Tag Archives: internships

Smart Money Moves for your Internship Paycheck

7 Mar

Nathan Carmany, a Purdue Alumnus, is a Certified Financial Planner for Watermark Wealth Management

The spring semester is underway. Companies are recruiting and having conversations with
your professors about ideal candidates. You attend networking events, purchase new interview clothes, and hopefully land the perfect position for the summer. To stay ahead of your finances, you need to make a conscious plan for your earnings.internship txt crop.jpg

  1. PAY HIGH INTEREST RATE CREDIT CARDS 

The average balance for a college student in 2013 was $499. The average interest for student credit card interest is 13.42% stated as an APR, however, the effective rate after compounding daily is actually 14.34%. What better way to cut expenses than eliminating high interest obligations?

  1. CREATE A SPENDING PLAN

Consider creating a spending plan for the summer and school year to stretch the duration of the funds. Paul Arden stated, “Don’t look for the next opportunity. The one you have in hand is the opportunity.” Think about what opportunities you may put into your own hand with a well thought out spending plan.

  1. PAY FOR YOUR SUMMER CLASSES

Don’t overlook that your credits for the summer internship can cost money. Why not use some of the funds to possibly pay for those? Reduction of your total amount borrowed before interest is capitalized and recommended for faster loan payoff.

  1. PREFUND YOUR LIVING EXPENSES

Seniors, set aside as much as you can. When you find your first apartment or home, somewhere the move will create an unplanned expense. Inevitably it happens, an extra day rental on the moving truck, needing kitchen utensils, towels, or boxes. The money will help cushion for the unplanned expense. Do not forget about the extra cost of hooking up utilities, cable, or the internet.

  1. BUILD AN EMERGENCY FUNDgraph spending plan final.jpg

Traditional financial planning calls for 3-6 months of living expenses set aside for an emergency fund. Most people will experience at least one significant financial emergency in a three to five year period. It can be difficult for college students to save a full 6 months of living expenses, but setting aside a modest amount may prevent you from making a call to your parents when something comes up. Like my grandmother taught me, place the money in a zip lock bag and freeze it in a container of water, then see how easy it is to impulse spend!

  1. CONTRIBUTE TO A ROTH

The sooner retirement savings start; the less you have to save over the rest of your life. The compounding of gains and interest early on are difficult to make up if you delay contributing until later in life. By saving it in a Roth IRA, the earnings are tax free after age 59.5, as long a Roth account was opened 5 years ago or longer. That 5 year clock begins with the first contribution to your Roth. If you need access to the money, contributions are removed first without any penalty.

  1. PAY DOWN STUDENT LOANS

Hopefully, you have been informed about the inability for most borrowers to ever declare this type of debt in bankruptcy and that prolonged periods of missed payments will lead to wage garnishment, a much larger loan balance, and the destruction of your credit score. The grace period on most student loans expires 6 months after graduation. Interest is capitalized (meaning that it is added to the loan balance) at that point unless you qualify under a different exemption. Paying down unsubsidized loans (make sure your loan servicer allocate it properly) with your earnings before the end of the grace period is a great way to cut the overall cost of the loan.

Wrap Up

Think about your upcoming needs for the summer, school year, or beyond graduation. Pick one of the ideas to best suit your needs and work on an implementation plan. No matter which idea you execute, a well thought out plan will serve you well.

Unpaid Internships – How to Save

4 May

Raysha Duncan, Financial Aid Administrator & Purdue Alumna
www.purdue.edu/mymoney

A lot of colleges at Purdue University emphasis the importance of internships, graduating with working experience, and how the experience will help sell YOU Uncle_Sam_(pointing_finger)even more to future employers. Unpaid internships pay very little, are a growing trend in today’s economic environment, and can be one of the toughest truths to face about finding a killer internship. Not everyone will be able to find their dream internship and get paid for it.

It’s important to know when starting an unpaid internship that “unpaid interns cannot do any work that contributes to a company’s operations”; these internships are meant to be educational for the intern and are not meant to provide free labor for businesses. Financially, there are a lot of things to take into consideration when pursuing an internship: pay, cost of living, cost of transportation, potential moving costs, subletting your current place, validity of the internship… The list goes on and on. Looking at a huge list of to-dos can seem overwhelming and can make you question whether or not the internship is even worth it. But, luckily, if you give yourself enough time to plan ahead, finding the right internship is a breeze.

The simplest solution to your internship dilemma would be to find a local, or fairly local, company that is flexible enough and willing to fit the internship within your schedule. In this case, you won’t have to search for new housing or sublet your old housing or anything of that nature. This is an ideal internship situation from a financial standpoint. You may not be able to find your dream internship this way (commuting to New York City every week from West Lafayette Indiana is kind of impossible) but, you could still get a great internship, gain experience, and start to learn the ways of your trade, all while saving some money.

