On Take it to the Bank,
00:00:01.36\00:00:02.70
you'll find ways
to get out of debt...
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solve your credit card problems,
00:00:09.37\00:00:14.51
how to make and
stick with the budget,
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simple ways to save...
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buying or selling a home,
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and many more financial
matters on Take it to the Bank.
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Welcome to Take it to the Bank.
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I am so happy that you're here.
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This is one program
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that I don't think that
our young people should miss.
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Our young people
are very important.
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I always think we
should focus on them
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as we try to teach
them about financial issues,
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you know, I'm teaching...
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I've got a contract
in Southern California
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to teach a class and
what we've worked out is
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we're doing the
financial literacy
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for the parents in
these under-served communities
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and we believe that
it's going to have an impact
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on their kids.
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One of the things
they talk to us about is,
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"Can you do a
financial literacy class
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for our young people
ages like 6 to age 12?"
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And I said, "Yes,
it's perfect I could do it,
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no problem at all."
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But I think what we should
do before we teach the kids
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about financial literacy is,
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we should talk to their parents
about financial literacy.
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Why?
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Because an apple
doesn't fall far from the tree,
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we call this
thing called gravity.
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When an apple falls, it
falls right underneath the tree,
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when you have a child,
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the child is gonna emulate
or behave like the parent acts.
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We see that in our
foster care network,
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we see that with a
lot of young people
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that are placed in foster care
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when you look at their history
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you can see that they
are basically emulating
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what they have had
the opportunity to see
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or experience or to evaluate
over the course of their lives.
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So what we're saying is
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young people
are vastly important
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in this context
of financial literacy
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and the parents
are of utmost important
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because they are the examples
that the children are watching.
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So we are
teaching the parents first
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and then, of course,
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we are following up with a class
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for the young people.
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And so we can
tie that two together
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and then we follow back,
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loop back to the
parents and talk to them
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about what we
talked to the kids about,
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and tell them
that this is critical
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because if you want
to change this dynamic,
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the grip of
poverty spans generations.
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If you wanna stop that cycle,
you're gonna have to do it
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within one generation
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because it's gonna
continue itself regardless
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of what you think.
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So as we talk about today,
financial problems in college,
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we wanna talk
to our young people
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about how to prepare?
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How to develop a context of
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what you should do in reference
to getting ready for college?
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And what college you go to?
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And how much you
plan to spend for college?
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And how you budget for college?
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And how you save for college?
And those type of elements.
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There are four major things
that we'll talk about today is
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referencing credit cards,
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we're gonna talk
about being away from home,
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we'll talk a little
bit about course load,
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and the work that
you have to deal with,
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and then, of course,
educational expenses,
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what you pretty
much expect from school.
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But what I would
like to do right now
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is I'm gonna to go
through some footage
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and I had an
interview with a friend of mine
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his name is Mr. Rodney Watson
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and this is a
brilliant young man
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that I really appreciate.
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We sit and talked
for hours at a time
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about this issue on
finances with our kids
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and how we teach
them about saving more
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and being better
managers of money.
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He's created
different board games,
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financial board games,
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and has a great
philosophy of how we should deal
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with teaching
our kids about credit
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and about managing money.
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So what we talked about
today, was talking about,
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who do you go to for advice?
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Those type of people
do you talk to for advice
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about financial issues?
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And we can go to the footage now
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with Mr. Rodney
Watson and myself.
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Rodney Watson, a
business manager out
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in Southern California
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and we talk about
advice, who do you go to?
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Hi, all.
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Welcome back, Cordell Thomas
with Take it to the Bank series
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and I just wanted to
chat with you a little bit
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about some of the
things that I've come across
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and answers to
some of these questions
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that I've asked
people on Venice Beach.
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I went to Venice Beach. Yeah.
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It's a tripped out place. Yes.
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And we asked some
people some questions.
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And we ask them, one
of the major questions is,
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"Hey, when you have a crisis
in your life, financial crisis,
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who do you go to for advice?"
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Now I'll give you
some of the answers.
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No, maybe I won't. I
think, let me ask you.
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When you think of a
typical financial crisis
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or something you need advice on,
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who do you typically
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or where would
you go to for advice?
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I would go to an
expert for advice.
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And there's a book called
The Richest Man in Babylon
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and in that book he says that,
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"You don't go to the brick maker
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to learn how to make bread."
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So if you have
a financial crisis
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in your life or say...
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Let's say it's not
a financial crisis,
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say you have a
financial windfall
00:05:07.97\00:05:10.21
so you get a
million dollars at one time.
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What do you do? Who do
you go to ask for advice?
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One person you should not
go to is your mom or your dad
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because if they don't
have a million dollars,
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how can they help you.
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There's a saying that we
have in the financial world,
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which says, "Never take advice
from someone broker than you."
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So your teacher
and maybe even a pastor
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or someone like that
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if they have never
managed a million dollars,
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what advice can they
give you about managing
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that type of money?
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You need to go and find someone
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who has a million
dollars or two and say,
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"Hey, what do I do
with this million dollars?"
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Someone that's
got a million dollars
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and has used it successfully...
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Exactly.
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It's interesting
because some of the questions
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we asked are the same.
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Who do you go to for advice?
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We asked, I'd say
about nine different people
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and every single one
of them bar none said,
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"I make the decision myself
or I go to my mom or dad."
00:06:03.83\00:06:09.13
Those are the people they go to.
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Never did they say,
"I go to an expert."
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And it kind of
makes sense. Yeah.
