On the Ball

This morning I opened my emails and had an email from a high school student asking me information on the cost of MU tuition for the year of 2012-2013. The student indicated that she is an aspiring journalist and has her heart set on the University of Missouri. She had a few questions about financial aid issues, scholarships, and employee discounts. When I was thinking about a Tip to write for you today, while my mind is busy thinking about getting everything done for Dr. Yao’s and my travels to Beijing tomorrow, it struck me how exciting it is to see a young person thinking that far ahead about her college experience and that she asked me to help her!

We all know the advantages of a college degree with respect to the ability to earn a salary or to build the human capital to increase the chance for financial success. (See: “Education Expensive, Try Ignorance” in our archive of blogs, if you need a reminder.) The data are compelling. Nothing, however, can take the place of planning ahead with a dogged determination to succeed – regardless of the goal. This young lady has it. What do I recommend to our high school students in the audience? What would I like to see you do, particularly with respect to college admission and success?

First, do well in your coursework. Your high school class rank and grade point average (GPA) do matter. Second, be involved in some activities to demonstrate your leadership, sense of service above self, or amiability. Third, take your ACT or SAT test early. If you are not happy with your score, you might consider a test preparation service to help increase your score. Apply to several different colleges/universities that you want to attend and where you have a chance of being admitted. Do not limit your choices to those schools to which your friends are applying. Apply for admission early, very early – like this weekend, if you are a senior! Most schools have deadlines of late December or early January for scholarship considerations.

Speaking of scholarships, apply for all of them you can. Do some research. Get your parents to do some research for you. Are you a descendant of a Daughter of the American Revolution? If so, they have a scholarships. Have you asked a member of your local Rotary, Lions, or Optimist club about programs they might have for youth in your community. Churches sometimes have similar programs, as do other civic minded groups that believe that the future rests with a well educated citizenry.

Do you qualify for work-study, where you work part-time for the university or college? Importantly, you must complete the FAFSA form to be eligible for most need-based financial aid and, guess what, the Obama Administration has streamlined this process making it easier for those who file taxes to apply. Do you live in a state where you could attend a community college for less, often much less, for the first two years of school? In Missouri, for example, students that graduate from high school through the “A+ program” can attend a community college for two years for free. If you choose this route, however, I encourage you to contact your destination university to see if they have suggested routes toward your Associate’s degree matriculation, prior to getting too far into your community college program. You want ensure the credits transfer to the destination college.
My point is simple. The world belongs to those that show up. We often say that twenty percent of the student body make eighty percent of campus life possible. I think the same is true with most of life and, as I remind my students, it is not hard to be in the group that sets itself apart. You just have to act. This morning, I had an email from a young lady I’ve never met. She asked me some very important questions aimed at helping her with her financial success. I replied to her and copied our Vice Provost of Enrollment Management, just as a point of information. My guess is that this experience will help her take the next step, as well as the next step, until she reaches her goal. Yet, she had to take the time and effort to take step one. I am glad to have been the one on the other side, when she stepped across.

- Robert O. Weagley, Ph.D., CFP(r)

Chair, Personal Financial Planning

University of Missouri

Columbia, MO 65211

给予

My colleague and I have been asked to attend a conference in Beijing. Since we are being hosted by Tsinghua University, we plan to bring gifts to our hosts, as is customary in Chinese culture. (Hence, I use the Chinese words for “giving”, as the title of today’s tip.) Not knowing how many hosts exist, their gender, and their tastes makes this process quite interesting. Although, we are working on solutions – quickly – as we leave next Friday, the 25^th. Regardless, I’ve been thinking about gift giving and I realize that it is something that can create some disagreements among individuals and families – and can lead to costly mistakes.

We are often invited to events; such as weddings, showers (either for brides or babies), Bar or Bat Mitzvahs, graduations, baptisms, Christmas parties, invited dinners, Chanukah, Eid al-Fitr, or whatever! The point is that, even if our checking account needs some fattening-up, our relationships make it very hard to ignore these events and our friends that are entangled with them.

In most cases, an invitation is not a requirement to bring a gift. Of course, if you attend a wedding, a gift for the bride and groom is expected. How well you know the person, the size of your budget, as well as your upbringing will also influence your expenditures. What are some other considerations?

Showers: Make sure the gift is useful. To avoid duplication, consider finding out if they have registered the shower, bridal or baby, with a particular store and then purchase something that is on the list that has not been purchased by others.

Weddings: Certainly, the thought matters more than the expenditure but don’t try to be too cute. It might backfire. If you want to be creative and you know the person well, then gift them something that is a perfect fit; like a nice camp stove for a couple that likes to tailgate at football games. An empty, nice photo album for their “friends” photos from the wedding is always a winner and is relatively inexpensive.

Hosts and Hostesses – If they don’t drink alcohol, do not take wine. If you don’t know if they drink alcohol, do not take alcohol. If you take cut flowers from your garden, take a vase. If you spend a night with them, take a small gift. Take them to dinner for longer stays. If you can cook and your budget is tight, a great idea is to offer to prepare a meal for their household. Besides, this can lead to a lot of fun.

Children: Children love gifts, regardless of the source. Yet, once you start a practice of gifting every time you visit a child, it becomes expected and it loses meaning. (The same goes for your own children, when you travel.) When buying for children, makes sure the gift is age appropriate and either useful, fun, or both.

Professional courtesy: For example, we’re visiting Tsinghua University as faculty from the University of Missouri. As such, we’re taking MU tartan ties. Something that is a meaningful representation of you or your business is key to this category of gift.

Employees: Something simple for your employees over the holidays is a nice gesture, although don’t overspend in a good year, as a lean year may not allow for a repeat performance. Simple things that fit the culture of your business is fine. As far as gifts for your boss, be careful. If it is part of the culture it is acceptable. Otherwise, it may be seen by your coworkers as an attempt to gain favor – which it is.

When you receive a gift: Hand written thank you notes are always the best – case closed. If you can’t seem to remember to write the note, buy the notes, or where you put your car keys, then an email or phone-call would be acceptable.

Finally, we’ve always heard that it is better to give than to receive and it is truly a measure of financial success when we can give of our money, time, and talents to make our world, or someone’s world, a little brighter. One final thought, Waite Philips, the philanthropist that gave his ranch to create Philmont Scout Ranch, once said, “The only things we keep permanently are those we give away.” Indeed, this is a powerful thought.

- Robert O. Weagley, Ph.D., CFP(r)

Chair, Personal Financial Planning

University of Missouri

Columbia, MO 65211