Young Money - Earn It. Invest It. Spend It. Summer 2009

summer 2009

The Green Issue

CONTENTS

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Summer 2009

Volume 8 Issue 2

PUBLISHER Benjamin P. Levy

The Million Dollar Beauty

EDITOR Cara Newman VICE PRESIDENT OF BUSINESS DEVELOPMENT Todd Romer VICE PRESIDENT SALES WESTERN REGION Sheryl Hill DIRECTOR OF DESIGN Michelle Margulies PUBLISHED BY Young Money, LLC Office (888) 788-4335 Fax (443) 264-0277 Advertising Inquiries youngmoney.com/mediakit

FEATURES

ENTREPRENUERSHIP

24 10 Steps to Success Make it big by 30

28 Living in Mom’s Basement?

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YOUNG MONEY Magazine (ISSN-1098-8300)

Six Amazing Women

10 How Green Is Your Campus?

Don’t Worry!

20 How to Deal with Debt Collectors

PERSONAL FINANCE

26 Interview with City Paper Founder: Russ Smith

Roadmap to the basics of borrowing

30 Go Green or Go Broke

14 Navigating Student Loans 16 Getting Paid For Your A’s

Discounts for Making the Dean List

17 The Business of Loan Forgiveness 25 Cheap Summer Vacations

JOB JUMP 4

Subscriptions YOUNG MONEY Magazine 10950 Gilroy Rd. Suite D Hunt Valley, MD 21031 (888) 788-4335 ext. 7 [email protected]

The High Cost of Internships Paying to Work for Free

13 Green Internships Save the Plant. Save Your Résumé.

18 Should You Go to Grad School?

Former White Collars Slip into GreenSoul Shoes

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Headquarted in Hunt Valley, Maryland, Young Money, LLC was created to change the way young adults earn, manage, invest and spend money. The Young Money Media group includes YOUNG MONEY magazine, youngmoney.com and YOUNG MONEY Live campus events. YOUNG MONEY is designed to provide accurate and authoritative information regarding the subject matter covered. It is presented with the understanding that the publishers, authors, and/or advertisers are not engaged in rendering legal, investment, accounting or other professional services. If legal advice or expert assistance is required, the services of a competent professional should be sought. The publisher and publisher’s agent make no wsrranty regarding the contents of the publication, and will not be liable for any loss, damage, or injury in any matter arising out of incident to the use of the publication, including all consequential damages.

TECH TALK 32 How to Green Your Dorm Room

33 FORUM

Want to write for Young Money? Contact: [email protected]

entrepreneurship













By Jamie Fleming

The Million Dollar

Beauty

W

hile many teens are focused on prom, new cars and graduation, 17-year-old Jasmine Lawrence from Waynestown, NJ, is developing and expanding her million-dollar company, EDEN BodyWorks. Photo by: Brian Branch Price

Lesson 1: Find your niche

Lawrence created Eden BodyWorks after a bad experience with hair chemicals at age 11. Her goal was to create products that were natural and that actually worked. “I decided to make my own when I couldn’t find anything that would truly work for me that was all natural,” Lawrence says. “I also didn’t just want something that was natural; I wanted something that I could afford to continue to buy.” Even though she started young, Lawrence didn’t really feel intimidated launching her business. “I think I was just naive because at 13, the only people telling me I couldn’t do it were people I didn’t know; my family was supporting me 100 percent,” she says. “So because I didn’t know the legal and financial risks of starting a business, I wasn’t so much concerned with stuff stopping me. I just went in head first.” It’s a good thing she did. Last year, Eden BodyWorks surpassed $1 million in revenue, and her products are currently sold in Whole Foods and Wal-Mart stores.

young money

Created when Lawrence was just 13-years-old, her business focuses on the desire for natural hair and skin products. She founded the company after attending a camp sponsored by the National Foundation for Teaching Entrepreneurship.

Lesson 2: When a door closes,

there’s almost always a window The story of getting her products into Wal-Mart is a story that Lawrence considers one of the more humorous moments of her career.

“I was flown to Texas for Black Enterprise magazine’s Teen Entrepreneur of the Year Conference. My two competitors for finalists were one girl who made bumper stickers and another girl who made cakes and baked goods; and by then, I had already had a full line of 15 to 20 products,” Lawrence says. “My line was pretty solid and my customer base had grown to 20,000. “I thought I was a shoe-in. I totally thought I was going to win this contest. And I actually lost to the bumper sticker girl,” she says, laughing.

But, as fate would have it, two Wal-Mart representatives approached her as she was leaving. Lawrence worked with them on a nationwide contract to place

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Eden BodyWorks in Wal-Mart stores.

“[It] has grown from 10 stores to 300 stores, now to 1,000 stores later this year, so I’m just glad I was nominated [for the competition], and I was able to be in the right place at the right time” Lawrence says.

After getting over the initial shock, she realized how great an opportunity this was.

“Now, in our economy, they’re doing so great. What they stand for, what they represent—affordable, quality products—that’s exactly what I want to offer,” she says. “And Wal-Mart is a place where everybody shops no matter what ethnicity they are, so I know I can reach my large customer base.” For the record, Eden BodyWorks’ products are created for everyone, including men and women and every ethnicity. “It’s great to have an outlet that has the same diversified customer base that I want to have.”

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Lesson 3:

Balance is key

Lesson 4: Be proud of your

reach for and so much more I have left to accomplish before I truly can sit back and say, ‘that’s enough.’”

After all of the attention and accolades, you might think that Lawrence would have an issue with remaining down to earth. Instead, she remains modest about all that she’s done.

Lesson 6: Find your passion

achievements, but don’t let them go to your head

With Lawrence still in high school (she’s a senior now), it can be difficult for her to balance school, her business and try to have some kind of social life. So how does she manage it all? “A lot of it is just dedication and staying focused on what I need to get done,” Lawrence says. She has alarms she sets

“With Lawrence still in high school (she’s a senior now), it can be difficult for her to balance school, her business and trying to have some kind of social life.” throughout the day to keep her on track and makes sure to include fun, social events, as well as business items, on her calendar.

“I know that it wasn’t all me,” Lawrence says about staying humble. “I wouldn’t be anywhere without God or my family just helping me out and being there for me.”

“I won’t schedule an interview when there’s a party,” Lawrence says. “Things [like a calendar] help me keep my life balanced. It helps me live a full, as close to normal, life as possible.”

She says she started this business not to become a millionaire, but to help people with their hair issues and body care needs. “I knew I wasn’t the only person,” Lawrence says. “I was blessed with something I wanted to share with the world. Starting a business was just the best way for me to be able to help other people.”

Embrace your success, but always strive for more

Lesson 5:

One of Jasmine’s biggest achievements is being able to see her business run itself. “It’s made me really happy to see how far I’ve come from almost five years ago,” she says. “I can’t believe it’s been so long, I mean, just to be continuing selling and making a profit is amazing to me.” She doesn’t, however, feel right saying that she’s finally made it. “Usually when people get to the number one spot or they feel as though they are on top, they stop striving for more and more,” she says. “And I just feel like my company, and myself as a person, have so much more that I can

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and live your dream

That’s Lawrence’s motto. She has never worked for anyone but herself, and she has never hated her career—something that gives her motivation to keep going. “I want to encourage other people to do the same thing,” she says. “I want other people to go for what they really want to do, no matter who believes in them; as long as they believe in themselves, anything is possible.”

Lesson 7: Stay focused and give it all you got.

To become a successful entrepreneur, Lawrence advises individuals to remain focused and give everything they have. “[They] have to have a passion towards it and love what they do because it’s going to get really tough; it’s not going to always be easy,” she says. “You’re going to have to wait for things…and there are other things you can’t just sit around and wait for them to happen, you have to make them happen. “You have to network with people and not be shy and be proud of your business. You also have to try and be the best in your field. You have to know your competition and what makes you different and what sets you apart and exemplify that.

“I could give so much advice, but it’s really just do whatever you love, whatever it is.” YM Check out Eden BodyWorks products at edenbodyworks.net Check out writer Jamie Fleming’s additional work on her website, mochawriter.com



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jop jump

The of











By Cara Newman

t s o C h Hig n a g n i d n i F p i h s n r e t n free I

o t g n Payi

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here was a time when students could find internships based on their hard work, good grades, and fantastic résumés. Unfortunately, with the current recession and high unemployment rates, there are fewer jobs available. This means that more college students and graduates are searching for internships. In fact, the demand for quality internships is around 20 percent higher than it was last year; so it should be no surprise that the newest way to find an internship is to buy one. More and more for-profit internship placement agencies are popping up. These internships are typically at well-known companies, such as Rolling Stone, Elle, or fashion houses like Donna Karan. The cost can range from $2,000 to $12,000.

What about the kids who don’t have the money to pay for a prestigious internship? One school of thought holds that paying for an internship actually evens the playing field; that if you come from a wealthy family chances are you have some personal or political connections that can help you anyway. This way, it’s not about whom you know, just about how much you can pay. And many parents are digging deep to help their kids. According to an article

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r o f k wor

in WSJ.com, “a one-week internship at a music-production company sold last month for $12,000.” That’s a lot of money for a week of working for free. Another part of this trend is auctioning off internships for charity. Many charities have been hit hard by the recession. This could be a win-win, good for the charities and the company gets some free labor, but, is it good for the students forking out thousands of dollars in the hopes of learning something new?