Another solution would be to start planning now for next year. This is necessary from a financial standpoint, especially if you know that your dream internship will not pay well. Saving is the most important step in preparing for an internship. Work a lot now and save what you earn in order to afford your dream internship. While flipping burgers or ringing up customers may not be what you want to do for the rest of your life, you can earn money while doing it and you can pick up extra shifts to score some spare cash.

houseYou’ll also want to figure out your housing situation. If you’re renting now and your lease is continuing while you’re away, are you allowed to sublease? If you are, you should want to start advertising as soon as possible so you can line up your own housing near your internship. Also, if you have classmates who will be interning near the same location sharing a place can make rent more affordable and save you more money. You may have to start cutting corners during the school year to save, but it will all be worth it when you finally get to your dream company and start gaining real word experience.

A third solution would be to find an internship near your hometown. You’ll be home with your parents, but so what? You could live rent-free, have lessened commuting expenses, and still gain experience in a new position. However, finding an internship could be difficult to impossible depending on where you are from.

Lastly, there are virtual internships which are becoming increasingly popular and possible in today’s technological work force. These types of internships allow you to work from anywhere; you never have to set foot in the real office. Virtual internships allow students to work for a company from wherever. Because of advancements in technology, virtual internships are becoming more common and more practical.

Gaining experience in the work force and in your area of study is really important especially if you want real world working experience when you graduate with your degree, but it shouldn’t Walletstrain your wallet, either. Planning ahead, like with most things, can help save you a lot of stress and also a lot of money.

The process of even finding an internship can be difficult. Luckily, Purdue has a lot of great resources to help students as they search for internships.

The Purdue Center for Career Opportunities has a list of different categories of internships.  The CCO is also a great resource in preparing for career fairs, writing resumes, and practicing interviewing skills.

Interns for Indiana works to provide students with opportunities in high-tech areas located in Indiana.

Purdue offers jobs and internship opportunities to students here on campus.

Good luck on your internship search!

Unpaid Internships – How to Save

15 May

Raysha Duncan Purdue University Student and Peer Counselor
www.purdue.edu/mymoney

A lot of colleges at Purdue University emphasis the importance of internships, graduating with working experience, and how the experience will help sell YOU Uncle_Sam_(pointing_finger)even more to future employers. Unpaid internships pay very little, are a growing trend in today’s economic environment, and can be one of the toughest truths to face about finding a killer internship. Not everyone will be able to find their dream internship and get paid for it.

It’s important to know when starting an unpaid internship that “unpaid interns cannot do any work that contributes to a company’s operations”; these internships are meant to be educational for the intern and are not meant to provide free labor for businesses. Financially, there are a lot of things to take into consideration when pursuing an internship: pay, cost of living, cost of transportation, potential moving costs, subletting your current place, validity of the internship… The list goes on and on. Looking at a huge list of to-dos can seem overwhelming and can make you question whether or not the internship is even worth it. But, luckily, if you give yourself enough time to plan ahead, finding the right internship is a breeze.

The simplest solution to your internship dilemma would be to find a local, or fairly local, company that is flexible enough and willing to fit the internship within your schedule. In this case, you won’t have to search for new housing or sublet your old housing or anything of that nature. This is an ideal internship situation from a financial standpoint. You may not be able to find your dream internship this way (commuting to New York City every week from West Lafayette Indiana is kind of impossible) but, you could still get a great internship, gain experience, and start to learn the ways of your trade, all while saving some money.

Another solution would be to start planning now for next year. This is necessary from a financial standpoint, especially if you know that your dream internship will not pay well. Saving is the most important step in preparing for an internship. Work a lot now and save what you earn in order to afford your dream internship. While flipping burgers or ringing up customers may not be what you want to do for the rest of your life, you can earn money while doing it and you can pick up extra shifts to score some spare cash.

houseYou’ll also want to figure out your housing situation. If you’re renting now and your lease is continuing while you’re away, are you allowed to sublease? If you are, you should want to start advertising as soon as possible so you can line up your own housing near your internship. Also, if you have classmates who will be interning near the same location sharing a place can make rent more affordable and save you more money. You may have to start cutting corners during the school year to save, but it will all be worth it when you finally get to your dream company and start gaining real word experience.

A third solution would be to find an internship near your hometown. You’ll be home with your parents, but so what? You could live rent-free, have lessened commuting expenses, and still gain experience in a new position. However, finding an internship could be difficult to impossible depending on where you are from.

Lastly, there are virtual internships which are becoming increasingly popular and possible in today’s technological work force. These types of internships allow you to work from anywhere; you never have to set foot in the real office. Virtual internships allow students to work for a company from wherever. Because of advancements in technology, virtual internships are becoming more common and more practical.

Gaining experience in the work force and in your area of study is really important especially if you want real world working experience when you graduate with your degree, but it shouldn’t Walletstrain your wallet, either. Planning ahead, like with most things, can help save you a lot of stress and also a lot of money.

The process of even finding an internship can be difficult. Luckily, Purdue has a lot of great resources to help students as they search for internships.

The Purdue Center for Career Opportunities has a list of different categories of internships.  The CCO is also a great resource in preparing for career fairs, writing resumes, and practicing interviewing skills.

Interns for Indiana works to provide students with opportunities in high-tech areas located in Indiana.

Purdue offers jobs and internship opportunities to students here on campus.

Good luck on your internship search!

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