POOP
POOP AND
POOP AND STUDENT LOANS. [ LAUGHTER ] THANKS ANGELA.
A COUPLE OF WEEKS AGO ON TAKE
5, WE DISCUSSED STUDENT LOAN
DEBT AND GOT A TEXT FROM A
COUPLE OF UW STUDENTS WATCHING
THE SHOW.
THE SHOW.
THE SHOW. DAVEY AND GILLIAN SENT IN THIS
PICTURE WITH THUMBS DOWN TO
STUDENT LOANS.
STUDENT LOANS. SO, WE DECIDED TO INVITE THEM
ON THE SHOW TODAY.
TALK ABOUT THEIR STUDENT
LOANS.
LOANS.
LOANS. AND ALSO, HOOK THEM UP WITH
FINANCIAL EXPERT AS WELL.
SO THANK YOU GUYS FOR
WATCHING.
WATCHING.
WATCHING. >> THANK YOU.
>> AND BEING HERE.
>> OF COURSE.
>> WHO IS GRADUATING?
YOU ARE GRADUATING.
>> I AM.
>> I AM.
>> I AM. YES.
YES.
YES. >>
YES. >> SO, WHAT ARE YOU MAJORING
IN?
IN?
IN? >>
IN? >> I'M A COMMUNICATIONS MAJOR
AND A DIVERSITY MINOR.
>> DO YOU HAVE IS A JOB?
>> I DON'T.
>> SO, SHE IS LOOKING FOR A
JOB EVERYONE.
JOB EVERYONE. >> YES.
>> YES.
>> YES. >> WELL, TELL US A LITTLE BIT
ABOUT THE DEBT THAT BOTH OF
YOU HAVE.
YOU HAVE.
YOU HAVE. >> SO I HAVE I BELIEVE $29,000
ACCUMULATED OVER THE FOUR
YEARS.
YEARS.
YEARS. >>
YEARS. >> NOT TOTALLY BAD.
NOT TERRIBLE.
NOT TERRIBLE. WHAT ABOUT YOU?
>> I AM A SENIOR AS WELL.
BUT, I HAVE A FIFTH YEAR
ACTUALLY, SO CURRENTLY I HAVE
$23,000 IN DEBT.
AND OVER THE NEXT YEAR I WILL
PROBABLY ACCUMULATE UP TO
$25,000 IN DEBT.
>> THAT'S A LOT.
>> SO IT IS A BIT OF A GRAY
CLOUD COMING INTO SENIOR YEAR.
>> THAT BLACK CLOUD JUST
HANGING OVER YOU.
>> BUT WE ARE EXCITED TO GET
SOME HELP AND INSIGHT ON THE
BEST WAYS TO GET IT OUT OF
THERE FAST.
THERE FAST. >> HOW MUCH DOES IT WORRY YOU
THOUGH, APPROACHING YOUR LAST
YEAR, GRADUATION, KNOWING YOU
WILL HAVE THIS KIND OF DEBT
OVER YOU.
OVER YOU.
OVER YOU. >> DEFINITELY.
>> DEFINITELY. >> YOU JUST SAID A GRAY CLOUD.
>> IT IS NOT SOMETHING YOU
WANT TO THINK ABOUT, BUT
SOMETHING WE ARE HOPING TO PAY
IT OFF AS QUICKLY AS POSSIBLE.
EASY WAY TO PAY IT OFF.
>> ESPECIALLY NOT HAVING A JOB
YET.
YET.
YET. IT
YET. IT IS A LITTLE INTIMIDATING
SEEING THE NUMBERS.
>> HOW LONG DO YOU HAVE TO
WAIT NOW?
WAIT NOW?
WAIT NOW? IS IT SIX MONTH TO START
PAYING BACK?
PAYING BACK? >> I BELIEVE SO.
YEAH.
YEAH.
YEAH. >>
YEAH. >> SO WHAT WERE YOUR BIG
QUESTIONS WITH THE FINANCIAL
EXPERT?
EXPERT?
EXPERT? WHAT WERE YOUR BIGGEST ONES?
>> I THINK JUST ...
I GUESS PROBABLY JUST THE MOST
EFFECTIVE WAY TO PAY IT OFF.
ONE OF MINE WOULD BE TO PAY IT
OFF AS QUICKLY AS POSSIBLE FOR
THE FUTURE FAMILY, JOBS.
PAY IT OFF AS QUICKLY AS
POSSIBLE WITH THE FUTURE JOB I
HAVE.
HAVE.
HAVE. >>
HAVE. >> I HOPE WE CAN HELP YOU.
JORDAN IS STANDING BY WITH OUR
FINANCIAL EXPERT.
FINANCIAL EXPERT. I KNOW YOU HAVE A FEW TAKE
AWAYS FOR US.
NOT ONLY STUDENTS CAN TAKE
AWAY, BUT WE CAN.
>> ALL OF US.
>> PEOPLE WHO HAVE BEEN OUT OF
COLLEGE FOR A LITTLE WHILE.
>> YEAH, WE LOVE TO TALK ABOUT
FINANCES TO HELP YOU OUT.
