During difficult economic times, people of all ages are coming to grips with the fact that earning a living is not going to be easy. People who have been in secure lines of work for years are suddenly finding themselves without a job. Or worse, having to start over and re-evaluate their entire careers.

But what about college-age students who are making decisions about what line of work to pursue? Should they take the current recession into account when selecting a major?

There are many questions a concerned college student can ask when making these decisions:

1. How long will the recession last, and by the time I graduate, will it be a factor anymore?
2. Should I delay even going to school until I can be sure that I’ll be able to afford it?
3. Should I pick a major that I’m really interested in, even if job outlook is scarce right now?
4. If I do pick a major in a field that looks like it will be less affected by a recession, can I switch to a field I am more interested in when things improve?

These are all valid questions. The most difficult thing some college kids are facing is the realization that if they are going to want to earn a living and pay off student loans, they may have to select a different major than they originally intended.

This is a difficult thing to come to grips with. There are many assessments available online that help students who are deciding what to do with their lives what they should major in. But these articles often fail to realize some difficult realities:

1. Student loans are prohibitive these days, and difficult to pay off
2. Some majors do not really prepare a student for finding a job
3. Real learning in college is a choice. Simply going to college is not enough to prepare a student for the “real world.”

If you are a college student and are trying to find the right major, check out this list. It shows what the average student earns by major. These earnings estimates seem high to me. Subtract about $15,000 from each figure and you will have your entry-level salary. Given the current state of the economy, salary is important to consider, no matter what you want to pursue.

A few months ago, we posted an article on the top U.S. careers for college grads. It’s still worth a look.

What is this?

During a recession, everybody is affected to some degree. Banks, businesses, schools, corporations and non-profits are all cutting their losses. People near retirement age have to worry about being laid off and not accumulating a comfortable nest-egg. Post-college grads fear not being able to pay off expensive student loans because they can’t find a job with their new degree. Nobody gets away easily, it seems.

However, there is one demographic that has been hit less hard by job loses. Women.

While it is true that the unemployment rate for women has gone up in the last year by 1.6%, this does not even begin to touch the male unemployment rate, which has increased by close to 3%. Why is this the case? Is it just that women are more fun to have around the office?  Is it that gender equality is finally beginning to take a stronger hold in the United States?

Actually, it probably has something to do with salary. Because men earn a higher income on average, they are more likely to see the axe as companies look for the biggest ways to save money. Also, many women tend to work in areas that are not being hit quite as hard by the recession, such as education and health care, while men toil away in construction, manufacturing and industrial occupations. These areas have taken heavy losses financially.

Another reason for the gender discrepancy is that women tend to work part-time jobs more than men do. Because part-time workers are so much less expensive for employers, there is less of a “benefit” to the company for letting these workers go.

In the end, it isn’t necessarily a “step forward” in gender equality, but rather about money. Women still earn less than men do, although the gap has closed in recent years. More women than men stay home and take care of the children, although the need for them to get part-time jobs has increased during these difficult economic times.

The bottom line remains that the recession is hurting almost everyone in one way or another.  If you’re a woman or a man concerned about finding a job, visit our sister site, The Beehive, for help. 

For more:

Morning Money Matters

NY Daily News

WTVR Richmond

What is this?

Job security is sure looking shaky these days. As job losses mount, so does the need for many newly-laid off workers to file for unemployment benefits. But lately, state unemployment offices have been so swamped with activity that various computerized systems have crashed.

In New York, this system could not handle the volume of calls and e-mails it was receiving, so it simply ceased to work for a while on Monday.

This has happened in other places as well. We shouldn’t be too surprised. The system has been tested in an unprecedented way as the number of Americans collecting unemployment benefits have reached a 26-year high during the current recession. In fact, 4.6 million Americans are currently collecting benefits.

One of the scarier problems is that once you have been let go, it is much more difficult to find work. In fact, one of the biggest concerns is there are fewer and fewer new jobs being created, which makes it far more difficult to get a new job once you have been laid off. This also puts stress on the unemployment system as people remain on benefits for longer periods of time.