Few people can argue with contributing to charity, but what about the companies which are suddenly realizing that offering internships can be an additional revenue stream? Now that people are paying, companies may begin to form internship programs solely as a way to raise money. If you can get some really great experience then working for free can be worth it. But, will internships that simply exist to raise money for companies having a hard time making ends meet actually provide enough good experience? If you do decide to open your wallet to get your foot in the door, here are a few companies to check out:

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University of Dreams Applicants must be 18 to 26 years old, full-time students and have a minimum grade point average of 2.5 to participate in the program. Applicants can pay in full, apply for financial aid or finance payments with processing fees of 3 percent. Costs range from $5,000 to $10,000. According to the website, “Programs include internship placement, housing, weekend activities, meals, transportation, career seminars, resume revision, interview coaching and more.” This may sound like a lot for your money, but think about it: an eight-week internship in New York costs $7999. That comes out to $1000 a week. Two months rent in New York might cost you $2000 (and that’s being really generous, a quick look at Craig’s List shows rooms for rent for anywhere from $125 to $1050 a month). The list of possible internships is pretty impressive: Glamour, InStyle, Chanel, DKNY, Tribeca Film, but there are also less exclusive companies listed. To get the entire list of internships offered you have to apply, be accepted, and, of course, pay. The University of Dreams

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guarantees you an internship of your choice or your money back, but be sure to read the fine print. The University of Dreams only requires a 2.5 GPA but that doesn’t mean a high-profile company won’t want someone a little more stellar.

science and technology, education, and counseling are among other specialties that students pursue.

Fast Track Internships

As more and more companies begin charging to place students in competitive internships, will future employers become more wary about internships at exclusive companies? Will potential employers begin asking if you paid your way in? And, will an internship that you paid for look the same on your résumé as a traditional internship? What is going to happen when some companies get reputations for taking interns for the right price? Will your time working at these companies still hold the same value to future employers?

www.universityofdreams.com

Fast Track produces slick marketing campaigns about you and they guarantee you receive at least one internship offer. The Fast Track website claims they “make it simple for students to access unadvertised internships in their desired field and location.” Fast Track charges $799 to get you an unpaid internship, $999 for a paid internship, and $1999 for a full-time job for new graduates. www.fasttrackinternships.com

Charity Auctions CharityFolks.com and CharityBuzz.com have bidding for internships. A quick search brought up a few internships, for example, one day at the New York Times starts at $1,000. The last “open” auction listed at the time of this writing is a summer 2009 internship at Deutsch advertising agency in New York City, valued at $3,500. Past auctions include internships at Donna Karan, Norma Kamali, Rolling Stone, Iconix Brand Group, Treehugger.com and more.

www.washingtoninternship.com

How does it really look?

As of right now it’s hard to say, but before you agree to spend thousands of dollars on anything you should do the proper research. Make sure you receive an agreement stating that you will get the internship you want and that you will learn something. It’s not only

where you’ve worked, it’s also what you know. And if all you learned from a month at a big name magazine is how to make coffee and kiss butt that may not be eough to get you next job. On the other hand, if a company invests time in you they may be tempted to hire you (especially if you really impress them). Another great thing about working for a high-profile company is the potential to meet people who can help you. In today’s economy getting an internship is becoming a necessity. So if you have exhausted the cheaper (and often free) methods of searching you might want to consider this as an additional investment in your future. Who knows? Someday parents might start saving for internships the same way they now save for a college education. YM Cara Newman is the editor of Young Money. If you live around Baltimore, MD and are interested in interning (for free) at Young Money, contact: [email protected]

www.charityfolks.com www.charitybuzz.com

Washington Internship Program WIP places undergraduate, graduate, and college graduates in the nation’s capital for a semester. The cost is $3,400 but the WIP offers scholarships and a job-bank of part-time paid employment. Plus, you can receive college credit for this program. Students select internships according to their areas of interest, like government or the media. International relations, journalism, law, medicine, public relations, business, the arts,

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job jump



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By Cara Bruce

Women Who Make a Difference New Media

Occupation: Member of Business Development Team at Real Girls Media (realgirlsmedia. com), a San Francisco-based company that builds publishing platforms for women. Emi recruits and manages content/traffic partners; manages an ad network of 47 publishers; helps design custom sponsorship programs with high profile bloggers and major advertisers; helps drive social media marketing strategy.

Career Path:

Emi Hofmeister young money

Advice: “For anyone that wants to go into tech, on any level, start a blog. Creating a presence online and cultivating a personal understanding of how social media works on a day-to-day level is crucial for entering tech at any level. A blog also enables you to sort out your own passions. If you write on topics that you’re passionate about and committed to, you’re more likely to find the job that is right for you.”

“ I worked in account management for two traditional advertising agencies … as Tivo, Satellite radio, and the internet slowly took over traditional mediums I began searching for opportunities to leverage my project management skills and relationships and found Business Development to be the perfect fit.”

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summer 2009

Federal Government

of informational interviews and to apply for a variety of internships (many are unpaid, which can be a challenge). It’s also great to attend as many policy-related events as possible, even if you don’t yet have a job. Introduce yourself to participants and speakers and ask if you can go to lunch to hear about their work. Market yourself as someone who is enthusiastic, flexible, and motivated to learn about and work on a range of issues.”

Social Finance Kate Berglund

Career Path:

“I studied Political Science at Stanford and was fortunate enough to work with professors who were very plugged into the foreign policy world. Through my work with them, I got really excited about working in foreign policy. During my junior year, I got an internship at the State Department with the Bureau that I now work for. After graduating, I worked for a nongovernmental organization in North Africa before coming back to work at the State Department.

Advice:

“Networking can be the key to success in Washington. It’s a great idea to set up lots

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Advice: “The social enterprise world is growing fast, which means there are increasing opportunities and no one path. Most people at Acumen Fund and peer organizations have worked in both the private and public sector—banking or venture capital, management consulting, business operations, and non-profit management. If you want to work internationally, you should try to build up experience overseas.”

Non-Profit/ Health

Occupation: Bureau of Democracy, Human Rights and Labor in State Department; Middle East and South Asia, with a focus on Egypt, Afghanistan, Pakistan and Bangladesh; makes sure that democracy and human rights issues remain on the broader U.S. agenda; works to draft and implement elections strategies, articulating the key steps that foreign governments need to take to ensure that elections are free, fair and transparent; drafts and edits an annual human rights report for each country she covers.

nance—working as much as I could in Uganda. After graduating, I had a fellowship for leadership in public service, which I spent at Acumen Fund in New York City. After a year and a half, I headed to India.”

Katie Hill Occupation: Energy Portfolio Manager for Acumen Fund India, a venture fund investing in businesses serving the poor (www. acumenfund.com). “In the Energy Portfolio, we are looking for investments in renewable energy generation that creates community-level power resources and in energy applications that allow households to address basic needs such as lighting and cooking. My time is split between supporting our existing companies and scouting for new investments.”

Career Path: “When I was 16, I spent a summer volunteering in Botswana, and when I was 17, I deferred college admission to spend the year teaching in rural Nepal. At Stanford University, I studied International Relations and Economics. I spent a lot of time looking at microfi-

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Jessica Goldman Occupation: Development Manager for ODC, a cultural center that is home to an internationally recognized dance company; starting own line of no-sodium sauces, blogs about sodium-free living, sodiumfriendly restaurants, and sodium-free meals (www.sodiumgirl.blogspot.com).

Career Path: “I volunteered at the Arthritis Foun-

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dation Northern California Chapter, soliciting individual and in-kind donations, aiding in event planning, attending Board meetings, and creating campaign materials for several events and programs. The beauty of a non-profit is that they tend to be understaffed, and for a recent graduate, this means you have a chance to experience multiple sides of an organization and develop a broad range of skills. I remained at the Arthritis Foundation as their Community Development Manager. In 2008, I went to work for ODC. I was in charge of a one-person Development office with a $5MM annual budget. The majority of my time is spent identifying and writing institutional grants. After being diagnosed with lupus I began sodium free cooking. I am currently in hot pursuit of starting my own line of no-sodium sauces (full of flavor, not salt) and will begin teaching baking classes for those with dietary restrictions (dairy free, gluten free, salt free, etc).”

Advice: “There is no single path to take. The skills you learn, in any profession, can always be used in others. You are in charge of finding the commonalities and putting them to use. An interdisciplinary background can open more doors than not.”

Journalist Occupation: An author, journalist and creative writing instructor. Shawna has covered music, pop culture, animal rights and veganism for Alternative Press, Veg News, the LA Weekly, the Indianapolis Star, Transworld Skateboarding and Swindle Magazine, among others. She runs the blog www.shawnakenney.com

music, pop culture, animal rights and veganism for Alternative Press, Veg News, the LA Weekly, the Indianapolis Star, Transworld Skateboarding and Swindle Magazine, among others. She runs the blog www.shawnakenney.com.

Career Path: “I started my own magazine in high school—a music fanzine that I sold at shows and concerts. I took a journalism class in college and wrote for the school newspaper, even though writing was not my major. My college clips enabled me to submit work to national magazines. After college I worked in film post production but continued to sell freelance articles to magazines. After publishing books and essays in anthologies, I took the leap from a cozy-but-boring office job to freelancing full-time. Now I balance writing with working as a part-time writing instructor, which allows me to immerse myself in the world I love.”