THIS IS CARRIE WALLINGFORD
WITH FINANCIAL AND COLLEGE
PLANNING.
PLANNING.
PLANNING. FIRST OFF, THANK YOU VERY MUCH
FOR MEETING WITH THE LADIES.
>> YOU'RE WELCOME.
>> THAT IS SO NICE.
AND ONE OF THE BIGGEST THINGS
YOU SEE WHEN KIDS ARE GETTING
OUT OF SCHOOL IS WHAT?
DELAYING THE PAYMENT?
>> DELAYING THE PAYMENT.
YEP.
YEP.
YEP. >>
YEP. >> WHY DO WE DO THAT?
I DID IT.
I DID IT.
I DID IT. I THOUGHT I'LL DO IT LATER.
RIGHT?
RIGHT?
RIGHT? SO, WE HAVE A LITTLE STUDENT
LOAN 101 SESSION HERE.
WE START OFF WITH WHAT MOST OF
US DO.
US DO.
US DO. PAY THE MINIMUM BALANCE.
LET'S SAY YOU MAKE $40,000 A
YEAR AND YOU WANT TO PAY THE
MINIMUM BALANCE.
MINIMUM BALANCE. CARRIE WILL GIVE US A LITTLE
IDEA OF WHAT THAT DOES TO OUR
FINANCES.
FINANCES.
FINANCES. >> THIS IS OUR PERSONAL
ECONOMIC MODEL.
ECONOMIC MODEL. THIS SECTION OF THE CHART
SHOWS THE POTENTIAL INCOME
THAT $40,000 JOB WOULD MAKE
BETWEEN AGE 23 AND AGE 67.
2.8MILLION.
2.8MILLION. EACH IS WORTH 2.8 MILLION IF
THEY START AT 40,000.
I KNOW THEY ARE BOTH A LITTLE
SHOCKED ABOUT THAT.
IT COMES THROUGH, IT WILL GO
THROUGH THE TAX FILTER SO THEY
HAVE TO PAY THAT.
AND THEN, THEY CAN SPEND THE
REST.
REST.
REST. OR
REST. OR SAVE IT.
SO, IF THEY DO WHAT THE
GOVERNMENT SAYS AN THEY PAY IT
OFF VERY SLOWLY, THAT IS A
MINIMUM PAYMENT.
MINIMUM PAYMENT. TAKES THEM 30 YEARS.
>> WHEN YOU DO THAT, WHAT
HAPPENS TO YOUR INCOME?
>> WE ARE PAYING $2,000 IN
STUDENT LONES AND PUTTING
$2,000 AWAY.
$2,000 AWAY. THAT LITERALLY TAKES HALF OF
YOUR PAYMENT PERIOD OFF.
>> SO IT GOES FROM 30 YEARS TO
15 YEARS.
15 YEARS.
15 YEARS. >> YEAH.
>> YEAH.
>> YEAH. >> AND THAT IS JUST 5% OF YOUR
INCOME IF YOU ARE MAKING
$40,000 A YEAR.
LAST, 10%.
LAST, 10%. THROW 10% OF YOUR INCOME TO
STUDENT LOAN AND KEEP THE 5%
SAVINGS GOING STRAIGHT TO YOUR
SAVINGS ACCOUNT RIGHT?
>> RIGHT.
>> RIGHT.
>> RIGHT. >> SO, WHAT YOU ARE DOING
HERE, YOU ARE PAYING DOWN
ALMOST $4,000 A YEAR.
YOU ARE SAVING $2,000 A YEAR.
THIS WILL PAY OFF THE STUDENT
LOANS IN THIS PARTICULAR
SCENARIO IN SEVEN YEARS.
AND WHAT YOU DO IS TAKE THAT
4,000 AND ADD IT TO WHAT YOU
HAVE BEEN SAVING SO YOU END UP
WITH A BIG BUCKET OF CASH JUST
IN THE SAVINGS ACCOUNT.
IT WILL ACCUMULATE.
>> SO YOU ARE TRYING TO GET
PEOPLE TO START OFF RIGHT WITH
THEIR FINANCES BUT I'M SURE
YOU HAVE HEARD EVERY EXCUSE IN
THE BOOK.
THE BOOK.
THE BOOK. WHAT'S A COMMON ONE YOU HEAR?
>> YOU WILL NEVER GET INTO THE
HABIT.
HABIT.
HABIT. AND YOU WILL BE 40.
AND SAVE 25 TO 30% OF YOUR
INCOME JUST TO CATCH UP.
YOU START IN THE HABIT OF
PAYING YOURSELF 5%.
THAT HABIT CREATES THE LONG
TERM ACCUMULATION OF CAPITAL.
>> RIGHT.
>> RIGHT.
>> RIGHT. >> SO, YOU CAN SAVE BETWEEN 23
AND 30.
AND 30.
AND 30. WHAT IT WOULD TAKE MOST PEOPLE
THEIR ENTIRE WORKING CAREERS,
THEY START AT 30.
THE COMPOUNDING, THE POWER
COMPOUNDING IS HUGE.
