“I felt violated and victimized,” Harrine Freeman says of the day her purse was stolen from the passenger seat of her locked car at a Hyattsville, Maryland gas station in late July. No one at the busy corner station offered much information after the thief smashed a window and sped off with her house keys, checkbook, driver’s license, car insurance, vehicle registration, nearly $100 in cash, as well as her credit, ATM, and health insurance cards.
Category: finances
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Costco Accepts Food Stamps: Trend at Wholesale Clubs, Grocery Stores
Filed under: Personal Finance, News, The Economy, Savings, Budget
Leading wholesale retailer Costco has announced that it will now accept food stamps in its stores nationwide. This news comes as a shock to many, who see Costco as catering to elite shoppers. Yet, this should not be surprising as more Americans than ever are using government assistance to feed their families — 10 million people have gone on food stamps in the last two years alone. This is leaving shopping clubs like Costco and Sam’s scrambling to attract an entirely new realm of consumer, who may not be technically “poor.”
Up until recently, some wholesale clubs were skeptical poor people would be willing to pay the $50-a-year membership fee or would be interested in buying food in the bulk quantities for which the stores are famous.
But now, in this economy, stores are battling for every dollar and see a big potential market in the growing ranks of food-stamp recipients. From warehouse clubs to supermarkets and mom-and-pop groceries, stores are retraining their cashiers and hanging new signs to welcome such customers.
”Certainly this economy was a wake-up call,” Costco chief financial officer Richard Galanti recently told investors. ”It is not just very low-end economic strata that are using these.”
… The U.S. Department of Agriculture said nearly 200,000 retailers nationwide now accept food stamps, 20 percent more than in 2005.
Executives at Costco are finding that poorer families are actually eager to pay the $50 dollar membership fee to take advantage of the fact that the company now accepts food stamps. And the retailer believes that poorer families will actually save more money in the end by buying in bulk, even if the initial investment seems high.
If you need to join the ranks of the 39 million Americans on food stamps (also known as Electronic Benefits Transfers), there is no reason to be ashamed. In fact, now is a better time than ever to seek out government assistance in buying food if you need it. The social stigma attached to food stamps is essentially gone as so many people are in need, and now more companies than ever are rising to meet the needs of this customer. You might be surprised to learn that you qualify.
Learn how to apply for food stamps, or about the WIC program, and click below to learn about some of the thousands of retailers that accept EBT. Check your local retailers for more shopping options.
Major Retailers That Accept Food Stamps
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One Year Later: Why My First Vote Won’t Be My Last
In 2000, I had my first taste of the democratic voting process. I was in the 6th grade and we were learning about how the voting process works by watching and reporting the presidential race between Al Gore and George W. Bush. We did lots of research on their platforms, policies and backgrounds. It was so exciting to see the process in action. By unanimous vote, Al Gore was my class’ pick for president. In our eyes,he couldn’t lose; logic and fairy-tale endings were on his side. Boy, were we in for a rude awakening from our dream of American democracy.
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Secretary Causes Pepsico to lose $1.2 Billion Dollar Lawsuit
Filed under: Dr. Boyce Money, News
It’s not easy to work for me: I can be demanding, overly focused and intense about everything I do. I believe that reaching extraordinary goals requires you to always put forth extraordinary effort. Many interns have come and gone, after realizing that they can’t keep up with our crazy pace. The ones who make it through the storm become invaluable parts of my family; like body parts or internal organs. I truly can’t live without them.
That is why I cringed when I saw the recent story about how Pepsico lost a $1.26 Billion dollar judgment because the secretary forgot to pass the paperwork onto the appropriate people. As a result, the company lost the lawsuit on a default judgment for failing to appear in court.
Apparently, it was a simple oversight that could have happened to anyone. But I am sure that the secretary is in hot water and probably even fired. Cases like this are reminders of some important principles you should remember when you are in business for yourself or working for another person.
1) Trust is everything. For me, trust starts on the first day of the job interview. If someone arrives late, that means that I can’t even trust them to get to meetings on time. If I can’t trust you to get to meetings on time, then there is no way on earth that I am going to trust you with a valuable contract. Consistency builds trust. You must always find a way to be consistent when working with or working for other people.
2) You are only as good as the people who represent you. This statement implies two things: That you should get good people around you and that you should respect those who work for you. Hiring lazy relatives or friends who aren’t disciplined enough to do the job is a recipe for disaster. I have plenty of friends with whom I have good relationships, but I would never do business with them because I know that some of them are unreliable. Those who I choose to be part of my team are not reminded that I am the “big boss.” Instead, I let them know that I am in charge, while showing appreciation for their efforts every chance I get. Being respectful of others is how you truly earn respect without having to step on people in order to maintain power. If you rule with an iron fist, your subordinates will eventually plot to destroy you.