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Why they're in that problem.
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We're having, I
mean, comments about what?
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Several famous football players,
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I won't name any
of them. Exactly.
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The basketball players
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that have taken their
millions of dollars of windfall
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and now they are broke,
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$80 million is gone
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and they haven't really
used it to make it better.
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What advice would you give,
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if you did get
a million dollars?
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Well, again I would go to
someone who has the money.
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There was a
saying, another saying,
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I love these
sayings, they are rich.
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It says, "Watch
what poor people do
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and don't do it
that's why they're poor."
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Right.
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And we take our mindset,
a $30,000 a year mindset
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and put it into a
million dollar mind,
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it just won't work
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because that 30 million
dollar guy will still think,
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you know, "Hey, I'm
spending 30 million,
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I've not earned 30 million
so I must spend 30 million,
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did I say million?
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Thirty
thousand. I mean thousand.
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Now but that's okay.
00:07:06.42\00:07:07.76
But let me throw
some back at you. Okay.
00:07:07.79\00:07:10.13
I got a person
making $30,000 a year,
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he's saving seven
of that every year,
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he's doing well, he's okay.
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All right.
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I mean, quite frankly
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I think the United
States mislabels people as poor,
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poverty based on the
amount of money they make.
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It should be labeled as
how they utilize their funds,
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that's how they
should be labeled, correct?
00:07:26.98\00:07:28.58
So you can have a millionaire
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or a person that
makes a million dollars,
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but spends a million and one
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and he is not
typically a millionaire
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because he's spending
more than he makes, correct?
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Exactly.
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So you can have a
person making a lot of money
00:07:40.82\00:07:42.49
and person making
like 30 or $40,000 a year
00:07:42.52\00:07:45.49
because we're talking to urban,
00:07:45.53\00:07:46.86
we're talking to you guys in
the urban demography right now.
00:07:46.90\00:07:49.63
And you don't have to make that
much money to be successful,
00:07:49.66\00:07:53.84
but it's key that if you want
to be successful with money,
00:07:53.87\00:07:57.57
you should talk to someone
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that has been
successful with money.
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Exactly.
00:08:00.78\00:08:02.11
You talk to
someone who's wealthy
00:08:02.14\00:08:03.48
and wealth is
basically, how much you can...
00:08:03.51\00:08:06.98
How long can you live
without any money coming in.
00:08:07.02\00:08:10.05
Okay.
00:08:10.09\00:08:11.42
And that is the type
of wealth that you have,
00:08:11.45\00:08:13.72
so if you can
live, you know, a month
00:08:13.76\00:08:18.26
before you need
another paycheck,
00:08:18.29\00:08:20.06
then you're wealthy for
month, your month in wealth.
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A monthionaire. A monthionaire.
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You know, if you
save the money to where
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you can live a good year
without any money coming in,
00:08:28.47\00:08:31.21
well, you're
wealthy for that one year.
00:08:31.24\00:08:33.14
But you're
right, you do need that
00:08:33.17\00:08:35.58
continually income
coming in, but most importantly,
00:08:35.61\00:08:38.08
you need to ask
someone who is successful,
00:08:38.11\00:08:41.28
who does manage
their money successfully,
00:08:41.32\00:08:44.05
if they have a million
dollars and you know this,
00:08:44.09\00:08:46.19
"Hey, let me
take you out to lunch.
00:08:46.22\00:08:48.62
I'll pay you.
00:08:48.66\00:08:49.99
I'll pay you a $1,000
if you're gonna show me
00:08:50.03\00:08:53.26
how I should spend this money?
00:08:53.29\00:08:55.10
How it should
come, how it should go?
00:08:55.13\00:08:57.17
Who should I talk
to? Who do you talk to?
00:08:57.20\00:09:00.80
Who are your mentors?
00:09:00.84\00:09:03.07
What are some investment tips?
00:09:03.10\00:09:04.74
You could even ask those
type of questions as well.
00:09:04.77\00:09:06.91
Interesting. Interesting.
00:09:06.94\00:09:08.28
I have another
question for you though.
00:09:08.31\00:09:09.74
When you're looking at someone
00:09:09.78\00:09:11.11
that is making
$30,000 or $40,000,
00:09:11.15\00:09:14.25
he wants to invest some money,
00:09:14.28\00:09:15.62
he wants to do
some things with it.
00:09:15.65\00:09:17.32
One of the keys that most people
00:09:17.35\00:09:19.22
aren't really aware of
is the investment markets,
00:09:19.25\00:09:21.82
all of these type of things
that are way over their head.
00:09:21.86\00:09:25.03
Again it goes
back to the key issues
00:09:25.06\00:09:26.83
of getting the
right advice, correct?
00:09:26.86\00:09:30.47
Correct.
00:09:30.50\00:09:31.83
So in the book "The
Richest Man in Babylon",
00:09:31.87\00:09:33.97
he talks about that as well.
00:09:34.00\00:09:35.57
One of the five
laws of gold is that,
00:09:35.60\00:09:38.64
"Never invest money in things
that you're not familiar with."
00:09:38.67\00:09:42.44
So if you want to invest
in whether it's real estate,
00:09:42.48\00:09:45.78
portfolio, or mutual
funds, or stocks or bonds,
00:09:45.81\00:09:49.18
first you must
educate yourself in it,
00:09:49.22\00:09:52.75
know about it, don't just,
00:09:52.79\00:09:54.69
it's okay to give it to someone
who knows what they're doing,
00:09:54.72\00:09:56.99
but you should also know
what that person is doing,
00:09:57.03\00:10:00.10
because like you said,
those football players,
00:10:00.13\00:10:02.40
all those people, they did that
00:10:02.43\00:10:05.27
and they got taken in by scams,
00:10:05.30\00:10:08.50
Murdoch, good example.