SO, IF YOU JUST LOOK AT A
SIMPLE INFLATION FACTOR OF,
LET'S SAY OUR INTEREST FACTOR
OF 3%, I ONLY GAVE 1% ON THE
SAVINGS ACCOUNT RIGHT?
AND, THAT ACCUMULATED TO OVER
300,000, BUT IF YOU ACTUALLY
BURN A RATE OF RETURN OF 3 TO
5% IN A SAFE INVESTMENT
VEHICLE, YOU WILL HAVE SO MUCH
MORE CAPITAL.
MORE CAPITAL. AND PEOPLE WHO START IN THEIR
30s HAVE TO SAVE TWICE AS
MUCH.
MUCH.
MUCH. >>
MUCH. >> I WILL WALK OVER HERE.
WE WILL WALK OVER TO TALK TO
THE LADIES.
THE LADIES. I WILL WALK AROUND THE CAMERA
THIS WAY.
THIS WAY.
THIS WAY. WHAT IS YOUR QUESTION?
>> I SHOULD IF I'M NEARING 40,
SAVE 30%.
SAVE 30%.
SAVE 30%. LIKE EVERY YEAR.
FOR THE REST OF MY LIFE MAYBE.
>> IF YOU DON'T HAVE ANYTHING
SAVED UP YET MICHELLE?
[ LAUGHTER ]
>> I MEAN, I HAVE SAVINGS.
JUST NOT LIKE, I HAVEN'T BEEN
DOING THE 5%.
>> WHAT YOU HAVE TO DO IS
THINK ABOUT WHAT YOU HAVE
SAVED TODAY.
SAVED TODAY. AND WHAT YOU WANT YOUR FUTURE
LIFESTYLE TO BE.
IF YOU WANT YOUR FUTURE
LIFESTYLE TO BE LOWER THAN
YOUR CURRENT LIFESTYLE, DON'T
BE PLAN AND YOU WILL BE FINE
BECAUSE THAT IS WHAT IS GOING
TO HAPPEN.
TO HAPPEN. >> I'M GOING TO LIVE WITH
JORDAN.
JORDAN.
JORDAN. >> YOU WANT YOUR FUTURE
LIFESTYLE TO BE WHAT YOU ARE
CURRENTLY USED TO, THEN YOU
NEED TO SIT DOWN WITH A
PLANNER AND SAY OKAY, HOW DO I
GET TO THAT GOAL?
THAT IS REALLY WHAT A GOOD
PLANNER IS DESIGNED TO DO IS
GET YOU TO THE GOAL.
>> OKAY.
>> OKAY.
>> OKAY. >> IT MIGHT NOT BE 30%, BUT
YOU HAVE TO SAVE MORE THAN 5.
[ LAUGHTER ]
>> THIS IS GREAT.
>> THESE ARE GREAT TOPICS.
>> DO YOU THINK IT IS DOABLE?
LIKE, YOU DON'T MAKE ANY
MONEY, BUT $40,000.
YOU HAVE TO PAY TO LIVE IN
SEATTLE.
SEATTLE.
SEATTLE. ARE YOU STILL CONFIDENT THAT
OKAY, I WILL MAKE SURE I GET 5
OR 10% TO STUDENT LOANS?
>> I THINK ABSOLUTELY YES.
I THINK IT NEED TO BE
PRIORITY.
PRIORITY.
PRIORITY. AFTER TALKING TO CARRIE, I
WOULD MUCH RATHER BE DONE WITH
PAYING IT IN SEVEN YEARS
COMPARED TO 30.
SO MAKING THIS A PRIORITY WILL
BE THE FOREFRONT OF WHAT
HAPPENS WHEN WE GRADUATE.
>> ARE YOU GUYS GOOD AT SAVING
NOW?
NOW?
NOW? >>
NOW? >> CURRENTLY, I TRY TO.
I REALLY DO MY BEST.
I CAN'T SAY I'M AN EXPERT.
BUT TAKING A CHUNK OUT OF YOUR
PAYCHECK EVERY MONTH ADDS UP
IN A GOOD WAY.
>> SO, I'M SURE YOU HAVE A
MILLION QUESTIONS.
MILLION QUESTIONS. IF YOU TEXT THE WORD MONEY TO
OUR NUMBER, (206)448-4545, WE
WILL GIVE YOU THREE EASY TIPS
SO YOU GUYS CAN GET A LITTLE
101 ON WHAT IS GOING ON.
IF YOU CAN LIVE UNDER 30% OF
YOUR INCOME, BY GETTING
ROOMMATES OR ANYTHING LIKE
THAT, THAT IS A BIG ONE AS
WELL.
WELL.
WELL. >>
WELL. >> DEFINITELY.
>> DEFINITELY. >> IT IS NOT AS COOL WHEN YOU
ARE OLDER.
ARE OLDER. >> WE HAVE TEN GIRLS NOW.
>> WOW!
>> WOW!
>> WOW! >> THAT'S GREAT.
>> DID YOU LEARN SOMETHING
TODAY?
TODAY?
TODAY? >>
TODAY? >> YES, WE DID.
THE 10% IS THE WAY TO GO.
AND THANKS CARRIE FOR ALL THE
HELP.
HELP.
HELP. >>