Advice: “Write about things that interest you. As Susan Orlean says, ‘Anything at all is worth writing about, if you love it enough.’ Never let the fear of rejection stand in your way. Rejection is just a part of the package with any art; no one escapes it. The reward is a life less ordinary.”

Account Executive

Career Path: “I went to Miami University, majoring in Marketing and Sociology. I interned with Nestle Purina between my Junior and Senior years of College as a Territory Manager in the Customer Development Group (Sales). I was offered a full time position as a Territory Manager and moved from Ohio to New York City. In this role I managed a $15.3MM business. After being promoted, I moved to Phoenix, AZ to work as a Shelf Analyst—ensuring that we have the right breadth and depth of our total portfolio (dog, cat, treats and litter). I am currently an Account Executive for a $30MM business. I build and incorporate category management plans, promotional planning, merchandising planning and sales skills I have developed to help drive growth for my retailers.”

Advice: “Keep an open mind. Don’t think that everything will be clockwork. You will learn that each role will give you assets and develop you as a person. Don’t try to speed up your career, just take it as it comes. You will learn and grow more if you slow down to speed up.”

www.nextbillion.net

“I started my own magazine in high school—a music fanzine that I sold at

Shawna Kenney

www.acumenfundblog.org www.netimpact.org

Occupation:

young money

Account Executive who works on the growth and sustainability of independent retailers, ensuring that they understand the industry trends to help them grow inside the box and be competitive in the market place

Check out these sites:

Career Path:

An author, journalist and creative writing instructor. Shawna has covered

Occupation:

Sapna Talati 8

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youngmoney.com

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feature















By Ashley Sinatra

How Green is Your Campus? Help your school pass the environmental test

Getting college credit for saving the environment might not be far off in the future. Many colleges have added sustainability programs and environmental study majors to help you connect your studies with the real world.

campus. In 2007, they started a compost program to reuse food waste and provide compost for their organic gardens. Connecticut College also purchased enough renewable energy credits to offset their energy usage this year.

Work Up a Charge Feeding the Masses Most college cafeterias include pizza, hamburgers, and all you can eat desserts; but, some greener colleges are looking for ways to add healthier items to the menu. Way back in 1969, Connecticut

young money

College became one of the first undergraduate colleges to offer an environmental studies major. In 2005, they began Sprout! the College’s first sustainable gardening initiative. Sprout! now provides more than 100 pounds of fresh food grown organically on their own

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Wouldn’t it be nice if there were more motivation to go to the gym? Yale student, Henrique Rocha, developed a way for an exercise bike to do more than just burn calories. He discovered a way to channel the wasted energy and heat from bicycling to charge several small electronics such as a cell phone, an iPod, and possibly a laptop. According to the Yale

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can compare your scores with that of your friend.

The same group has also started a program called GarbageWatch.com. This program tracks and photographs all trash cans on the UCLA campus. By doing this they hope to track where more recycling bins need to be added on campus and analyze what students are throwing away to better learn how they can reduce the waste.

What Can You Do? To make your campus greener, you do not have to have a Ph.D. in environmental studies. Follow these easy steps and spread the word to fellow students using email or word of mouth.

RecycleMania! RecycleMania is a program started in 2001 by two colleges looking for a

advisors move the majority of their assignments and their announcements online will not only save thousands of papers, but also make it more convenient for internet-savvy students. Encourage university web services to make surfing announcements easy and accessible for everyone. Another way to save on paper (and money) is to buy e-versions of textbooks when made available.

Turn It Off Switching to energy-saving light bulbs and air conditioners can help universities save money and the planet. Bring up using energy efficient appliances and bulbs in each classroom, office, and dorm to your university board—a big difference will be seen in the use of electricity as well as your college’s energy bill. On a personal level, you can start by unplugging unused appliances and switching off lights in your dorm room.

“To make your campus greener, you do not have to have a Ph.D. in environmental studies.”

Daily News, future plans for this project include providing enough electricity to power the gymnasium.

SmogWatch UCLA’s group PEIR (Personal Environmental Impact Report) has invented a way to know how many carbon emissions you are creating in your daily life and how you are impacted every day by different exposures.

PEIR allows users to track their footprint via cell phone or through Facebook. The cell phone tracking is made possible by using GPS to track your exposure indirectly. When you add the PEIR application via Facebook, you

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friendly recycling competition. Since then the program has expanded to more than 500 schools competing and recycling more than 40 million pounds. If your university is not yet involved, talk to your school’s supervisor and enroll at Recylemania.com. There is a good chance your university is enrolled in the competition but not at a competitive level. You, and others at your campus, can rally and bring awareness to the recycling competition. Make sure to place clearly labeled recycling bins near regular trash cans to make recycling easy for everyone.

You can make a difference in your school by raising awareness of green issues and coming up with ideas that support both your school and the earth. You may be surprised to find out how many of your fellow students are willing to help. YM Ashley Sinatra is a freelance writer based in Lancaster, California. She enjoys reading and saving money.



Looking for more ways to help your school go green? Visit: www.youngmoney.com.

Go Paperless

Think about all the announcements posted campus-wide—everything from football games to chess club meetings— then add up all the papers your professors give you. Having professors and club

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summer 2009

Stock Market Game

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YoungMoney.com is updated daily with in-depth features written by industry experts. YoungMoney.com is your online spot for information about: $ $ $ $ $ $ $

careers money management debt relief entrepreneurship financial aid student loans coupons & deals

Visit our blog, Young Money Talks for comments and discussions ranging from entertainment news to how to get out of debt to how to “green” your new business to tips for entrepreneurs.

Young Money Talks features experts, including a collection agency insider and a life coach to help you maximize your true potential.

www.youngmoney.com www.youngmoneytalks.com

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By Ashley Sinatra

Green Internships Are a Win-Win!

T

his summer you can help the environment while adding a green edge to your résumé. Even if you are not majoring in environmental studies, these green internships can help the planet and your career. Green Mountain Club The Green Mountain Club offers internships to students at Long Trail in Vermont. The Long Trail was built between 1910 and 1930 and is the longest distance trail in the United States. They offer internships in leadership, education, construction, and management. This internship is a great chance to live and work in the mountains (housing is paid for), while receiving school credit. Visit Greenmountainclub.org for more information.

Green America Green America is a non-profit organization that brings members together to develop a socially and environmentally friendly society. Based in Washington D.C., they offer summer internships which cover fair trade, advertising, publication, business, and shopping. They also offer internships that can be accomplished online, so you can get experience and help society no matter where you live. For more information go to Coopamerica.org.

Green for All Green for All is building a green economy that is strong enough to lift people out of poverty. They believe in Green-Collar

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Jobs—jobs that help the environment while helping people make a living. Green for All helps put together job listings, training, and entrepreneurship opportunities. They are based in Oakland, California and offer internships for spring and summer in media and communications. They also offer a development internship which helps put together grants, seek out donors, and plan events. Their state policy internship helps connects people with policymakers, legislators, and community groups. Highly

“Landing an internship with one of these big companies will look impressive on your résumé, no matter what your major.” desired candidates showing a financial need may receive a stipend. Read all about Green for All at Greenforall.org.

Rainforest Alliance Based in New York City, Rainforest Alliance is a non-profit organization that helps preserve tropical forests worldwide for the betterment of the global community. Majority of intern work includes work in communications, increasing donors and funds, and planning special events. Hour commitment per week is low and flexible. Visit Rainforest-alliance.org to apply.

Environmental Defense Center If you are interested in law the Environmental Defense Center (EFD) can help get your foot in the door. EFD is the only non-profit law group in Los Angeles that works towards the protection of environmental issues, such as water protection, species protection, and general public health. The law internship assists in legal

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research, drafting memos, and making appearances in front of public agencies. Interns have the opportunity to attend court. Other available internships are in environmental advocacy, development, and environmental outreach and education. Visit Edcnet.org for more information on any of these programs.

Landing an internship with one of these big companies will look impressive on your résumé, no matter what your major. To increase your chances, focus on specific abilities the internship is looking for while highlighting your desire to help the environment. It will also help to include a written recommendation and any related environmental work you have recently done. For green internships in your state, visit http://www.internships-usa.com/BigGreen/green0506. html. YM Ashley Sinatra is a freelance writer based in Lancaster, California. She enjoys reading and saving money.

For more internship information: www.youngmoney.com/careers

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personal finance















By Matthew Brandeburg

Navigating Student Loans

Roadmap to the Basics of Borrowing Between the fine print and variable interest rates, understanding student loans can be difficult. If you’ve started researching student loans you’ve probably discovered the two basic types: those that have strict borrowing limits but offer low interest rates, and those that offer all the money you need (and then some) but charge high interest rates. So which is right for you? How do you make sure you’re selecting the best loans possible and not making a decision you’ll regret after graduation? It will take some homework and careful planning, but if you follow this roadmap you should be able to find the right combination of loans to meet all of your needs.