00:10:08.54\00:10:10.04
Interesting. Interesting.
00:10:10.07\00:10:12.44
Do you know what
the top three crisis
00:10:12.47\00:10:16.51
people are
dealing with right now?
00:10:16.54\00:10:18.78
Top three crisis,
well, one would be financial.
00:10:18.81\00:10:21.58
Yes.
00:10:21.62\00:10:22.95
And the second would
most likely be relationships.
00:10:22.98\00:10:27.19
Exactly.
00:10:27.22\00:10:28.56
Yeah, yeah,
you're right on line.
00:10:28.59\00:10:30.53
And the third one is
most likely to having to do
00:10:30.56\00:10:35.36
with their jobs, I would say.
00:10:35.40\00:10:37.10
You got it, you
nailed it. Exactly right.
00:10:37.13\00:10:39.23
Workplace stress,
financial issues is number one,
00:10:39.27\00:10:42.37
workplace stress is number two,
00:10:42.40\00:10:44.17
and then the other
one personal relationship
00:10:44.21\00:10:45.87
is number three, and they
all have to do with financial.
00:10:45.91\00:10:48.34
Look at what some of the famous
basketball players dealing
00:10:48.38\00:10:50.71
with right now
with this situation
00:10:50.75\00:10:52.85
that also deals with finances.
00:10:52.88\00:10:55.32
Correct.
00:10:55.35\00:10:57.29
Workplace issues have
to deal with paychecks
00:10:57.32\00:10:59.82
and how much someone takes home.
00:10:59.85\00:11:01.52
And then of
course financial issues,
00:11:01.56\00:11:03.53
you spend more than
you actually bring in.
00:11:03.56\00:11:05.69
And then it goes
into other issues,
00:11:05.73\00:11:07.06
but then you
talked about briefly
00:11:07.10\00:11:09.80
how much money do
you have to survive on
00:11:09.83\00:11:12.87
if you lose your job tomorrow?
00:11:12.90\00:11:16.07
That's a key
issue that most of us
00:11:16.10\00:11:17.44
don't aren't really aware of,
00:11:17.47\00:11:19.37
and in the urban areas
we're dealing two years
00:11:19.41\00:11:22.58
before you find another job?
00:11:22.61\00:11:24.15
Correct. That's right.
00:11:24.18\00:11:25.65
Now there's something
interesting about all of that,
00:11:25.68\00:11:28.18
because...
00:11:28.22\00:11:29.78
Okay, I received a
call from a friend of mine
00:11:29.82\00:11:32.42
in San Diego
00:11:32.45\00:11:33.79
who's a wealthy entrepreneur
that does philanthropist,
00:11:33.82\00:11:35.92
gave a lot of money away,
00:11:35.96\00:11:37.29
developed a
whole bunch of things,
00:11:37.33\00:11:39.09
and I learned a lot from her.
00:11:39.13\00:11:40.80
She connected with
me through LinkedIn
00:11:40.83\00:11:42.23
and we talked a bit,
00:11:42.26\00:11:44.63
but it was interesting,
00:11:44.67\00:11:46.20
she has her own
consulting company.
00:11:46.23\00:11:51.57
And it's
interesting, we all talk about,
00:11:51.61\00:11:53.78
got to find a job,
00:11:53.81\00:11:55.14
we'll create jobs for you,
00:11:55.18\00:11:56.51
unemployment and
that kind of stuff.
00:11:56.54\00:11:57.98
Do you find the
difference between a producer
00:11:58.01\00:12:00.08
and a consumer,
00:12:00.12\00:12:01.45
and what they actually do?
00:12:01.48\00:12:02.98
Do they have their own business
00:12:03.02\00:12:04.42
or do they work
for other individuals?
00:12:04.45\00:12:06.15
That's a good question.
00:12:06.19\00:12:07.52
And the trend
that's going on today
00:12:07.56\00:12:10.23
is to kind of get out
of the workplace working
00:12:10.26\00:12:12.63
for someone else and
to create your own job.
00:12:12.66\00:12:15.36
I tell my children
and my two kids I said,
00:12:15.40\00:12:18.37
you know, when you get older
00:12:18.40\00:12:19.73
you're gonna
have to create a job,
00:12:19.77\00:12:21.10
rather than find a job,
00:12:21.14\00:12:22.84
and the wealthy they do that
00:12:22.87\00:12:25.01
they might have a
job but at the same time
00:12:25.04\00:12:27.61
they have the secondary thing
00:12:27.64\00:12:28.98
that they're doing,
whether it's consulting,
00:12:29.01\00:12:31.05
teaching on the side,
00:12:31.08\00:12:32.41
whatever it is to bring
that additional income in,
00:12:32.45\00:12:34.85
and that's gonna be
key moving on to the future
00:12:34.88\00:12:37.99
because some jobs
are getting phased out
00:12:38.02\00:12:40.22
because of technology.
00:12:40.26\00:12:42.19
Technology comes, we
don't need that anymore.
00:12:42.22\00:12:45.43
So we're gonna
have to get creative in
00:12:45.46\00:12:47.86
how we look at our future,
00:12:47.90\00:12:50.33
our children gonna
have to get creative.