If you are out of work and you need to file for benefits, you can click here to learn how do it. Our sister site, The Beehive, also has a great section to help you if you’ve lost your job.

The first thing you will need to do is contact your state unemployment office. Make sure that you have plenty of identification if you appear in person, including your name, address, social security number, and previous employer information.

One very important thing to remember is that when you elect to receive benefits, you can choose whether or not to have your taxes automatically deducted from your benefits. If you elect not to do this, it is critically important that you set aside as much of the benefits as you can and keep track of how much you are going to need to pay at tax time next year.

For easy access to your state unemployment office online, click here, and then click on your state.

Also see:

Kansas City

New York Times

Bloomberg News (unemployment statistics)

What is this?

Make no mistake; when it came to jobs, 2008 was not so great. We are in the middle of a recession that could push the unemployment rate even higher this year. While there are early signs the market might be starting to recover, it’s important to put things in perspective. The service sector in particular may go through a difficult time in the year ahead.

The unemployment rate before the end of 2008 was just under 7%. Some estimates project that the retail market will really feel the burn next year and could push this rate to over 8% alone. Retail was the only market to rise in December, even though it was a poor holiday shopping season. Because the service sector has not really felt the heat yet, many fear this is really just the beginning of more layoffs.

But layoffs are not the full story. In fact, it is possible that the largest reason unemployment rates are rising sharply right now is that there are fewer new jobs available. With employers being afraid to take on new payroll due to a decrease in spending power, it is hard for those who are already out of work to find new jobs. And this is not just limited to one sector, but exists across the board.

If you are currently working a retail job, don’t be too afraid of being laid off. If you have a job right now, you aren’t necessarily in as much danger as you may think. It is those who are unemployed who are having a lot of difficulty finding work, with the scarcity of new jobs. Still, it is wise to keep your options open and always be aware of the current state of the job market.

If you need more help with finding or keeping work, visit the Career Coach on our sister site, The Beehive. 

For more:

The Washington Post

247 Wall Street

Blogging Stocks

Heritage

  What is this?

Bernard Madoff, a force in the investment market, was arrested recently for running a Ponzi scheme last week. If you have not heard the news, check out this article. If the allegations are correct, he actually manged to scam people out of $50 billion in investments.

Amazing!

A Ponzi scheme, is basically the same as a pyramid scheme. The idea is that the early investors in the scheme, and the person who actually created the scheme, are the only ones to benefit. 

Basically, the creator of the scam promises guaranteed and very rich payouts.  At first, the scam pays out as early investors get their rewards from the money of later investors. This attracts even more investors. 

The whole comparison to a pyramid comes from the fact that only people at the top make any kind of profit and there are fewer of them. Once you get further and further down the pyramid, there are a greater and greater number of investors, but their income is less and less because the model is unsustainable. At a point there is not enough capital invested in the system to support huge returns for all the people who buy in and it will collapse. 

How can you spot one of these scams before it is too late for you?

Signs that a business or investment opportunity is a Ponzi or Pyramid scheme:

• Promise of large and guaranteed returns for your investment very quickly
• Little or no effort required on your part to run the business or manage the investment (in other words, it is automatic)
• If it is a business package, weak or no description of what products the business offers or even what it does
• MOST IMPORTANT: a “requirement” to get others to invest in the business, product, or investment in order to make a profit yourself

Not all businesses or investment opportunities that fit some of these descriptions are pyramid schemes, but a lot of them are. It is important that you really familiarize yourself with the source before committing your hard-earned money to anything. Make sure that you can trust it. Believe me, it is not always easy to identify some of these scammers. It is often better to walk away from a legitimate business opportunity than it is to fall prey to a real Ponzi scheme. Keep this in mind if you are even on the fence.

For more on Ponzi and Pyramid schemes:

Wikipedia Ponzi Scheme

More on how to avoid schemes

What is this?

Every day, millions of Americans wake up, go to work, and slowly poison themselves. Some of this do it willingly, because it tastes so good, even having heard about the dangers of NurtiSweet, Splenda or Aspartame. You may have heard some of the side-effects of this artificial sweetener. If you are in the dark, there are probably plenty more that you have NOT heard of, but can be found here.