Federal vs. Private Loans To start the loan selection process you first need to know about the two basic types of student loans: federal loans and private loans. Federal loans, known as Stafford Loans, are provided by the U.S. government and carry a fixed interest rate—now at 6.80%. Federal loans allow the borrower to postpone principal and interest payments until six months after graduation. Private loans are usually not so generous. They are less regulated than federal loans and often charge high variable interest rates (like credit cards) and the interest starts to accrue immediately. You should use private loans sparingly and only consider them when there’s a gap between what federal loans will cover and the final cost of your education. PLUS Loans There is a third type of loan, known as

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the PLUS loan, which applies only to parents. It stands for “Parent Loan for Undergraduate Students” and it’s a loan that is borrowed by a parent on behalf of his or her child to pay for education. PLUS loans often carry high interest rates and require a credit check. But, these loans may be necessary if a parent earns a high income which prohibits his or her child from receiving federal loans. Interest rate comparison For student loans, as with most debt, you want to select the loan with the lowest interest rate. The national interest rate for Stafford loans is 6.80%, while the average private loan interest rate is currently 8.32%. PLUS loans carry even higher interest rates of 8.50%. The Stafford and PLUS loans have fixed interest rates, while the rates on private loans can change over time depending on the lender and market

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conditions. The fixed interest rates provided by Stafford and PLUS loans are an advantage that tip the scale in their favor over private loans. A free website, such as www.bankrate.com, will let you compare all the interest rates for student loans in your area. How to apply for student loans When you want to apply for student loans you should first meet with the financial aid officer at the school you’ll be attending to make sure you understand all of your financial aid options. The officer should also help you determine whether or not you’ll qualify for federal loans. If you won’t qualify for federal loans the officer should provide guidance about what loans you should turn to next, which will probably

Understanding the fine print The most difficult part of student loans is trying to understand the fine print. If you’ve started researching student loans then you’ve probably seen a few words over and over again, but you may not know exactly what they mean. It’s important you understand these words because they can potentially save you thousands of dollars.

Subsidized: Subsidized loans are loans that the borrower does not have to pay interest on. Instead, a third party (usually the U.S. government) pays interest while the borrower is still in school and interest does not start to accrue until after graduation. You should try to maximize your subsidized federal loans to the fullest extent, but beware; these loans are largely based on financial need so you may not qualify.

“For student loans, as with most debt, you want to select the loan with the lowest interest rate.” include a combination of PLUS loans and private loans.

If you’ve narrowed down your list of colleges but haven’t made your final decision yet, try to meet with the financial aid officer at each potential school to learn about the financial aid options available. You’ll find that some schools are much more accommodating than others.

Once you’ve done your research you can apply for a federal loan online by visiting www.staffordloan.com. You’ll also be required to fill out the Free Application for Federal Student Aid (FAFSA form). If you’re applying for a private loan you’ll need to communicate directly with the lender, which will usually be a bank, savings and loan, or credit union.

Unsubsidized: An unsubsidized loan is a loan where the interest starts to accrue immediately, even though loan payments aren’t due until six months after you graduate. The fact that interest accrues while you’re still in school makes these loans less desirable than subsidized loans.

Deferment: A deferment means the borrower can postpone making principal and interest payments on a student loan if certain hardship conditions apply. For example, deferment is allowed while the borrower is still in school, unemployed after graduation, or experiencing certain economic hardship for up to three years. Even though the borrower isn’t required

to make payments, interest continues to accrue unless the loan is subsidized. Forbearance: A borrower may qualify for loan forbearance if he or she has difficulty making loan payments on time. Forbearance is similar to deferment, but it’s granted at the discretion of the lender and documentation is required to prove economic hardship.

College Funding Summary If you’ve decided the pay-as-yougo strategy won’t work for your tuition bill, and you need the help of student loans, consider using them in the following order. These options should only be considered after you’ve met with a financial aid officer and exhausted all possible grants, scholarship and awards for which you may be eligible. 1. Subsidized federal loans 2. Unsubsidized federal loans 3. PLUS loans (if your parents are willing to chip in) 4. Private student loans (last resort!) YM Matthew Brandeburg, CFP®, has five years of fee-only financial planning experience and runs his own financial advisory practice. He can be reached for comment at 614.477.7350.

personal finance















By Emily Torres

Getting Paid for Your A’s

Discounts for Making the Dean List You’ve worked hard all year and your parents are finally going to help you get a car. If you have a high GPA you may be eligible for a good grade discount! But good grade discounts don’t just stop at car insurance. Many companies now offer incentives for high GPAs. Check this list and see if you can’t score an additional discount for making the dean’s list.

Car insurance

Yes, there is a proven correlation between good grades and safer driving. Most car insurances companies will offer a “Good Student Discount” between 10 and 25% for an undergrad with at least a 3.0 GPA. Keep in mind, one ticket can erase a semester’s worth of hard work.

In-school scholarships

Many colleges have scholarships for students already in school. Check with your financial aid office to see if your

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impressive freshman grades can translate into merit aid. Many schools offer in-school scholarships or rewards by department so ask your department head within your individual program of study.

The federal government offers two need-based grant programs for full-time students who are U.S. citizens with a 3.0 or better GPA.

card company about their individual good grade programs.

Rent

Apartment complexes in college towns are known for offering students discounts on their rents if they can maintain the required GPA. Some schools even have discounts on dorms. Make sure to ask your housing office or potential landlords about possible rental rewards.

•The Academic Competitiveness Grant is available to college freshmen and Games for grades sophomores. •The National Science and Mathematics Play ‘N Trade has a “Games for Grades” Program. Students receive a 10 percent Access to Retain Talent (SMART) discount on any used video game for Grant is available to college juniors each “A” on their report card. Check and seniors. with a store near you to make sure they participate in this program.

“Many companies now offer incentives for high GPAs.” Credit cards

Citibank wants you to “learn and earn with the Citi® mtvU™ Platinum Select® Visa® Card for College Students.” Every semester that you get good grades, you receive bonus “ThankYou® Points”; the higher your GPA, the more points you’re awarded. An A-average can earn you a 4,000 point annual bonus—the equivalent of a $25 Barnes & Noble gift certificate or two CDs. Ask your credit

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Travel

Ask about good grade discounts when booking a trip—especially for spring break. Many resorts and hotels will offer good grade spring break discounts. Check with a student travel agency about GPA deals for airfare, car rentals, and hotels.

Good grades are their own reward, but why not take advantage of other people who want to honor your hard effort as well? It doesn’t hurt to ask stores around your school if they offer a discount. You never know where you might be able to save a few bucks. YM Emily Torres is a frequent contributor to Young Money.

summer 2009

personal finance















By Debra L. Karplus, MS

The

Business of

Loan Forgiveness

W

hether you are a freshman or a senior you probably worry about paying back your student loans. No one wants to start their life in debt. Luckily, there are government loan repayment programs (also called loan forgiveness programs) that can help you. These programs allow students to pursue financial aid via the traditional route: completing a Free Application for Federal Student Aid (FAFSA), obtaining a federal loan, and then having all or part of it excused based on choosing specific careers in high demand situations or locations, such as working in the public sector, serving low-income or underserved populations, or in other areas where finding competent employees in certain professions is difficult. Most of these plans become effective once you have become employed after graduating.

College Cost Reduction and Access Act of 2007 The College Cost Reduction and Access Act of 2007 allows you to get your remaining loan debt discharged after 10 years of full-time employment in public service. The borrower must have made 120 payments (that’s 12 payments a year for 10 years) as part of the Direct Loan program. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments. A public service job is defined as a fulltime job in emergency management, government, military service, public safety, law enforcement, public health, public education, social work, public interest law services, child care, public library sciences, or any other job at an organization that is described in section 501(C)(3) of the Internal Revenue Code of 1986. Volunteer experiences through AmeriCorps, VISTA, and the Peace Corps

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are also part of this program. Ask your school counselor or search online to see how you can take advantage of these generous opportunities.

Business school excuses

Business school graduates can be excused from some of their school loans if they work in specific government or nonprofit domains. Stanford University, for example, will excuse up to 100% for qualifying MBA students who choose work in the public sector. Check with your university to see if they offer similar loan forgiveness plans.

“No one wants to start their life in debt.” Healthy loan forgiveness

Everyone knows how expensive medical school is. Luckily, loan forgiveness programs are offered through the National Health Service Corps and the Nursing Education Loan Repayment Program (NELRP). These programs offer loan forgiveness to physicians and registered nurses who agree to practice for a set number of years in areas that lack adequate medical care (including remote and/or economically depressed regions). The NELRP will excuse 60% of college



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loans for qualified nurses who work for two years at a critical shortage facility.

The National Institute of Health repays up to $35,000 per year of qualified school loans in exchange for two years of clinical research. They will also pay any taxes that result from these payments.

Teaching for forgiveness

Teachers working in government designated poverty-stricken school districts, or in subjects such as math or science, or in special education may have some of their school debt waived. Both the Perkins and Stafford loans vary in the amount they forgive, depending on what kind of teacher and length of time working.

There are other professions where new graduates may find employment helping others while having some or all of their government student loan forgiven. Contact your specific university department, your school academic or financial aid adviser, or search online resources to learn how you can become eligible.YM Debra Karplus, MS, OTR/L, an occupational therapist in private practice with an accounting degree, teaches entrepreneur and investing classes to children and adults. She can be reached at [email protected].



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job jump













By Ashley Grant withdrawal, but that money will not be able to accrue any compound interest, making it harder to save for retirement.

Is it worth the cost?

