This will be my last post of the semester, so I wanted to send off the graduates with some helpful financial strategies as they enter the “real world.”

The biggest piece of advice is to start saving your money. In college, it is hard to save when you can’t work full time and you have expenses like tuition and books. But now that many of you will be working longer hours and receiving a bigger paycheck, it is important to save a portion of that check for things such as an emergency fund, a house, wedding, car and even retirement. As I have discussed before, having a budget is crucial to effectively saving money.

A second tip is to familiarize yourself with all of the details of your student loans. Make sure you understand things such as the interest rate and payment schedule. You want to know the ins and outs of each loan you have. Make a spreadsheet or word document with all of this information broken down into a basic form that you will be able to look back at and ensure you do not accidentally miss payments or have a financial mishap.

Third, if you have a job in a large city with public transportation, take the time to decide whether you actually need a car. Besides the cost of gas, you can save money by not having car payments or insurance costs.

As my final piece of advice, be sure to ask your employer about benefits. Health insurance, dental insurance and retirement plans all can be just as important as your salary. As someone who grew up on a dairy farm where my parents ran their own business and did not receive these benefits, I can tell you firsthand that they add up fast.

I encourage you to read articles about personal finances online as well seek out further advice from your parents or peers who have graduated before you. The first two articles are great starting points, as I received some of my information for this article from them. Best of luck in postgraduate life! Remember, “Spartans Will.”

As I have said in previous blog posts, the total amount of student debt has surpassed $1 trillion, according to the Consumer Financial Protection Bureau. Most of this debt is in the form of student loans. This post is going to address the fact that not all loans are created equal. So how should students pick and choose which loans to take? A recent article on the “Wall Street Journal”:http://online.wsj.com/article/SB10001424052702304072004577325602871157444.html’s website provides some great insight.

First of all, the interest rate is not always what matters most. Private issuers or banks could offer an interest rate that appears smaller than the likes of Stafford and Perkins loans that carry interest rates up to 6.8% for undergraduates and even higher for graduate students. This makes private loans seem like the better choice, but experts say that you should read the fine print. Many of the private issuers have variable interest rates, which means that they will likely climb during the period in which you begin paying them off.

Secondly, if students begin to have trouble making their monthly payments, the federal government is more accommodating than private issuers. This flexibility comes in the form of alternative payment plans and perhaps deferring payments for a period of time.

As shown in the U.S. Consumer Financial Protections Bureau’s Financial Comparison Shopper, released last week, an MSU graduate would have to pay $878 a month for 10 years to cover the average costs of debt incurred while in school. According to the MSU Office of the Controlle, an in-state freshman paid roughly $12,254.50 in tuition for 15 credits this school year and an out-of-state freshman paid roughly $31,199.5 for the equivalent. With average total borrowing of $14,722, it is important that students make wise decisions when finding their sources of funding.

After talking about unemployment last week, I thought I should explain more about how and why the government calculates these numbers every month. As outlined in a blog post on wsj.com, there are several misconceptions regarding unemployment.

The unemployment rate is a very important number.

A high unemployment rate indicates a loss of productivity in a country and suffering at an individual level. These numbers often are used to decide if measures should be taken to influence the economy or help the unemployed. After disappointing numbers were released on Friday of last week, talk has re-emerged of further “quantitative easing,” which is a monetary policy used by central banks to stimulate the economy.

The Bureau of Labor Statistic (BLS) of the U.S. Department of Labor releases this number every month. It receives a great deal of coverage in the media, but the majority of us do not understand exactly how this system works. Among these misconceptions are beliefs that every household is somehow contacted to receive an exact count for unemployment or that unemployment insurance records are used. Neither of these are the case for several reasons, amongst them are time, financial costs and the fact that individuals can only draw unemployment for a certain amount of time.

So how do they calculate the unemployment rate then? The government conducts a sample survey called the Current Population Survey (CPS). This form of measure began in 1940 and has been modified several times. It covers approximately 60,000 households or 110,000 individuals each month.