00:12:50.37\00:12:52.20
Yes, I could be a doctor
00:12:52.23\00:12:53.57
but now I may have to be
a certain type of doctor,
00:12:53.60\00:12:56.14
I'm not specialized
in this rather than that.
00:12:56.17\00:12:58.94
And again find those
mentors that are out there.
00:12:58.97\00:13:01.21
Go out and read
about entrepreneurs,
00:13:01.24\00:13:03.51
what are they doing?
00:13:03.55\00:13:04.88
What new jobs are opening up?
00:13:04.91\00:13:06.31
What new technologies
are breaking forth now?
00:13:06.35\00:13:09.55
I have an iPad
and I'll show my son,
00:13:09.58\00:13:11.79
look at all the accessories
that are made for iPad.
00:13:11.82\00:13:14.72
Someone saw someone
make something great
00:13:14.76\00:13:16.83
and they say, you know, what?
00:13:16.86\00:13:18.19
I can make something for that
00:13:18.23\00:13:19.56
and they created their own jobs.
00:13:19.59\00:13:20.93
Yes.
00:13:20.96\00:13:22.30
And with the Internet now...
00:13:22.33\00:13:23.67
Oh, that's even better.
00:13:23.70\00:13:25.03
Its expansion is fantastic,
00:13:25.07\00:13:26.40
you can do so
many different things.
00:13:26.43\00:13:27.77
The key is this.
00:13:27.80\00:13:29.14
Unemployment takes
a job away from you
00:13:29.17\00:13:31.61
but creates opportunities
to develop a business mindset.
00:13:31.64\00:13:35.48
If you talk to the right people,
00:13:35.51\00:13:37.11
don't just jump into it,
00:13:37.15\00:13:38.71
ask questions
about incorporating,
00:13:38.75\00:13:41.02
tax issues, make
sure they talk to people
00:13:41.05\00:13:43.22
about the
ramifications of doing something
00:13:43.25\00:13:45.22
in certain way
versus just jumping in.
00:13:45.25\00:13:47.59
Many people have
been hurt that way.
00:13:47.62\00:13:49.29
But the context is and
talking to our experts,
00:13:49.32\00:13:51.06
Rodney, I really appreciate
what you're doing for us
00:13:51.09\00:13:54.10
and I'll continue to come
back of those lines you give us,
00:13:54.13\00:13:58.50
those comments you give us...
00:13:58.53\00:13:59.87
Well, good.
00:13:59.90\00:14:01.24
Those are fantastic, and
I think it lays it in there
00:14:01.27\00:14:03.07
that you don't have to be
a consumer all of your life.
00:14:03.10\00:14:06.04
You can become a producer
00:14:06.07\00:14:08.58
and in producing you
can create your own way.
00:14:08.61\00:14:11.65
Well, that's it. Thank you.
00:14:11.68\00:14:13.28
Thank you,
Rodney. Thank you, sir.
00:14:13.31\00:14:15.02
And you all, Take it
to the Bank and save.
00:14:15.05\00:14:20.99
A whole host of issues
talked about in that segment.
00:14:21.02\00:14:23.93
And I just, maybe we
talked about too much
00:14:23.96\00:14:26.53
but we can glean
about a variety of things
00:14:26.56\00:14:29.06
that we talked about
00:14:29.10\00:14:30.43
and it's always
exciting to talk to Rodney
00:14:30.47\00:14:31.80
because he brings a
whole new perspective in.
00:14:31.83\00:14:33.50
Now you pretty much understand
00:14:33.54\00:14:34.87
where I get that
line don't go to a baker
00:14:34.90\00:14:37.01
if you need
something built, right?
00:14:37.04\00:14:39.67
I mean, if you
need a cake built,
00:14:39.71\00:14:41.14
maybe that's a different issue.
00:14:41.18\00:14:42.51
But that the
context is the same,
00:14:42.54\00:14:44.31
he gives me those one
liners and I got to use them.
00:14:44.35\00:14:46.98
I'm sorry, Rodney,
but this is, you know,
00:14:47.02\00:14:48.98
I just have to use
them so I'll try it out
00:14:49.02\00:14:51.25
maybe patent those remarks
00:14:51.29\00:14:53.09
and get your
approval in using them.
00:14:53.12\00:14:56.52
But beyond that it's
what we're dealing with
00:14:56.56\00:14:58.93
our young people,
00:14:58.96\00:15:00.30
the young people are
coming into a generation
00:15:00.33\00:15:02.83
or millennials are dealing with,
00:15:02.86\00:15:04.80
you know, helicopter moms
that are looking over them
00:15:04.83\00:15:07.10
and the parents are
managing certain aspects
00:15:07.14\00:15:09.97
of their personal lives.
00:15:10.01\00:15:11.81
And the kids have control
but they wanna feel independent
00:15:11.84\00:15:16.64
but they still lean on parents,
00:15:16.68\00:15:18.31
which is actually I
think a very good thing.
00:15:18.35\00:15:20.82
As a Gen Xer we were more
like latchkey kids coming home
00:15:20.85\00:15:24.55
to an environment
00:15:24.59\00:15:25.92
where the both
parents were working
00:15:25.95\00:15:27.52
and we were home alone at times
00:15:27.56\00:15:29.62
in a safer environment.
00:15:29.66\00:15:30.99
But those
things have changed now
00:15:31.03\00:15:32.36
with so many
dynamics in our communities.
