1. Create a new budget. A new year calls for a new budget. Rolling over an existing budget might be easy, but making changes now is easier than dealing with debt in the future. Have you moved, switched insurance, or added a new family member (child or pet) in the last year? Take into account what changed in 2011 and what you’d like to change in 2012. A pay increase or bonus might leave you feeling carefree, but using that as an excuse to splurge can quickly destroy your old budget. Update your budget (or if you don’t have one, start one) with help from these top five budget sites.

2. Ditch credit card dependency. If you’ve already got your budget under control, then putting the credit cards away shouldn’t be too hard. We don’t usually budget cash for impulse buys, so without cash in hand we often turn to the credit card quick fix for items we want but don’t need or can’t currently afford. The easiest way to eliminate this debt inviting thinking is by leaving your credit card at home. Removing the temptation is one way to break free from credit card dependency.

3. Improve your credit score. Don’t let your credit score surprise you. A bad score can keep you from getting the best interest rates, force you to pay deposits for utilities, or even cost you a job. Check your score, and if it’s below 750 make a commitment to improve your score in the New Year. Check out these tips for how to beef up your credit score.

4. Cut spending on [insert budget category here]. This year make a vow to lower your grocery bill, entertainment bill, or clothing bill. Using coupons (not just cutting them out) and comparison shopping can save a lot more money than you’d think. Search a number of different websites or newspapers for the best deals available instead of buying something the first time you see it. Pricegrabber.com even does the comparison shopping for you. Even small changes like attending the cheaper daytime matinee instead of the pricey Friday night movie can add up to big savings.

5. Grow your savings. Cutting spending is a good goal, but a better goal is to grow the money you’ve saved. For example, that $3.50 you saved saying no to the office Starbucks run once a week is good start, but why not take that $3.50 and turn it into nearly $1,000 after just five years. By investing those saved costs in a savings account you can actually profit from your good behavior. Check out how to build long term wealth with more easy tips.

SciencePhoto.com

Labor Day marks the unofficial end of summer, and for many teens and young adults, it also means the conclusion of the worst summer for finding seasonal employment in decades.

Our affiliate, the Employment Policies Institute (EPI), has released an analysis of new Census Bureau data showing unemployment among people ages 16 to 19 at or above 20 percent in 35 states through July 2011. Seven states and the District of Columbia were even worse, averaging more than 30 percent. (That should come as no surprise for anyone who spent the summer fruitlessly job seeking.)

In a press release, we delivered the grim news:

“The nation’s teens have just experienced their third summer in a row with an unemployment rate above 20 percent,” said Michael Saltsman, research fellow at the Employment Policies Institute. “As a result, thousands have missed out on the valuable career experience that comes from an entry-level job.”

Unfortunately, just because the school year is starting doesn’t mean that the job outlook is improving for students looking for after-school work. Wage mandates that were theoretically designed to help less-experienced workers earn more money have backfired, locking teenagers out from jobs and making the employment-seeking environment even more hostile to unskilled workers. Lawmakers need to reconsider the broad effects of minimum-wage laws and evaluate how they have affected the very constituents that needed the most help.

MSNBC.com

Last weekend, D.C. Mayor Vincent Gray granted an audience to high-school and college students in the Nation’s Capital to discuss the high teen-unemployment rate. At the beginning of the summer, the Bureau of Labor Statistics reported that teen unemployment had skyrocketed, with half the states showing unemployment rates above 25 percent. Even more depressing, the jobless rate for minority teenagers is 42.1 percent nationwide.

The D.C. government attempted to pre-empt this trend by spending more than $20 million to place 14,000 District youths in jobs at government agencies and local businesses. Still, many young people were left disgruntled at the reality of being unemployed for the summer, leading one 17-year-old to tell The Washington Post: “I think it’s not anyone’s fault. We need to go out there and get jobs, but at the same time, they could come to our schools and make it easier for us to sign up.”

However, we feel that sentiment misses a key economic point. With such a high teen-unemployment rate, the demand for summer jobs has clearly outstripped the supply. Teens who wish to work must show some initiative in pursuing the jobs that do exist, and lawmakers could rethink minimum-wage policies that tie employers’ hands in hiring less-experienced workers such as the young people who attended this town-hall meeting.

Beyond that, there are plenty of ways that teens can stay busy and earn money outside of traditional employment. If you’re looking to drum up a little extra cash before school is back in session, check out our tips post here.

EveryJoe.com

In May, we brought you some of the lessons that having a summer job teaches teens who are working for the first time in their careers.

Now that summer is in full swing, the Christian Science Monitor has some more valuable takeaways from that first job:

• Getting to know tax forms and direct deposit. Having a paycheck will be most young adults’ first introduction to Uncle Sam. The Monitor encourages parents to help kids set up bank accounts if they don’t have them already, and teach them the value of living within their means. To this, we’d add our own article, “Pay Checks: Who Is FICA and Why Is He Getting All My Money?”
• Learning about plastic. Remember when swiping that first credit card with your name on it was a thrill? Rein in that youthful exuberance for spending by explaining the difference between debit and credit, and the importance of having enough cash to pay for your purchases — either now or at the end of the month.
• Making that first budget. Having a budget is not just for people with big household bills to manage every month. Teach teens to play around with budgeting software like Mint.com. With dozens of money-minded apps for tablets, smartphones, and other handheld devices, it can even be fun for young adults to learn about money management.