According to the BLS website, “The CPS sample is selected so as to be representative of the entire population of the United States.” All counties and county-equivalent cities are grouped into 2,025 sampling units with 824 of these units being chosen by the Census Bureau to represent each state and the District of Columbia.

Each month, one-fourth of the households in the sample are changed so that no household is interviewed more than four consecutive months. The Census Bureau has 2,200 employees conduct interviews of persons in the sample households every month.

When a household is first interviewed, the interviewer prepares a roster of the household members; their personal characteristics such as race, sex, and date of birth and their relationships to the person maintaining the household. This information, relating to members 15 years of age or older, is then transmitted to the Bureau’s main computer in Washington, D.C.

Classification is made in regards to the activities the person is engaged in during the reference week. These numbers are then “weighted” or adjusted to independent population estimates that are based on updated decennial census results. This weighting accounts for the age, sex, race, Hispanic ethnicity and state of residence of the person. This weighting helps ensure that these characteristic are represented in the proper proportions in the final estimates.

“Chances are 90 out of 100 that the monthly estimate of unemployment from the sample is within about 290,000 of the figure obtainable from a total census,” the BLS website claims. “Because these interviews are the basic source of data for total unemployment, information must be factual and correct.”

The survey respondents never are asked specifically if they are unemployed or given an opportunity to decide their own labor force status.

Individuals are classified as employed, unemployed or not in the labor force based on the questions they answer in the survey that is processed through the Bureau’s definitions programmed into their computer.

So who is counted as employed? Individuals are considered employed if they do any work for pay during the survey week. This can be part-time, full-time or temporary work. They also are counted if they have a job but were not there during the survey week because they were on vacation, ill, experiencing child care problems, taking care of family, on maternity leave, involved in an industrial dispute or prevented from working by bad weather.

Who is unemployed? Individuals are classified as unemployed if they do not have a job, have actively looked for work in the prior four weeks and are currently available for work. Actively looking for work is classified by contacting: an employer directly or having a job interview, a public or private employment agency, friends or relatives, a school or university employment center, sending out résumés or filling out applications, placing or answering advertisements, checking union or professional registers or some other means of active job search.

Passive methods do not qualify as actively searching for jobs. Activities that are considered passive are attending a job training program or just reading about openings and not applying for them. Workers that are expecting to be recalled from temporary layoff also are counted as unemployed.

There are also seasonal adjustments to account for hiring and layoff patterns. This technique takes past history of the series to identify seasonal movements and calculate the size and direction of these movements. The seasonal adjustment factor is then developed and applied to the estimates to eliminate the effects of regular seasonal fluctuations.

All of this data can be found in a monthly news release by BLS titled “The Employment Situation.”

It’s great to look at unemployment data and see the steady drop over the past few months. Yet, we need to remember that last year we started off with great economic news as well, and then we took a turn for the worse during the summer when macroeconomic factors like the “European crisis” were in focus. This has many economists asking the question of whether history will repeat itself this year.

According to an article on MarketWatch, many don’t think so. However, doubts still remain. Gas prices have been climbing lately, and a rise this early in the year could be bad news for summer driving. Consumer spending also has been outpacing wage gains at what is an unsustainable rate. There also is the argument that a warm winter caused fewer layoffs and the recent drop in the unemployment rate will begin leveling off.

As recently as last month, the Congressional Budget Office, or CBO, projected more than an 8 percent level of unemployment until 2014. Right now, the rate is 8.3 percent, with the next release of unemployment numbers on April 6. This begs the question of whether Michigan’s substantial decline in unemployment will taper off as well.

I remember when Michigan had one of the highest unemployment rates in the country during the heart of the recession. Recently, we have been more of a turnaround story, seeing substantial declines in unemployment and signs of life in the housing industry.

Unemployment in Lansing was as high as 11.1 percent in October and November of 2009, remaining at or above 11 percent for four months. Now, Lansing’s unemployment rate has fallen to 7.1 percent as of January 2012 (most recent numbers available). This decrease has been rather dramatic, as we saw unemployment at 8.3 percent last August, and the last time we saw this rate was in August of 2008, before it climbed above 11 percent. This is still high, considering Lansing had a more stable rate in the area of 5 percent before the recession and was as low as 2.6 percent in 2000.