00:15:32.39\00:15:35.06
But what we wanna talk about
today is financial problems
00:15:35.10\00:15:38.80
for college students.
00:15:38.83\00:15:40.17
We talked about, who
do you go to for advice?
00:15:40.20\00:15:42.60
You go to an expert for advice
00:15:42.64\00:15:44.21
but there're
many different issues
00:15:44.24\00:15:46.04
relative to going to school.
00:15:46.07\00:15:48.38
For example, I was
just having a conversation
00:15:48.41\00:15:50.25
with one young man who
talked about credit cards,
00:15:50.28\00:15:52.88
how do you apply
for a credit card?
00:15:52.91\00:15:54.25
What do you think about
credit card applications
00:15:54.28\00:15:56.65
and those types of things?
00:15:56.69\00:15:58.02
One of the critical issues
that you need to be concerned
00:15:58.05\00:16:01.42
about is issue called credit.
00:16:01.46\00:16:03.36
What does a bank look
to when they're evaluating
00:16:03.39\00:16:06.29
a young person for credit?
00:16:06.33\00:16:08.06
Well, they look at
several different issues,
00:16:08.10\00:16:09.43
they look at...
00:16:09.46\00:16:10.80
And I'll give you the three Cs
of being evaluated for credit.
00:16:10.83\00:16:14.10
Bank looks at your character,
00:16:14.14\00:16:15.84
the bank looks at your capacity,
00:16:15.87\00:16:17.51
and the bank
looks at your capital,
00:16:17.54\00:16:18.94
the three Cs of
evaluating someone for credit.
00:16:18.97\00:16:21.84
What is it?
00:16:21.88\00:16:23.21
Your character has to do
00:16:23.24\00:16:24.58
with your credit
report basically,
00:16:24.61\00:16:27.42
looking at, "Have you
paid your debts on time
00:16:27.45\00:16:30.85
in the past?"
00:16:30.89\00:16:32.22
That's what your
credit report is.
00:16:32.25\00:16:33.59
It's your history of paying
your debts on a timely basis.
00:16:33.62\00:16:36.62
Number two is capital, capital.
00:16:36.66\00:16:40.06
Do you have a savings account?
00:16:40.10\00:16:42.03
Do you have money
placed away in a place
00:16:42.06\00:16:44.97
that if you have an emergency
you can go after and get it,
00:16:45.00\00:16:48.50
which goes right back
to what we talked about
00:16:48.54\00:16:51.24
in creating a budget.
00:16:51.27\00:16:53.68
A budget is set up
specifically to give you an idea
00:16:53.71\00:16:56.71
where money is coming
from and where money is going.
00:16:56.75\00:16:59.78
And if you look at your
budget in the right way,
00:16:59.81\00:17:01.82
you can assess
areas that you can save
00:17:01.85\00:17:04.19
and you can take that savings
00:17:04.22\00:17:05.62
and put it into
an emergency fund.
00:17:05.65\00:17:07.76
That's what is critical.
00:17:07.79\00:17:09.46
Putting away
money for emergencies
00:17:09.49\00:17:11.89
and that is what
the bank is looking for
00:17:11.93\00:17:14.20
when they say you have capital,
00:17:14.23\00:17:16.67
this person has
a savings account.
00:17:16.70\00:17:18.17
So we talked about,
what, number one is character.
00:17:18.20\00:17:22.30
I pay my
accounts on a timely basis
00:17:22.34\00:17:24.91
because it shows
in my credit report
00:17:24.94\00:17:27.44
so they look at that.
00:17:27.48\00:17:28.81
Then they look at
capital, this guy saves money,
00:17:28.84\00:17:31.51
he has a savings
account at our bank, so, yes,
00:17:31.55\00:17:33.98
he has the two of the three
Cs, and the third C is capacity,
00:17:34.02\00:17:39.45
capacity, what is capacity?
00:17:39.49\00:17:40.96
Capacity is, "I am
at a job making money."
00:17:40.99\00:17:45.56
So I go and I work,
and I take that money,
00:17:45.59\00:17:48.33
and I put it in the
bank because that money
00:17:48.36\00:17:50.43
how is my income
that supports the expenses
00:17:50.47\00:17:54.84
that go out of that account
00:17:54.87\00:17:56.27
and the bank will say
00:17:56.30\00:17:57.64
and this guy is pretty
good at managing account
00:17:57.67\00:17:59.47
because it seems that
he always has a surplus
00:17:59.51\00:18:01.68
at the end of the month,
00:18:01.71\00:18:03.04
which he plugs
into a savings account.
00:18:03.08\00:18:05.15
And if you do it the right way,
00:18:05.18\00:18:06.51
you can put money
in emergency savings,
00:18:06.55\00:18:08.58
short term, long
term savings, maybe a CD,
00:18:08.62\00:18:11.45
or money market account
00:18:11.49\00:18:12.82
that you can't
touch for a little bit,
00:18:12.85\00:18:14.19
and then, of course,
a long term retirement,
00:18:14.22\00:18:15.99
planning for retirement,
which a lot of young people
00:18:16.02\00:18:18.03
don't think about because
00:18:18.06\00:18:19.46
we don't have to
worry about retirement,
00:18:19.49\00:18:21.50
I'm too young, I'm
gonna live forever.
00:18:21.53\00:18:23.60
No big deal.