During a recession the number of graduate school applicants tends to increase. In fact, according to schools such as UCLA and Harvard, there has been a slight increase in the number of applicants in recent months. Some people look at grad school as a way of “hiding out” until the economy gets back in shape. Is going back to graduate school worth it, and how are you going to pay for it?

Should you go to graduate school?

Going to graduate school could bring you more money, a better job, teach you more about your field and look really great on your resume. However, going back to school can also drive you deeper into debt, keep you from actively pursuing your career goals, and be unnecessary in the long run.

Who should go after a post bachelor’s degree?

Anyone hoping to be a lawyer, doctor or other profession that requires a master’s degree or Ph.D. should definitely shell out the time and money to complete a higher degree. Not only will the extra time in school bring you closer to your dream job; but, it should pay off with a higher income since these fields tend to pay more than entry level positions that only require a bachelor’s degree.

Who should not go to grad school?

In some cases a certificate or a license may be all that you need to get a raise or a better job. Certificate and license programs are often significantly less expensive and take less time than a master’s program. If you are not financially, physically,

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emotionally and/or mentally ready for two to four more years of school, your best bet may be to try to get a job in, or as close to, your chosen field as possible. This way you will be earning income and work experience.

“Some people look at grad school as a way of ‘hiding out’ until the economy gets back in shape.” Paying for grad school

So you’ve weighed the pros and cons and decided to attend graduate school after all. That’s great. There’s only one problem: How are you going to pay the tuition?

Do not pay for graduate school with a high interest credit card. Using your credit card to finance your education will guarantee you graduate in debt. Think long and hard before you follow this path. If possible, try to avoid student loans. However, if there is no other option, do your research. Remember: with subsidized student loans you won’t have to pay interest on the years you are in school, but with unsubsidized loans, interest begins accruing the moment you take out the loan. Before you do anything else, fill out a Free Application for Federal Student Aid. You never know what kinds of federal aid might be available to you. http://www.fafsa.ed.gov. YM Ashley Grant is a freelance writer and photographer, visit her at www.morethanphotographs.com. Need help paying for school? Visit www.youngmoney.com/financial_aid

Call the school you wish to attend Talk to the financial aid office and see if there are scholarships, tuition assistance programs, or work study programs available. Don’t forget to check into research assistant positions with your individual college or program of study. These often pay a stipend that will assist you with the bill. Fastweb is a scholarship search service that helps students choose a college, pay for college, and find jobs and internships. This free website is a very large source for local, national and collegespecific scholarships. Although you need a username, password and profile to search, there are hundreds of scholarships for which you may qualify. Visit http://www.fastweb.com. Do not cash in your 401k. Not only will you be hit with a penalty for early

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Drink tap water. And before you know it, you can stash away $14,000. You don’t always have to drink bottled water. A $3 bottle a day x 365 days x 10 years x 6% interest is $14,694. That could be money in your pocket. Small changes today. Big bucks tomorrow. Go to feedthepig.org for free savings tips.

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Don’t be AFRAID to answer the Phone!



By Melissa Douros

uDealing with debt collectors Recession, recession, recession. It seems as though you can’t even go to the grocery store without someone talking about the economy. If you are like millions of Americans, chances are you have been forced to cut back on paying bills, and perhaps one of those bills has even been sent to a collection agency. Most people are forced to suffer in silence about debt in collections because it is not the usual dinner party conversation or even something that we tell our best friends. The subject can be embarrassing and humiliating which means that consumers do not speak up about how they have been treated or ask questions about what is fair or legal.

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I own Dovco Collection Solutions, Inc., the collection agency dedicated to collecting on delinquent debt without abusing the consumer who owes the bill. I believe that consumers have a right to be informed about illegal collection agency practices and know what to do when they have been mistreated.

The first types of collection agencies were thought to have been managed by the mob and largely unregulated. In 1914, the Federal Trade Commission was put in place and sought to prevent the mistreatment of consumers by these agencies. Before this time collection agencies could threaten, steal and even

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publish a “blacklist” with consumer names. Even with the birth of the FTC, it wasn’t until 1977, when the Fair Debt Collection Practices Act was adopted,

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that consumers began to truly be protected from harsh tactics and unethical treatment.

Per the FDCPA a collection agent cannot contact a consumer at any time other than between the hours of 8 a.m. and 9 p.m. in the consumer’s local time zone. This means that if the collector calls from a collection agency located in New York to a consumer’s place of residency in California, they must wait until the clock strikes 8 a.m. in California, and phone calls may only continue until 9 p.m. in the consumer’s time zone.

One of the biggest complaints that consumers have is that a debt collector has contacted them at their place of business. Collection agents will attempt to contact a consumer using all the information that has been both provided to them by the original creditor and information found via a tool called skiptracing. For example, when a consumer visits the doctor and fills out the information form, contact information is requested. This can be home number, work number, cell number, emergency contact information and more. Every number listed is a potential contact for the consumer to be reached. If a collection agent is unable to reach the consumer at any of the provided phone numbers, they will employ various different types of resources. These can be the yellow pages, neighbors at the consumer’s current listed address, and even relatives. They cannot, however, talk to anyone regarding your debt except you, your attorney or anyone you specify. Other than that, they cannot tell your child, your mother, your father, your sibling,

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your neighbor, your boss, not anyone. If they do, this is a violation of the FDCPA and you may be entitled to damages.

However, most people are not aware that the FDCPA has put a protection policy in place for these types of contacts. If a consumer indicates that a collection agent cannot call them at work, or that they are only allowed to call them at a specified location, the debt collector must comply. In addition, if a consumer

“The first types of collection agencies were thought to have been managed by the mob and largely unregulated.” does not want the collection agency to contact them at all, they also must comply. This is referred to a cease communication and can be invoked at any time. The consumer can request that the collection agent only contact them verbally, through written correspondence, or even not all. Although this will not stop occurrences such as credit reporting or even litigation, the collection agency will no longer be able to call or write demanding payment. So what do you do when you have received a letter demanding payment or a phone call from a collection agent looking to get a bill paid? Talk to them, plain and simple. There are some who will rant and rave, trying to make you feel small for not having the money to pay your bill, or convince you that this one account will be your demise, but there are still some who are human beings. Ultimately, both of you have the same goal: to get the bill paid. The difference is how fast it will (or even can) be done. The majority of collection agents work off commission, so the more that is paid at one time, the bigger their commission check.

and unable to pay other bills. One of the biggest issues people face with paying off this type of debt is looking at it as a whole. If the debt is figured out in affordable payments, it can seem less ominous. One of the biggest problems during this negotiation process is the way that a collector will try and convince you that the bill needs to be paid. The law states that a debt collector may not threaten action against a consumer, unless they plan to take it. This basically means that if a collection agent says they are going to sue you, they have to sue you. If they say they are going to put it on your credit report, they have to put it on your credit report. They cannot, however, threaten to tell anyone about the bill, inform your employer of the debt, or say that they are going to publish a list of any kind telling the public that you owe a debt.

The Fair Debt Collection Practices Act can be found online at http://www.ftc. gov/bcp/edu/pubs/consumer/credit/ cre27.pdf, and it contains the laws that debt collectors must adhere to when attempting to collect on a debt. If you feel that your rights have been violated, report the collection agent and collection agency to the district attorney in your state and to the Better Business Bureau. But, whatever you do, do not ignore the problem. Debt collectors are angered when their phone messages fall on deaf ears and their letters go unanswered. This way of dealing can result in credit reporting and even litigation. They are human beings, too. Just talk to them, and a payment plan can be negotiated. You may even be able to keep it off your credit report. YM

In addition to owning and operating Dovco Collection Solutions, Inc., Melissa Douros seeks to educate consumers on dealing with collection agents and collection agencies and stop the harassment that can occur. For more information on Dovco, please visit www. dovcocs.com.

It is possible to negotiate with a debt collector so that the bill can be paid, weekly, bi-monthly, or even monthly so as to not leave you strapped for cash

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summer 2009

entrepreneurship



Web entrepreneur Alastair Onglingswan envisioned the company after visiting his hometown in the Philippines. After enjoying the country’s scenic beaches and luxurious resorts, he drove through a shanty town. He was shocked to see the living conditions. Young children had to rummage through a vast garbage dump simply to survive. The children wore no shoes and were subject to foot injuries from nails, glass, metal and needles. He drove to the nearest department store and bought every single pair of children’s shoes—then donated each pair to the children of the waste site. Alastair quickly realized that he wanted to expand this effort into a working business operation that would aim to shoe the 300 million shoeless children around the world.

Chen wasn’t the only casualty of the investment world: Iris Chau left JPMorgan and Winnie Ho, the newest member in charge of designs and contests, left Citigroup. However, the GreenSoul Shoes employees quickly realized that working at a nonprofit start-up could be just as challenging as working for an investment behemoth. Less than a year after GreenSoul’s launch, Stephen is still discovering the parallels between work environments. “I believe we carry many of the same skill sets of modeling, finances, operations and talking to investors,” said Stephen. “The only difference is that previously we were beholden to our investors. Today, we take into account our peers in third world countries.”

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He added that in both cases he had the opportunity to work with a team of

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By Tanya Benedicto

dedicated professionals to build an innovative company that seeks outsized value. GreenSoul Shoes empowers local artisans through nongovernmental organizations (NGOs) like Heritage Watch to hand make 100% recycled sandals out of old tires. For every pair of shoes sold, one will be given to a shoeless child. Its innovative business model allows consumers to directly support an underprivileged child.

