Hope you had a great weekend.
I`m Carl Azuz and I`m pumped to welcome you to this special edition of CNN STUDENT NEWS.
April is Financial Literacy Month in the US. It`s an event that aims to improve Americans`
financial awareness, how they can better manage their money, how they can better plan for
their financial future.
We`re taking an in-depth look at the country`s young labor force, its financial picture,
its student loan debt, advice for when it comes time to look for a job in the online
era.
We`ve teamed up with CNNMoney to focus today`s show on some of the financial challenges facing
this newest generation of American workers.
A good place to start is to define it. We`re talking about people born in the 1980s and
1990s. It`s time to meet the millennials.
Hey, millennials, what makes you so special anyway?
Well, for starters, that generation is the biggest in American history. There are at
least 80 million people aged 18 to 35.
They`re the most educated generation ever and they have the student loan debt to show
for it.
The average student loan balance for someone under 30 years old, more than $21,000.
I currently have $46,000 in debt.
I have about $54,000.
I have $95,000 in student debt.
Scarred by the Great Recession, millennials have been reluctant to buy a house.
I don`t think I plan to buy a home at any point.
It never occurred to me that I would purchase a home.
I really believe in a sharing economy.
Thirty percent still living with their parents, but most millennials say they want to buy
and some are starting to take the plunge.
My goal for a down payment is $20,000. And I`m actually achieving that goal and I`m going
to get there quicker than I actually thought.
Living in mom and dad`s basement means fewer millennials are tying the knot. Their parents
probably got married in their early 20s.
This generation, 30 is the new normal. And they`re waiting to have kids, too.
I don`t want to bring a child into the world until, you know, I know that I can afford
that.
Millennials are the first generation born online. They`re tech savvy, which makes them
quick learners and smart shoppers, but they care about much more than just the bottom
line. So companies have to adjust to make their products more sustainable, higher quality
and customizable. That`s what millennials want.
Ethics are very important to me. I`m looking for authenticity. It`s good to know that it
will go to a good cause, if it goes to a good company.
Ready or not, millennials are dramatically changing expectations and shaping the world.
OK, you just heard it, the average student loan balance for millennials, savings lost
in the Great Recession, a weak job market for young people, the costs of college, these
are some reasons why students have loan debt.
According to The College Board, the average tuition and fees for a public four year college
in America, more than $9,000 a year for in-state students, $23,000 a year for out-of-state
students. Average tuition at a private school, more than $31,000 a year.
How much money college students borrow depends, but they are expected to pay it back.
Generation Y, Generation Debt.
For grad school, I probably have about $10,000.
Ninety-five thousand dollars.
For undergrad, I have probably less than $2,000.
It`s probably not a good thing that I don`t know how much student debt I have.
Today, I have about $75,000.
Fifty-four thousand.
I went for four years.
Forty thousand dollars.
And I took summer classes.
Forty-six thousand dollars.
I started taking math in ninth grade.
Over $100,000.
One hundred and fourteen thousand dollars.
What that leaves me with in the end, I don`t know.
Millennials have the most student debt in history. Here are the five biggest mistakes
you can make.
Number one, borrowing as much as you can, not just what you need. Take it from the student
loan guru.
Well, the first thing is to just live like a student while you`re in school, so you don`t
have to live like a student after you graduate. The time to reduce your debt is before you
borrow, not afterwards.
Mistake number two, not graduating in four years. Only 39 percent of you graduate on
time. That extra victory lap or two is expensive.
Mistake number three, being unrealistic about future earnings. Apply this rule of thumb
-- your student loan debt at graduation should not be greater than your annual starting salary
when you graduate.
Well, I should be paying about $350 a month. And that`s about half my check.
I studied to be an actress and that is a job that requires a lot of financial flexibility.
And that`s not something I`ve been able to really pursue.
Mistake number four, overlooking public in-state colleges. A lot of times, those schools offer
the best return on investment.
Going to an in-state public college as opposed to a private non-profit college can save you
about half the cost.
Mistake number five, missing student loan payments. Once you`re in default, it`s next
to impossible to discharge those loans in bankruptcy and harder to qualify for student
loan forgiveness programs.
Because the debt is there, a lot of my plans have been on hold until that`s more under
control.
I can`t plan ahead anymore than like a month.
It`s a pretty heavy burden.
I can like see the end of the month, and I`m like if I can get there, than I have another
month to set up what I`m doing with my -- with my life.
The bottom line, borrow less, budget more.
The Badger State, The Prairie State, The Tarheel State -- what do they all have in common?
Roll Call.
North Fond Du Lac is a village in Wisconsin. It`s home to Optimist Park and The Orioles
of Horace Mann High School. The city of Champagne,
Illinois is home to The Virginia Theater; also, Jefferson Middle School, The Jaguars
online there.
And Thomasville is a city in North Carolina where you`ll find The Big Chair and, of course,
The Golden Eagles are there at East Davidson High School.
In a non-completive job market, when employers are aching to have people on their payroll,
the interview tips are pretty simple -- be on time, practice answers to common questions,
highlight how your skills can help the company you`re interviewing for. This is a competitive
market and it seems millennials in particular have to do homework to nail their interviews.
Now, the bad reputation is probably undeserved, but rule number one, anyone walking into a
job interview should take special care not to reinforce that stereotype of being lazy,
spoiled and conceited.
No, I`m actually pretty good at (INAUDIBLE).
Every time I think of an interview, I don`t really worry about it, because I assume that
I will get the job.
Number two, clean up your social profile.
I recently discovered that my Twitter account from like 2011 that I haven`t accessed in
years was somehow public.
I try to keep my Facebook pretty clean. Also, I`m friends with my parents.
Get on LinkedIn. Google yourself. Your prospective new boss will.
Number three, be ready for the background check. Many employers look at credit history
when they run pre-employment background checks on potential new employees. If you`re not
paying your student loans or you`re carrying big credit card balances, the hiring manager
can see it, especially in positions that require some financial responsibility, this could
be a big red flag.
Number four, don`t lie.
I have -- I have lied on a job interview. I have told jobs that I`m not going back to
school to pursue my degree.
A Career Builder poll found an astonishing 58 percent of employers say they have caught
lies on resumes. It`s too easy to get caught and if you get away with it at first, you
can expect to lose your job down the road when it`s uncovered.
Number five, know the company.
Is it a public company?
Where is it based?
What are the lines of business and who are the bosses in those lines of business?
And most important, who do you know at that company who can vouch for you?
It`s not always what you know but it`s who you know and just making these personal connections
when people can go further than, you know, the best resume.
You`ll be hearing "you`re hired" before you know it.
Well, that concludes today`s special edition of CNN STUDENT NEWS.
We hope we got it right on the money, that you`re about to cash in on your newfound knowledge,
that everything made sense and that you`ll invest another 10 minutes of commercial-free
coverage tomorrow.
I`m Carl Azuz.