00:18:23.63\00:18:24.97
You know, that
was only yesterday
00:18:25.00\00:18:26.33
I began thinking about that
00:18:26.37\00:18:27.70
because I had the opportunity
00:18:27.74\00:18:29.37
to save a lot
more early on a life
00:18:29.40\00:18:31.24
but I had the same
mentality as many do today
00:18:31.27\00:18:34.88
that it's not that important,
00:18:34.91\00:18:36.31
"I'm young, I
got time on my side,
00:18:36.34\00:18:39.01
and I don't have to really work
00:18:39.05\00:18:40.38
from that end of
things early on in life
00:18:40.42\00:18:42.48
so I had a good time."
00:18:42.52\00:18:44.62
I don't regret a lot of
it but I do regret the fact
00:18:44.65\00:18:46.99
that I could be a lot further
on from a saving standpoint now
00:18:47.02\00:18:50.56
if I would have
thought about it then.
00:18:50.59\00:18:54.33
So, okay, the three Cs
that the bank will look at
00:18:54.36\00:18:56.80
is character, yes, capacity,
and, yes, I hear it capital,
00:18:56.83\00:19:02.74
that's exactly
what we're looking at
00:19:02.77\00:19:04.54
in trying to understand
00:19:04.57\00:19:06.37
how a bank is gonna access you
00:19:06.41\00:19:07.78
as a college student
trying to get credit.
00:19:07.81\00:19:11.38
Now when I talk to
people about credit,
00:19:11.41\00:19:13.62
we talk about
specifics about getting access
00:19:13.65\00:19:16.55
to a credit card.
00:19:16.58\00:19:17.92
Credit cards are
one of the things
00:19:17.95\00:19:19.72
we'd like to talk about,
00:19:19.75\00:19:21.09
there are four things
we'll talk about as we talk,
00:19:21.12\00:19:23.96
as we round out
this conversation,
00:19:23.99\00:19:26.63
and go to a couple of
clips towards the end about
00:19:26.66\00:19:29.26
what people are concerned
about in reference to stress
00:19:29.30\00:19:33.34
and what they consider
00:19:33.37\00:19:34.70
as top three
stresses in their life,
00:19:34.74\00:19:36.07
we'll close out
the show with that.
00:19:36.10\00:19:39.91
Here's my point,
00:19:39.94\00:19:41.64
credit cards can be a good thing
00:19:41.68\00:19:44.21
and credit cards
will be a bad thing.
00:19:44.25\00:19:47.75
Because if you get
into credit card debt,
00:19:47.78\00:19:50.32
the bank is a business
that will make money off of you,
00:19:50.35\00:19:54.16
it is just the way it is.
00:19:54.19\00:19:56.29
So credit cards is
another revenue stream
00:19:56.32\00:19:58.83
for the bank.
00:19:58.86\00:20:00.20
So you get credit and if
you don't understand credit
00:20:00.23\00:20:04.40
you will get
into credit card debt.
00:20:04.43\00:20:06.43
I have an American
Express card and we use it
00:20:06.47\00:20:08.44
because I have to pay it
off at the end of the month,
00:20:08.47\00:20:11.27
that's key.
00:20:11.31\00:20:12.64
I use it for the
purpose I need it
00:20:12.67\00:20:14.18
and I have to have the money
00:20:14.21\00:20:18.08
available to pay off
that account at month end,
00:20:18.11\00:20:21.02
it's key and that's why I use it
00:20:21.05\00:20:22.45
'cause I don't want
to have long term debt,
00:20:22.48\00:20:24.62
I don't ever wanna
deal with that stuff
00:20:24.65\00:20:26.12
again because it is burdensome,
it can be very burdensome.
00:20:26.15\00:20:29.79
So credit cards,
avoid it, that's what I say.
00:20:29.82\00:20:33.06
If you're going to
get it, think about it,
00:20:33.09\00:20:34.83
talk to the experts about it,
talk to your parents about it,
00:20:34.86\00:20:37.57
and get a context
of what that will do
00:20:37.60\00:20:40.20
to inhibit your
abilities to be successful
00:20:40.24\00:20:43.00
before and after school.
00:20:43.04\00:20:45.97
Okay, we're talking
about educational expenses.
00:20:46.01\00:20:48.34
There are many
educational expenses
00:20:48.38\00:20:50.05
and I think that, you know,
00:20:50.08\00:20:51.41
I showed in a
couple of other shows
00:20:51.45\00:20:53.42
about these scams that
we should all be aware of.
00:20:53.45\00:20:56.69
There are a lot of scams.
There are a lot of frauds.
00:20:56.72\00:20:58.22
Now I'm not saying that
00:20:58.25\00:20:59.59
the schools are committing fraud
00:20:59.62\00:21:00.96
against the students, I
don't wanna even go there.
00:21:00.99\00:21:02.86
But think about
this, you go to school
00:21:02.89\00:21:05.39
and you have to buy these books,
00:21:05.43\00:21:07.83
these books cost what?
00:21:07.86\00:21:09.20
$60 for a book a biology
book and then after you're done
00:21:09.23\00:21:12.30
with the biology book
at the end of the year,
00:21:12.33\00:21:13.97
you turn it back in to
get money back on that book,
00:21:14.00\00:21:16.30
how much do they give you?
00:21:16.34\00:21:18.64
Yeah, $5, $7, if you're lucky.