Taking a look at gas prices, Michigan has been one of the hardest hit areas. The national average is still below $4, while Lansing has been above that threshold for the past few weeks. It’s uncertain as to how much of an impact this may have, but it is certainly something to consider.

Bottom line, this year has started off great. Unemployment has fallen substantially, the stock market saw its best first quarter in over a decade, and the crisis in Europe has seemed to quiet down for now. Predications for the rest of the year are anyone’s guess, although we would all love to see this trend continue.

I follow a lot of financial blogs, reporters and news outlets on twitter, so when a tweet from @“FoxBusiness”:http://www.foxbusiness.com/personal-finance/2012/03/26/students-loan-rates-could-double-if-congress-doesnt-act-soon/?cmpid=cmty_twitter_fb said “Do you have student #loans? Your rates could double if Congress doesn’t act,” I decided to make it the topic of this week’s blog.

Student loan debt now exceeds $1 trillion, according to the Consumer Financial Protection Bureau. This is more than 16 percent higher than an estimate made by the Federal Reserve Bank of New York earlier this year. I knew student loans were skyrocketing, but I was unaware of the fact that students may face an increased rate of interest if Congress does not take action.

With a deadline of June 30, Congress must decide whether or not to continue the provision from the 2007 passing of The College Cost Reduction and Access Act. This legislation reduces the interest rates on subsidized Stafford student loans to 3.4 percent from 6.8 percent over a four-year period for families that meet financial need requirements.

As nearly eight million students use these loans, I assume that there are a fair amount of students at MSU that use them as well. The article gives this laid out example: a student with the maximum $23,000 in subsidized loans over four years will see an increase in interest of $5,200 over a 10-year period or $11,300 over a 20-year period. Also of note is that the Pell Grant Program has been said to have a high chance of termination. This program allowed lower income students to borrow $5,550 for the 2011-12 award year without repayment.
U.S. PIRG reportedly has sent 130,000 to Congressional leaders from students, in which they ask them for their support in extending the interest rate cuts. I am not taking sides on whether the rates should be increased or decreased, but simply wanted to inform my readers of some political events that are affecting them in particular.

In this week’s blog post, I am hoping to get my readers more involved.

Recently, several banks have been increasing their fees or requiring things such as a minimum account balance in order to waive the fee.

I use PNC and my account recently switched where would I have to stay above a $1,500 account balance, receive a large sum of direct deposits, or settle for a basic checking account where I earned less interest and did not receive reward points for purchases made with my debit card.

I settled for the basic account. I was glad there was a way for me to get around those pesky fees though. I would hate to pay even just $5 a month to have a checking account. Bank of America has been the most scrutinized over there fees.

Many are blaming the Dodd Frank Act (read all 848 pages if you wish), or more specifically, the Durbin amendment.

Why? They often cite the fact that this act lowered the percent banks could charge retailers when consumers purchased products or services at their store using a card affiliated with that bank.

According to Forbes, a report from RBC Capital Markets estimates banks will take an 80% hit to the fees they once collected from retailers.

For a bank such as JPMorgan Chase, which RBC said generated $537 million in fees from retailers in the 1Q 2011, that translates into a quarterly revenue loss of $430 million.

This argument definitely seems logical, but that isn’t the point of my article, I just wanted to add some context as opposed to simply blaming banks.

I want to know if your banks have been adding fees or changing the terms on your account. As college students, we probably do not pay as much attention to this as what we should.

These fees can hit people like us the hardest, as we typically have the hardest time meeting the requirements such as the previously noted minimum account balance or monthly direct deposits.

Please respond below with any changes you have noticed!

Hey readers! I hope everyone had a fantastic spring break. Today’s topic is going to be debt. From credit cards to student loans, here are a few answers to some of the most commonly asked questions.

First, how do you decide which credit card, loan, or other line of credit to pay off first?