Blindness. Heart Palpitations. Hives. Peptic Ulcers. Scary, huh? It is a list of side-effects you would expect to see on a bottle of Cyanide. But Aspartame is in just about the most common food and drink items you can think of. Items such as:

• Diet sodas
• Gum
• Cookies
• Candy
• Sports drinks
• Teas

You are probably better off just drinking regular soda. Not that 16 ounces of sugar a day will keep the doctor away, but it’s probably better than willfully ingesting something that may harm you.

Why is this stuff allowed in our food if it is so bad for us? Well, there have been many movements to get the FDA to ban the stuff, but so far nothing has succeeded. In fact, the scientific community have been so continuously outspoken against Aspartame that there have been whole documentaries written about it’s effects.

Do you consume a lot of food and drinks with aspartame?  If so, don’t panic!  Many people report that after discontinuing the stuff, many of their distressing symptoms go away very quickly.  People who have been experiencing headaches for years have reported suddenly feeling much better after “quitting” aspartame.  Perhaps you have been experiencing an annoying symptom for a long time and have not even attributed it to drinking diet soda.  If this is the case, try going off the stuff for a week, as a test trial.  If you feel better, take note if it!  

If you like sweet things, there are some nice healthier alternatives of course, like fruit. Strawberries, kiwifruit and raspberries are some of the sweeter ones.  And they are really good for you.  The natural sweetener Stevia is not available in most countries, including the United States, but it healthy, and actually a whole lot stronger than white sugar or aspartame. And Stevia is actually an herb. It’s natural. Natural things are usually the healthiest. If you happen to visit Japan, pick some of the stuff up and give it a try.

Aspartame can be a real addiction.  Just like anything else, it can be difficult to quit. But don’t be afraid.  There are others out there who share your plight and can help you out.

For more resources on the dangers of Aspartame, check out these links:

The Dorway – An interesting site with extensive articles on the dangers of artificial sweeteners

Aspartame toxicity center

Mercola – Article stating the facts: aspartame is the most dangerous thing on the market

What is this?

You rely on it so much. But your vehicle is such a large expense that you are always trying to make owning the thing more manageable. You can’t do much about gas prices. They will rise and fall with the tide of the market and price of oil. It may break down and need repairs. That is just the nature of the beast. Make no mistake; car ownership is an expensive business, no matter what you do.

But there is one vehicle expense that you can do something about. Insurance. All vehicles are required by law to have some form of it, so I am not recommending that you forgo car insurance entirely. That is not what this article is about! But there are ways that you can save a significant amount by changing your policy, or even just by paying differently!

For example: Did you know that many insurance companies give you a discount for paying the entire installment up-front? Actually, that isn’t exactly a fair description. In reality, they charge you a monthly-installement fee for paying on a month-by-month basis. If you pay the entire 6-month premium right away, you can save quite a bit; sometimes well over $100.

One of the more common ways to save money is to choose a higher deductible, but this is not always a good idea. If you live in a city where accidents and fender-benders are more common, don’t assume that it might not happen to you. If you have a $1,000 deductible and you have $1,100 of damage, it can be practically laughable. Generally speaking, the higher your premium, the higher the accident rate is in your neighborhood, and vice versa.

Here are some more helpful tips on how to save on car insurance:

• If you have a good driving record, check with your insurance company and tell them you feel that you deserve the best rate possible. Do your homework and shop around for other insurance companies and compare rates. You can use the quoted rates that you obtain from other insurance companies as leverage for coercing them into lowering your premiums.
• Shop around anyway. Make sure that you are getting the lowest rate possible. There are plenty of insurance companies that have rates which can differ drastically.
• Check for discounts. Some companies will offer you one if you are over 65, you have great safety features in your vehicle, or if you have a great driving record for a certain number of years. You never know what you may find.
• If you are not going to use your vehicle for a certain period of time (say, a few months or more) because you are going to be on vacation or simply not driving it, then purchase the smallest coverage you can find. All you will need is theft protection. You don’t need any collision insurance if you aren’t driving and the car is in your garage!

Check out this article for more helpful tips.

What is this?