00:21:18.67\00:21:21.71
Wouldn't it be easier if
they just use the technology
00:21:21.74\00:21:24.45
that we have right
now and put all the books
00:21:24.48\00:21:26.95
as apps right on your iPad
00:21:26.98\00:21:29.08
and you don't have to
spend money on the book
00:21:29.12\00:21:31.22
but you have the information
00:21:31.25\00:21:32.59
but there is
something out there,
00:21:32.62\00:21:34.82
you are cutting into a
professor's revenue stream
00:21:34.86\00:21:38.13
because he writes the book
00:21:38.16\00:21:39.69
and wants to get
paid on the effort
00:21:39.73\00:21:41.56
he put into
writing a book for students
00:21:41.60\00:21:43.80
to learn about biology.
00:21:43.83\00:21:46.43
Well, you know, there
are many different ways
00:21:46.47\00:21:48.14
he can probably get compensated
if you put the book into an app
00:21:48.17\00:21:51.67
that goes on to your iPad
but it would make it simpler.
00:21:51.71\00:21:54.38
Think about the stress free life
00:21:54.41\00:21:56.34
a student would have
00:21:56.38\00:21:57.71
when he doesn't have to
carry around 58 pounds of books
00:21:57.75\00:22:00.72
to go to class and
he just carries an iPad
00:22:00.75\00:22:03.08
and, of course, the work that
00:22:03.12\00:22:04.82
he has to do to
accomplish his class work,
00:22:04.85\00:22:07.09
wouldn't that be very helpful?
00:22:07.12\00:22:08.96
Simple things but
educational expenses
00:22:08.99\00:22:11.26
can go up
dramatically from dorm room,
00:22:11.29\00:22:15.90
you have to pay for
your dorm room, and rooms,
00:22:15.93\00:22:18.63
and board to the
books to just the tuition
00:22:18.67\00:22:24.87
that has to be charged.
00:22:24.91\00:22:26.64
Now I ask people to take
a look at a couple things,
00:22:26.68\00:22:30.31
do you need to go
to Ivy League school?
00:22:30.35\00:22:32.18
Or is it better for you
just to go to community college?
00:22:32.21\00:22:35.35
I would say going
to a community college
00:22:35.38\00:22:36.99
initially for the
first couple years
00:22:37.02\00:22:38.75
gives you an opportunity in
a less expensive environment
00:22:38.79\00:22:42.42
to figure out what you wanna do.
00:22:42.46\00:22:43.96
I didn't know
what I wanted to do
00:22:43.99\00:22:45.33
even after year four of college.
00:22:45.36\00:22:47.00
I was just like, "Well, I
still have a couple of years
00:22:47.03\00:22:49.30
to figure it out."
00:22:49.33\00:22:50.67
But the context is, take
the first couple of years
00:22:50.70\00:22:53.64
because they are pretty
much general studies anyway
00:22:53.67\00:22:56.67
and figure out
what you want to do.
00:22:56.71\00:22:58.44
Number two is take a
look at where you wanna go
00:22:58.47\00:23:04.31
and what type of university
00:23:04.35\00:23:05.68
that you would like to apply for
00:23:05.71\00:23:07.42
in a couple of years
and go and do the things
00:23:07.45\00:23:10.55
that would make your
education beneficial.
00:23:10.59\00:23:14.56
Meaning, you'll get
the degree in an area
00:23:14.59\00:23:16.89
that you wanted in
00:23:16.93\00:23:18.26
and you won't spend
as much money to do so.
00:23:18.29\00:23:20.83
Okay, now being away
from home is a big issue
00:23:20.86\00:23:25.13
that's one that can
cause a lot of a concern,
00:23:25.17\00:23:27.37
we're always riding home for,
00:23:27.40\00:23:28.80
you know, "I got to
do a bunch of stuff,
00:23:28.84\00:23:30.77
I don't have a job as yet
so Mom and Dad can you help us?
00:23:30.81\00:23:33.98
Can you help us?"
00:23:34.01\00:23:35.34
And that goes to the parents,
00:23:35.38\00:23:37.01
if you have the
emergency fund set away,
00:23:37.05\00:23:39.15
it's not cutting
into what you have to use
00:23:39.18\00:23:41.95
to pay your typical expenses
00:23:41.98\00:23:43.39
so you can help
your son and daughter
00:23:43.42\00:23:45.02
or son or
daughter out in college.
00:23:45.05\00:23:46.82
But it's essential
that they learn work ethic
00:23:46.86\00:23:49.39
so I would suspect
that they should have
00:23:49.42\00:23:51.26
to get some type
of part time work
00:23:51.29\00:23:53.26
and work it into their
experience as a student.
00:23:53.29\00:23:58.43
And, of course, course workload
00:23:58.47\00:24:00.80
making sure you don't take
too much of a course workload
00:24:00.84\00:24:03.47
that you can't
fit in time to study,
00:24:03.51\00:24:05.34
fit in time to take Sabbath off,
00:24:05.37\00:24:07.14
and to rest, and relax,
00:24:07.18\00:24:08.74
and, of course, take
time to have a part time job.
00:24:08.78\00:24:11.71
So you can
supplement some of the needs
00:24:11.75\00:24:13.25
that you would
have in a college study.
00:24:13.28\00:24:15.42
College is a big, big, big,
big issue and a big, big cost
00:24:15.45\00:24:20.52
and if we don't
prepare for it now,
00:24:20.56\00:24:22.92
it will come back and
haunt us in the future.