Most advisors recommend making a list of all your loans, lines of credit, and credit cards and their interest rates. Loans that come with a tax deduction like student loans should be paid off last. Those types of debt usually have relatively low interest rates as well.

The quick tip is to pay off debts with the highest interest rates first. This is because the higher the interest rate, the more it costs you in interest per dollar of debt. Look at this example from ABC News:

Let’s say you have a $5,000 credit card debt at 29.99 percent and a $2,500 one at 9.99 percent. Here’s how much it costs you in interest to pay them off if you make the typical minimum payment of $300 on the two cards plus add an additional $50 per month.
Interest owed by paying lowest balance first = $2,641
Interest owed by paying highest interest first = $2,332
SAVINGS = $309

If you would like to experiment with different payment strategies, check out this excellent calculator from Bankrate.com

A second topic is whether you should simply make the minimum payment every month. When you look at your statements, you will see something titled “minimum payment.” Should you pay more than this? The short answer is that if you have the money, yes! Many make the mistake of thinking that it is fine to just make the minimum payments. The problem arises because that payment will typically just go toward interest, so your balance is reduced very much. One website gave this example: Assume your credit card has a 15 percent interest rate, you have a balance of $5,000, and that you never make another purchase on the card. If your minimum payment is calculated at 4 percent of your balance, it would take you ten and a half years to pay off the card. And here’s the worst part: you would have paid almost $2,400 in interest! Wow, I can think of a lot of other ways I would like to spend my money.

On a final note, if you would like to experiment with how long it would take you to pay off your credit card with various monthly payments, you can check out foxbusiness.com or several other sites. You would be amazed at how much only a few dollars in extra payment can help you. As college students, the last thing we need is to graduate with both student loans and a breathtaking amount of credit card debt.

Smartphones can be used for many things, but did you know that they can help you save money as well? Yes, there are applications for that. This week’s blog is all about the money-saving power of smartphone apps. Here are a few apps that I thought would be best to highlight.

First up, we have GasBuddy. This free app lets you find the cheapest gas in town. Don’t you hate that feeling when you fill up and then a mile down the road you see gas for 10 cents less per gallon? This app takes away that worry for you. You can also watch to see if other stations start raising their prices and hurry to fill up. This has a lot of money-saving potential.

Second, we have Price Check by Amazon. We are all familiar with their online store, but this free app allows you to look up prices of items on Amazon while shopping at one of your local retailers.

For instance, if you are at Dick’s Sporting Goods shopping for a new pair of sneakers, you can use Amazon’s app to look up the exact pair and make sure you aren’t paying $10 or $20 more. Other apps such as Google Shopper and ShopSavvy allow you to scan barcodes to check prices at several retailers.

Finally, we have Buzzilions. This free app allows you to see product reviews, which can prevent you from buying products and regretting it later. Say goodbye to the days of buying a product to find out later that it sucks and reading reviews would have saved you money, time and frustration. This app page boasts more than 17 million product reviews.

Do you have a particular app that you use to save money? Comment below and share your thoughts.

This blog post is for all of the gentlemen that read my blog. More specifically, this is for the gentlemen that have a wonderful lady by their side. Tomorrow is Valentine’s Day, and I’m here to give you some tips on how to impress your girl with out breaking the bank.

First, think about getting her a picture frame. They are a great, inexpensive gift that doesn’t seem to get much attention. Girls love picture frames, especially when they have a picture of them with a loved one.

Second, if you have some cooking skills, chances are your girlfriend will be far more impressed by you taking time to make her dinner rather than taking her out to a fancy restaurant. If you really want to go all out, make her favorite meal with a flower centerpiece and a dessert to cap it off.

Third, stay in and rent a movie rather than going to the theatre. However, this may not fly since “The Vow” just came out this past weekend and most girls swoon over Channing Tatum. That being said, just ask if she would rather stay in and watch one of her favorite romantic comedies or make the trip.

Finally, here is something that isn’t a money saving tip. Buy her some nice flowers. They are definitely worth the expense one day out of the year. There is one quick way to cut down on this expense, make the effort to deliver them yourself rather than having them sent to her at work. Happy Valentine’s Day!