While Chen noticed similarities, Iris noted distinct differences, “I joined JPMorgan Chase eleven years ago. While my hours ranged from ten to fourteen a day it was very structured and project oriented. It was difficult for me to measure the impact of my work to my customers. Since I joined GSS in February, I have the opportunity to create direct impact to the organization and the people that we

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serve. My hours are a lot more flexible and decisions can be made a lot faster. Because we are a smaller team, we can act quickly. In addition, I have met so many people outside of our organization with a common goal—to help others.” She has seen GreenSoul through the common challenges of a start-up. “The downside of a smaller organization is the limited support and the resources,” she said. “We’re supporting this company solely with our savings.”

While the economy sours Chen says the strength of their business model differs from traditional charities. GreenSoul uses marketbased restoration to guard it from financial blows. For example, they are adding more shoe lines and working with different shoe designers to use recycled materials. GreenSoul has developed these three strategies to continue being the non-profit that will keep on giving.

1. Crowd-Sourcing Shoe Makers GreenSoul is leveraging community-based designs, otherwise known as crowd-sourcing. By leveraging mass collaboration enabled by Web 2.0 technologies, it aims to market this opportunity to shoemakers globally. Newcomers to the shoemaking community are given an opportunity to practice their

Winnie Ho young money.com



Iris Chau

skills, while veterans are challenged to keep on their toes.

Additionally, GreenSoul covers the entire costs and development process which cuts down the time it takes to produce a shoe and get it into the market.

2. Soulmates Program (Distribution Patterns) GreenSoul Shoes is planning to expand its operation to include distribution of stores nationwide. Owner funding and internally generated cash flow will enable most of the expansion plan. The Soulmates distribution partnerships will allow the team to partner with retail

3. Shoe Drops To deliver shoes to children, GreenSoul Shoes will embark on Shoe Drops. A shoe drop lasts one to eight days, and is carried out by a team of volunteers and GreenSoul Shoe employees. GSS teams up with internationally recognized organizations like UNICEF and Orphans International to access the need of villages and their shoeless children. We do this because we don’t want to give 400 shoes to a community only to realize there are 600 shoeless children—leaving the last 200 children without shoes. YM Visit GreenSoul Shoes at http://greensoulshoes.wordpress.com/

“…working at a nonprofit start-up could be just as challenging as working for an investment behemoth.” businesses. These retailers will help expose GreenSoul to critical audiences, areas and demographics. It also gives these businesses an opportunity to take a charitable platform. The primary distribution channel for shoe products is through regional and national product distributors. GreenSoul employees are actively pursuing agreements with distributors and will be attending major industry trade shows to develop contacts in other regions of the country. Their secondary distribution channel is through direct retail sales, specialty catalog sales, and website sales. They are also actively pursuing agreements with retailers and specialty catalogs.

Want to learn the secrets behind the success? Read more entrepreneur profiles at www.youngmoney.com/entrepreneur

Tanya Benedicto covers business news in New York , and formerly worked for Institutional Investor.

Alastair Onglingswan



Luan Nguyen 21



Lyel Resner



Stephen Chen summer 2009

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5 Steps

2

By Edward De Valle II

1 to

4 Success 7

Make it big by 30 1 Consistency

Talent may be overrated but you do need some to make your mark in today’s business world. I always say it’s not the talent that makes you successful, it’s the consistency of using that talent that creates success and fortune.

2 Self-Evolution

Guess what? We must change with the world. There are so many young people, straight out of school, who do not work to change the way business is currently being conducted. Fresh, innovative ideas and keeping up with the times has a direct relationship with your success.

3 Trust Instincts

Go with what you think is the right direction. It’s a 50/50 shot but the 50 percent that’s correct can generate all the success you need to get started and make some real cash.

4 Work really hard

There is no substitute for this.

5 Common sense is crucial

There are so many smart people but guess what? Few of them are anything else than a normal executive working to fill their 401K and have enough for a Disney cruise at age 60. Try using common sense when doing business… it’s often more important than having an overwhelming amount of smarts.

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6 Personal Stability

It is important to manage a healthy relationship with your partner and maintain a great relationship with family and friends. Equally important are working out and taking lots of time off. Time off is crucial to keep the creative side of the mind working. Keep your sphere of influence full of great people, starting with those closest to you—the benefits will be outstanding.

7 Never Fear

If you are afraid you are guaranteed to fail. All of us have experienced fear with clients or potential customers but we shouldn’t be afraid of what we have to offer them.

8 Honesty

Tell your clients the truth about what you are offering and then let them decide if it fits their needs.

9 Listen more and talk less

Random people can give you great ideas. Be open to new ideas that you might be able to enhance.

10 Attitude and Faith

You must have faith and keep a positive attitude. The truth is, very few of us always have a positive attitude. If you can adjust to being about 80 percent positive you will prevail at almost anything. YM

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Top 10 Popular Undergraduate Majors by Starting Salary* 1. Chemical Engineering Average Starting Salary; $61,800 2. Computer Engineering Average Starting Salary: $60,500 3. Electrical Engineering Average Starting Salary:$59,900 4. Computer Science Average Starting Salary:$54,200 5. Civil Engineering Average Starting Salary:$52,600 6. Economics Average Starting Salary:$48,100

7. Finance Average Starting Salary: $46,900 8. Accounting Average Starting Salary: $44,600 9. Mathematics Average Starting Salary: $43,500 10. Business Management Average Starting Salary: $40,900 *Information provided by Payscale.com & CareerBuilder.com

Edward de Valle II is the President of AMG Worldwide.

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summer 2009

personal finance















By Rebeca Fernandez

Summer Vacation Savings Cheap ideas for fun in the sun!

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t’s finally summer break! You’ve worked hard and you deserve to have fun, but can you do it without breaking the bank? In these hard times, we all have to watch what we spend, even on things we might have splurged on in the past. However, there are tons of options out there, one for every budget; sometimes you just have to get a little more creative. For those of you with a smaller budget, think modest. Surely by now you have heard the term “staycation.” A staycation refers to saving money by taking your vacation locally and enjoying what your own city (or the city closest to you) has to offer. Sure, you may be experiencing the “been there, done that” feeling. But there must be things out there you haven’t yet experienced, and who knows, they could end up surprising you. Try using Google to look for new options within driving distance from your home, or pick up your local newspaper and search for events. Try visiting your local parks and museums, or perhaps a local festival or concert. Mix it up! The main goal is to just take a few days off from work and school to have some fun and experience something new. If you can afford to splurge a little, try taking advantage of possible connections.

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Ask around and see if anyone you know has a room you can rent near an ideal vacation spot. You never know what might be available if you don’t ask. If you can’t find any good connections, see if any of your friends are interested in traveling with you and splitting the cost of a hotel room. Chances are that some of your friends want to get away just as much as you do. Just remember to include all expenses when calculating the budget for your trip, including gas, food, and activities.

“The main goal is to just take a few days off from work and school to have some fun and experience something new.” If you have bigger vacation dreams, along with some money in savings, try booking a package deal. Websites such as travelocity.com offer last minute packages (which include flight, room, and rental car if needed) that can be very affordable. Statravel.com and adventurestudenttravel.com also offer package deals and discounts for students, youth, and teachers. Bargain shop! Take some time to compare prices of similar deals on various Websites—it could turn out to be well worth the extra planning time.

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It may sound lame, but if you have the opportunity, don’t be shy to take your family up on the offer to tag along on a family trip. Sure, you’re older and may prefer to do things on your own terms, but you never know what kind of experiences you could be missing out on if you turn them down.

Feeling adventurous? Maybe couch surfing is right for you. Surprisingly, there are tons of people all around the world who are willing to offer to let you crash at their place for absolutely free! Couchsurfing.com verifies the locations of their members and gathers references and feedback in order to make the process as safe as possible. Not sure if it’s right for you? Check out couchsurfing. com, which features lots of information as well as thousands of testimonials. Being flexible, creative, and openminded can help you make the most out of your summer vacation. Don’t let this summer pass you by without a few fun experiences to remember. Do your research, calculate your budget, and start looking forward to good times! YM Rebeca Fernandez is a proofreader for a financial firm and lives in Owings Mills , MD.

summer 2009

feature















By Zach Kaufmann

Interview with City Paper founder Russ Smith Young Money: You started the Balti-

Russ Smith was only a senior in college when he started the Baltimore City Paper with his good friend Alan Hirsch, tapping out the early weekly editions at the Johns Hopkins News-Letter offices after hours. Smith had been inspired by earlier papers, like the Village Voice and the Chicago Reader, and after graduating he turned the Baltimore City Paper into a free daily that within a decade was a model for alternative journalism across the country. Smith subsequently sold the Baltimore City Paper, as well as the D.C. City Paper (started in the early ‘80s), and started the New York Press, now the main rival to the Village Voice. Smith’s new project is the online magazine Splice Today (www.splicetoday. com). Founded a little over a year ago, Splice Today is a news and pop culture website aimed at the 18-30 crowd. I talked with Smith about his career in alternative journalism, Splice Today, and the decline of the newspaper industry.

more City Paper in the late 70s, during your last year at Johns Hopkins, is that right? How did you get started and what kind of model was there for alternative journalism in those days? Of course the Village Voice had been around since the mid-’50s. Was that an influence for you?