00:24:22.96\00:24:25.39
So we talked about
educational expenses,
00:24:25.43\00:24:28.86
we talked about course workload,
00:24:28.90\00:24:30.87
being away from
home is an expensive item
00:24:30.90\00:24:33.30
getting through the
homesickness is one thing
00:24:33.34\00:24:35.00
but once you get
accustomed to the new community
00:24:35.04\00:24:37.51
and environment you're at,
00:24:37.54\00:24:39.04
think about how you
spend money on stuff,
00:24:39.07\00:24:42.14
and think about if
you wanna acquire credit
00:24:42.18\00:24:44.61
because it can
be very detrimental,
00:24:44.65\00:24:46.45
think about it seriously
and talk to the experts,
00:24:46.48\00:24:49.05
and talk to your parents.
00:24:49.08\00:24:50.59
With that said I would
like to just share with you
00:24:50.62\00:24:54.42
a couple of the interviews
I did at Venice Beach about,
00:24:54.46\00:25:00.00
what is the biggest
stress in your life?
00:25:00.03\00:25:02.16
And what would you
consider the top three stressors
00:25:02.20\00:25:05.20
that families go through?
00:25:05.23\00:25:06.57
And we'll come
back and I'll close out.
00:25:06.60\00:25:07.94
Here's where we are.
00:25:07.97\00:25:09.30
Linda, what would you consider
00:25:09.34\00:25:10.67
the biggest stress in your life?
00:25:10.71\00:25:12.27
My daughter's.
00:25:12.31\00:25:14.71
Why?
00:25:14.74\00:25:16.54
I don't know.
00:25:16.58\00:25:17.91
My daughters are, 'cause I care,
00:25:17.95\00:25:19.61
if I didn't care
I wouldn't stress.
00:25:19.65\00:25:20.98
Makes sense.
00:25:21.02\00:25:24.15
First question is
what would you consider
00:25:24.19\00:25:25.79
the biggest stress
in your life and why?
00:25:25.82\00:25:28.39
Biggest stress in my life today
00:25:28.42\00:25:30.16
will be may be a
financial situations
00:25:30.19\00:25:33.09
that I'm going
through with the family,
00:25:33.13\00:25:35.00
me raising two kids,
being young, married guy,
00:25:35.03\00:25:38.13
you know, and society
so that will be a stress.
00:25:38.17\00:25:43.34
Top three?
00:25:43.37\00:25:45.54
Changing of jobs, any
kind of marital problems,
00:25:45.57\00:25:49.68
a divorce, or may
be a new marriage,
00:25:49.71\00:25:51.48
and a death in
the family may be.
00:25:51.51\00:25:53.62
Third question would be,
00:25:56.89\00:25:58.29
what do you
consider the top three crises
00:25:58.32\00:26:00.26
that families deal with today?
00:26:00.29\00:26:03.29
Early pregnancy, stupidity,
and jobs, lots of jobs.
00:26:03.32\00:26:10.03
These are major
issues that you as a student,
00:26:16.40\00:26:19.57
you as a parent
have to deal with.
00:26:19.61\00:26:21.34
Did you know that 45%
of teens aged 13 to 17
00:26:21.38\00:26:26.65
are dealing with stress?
00:26:26.68\00:26:28.02
45% of them are
contending with issues
00:26:28.05\00:26:31.75
and parents are only,
00:26:31.79\00:26:33.19
20% of parents
consider their kids stressed.
00:26:33.22\00:26:37.29
Did you know 42% of
these same teenagers are saying
00:26:37.33\00:26:40.16
they're having more
headaches because of stress,
00:26:40.20\00:26:42.83
stress from
issues all over the board
00:26:42.86\00:26:45.47
but when you consider the
fact that the major stress
00:26:45.50\00:26:48.27
that we have in
our lives is considered
00:26:48.30\00:26:50.11
through financial concerns,
00:26:50.14\00:26:52.17
we have to
understand that these things
00:26:52.21\00:26:54.74
are relevant to
you as a young person.
00:26:54.78\00:26:58.08
Stress is relevant
to you as a parent,
00:26:58.11\00:27:00.35
we want to
alleviate that type of concern
00:27:00.38\00:27:02.42
so we talk about stress
from these specific areas
00:27:02.45\00:27:05.89
in reference to
this one college stress
00:27:05.92\00:27:09.86
or preparing for
college or financial problems
00:27:09.89\00:27:12.79
for college
students are relevant
00:27:12.83\00:27:14.93
and they concern
us in a dramatic way.
00:27:14.96\00:27:19.00
It's incumbent upon
you as an individual
00:27:19.03\00:27:21.74
to consider what
happens when you go to school.
00:27:21.77\00:27:24.27
It can get out of
control very quickly,
00:27:24.31\00:27:26.71
you can get into debt,
00:27:26.74\00:27:28.08
and you could
walk away from school
00:27:28.11\00:27:29.44
after a four year degree
with $40,000 worth of debt,
00:27:29.48\00:27:32.88
do you want that?
00:27:32.91\00:27:34.25
Do you want that
added stress on your life?
00:27:34.28\00:27:36.85
Let's try to
prevent it by planning,
00:27:36.89\00:27:39.22
planning and the first
thing you should do in planning
00:27:39.25\00:27:42.32
is to develop a budget.
00:27:42.36\00:27:44.56
Where does your money come from?
00:27:44.59\00:27:46.26
Where does your money go?
00:27:46.29\00:27:47.90
Plan to save a portion of that
00:27:47.93\00:27:49.70
so you can plan
and prepare for school
00:27:49.73\00:27:52.80
understand how credit works.
00:27:52.83\00:27:54.90
And it's then that you can
Take it to the Bank and save.
00:27:54.94\00:27:58.94
God bless.
00:27:58.97\00:28:00.31