MIT.edu

Should colleges disclose to undergraduates the expected future salaries for people with degrees in their field of study? That’s the major question (no pun intended) posed by Georgetown University’s Center on Education and the Workforce, which compared the median lifetime earnings for bachelor’s degrees in a range of disciplines, from engineering and computer science to English and psychology.

The Washington Post reports:

According to the study, the median annual earnings for someone with a bachelor’s degree in engineering was $75,000. The median wage was $47,000 in the humanities, $44,000 in the arts and $42,000 in education or in psychology.

The individual major with the highest median earnings was petroleum engineering, at $120,000, followed by pharmaceutical sciences at $105,000, and math and computer sciences at $98,000.

The lowest earnings median was for those majoring in counseling or psychology, at $29,000, and early childhood education, at $36,000. Workers with a bachelor’s degree in English language and literature, the most popular major within the humanities, have median earnings of $48,000.

That means that an average B.A. in engineering is worth, salary-wise, up to two or three times what a degree in the humanities is. Not only that, but a recent study by the National Association of Colleges and Employers found that 56.2 percent of graduates with a computer science degree were considering at least one job offer, compared with just 19.5 percent of those with a bachelor’s degree in education.

Without question, the world still needs teachers and scholars in addition to scientists and engineers. But in an era when the average graduate walks away with $24,000 in student-loan debt, making an informed decision about what subjects to pursue should be part of the curriculum for every student choosing to invest big bucks in academic enrichment.

ParentingTeens.com

This opinion column from the Kansas City Star shows such sensible advice for teens seeking out their first job that we couldn’t say it any better than writer Steve Rosen did:

Every year around this time, I think about my first summer job and the money lessons I learned – mostly the hard way.

I started as a grocery store sacker, earning minimum wage. Supplemented with tips and the occasional overtime shift, I seemed to have enough money to cover overpriced late-night fast food, album purchases at the record store, and other necessities of life.

But when it came to socking some dollars away, there never seemed to be enough at the end of the paycheck. My loss, since I didn’t make it a priority.

Rosen goes on to recount the money lessons he learned that summer, mostly by making mistakes. But they all boil down to a few undeniable truths: Teens are not too young to save toward larger goals — whether it’s a car or college tuition — and a job gives you more than just a paycheck. A first job also gives young people a chance to network, build up good references, gain experience, and qualify for better opportunities in the future.

If you’re a teen who hasn’t yet been able to line up a traditional job for when school lets out, check out our list of five summer jobs that aren’t flipping burgers or bagging groceries.

Lawn-Mower-Parts.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

This year, it’s never too early for teens to be thinking about their summer job opportunities. A new analysis of data from the Bureau of Labor Statistics shows that teen unemployment has skyrocketed in recent years, with half the states showing unemployment rates above 25 percent. For minority teens, the statistics are even more dire: Nationwide, the jobless rate for black teenagers is 42.1 percent. There are myriad reasons for it — from a high minimum wage that encourages employers to hire older and more experienced employees over teenagers, to the increasing popularity of automation like self-checkout at the grocery store. One thing is for certain: Many high-schoolers looking for traditional employment this summer will be out of luck.

But there are other things teens can do to gain money or experience this summer. Here are some options:

1. Exterior home services. Lawn mowing and washing windows are easy ways to make cash and build up a steady list of clients without spending a lot of money on supplies. All you’d need is a lawn mower (which you could probably borrow from your dad) and a professional squeegee, dish soap, paper towels, and a bucket — all of which can be procured for $50 or less. Charge a reasonable price per window and per acre and you’ll recoup your outlays in just a few jobs.
2. Child care. Beyond babysitting, there are lots of ways to help parents out when school is out for the summer. If you’re a good swimmer, it’s fairly easy to get certified as a swim instructor and lifeguard through the American Red Cross. Giving swimming lessons to kiddos is a great way to stay active in the summer as well.
3. Errand runner. Ask any busy working parent if they’d like some help running errands on the weekends and you’re likely to get a hug. Negotiate an hourly rate for the service and offer to pick up dry cleaning, deliver kids to soccer practice, shop for groceries, and otherwise act as a personal assistant. Your clients will feel like celebrities.
4. Tutoring. You’re a smart kid, so why not make some money off those good grades? Ask your teachers if they know of tutoring opportunities for students within your school.
5. Volunteering. Money isn’t the only valuable thing you can earn in the summer — experience and solid references count just as much. Animal rescues can always use dog walkers and litter scoopers, hospitals typically have opportunities for candy stripers, and charities like Recording for the Blind & Dyslexic will appreciate anyone with a good speaking voice and a love for reading.