Russ Smith: Yes, I started, along

with my friend Alan Hirsch, [the Baltimore] City Paper (at first called City Squeeze, in a nod to the fading hippie culture) in May of ’77. We got started with almost no money, and produced our first 10 issues, sub-rosa, at the News-Letter offices, usually after midnight when no one was around. Sure, the Voice was very influential—I started reading the Voice as a 10-year-old growing up on Long Island—but also Boston’s Real Paper and the Chicago Reader were models.

YM: How long did it take before the

Baltimore City Paper started to turn a profit?

RS: City Paper began as a free paper,

with an ill-fated detour from ’79-’81 where we went paid, at a quarter a copy in an effort to convince advertisers it was a more serious paper. That flopped and we almost went belly-up. All the revenue came from advertising (save a modest amount of circulation revenue during the paid period). Our start-up costs, once we incorporated in ’78, were $10,000; Alan and I each scraped together $5000 from relatives. Even in ’78 dollars that was a very modest amount. We first turned a profit in ’84 and then it zoomed after that, which led to a lucrative sale of the paper in ’87.

YM: Obviously the landscape of Ameri-

can journalism has changed drastically in the last 30 years. What do you make of the changes that are happening—the closures, the switch to online-only publications, the New York Times spending almost twice what they’re taking in every year and running ads on the front page?

RS: First, I like ads on the front page.

It’s an example of American provincialism and self-importance that it took so long for ads to be on the front page, where great European papers were decades ahead of them on that score. I can’t add anything to print journalism’s quick decline this decade—it’s well-documented that the arrogance of newspaper companies, which were accustomed to double-digit profit margins, scoffed at the digital revolution, which was apparent in the 90s, and were far too

slow to adapt. Now, it’s too late. I don’t especially like the disappearance of print newspapers and magazines, but, you get used to it, just like when CDs replaced albums in the ‘80s.

YM: When you started the New York

Press in 1988, what had you learned about management and publication since the Baltimore City Paper days? What did you want to do differently?

RS: When I started New York Press in

’88 I was fortunate to have more capital at my disposal. The biggest lesson I learned from the early and lean days of City Paper was how not to waste money. For example, when New York Press began, we didn’t advertise anywhere—that would be ephemeral and a waste of money on a start-up newspaper that had to evolve. Our one relatively big investment was the purchase of 300 street boxes, which served two functions: one, obviously, as a means of distributing the paper; two, it was de facto advertising, in that our logo was on the boxes. What I wanted to do differently from CP was to experiment more: obviously New

York was a much harder environment for media—it was saturated with publications of all kinds, most of them really crummy—and so, with the first issue I started a column called “MUGGER,” which was economically and politically conservative, which in Manhattan was the equivalent of porn. It was a provocative column that combined politics, along with media criticism, tales of drunken nights at dive bars, memories from childhood, and, often just what popped into my head. In a sense, it was a blog.

YM: How about starting the online maga-

zine Splice Today (www.splicetoday.com)? How has it been getting into the online market? And is this a concession on your part that old print journalism is dead?

RS: Yes, old print journalism is dead,

but an online start-up is just as difficult as any other new business, because of the competition, the still-developing internet market, the vagaries of how to quantify readers, and the difficulty of attracting advertisers. It’s a completely continued on page 29

“I don’t especially like the disappearance of print newspapers and magazines, but, you get used to it, just like when CDs replaced albums in the ‘80s.”

entrepreneurship













By Mike Michalowicz

Sleeping in Mom’s Basement? Don’t Worry! So you say you don’t have enough money to start a business. Bull! Starting a business isn’t all about money; It’s also about ingenuity, innovation, and raw passion. In fact, Jim Collins, the author of Good to Great, studied hundreds of companies and identified that the leap to success required these intangibles over anything else.

Many of the biggest, strongest companies were launched in garages with just pocket change—Amazon and Cliff Bar, for example. Yet Silicon Valley is littered with multi-million dollar dot.com start-ups that went belly up before they earned one penny of profit. Founded in 1994, Amazon didn’t launch with crazy amounts of cash. Instead, Founder Jeff Bezos started Amazon in his parent’s garage. Slowly he grew the business and brought it online, ultimately raising a mere $40K to make the first

version of the website you see today. In 2008 Amazon posted $19.2B in revenue—not bad for having its HQ in a garage only 14 years prior. Having limited resources can be a huge advantage in business. Success requires ingenuity, perseverance, and gratitude, which is not often required of silver spoon entrepreneurs. Put one person with only $100 to invest and another with plenty of backing up against each

other in a battle of start-ups, and my money’s on the underdog. The reason is that without money you can’t afford mistakes (not many anyway). When you have less you do more with it, whether it is toilet paper or cash.

Having less forces you to use your mind Financial limitations force you to think outside of the box to come up with creative solutions to problems. A person with lots of dough is more likely to throw money at a problem, rather than think his or her way out of it, missing a golden opportunity for growth and invention. I now use a strategy for advertising based on the “having less model.” I regularly troll the yellow pages ads (that I can’t/don’t want to afford), and see if any of my competitors went out of business. If they have, and their number is disconnected, I get the number and redirect it to me. They

paid for the ad (prior to closing their doors), and I benefit from the customers.

Having less helps you stand out It’s much harder to follow the status quo without money—and that’s a good thing. Do you really want to bust your butt to keep up with the guy down the street when you could be blazing a new trail? People with capital often spend a lot of money trying to look like everyone else, and when that doesn’t work they spend even more money trying to be unique. There is a reason so many clothing trends come out of urban areas—many of these individuals are doing more with less. They are bucking the status quo, with the intention of being different for less. Hush Puppies brand took off in 1994, after almost being closed down, because young people in urban areas were buying them up at small discount stores. Then the rich folks tried to copy them and bought them by the case.

Sure enough, they regularly offer free legal services (think contracts, NDA and the like) in exchange for being a case study for a class there are teaching. Now that is doing more with less.

Having less enables you to use less—even when you have more So many businesses tank because the moment the money starts rolling in, the founders go on a spending spree, loading up on office supplies like they’re stocking a bunker. All of a sudden they’re paying retail, signing expensive office leases, and the worst of the worst: hiring unnecessary staff at high salaries. Despite the fact that I sold two companies for millions, my ass is still sitting on a used office chair I got for free. (What? It’s not smelly or anything!) Accustomed to working with less, I still operate my business with the attitude that I’m not

“Many of the biggest, strongest companies were launched in garages with just pocket change …” Having less inspires you to be resourceful When you have limited resources you make better use of them. You’re smarter about it, able to strategize how you can make the most of what you have and get more of what you need for next to nothing. Most people think it’s not possible, but you know better. Whether you need office furniture, plane tickets, or a staff, inspired use of resources can help you get what you need. Trade, entice, scavenge, you’ll do whatever you have to do to get what you need, besides pay for it. For example, when I am not willing to pay expensive legal fees associated with a business startup, I have to get creative. So, in the case of legal counsel, I go to my local college and seek out the legal professors.

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made of money. And that means my bottom line is healthier than most.

I’m not saying the homeless dude in the park is better equipped than a guy with angel financing. But if you’re living in your mom’s basement, you’ve got a chance of making it. Or simply upgrade to the garage, like Amazon did, and make billions. YM Mike Michalowicz launched three multimillion dollar companies all before the age of 35 and is the author of The Toilet Paper Entrepreneur. Visit his site: http://www.ToiletPaperEntrepreneur.com

feature continued...

different model. With weekly newspapers in one specific city, it was all fairly clear: a retailer or restaurant or health club, for example, would buy space in the paper and if it brought people into their doors they’d continue to advertise. If not, they wouldn’t. It was all local and easy to track.

YM: What advice can you offer to

anyone who’s studying to be a journalist now? What kind of skills should they be learning to stay competitive and what kind of job market can they realistically expect over the next five years?

RS: The job market for aspiring jour-

nalists has never been worse, at least in my career. While there are opportunities online, the pay stinks, unless you have an established reputation. One of the great things about weekly newspapers in the past was that a 21-year-old, who didn’t have the experience to get hired at a “legitimate” publication, unless he or she were well-connected, could write like crazy and produce a body of eclectic work that would lead to better-paying jobs at dailies and magazines, although the work and atmosphere probably wasn’t as much fun.

I can’t offer any advice to young people starting out in journalism because I’m a relative dinosaur who can’t exactly decipher what the next great wave of journalism will be. It won’t disappear, and the present glut of blogs and small websites probably won’t survive the next New Journalism. But I’m betting, as I tap this out, that smart young entrepreneurs are figuring all this out, and they’ll be the ones who set the pace, not all the bitter graybeards who are pontificating about whether daily newspaper web content should be free or paid or go nonprofit. All of that isn’t really germane to the future; it’ll be a new communications world and the people who are making predictions now will almost all be wrong. YM Zach Kaufmann is a freelance writer and music critic at Splice Today, an alternative online publication.

