlessly though my phone.

http://cnb.cx/2DbGxnK  pic.twitter.com/bj8tNEziGI

According to the above article by CNBC, 25% of millennials who work full time are still being subsidized by their parents.  The most common subsidies are for cell phones and car insurance. The recurring message in this, as well as other similar articles, is that millennials are disadvantaged compared to their baby boomer parents.    Take note that baby boomers span 18 years from beginning to end.  They did not all enjoy the same experiences or levels of prosperity; conversely, not all millennials have a need for parental rescuing.   The economy is always evolving.  Earlier generations had a plethora of manufacturing jobs.  Technology jobs are more common today.   Because much of the technology did not even exist when the baby boomers were in school, that gives the millennials an employment advantage in that sector.  Rather than the economy, there may be a few other reasons that millennials “need” more subsidies than their parents did at the same age. Some cannot distinguish wants from needs.

• Boomers didn’t have Starbucks. A $3 cup of coffee, 5 times a week costs about $65 per month.  That would most likely cover the cost of a shared cell phone plan or car insurance.
• Boomers didn’t have cell phones. They likely lived in a house with several other family members who all had to take turns using ONE landline!
• Boomers didn’t have laptops, IPads, or internet. They had a lot of extra time on their hands!
• Boomers didn’t have cable TV or DVR’s. They actually had to be home at a certain time in order to watch their favorite shows.
• Boomers probably didn’t have their own rooms. They often shared it with one or more siblings. Sometimes, the only way they could get their own room was to get their own apartment!
• Boomers are more likely to know what it is like to share ONE bathroom with several other people on a daily basis. Who remembers dancing around outside the bathroom door waiting for your turn?
• Boomers didn’t all have their own cars. Driving the family’s Country Squire station wagon might have been an exquisite treat!
• Boomers didn’t all go to college. Those who did were not necessarily bankrolled by their parents. Some (gulp) actually worked summers and holidays to earn tuition!
• Boomers didn’t view experiences as necessities. Vacations and excursions are part of what makes life enjoyable. However, the parents of said boomers would not have subsidized frivolity before responsibility.
• Boomers may have made comparatively more money, but they were more likely to have additional mouths to feed at an earlier age.

I’m sure you can see by the picture I’ve painted of Boomer Life, it was easier for them to WANT to grow up and move out!   If there is a perceived need for you to render support to your young adult, consider that in addition to the earning situation, there has also been a shift in spending priorities.  Now, you may be thinking, “I’d love to cut back on my contributions, but I would feel so guilty!”   Well I’ll leave you with a thought that may help you with that.  Have you fully funded your retirement account or invested in a long term care policy?  If so, you can alleviate your guilt by knowing that when you are older, you will not need to ask your kids to take care of you!

I had heard the news story before I watched Dave Ramsey’s video, but it was interesting to listen to his take on it as well as read some of the comments that followed. I realized that this topic is of great relevance to the Launch Lady’s mission.

To paraphrase the story, a 24-year-old and 26-year-old couple were already tired of working so they quit and set out to live their dream. They were discouraged that most of their days had been spent working, and most of the proceeds were used just to fund the necessities of life. Who among us has not felt this way? They sold everything they owned to buy an old sailboat with the intention to live on it and sail around the world. Having a dream is something that most people lack, and for that I commend them. They took an action towards their goal, which is admirable as well.  However…

Sometimes plans and goals require a Plan B. Plan B usually requires a cash reserve in case Plan A blows up. If these young adults were in my family, I’d be devastated for their misfortune. I know I am not alone in that I can’t stand to see my kids face disappointment. It would be an excruciating and unpopular conversation to tell them that while I’m so sorry for their temporary setback, that they would need to work for a while to save up again for their dream. I don’t want to be harshly critical, because the University of Hard Knocks has a tendency to provide a valuable education. Unfortunately, the tuition is very expensive and this story is no exception to that rule. But thanks to the kindness of folks responding to a GoFundMe account, the tuition was waived for these folks.

Many adults with family responsibilities have dreams as well. These same adults may even have loathsome jobs that they work just to pay the bills. Maybe they plan to pursue some of their own lifelong dreams when they have successfully emancipated their own children. Maybe a GoFundMe campaign would get them to their dreams a little more quickly. Or maybe, they could instill in their progeny, a work ethic such that they consistently work regardless of the circumstance. It is not my place to tell them that they need to work in the same environment that has benefited me (as well as them). Their work is their business as long as they ensure that they can meet their expenses if their way doesn’t work out as anticipated. I have found that work is often not convenient. Some days, I might not even like it all. But in the end, any responsibility for career satisfaction is mine and mine alone. That’s the story I want my own daughters to understand. In all but the most catastrophic of circumstances, GoFundMe campaigns should begin in front of a mirror.

#causeandeffect #parenting #daveramsey #moneyisnteverything #universityofhardknocks #gofundme