FromRamentoRiches.com

Browse Amazon.com and you’ll find thousands of personal-finance guides in publication. But not all reading material is geared toward young people who are just starting out and don’t have a complex stock portfolio or major net worth. These five books have got the next generation covered:

1. From Ramen to Riches: Building Wealth in Your 20s by James G. Wood. The author found himself broke five years after graduation, yet was still able to retire comfortably at age 47. Here, he shows you the steps he took to gain financial freedom.
2. Get a Financial Life by Beth Kobliner. Tailoring her advice for people in their 20s and 30s, Kobliner herself was under 30 when she wrote this book. This to-the-point guide will teach you everything about personal finance you never learned in college.
3. Get to It! Budget Book by Cheryl G. Hosking. This workbook enables you to make a budget based on your household spending. It’s adaptable if unavoidable expenditures pop up, easy to fill out, and is an invaluable tool to living within your means.
4. Go Green, Live Rich by David Bach and Hillary Rosner. Bach and Rosner show young people how to develop lifelong habits that will save money as well as energy and waste.
5. The Money Book for the Young, Fabulous & Broke by Suze Orman. If you’re buried under a pile of student loans and credit-card debt, this is the book for you. Orman is known for her tough-love approach and she delivers here with hard-nosed advice that will, if followed, get you out of debt.

EngineeringDaily.net

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

For the first time in history, total student loan debt exceeds total credit card debt in the United States. Borrowers owe almost $850 billion for education, compared with $826.5 billion on credit cards. That’s an increase of 25 percent from 2009 and it has many analysts worried that the country is in for another credit crisis brought on by education debt.

You can make some decisions to protect yourself from falling down the student-loan rabbit hole. Here are some suggestions.

1. Know what you owe. It may seem obvious, but lots of people keep their heads in the sand about the amount of their debt. If you don’t know the full total, you can’t come up with a viable plan for whittling that balance down. Make a date with your paperwork to analyze the big picture — and remember to check your balances regularly.
2. Avoid overspending for an undergraduate degree. A recent New York Times article discusses a woman who racked up $170,000 in loans for a bachelor’s in photography. While there’s value in following your dreams, dreams shouldn’t make you take on debt that will take a lifetime to pay off.
3. Pick a major with foresight. Unless you are guaranteed high-paying work by virtue of getting an advanced degree, your student debt should not look like a mortgage. It’s up to you not to take on more debt than you can realistically pay back in 10 to 15 years, if not sooner. Check the average salaries in your field in this handbook published by the Bureau of Labor Statistics.
4. Consider a less-expensive school. If graduating from a top-tier private school is your goal but you don’t have family money or scholarships to pay for it, spending your freshman year at an in-state public school and transferring the next year will save you thousands in the long run.
5. Do what it takes to pay at least the monthly minimum. Federal loans offer an income-based repayment (IBR) option that caps your monthly payment at a percentage of your discretionary income. While it will take longer to pay off the total, taking advantage of such programs allows you to stay out of default. And remember: Even if you declare bankruptcy, you’re still on the hook for student debt no matter what.

Jim Franco/RealSimple.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

In a down economy and with so many people looking for work, job seekers should take every precaution to avoid giving employers a reason not to hire them. Make sure your application stands out in a good way by being aware of these pitfalls.

1. You don’t have a degree. The Bureau of Labor Statistics has some bad news for people who skipped out on college. According to data from July, the unemployment rate for people with only a high-school degree is 9.9 percent — nearly double that of those with bachelor’s degrees, of whom only 5 percent are unemployed. But it’s never too late to go back to school, so consider how a degree might boost your job search.
2. Your résumé is too long. You’re 25 years old and your résumé strains to fit onto two pages? Revisit every bullet point to see if it’s relevant to the position you want. If you’re including your volunteer activities and that summer you spent as a summer-camp instructor when you’re applying for a job at a law firm, it’s time to trim the fat.
3. You’re out of state. You’ve heard of buying local, but what about hiring local? Unless you boast a highly specialized set of skills or are seeking a top-of-the-food-chain position, your chances of being recruited by an out-of-state company are pretty slim. The applicant pool is so large, many companies are excluding job seekers who would require time and possibly expense reimbursement before they could come in for an interview. If you’re trying to move, consider setting up a local P.O. box that forwards to your home mail or use the address of a friend on your résumé so you don’t shortchange your application.
4. You’re unemployed. It may seem grossly unfair with 9.5 percent of the population out of work, but many employers are putting up “unemployed need not apply” signs. Some hirers report the belief that if you don’t have a job, you must have lost your last one due to performance issues — whether that’s true or not. So if you find yourself laid off, do whatever it takes to keep the income flowing so that joblessness won’t hurt you when the next opportunity comes knocking.
5. Your credit score is low. In many industries where you handle money — any job from cashier to accountant — you will be asked to submit to a credit check. And if the company doesn’t like what it sees, you won’t get the job, simple as that. The practice is perfectly legal, so when you give a potential employer permission to pull your credit history, make sure it’s in ship-shape.