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By Zach Kaufmann

Go Green or Go Broke Detroit’s (Last?) Drive to Green the Big Three

I

n case you haven’t been following the death of the “Big Three” Detroit automakers (General Motors, Chrysler and Ford), here’s a quick recap: GM and Chrysler asked for nearly $22 billion in additional bailout, on top of the $17.4 billion already received (approved by then President Bush in late December, 2008). The next day, the Obama Administration made the official announcement: not only would there be no additional $22 billion, but GM Chairman and CEO Rick Wagoner would need to resign immediately (he did). GM was given sixty days to make fast progress on its restructuring plan before a prepackaged bankruptcy contingent filing would be put into place. Chrysler, on the other hand, would only be given thirty days. It was told to work towards a partnership deal with Italian automaker Fiat, the Obama administration having decided it could no longer function as a stand-alone company.

As the AP reported, “If Chrysler fails to reach a deal with Fiat or another partner, the government won’t provide any further financing, likely sending the company into liquidation.” Obama, in a televised address, went so far as to say that all car warranties offered by GM and Chrysler would be backed by the U.S. government. As of right now, April 13, 2009, the New York Times reported that, “The U.S. Treasury Department has asked automaker General Motors to begin preparing for

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a bankruptcy filing by June 1… The government wants preparations made for a quick, ‘surgical’ bankruptcy.” If you find all this economic recession stuff a little hard to sort through, you’re not the only one. As P.J. O’Rourke wrote for the Weekly Standard back in November: “Jim Jerk down the road from me, with all the cars up on blocks in his front yard, falls behind in his mortgage payments, and the economy of Iceland implodes. I’m missing a few pieces of this puzzle myself.” It seems that the decline of the once booming Detroit auto industry has as much to do with the decision of the Big Three to cede the small car market (cars that were once disparagingly referred to as “tin cans”) to Japanese automakers like Toyota and Honda. Former Canadian auto union leader Sam Gindin, now a professor of Political Science at York University, made this point in a conversation in late January with Paul Jay of the Real News Network. The SUVs and large vehicles that the Big Three are known for are both cheaper and far more profitable to manufacture. The profit margin on a Hummer, for example, far exceeds that on a Honda Accord, and 28

shareholders love higher profit margins.

GM and Chrysler’s resistance over the past twenty or thirty years to developing small, fuel-efficient cars means that today’s “Go Green” mindset—where expensive energy costs meets environmental concern—has left the companies to rack up huge debt. GM hasn’t turned a profit in five years, and yet it was only last June (when national fuel cost aver-

ages hit a record high above $4 a gallon) that they announced plans to close four SUV and large truck manufacturing plants and overhaul their Hummer line.

What has been obvious for years now—that new and existing hybrid technology should be the cornerstone of the Big Three’s push into the small car market—might finally become a reality. There were signs at the 2009 Detroit auto show that executives were starting to wise up, with Ford leading the way: an all-electric van slated for release in 2011, and a plug-in hybrid by 2012. An electric passenger car, powered by a lithium ion battery with a 100-mile range on a single charge, produced in conjunction with Magna International would also be unveiled in 2011. “Go Green or Go Bankrupt” may be the auto industries present call to arms, but, of all people to make that point, it was legendary rocker Neil Young who brought it home. Writing for the Huffington Post last November, Young (a longtime friend of the environment and proponent of sustainable energy) pointed towards SCEV (self charging

electric vehicle) technology as the key to a renewed American auto industry. “No Big Three excuses like ‘new tooling takes time.’ New tooling is not a requirement for SCEV transition rollers... Government legislation going with the bailout should include tax breaks for purchasers of these cars with the new green SCEV technology. The legislation accompanying the bailout of major auto manufacturers must include directives to build only vehicles that attain the goal of reversing global warming while enhancing National security, and provide the financial assistance to make manufacturing these cars affordable in the short term while the industry re-stabilizes.” Presumably, what Young had in mind wasn’t the PUMA, a two-wheeled, two-seater electric vehicle designed by GM (in partnership with Segway, Inc.) to “revolutionize urban transportation.” Unveiled this week, the PUMA looks like a high-tech golf cart and can reach speeds of 35mph. As Larry Burns, GM’s Vice President of Research and Development, announced, the PUMA will be linked to a city-wide communications network that would regulate traffic and

prevent accidents.

Leave it to GM to decide to build off the remarkable success of the Segway (“It will eliminate walking!”), designing a vehicle that’s not only smaller than anyone could want, but that could cause a fatal accident if there is a big enough pothole in the road. Still, it at least shows that the Big Three are starting to change their thinking, finally responding to the changing demands of the American consumer—whether it’s too little too late, only time will tell. YM Zach Kaufmann is a freelance writer and music critic at Splice Today, an alternative online publication.

tech talk











By Richard Park

Five Easy Ways to Green Your Dorm Room Did you know that going green can actually save you money? Here is a list of just a few things you can do to green your dorm room.

CFL light bulbs

Compact fluorescent bulbs are better for the environment and your electricity bill. According to the Energy Star website, if every home in America replaced just one bulb with a CFL bulb, “we would save enough energy to light more than 3 million homes for a year, more than $600 million in annual energy costs, and prevent greenhouse gases equivalent to the emissions of more than 800,000 cars.” CFL bulbs last between 8 and 15 years. The initial cost is higher but the extended lifetime and lower energy use more than compensate for this. Using CFL light bulbs cuts down 12 percent (on average) of a typical American’s electricity bill.

Energy Star

When it comes to buying that mini fridge, television or anything electronic, make sure you buy an Energy Star certified product. It consumes less electricity which saves you more. Visit www.energystar.gov for more information.

Keep a plant

To keep your dorm rooms looking lively try keeping plants (not the plastic kind). Plants are not only for aesthetics, they also help fight toxins and pollutants. A

good choice is the Peace Lilly. They are very easy to look after, flower all year long, and can absorb potentially harmful chemicals from the air, including toxins from cleaning fluids and cigarette smoke. Look for a Peace Lily in your local nursery or even your closest Wal-Mart.

Bedding

Buy natural materials rather than synthetic pillows and blankets. Look for all natural cotton or wool blankets. Visit www.EcoChoices.com for a variety of all natural bedding products.

Young Money star review

Stop phantom power waste

Did you know when you turn off many electronics they go into stand-by and continue to consume electricity? According to the U.S. Department of Energy this stand-by power can account for as much as 20% of home energy use. This not only costs you money but wastes

energy—energy that is often generated by air polluting coal or nuclear power plants that generate radioactive waste. The Monster GreenPower™ MDP 900 PowerCenter™ protects your computer from common power surges and spikes. Better yet, it helps you conserve energy by automatically shutting down outlets (eliminating stand-by, or “phantom power”) to stop energy waste. It’s also color coordinated for easy cord organization and has surge protection for phone and Ethernet connections. Price: $129. Visit www. Monsterpower.com YM Richard Park is a regular contributor to Young Money.

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forum











8 Top-Paying PartTime Jobs for College Students

Environmental Impact of Direct Deposit U.S. businesses saved a total of $6.7 billion over 10 years (1998 to 2008) by switching employees to Direct Deposit. •This is an average yearly savings of $605 million for all U.S. businesses combined. •This is an average per employee savings of $176.55 per year. Annual environmental / financial impact for ONE U.S. employee (paid bi-monthy) using Direct Deposit:

•Save one pound of paper. •Eliminate the release of four gallons of wastewater. •Eliminate the release of one pound of greenhouse gases. Equivalent to: not driving four miles, and half a square foot of forest preserved for 10 years). •Save a business $176.55.

Annually, if a business that employs 300 people and issues paychecks every two weeks switched to Direct Deposit, it would: •Save 121 pounds of paper. •Avoid the release of 1,159 gallons of wastewater into the environment. •Save 45 gallons of gas. •Eliminate the release of 346 pounds of greenhouse gases into the atmosphere. Equivalent to: 1,231 miles not driven in your car, 15 trees planted (and grown for 10 years), 151 square feet of forest preserved from deforestation. Annual environmental impact if EVERY U.S. employee that had access to Direct Deposit (122.5 million) used it: •Save 11,082,971 pounds of paper. •Avoid the release of 105,709,380 gallons of wastewater. •Save 4,105,889 gallons of gas. •Avoid the release of 31,581,675 pounds of greenhouse gases into the atmosphere. Equivalent to: 112,329,703 miles not driven; 1,345,379 trees planted (and grown for 10 years) and 13,756,978 square feet of forest preserved. Statistics provided by Pay it Green

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1. Computer Lab Assistant (on-campus) Typical Hourly Pay: $8–$11 Computer Support Specialist (off-campus) Average Hourly Pay: $21.78 2. Administrative / Personal Assistant (on- or off-campus) Average Hourly Pay: $19.57 3. Aerobic Instructor / Fitness Trainer (off-campus) Average Hourly Pay: $15.86 4. College Mail / Print Center Attendant (on-campus) Average Hourly Pay: $12–$13 5. Library Assistant (on- or off-campus) Average Hourly Pay: $11.42 6. Bank Teller (off-campus) Average Hourly Pay: $11.36 7. Desk Attendant (on-campus) Typical Hourly Pay: $8–$10 Hotel Desk Clerk (off-campus) Average Hourly Pay: $9.66 8. Babysitter (on- and off-campus) Average Hourly Pay: $9.21 for five to nine years’ experience; $7.17 for one to four years’ experience (according to PayScale.com) Source: Average hourly pay rates from the May 2007 National Occupational Employment and Wage Estimates available from the U.S. Department of Labor, Bureau of Labor Statistics.

summer 2009

©2006 Environmental Defense

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