As a lover of everything related to New York City, I am a happy girl having watched the Giants come away with a win. Hence, instead of a blog focused solely on finances, I am going to throw in a fun combination by talking about some financial details related to the Super Bowl.

Darren Rovell, sports reporter for CNBC, had so many awesome facts about the Super Bowl that I couldn’t resist making it the topic for the week. All of these facts came directly from Darren Rovell’s twitter account. They range from sports facts to the financial impact of the commercials. If you have any that you want to share, comment on the thread below!

From @darrenrovel:

Mitch Modell tells me [Darren Rovell] that the 2 hours after the Giants win, the company had its biggest sales in its 123-year history.

This Year’s Super Bowl overnight rating of 47.8 is 3rd highest behind last Year’s Super Bowl & Super Bowl XXI (Giants-Broncos)
The Super Bowl generated 12.2 million social media comments, up almost 600% vs last year’s game (Source: Bluefin)

The most commented on Super Bowl ad in social media circles was David Beckham’s H&M ad, according to Bluefin.

USA Today’s Ad Meter results: 1. Doritos “Man Best Friend,” 2. Volkswagen “Dog/Star Wars,” 3. Skechers “Mr. Quiggly.”

Giants players earned a total of $172K each for the playoffs (via @SportsTaxMan). That’s 38% of Victor Cruz’ regular season salary.

Most NY Modell’s stores will be open until fans stop coming in. NYC Herald Square guaranteed to be open at 5am tomorrow.

The most valuable Super Bowl ring in gold & diamonds is the Pats ring from Super Bowl XXXIX. It’s worth $33,397 (Cash4Gold)

Only 4 companies have made Super Bowl rings: Balfour, Diamond Cutters, Jostens & Tiffany.

Retail value of 2012 Chevrolet Corvette Grand Sport Centennial Edition presented to Manning is $70,390.

This was the first time in a 16-game regular season a team with fewer than 10 wins came away with a Super Bowl victory. Source: @AndrewSiciliano

This will be known as the Super Bowl of the Car Ads. They spent a record of $77.5M on spots this game (Source: Kantar Media)

The NFL does not pay the Super Bowl halftime performers. Madonna & others do it for publicity.

Players who sign “I’m Going To DisneyWorld” contingency contracts have to agree to keep their signing a secret.

In 2008 when the Giants & Patriots last played in the Super Bowl, a 30-second ad cost $90,000 per second. Yesterday it was $116,666 per second.

About 120 different balls were expected to be used in yesterday’s Super Bowl.

The odds that the 1st scoring play in the game will be a safety by either team is 60/1 (Lucky’s)

69% of US TV sets were tuned into last year’s Super Bowl. The viewership was 77% tuned into MASH finale in 1983.

Bud or Bud Light has won the best Super Bowl spot on USA Today’s Ad Meter 11 out of the last 13 years.

The 2010 Super Bowl had the most ads, with 104 commercials. (Source: Kantar Media)

No alcohol is allowed at all at any point in NFL locker rooms.
There are six NFL teams (Bears, Browns, Giants, Lions, Packers, Steelers) that don’t have cheerleaders. These 6 teams have won five of the last 7 Super Bowls.

Last year, Super Bowl ads without celebrities performed 9.2% better than ads with them (Source: Ace Metrix)

Advertisers spent more on the 2011 World Series (7 games) $268.8M vs. the 2011 Super Bowl $227.9M (Kantar Media)

A parking lot near Lucas Oil Stadium was charging $200 per vehicle the morning of the game.

The lowest face value Super Bowl (ticket) this year was $800.

That’s a 2400% increase from Super Bowl I, which was $12 factoring in inflation.

Americans will eat 30 million lbs of snacks today (Calorie Control Council)

Domino’s will sell 11 million slices today. That’s 127 slices sold per second.

US Super Bowl partygoers will eat 11.2 million pounds of potato chips = 1.8 billion grams of fat (Calorie Control Council)

I highly encourage you to follow “@darrenrovell”: https://twitter.com/#!/darrenrovell on twitter. Stats like these are awesome.