3) Excuses need not apply. There are two types of people in this world: those who deliver excuses and those who deliver results. All of us run into obstacles, but the most effective people are the ones who find a way around those obstacles to get the job done. Those who regularly deliver a basket of excuses to somehow exclude them from their assignment are going to be replaced by someone who simply gets the job done. The truth is that in the world of business, even if you have a good excuse, the client is going to still take their business away from you. That’s just the truth.
4) Learn to forgive. My most trusted partners and subordinates have made horrible mistakes and cost me money in the process. While my first temptation was to raise the fire of hell, I realized early on that this was not the best long-term solution. Instead, I simply ate the loss and assertively pursued a joint remedy for the problem at hand. Having power doesn’t mean that brute force tactics are always the best strategy. You might lose someone valuable if you don’t know when to show compassion. A good employee already feels bad enough about their mistake; you don’t have to rub it in further.
I am not sure how Pepsico is handling the situation with the secretary, since some excuses are simply unforgivable. But while we can all understand being outraged by losing a billion dollars, we should also know not to sweat the small stuff.
Dr. Boyce Watkins is a Finance Professor at Syracuse University and a leading African American keynote speaker. To have Dr. Boyce commentary delivered to your email, please click here. -
Layaway Plans – 2009
Filed under: The Economy, Budget
It’s that time again when the stores will be crowded with thousands of consumers all vying for the same toy, special sweater, hottest electronic device. How do you plan to purchase it? The current crumbling economy has sparked interest in a form of retail purchasing that became popular in the early 1900s, that of Lay Away. How does it work? It’s simple. You, the consumer would like to buy something but don’t have the money. All you do is make installment payments on the merchandise. The merchant stocks your item away until your last payment. You receive it once your tab is paid in full. Of course this is different than a credit card purchase which allows you to take home your intended product and make payments while using it.Although stores like Walmart did away with this form of procurement years ago, Kmart stayed in the game. Stores currently offering layaway plans are:
- Burlington Coat Factory
- Kmart
- Marshalls (at select locations)
- TJ Maxx (at select locations)
- Benny’s (New England)
- Sears ( through December 23)
- Cato – (offering 30-day plans)
- Men’s Wearhouse
- Boscov’s
- Value City Furniture Stores
- Footlocker (at select locations)
- Best Buy
- Toys-R-Us
Plan on taking advantage of this service? Be sure to READ THE FINE PRINT.
1. Get a copy of the store’s layaway policies
2. Understand ALL of the policies – schedule of payments, rules regarding late fees, refund and exchange policies, markdowns on sale items, etc.
3. Keep a good record and all receipts of payments (in case there are any disputes later).
Until you make all the payments, the store has your merchandise AND your money. For this reason, I prefer to use cash, debit or credit cards OVER layaway, any day. Assuming I can pay off the balance in a short period of time. It’s true, credit card companies charge interest, therefore depending on the length of time it takes you to pay off the debt and the interest charged, your purchase which was originally on sale could potentially cost you much more in the end. However, I just can’t bear the thought of someone using MY money while I have nothing to show for it. Also, sad to say in these critical times retailers are closing doors for good, left and right. If you have something on layaway, on which you’ve been faithfully making payments and the store closes, you’re out your goods as well as your cash. Of course the choice is yours.If you know of other stores, please let us know in your comments.
- Burlington Coat Factory
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Economic Recovery Definition: Is the Economy Really Getting Better?
Filed under: News, The Economy
What is the definition of an economic recovery? This is the hot finance topic of the week. As the White House unrolls a PR plan to try and demonstrate that the recession is over thanks to the administration’s efforts, the question of how to exactly define economic recovery is causing confusion. Let’s look at the facts and try to determine an economic recovery definition.
President Obama has claimed that 650,000 jobs have been created or saved through his stimulus plan. The Dow increased by 200 in response to the good news. Plus, the economy grew last quarter for the first time in a year at a rate of 3.5%. Modest, but good. There is also the increase in home sales reported in September. And even Ford posted a profit of nearly $1 billion this year, which came as a surprise to the business community. But do these positive reports illustrate that our economy is set for permanent stability?
http://xml.channel.aol.com/xmlpublisher/fetch.v2.xml?option=expand_relative_urls&dataUrlNodes=uiConfig,feedConfig,localizationConfig,entry&id=763608&pid=763607&uts=1257200941http://www.aolcdn.com/ke/media_gallery/v1/ke_media_gallery_wrapper.swfHome Sales UpChart shows new home sales for the past 13 months, seasonally adjustedAPAPHome Sales Up
Chart shows seasonally adjusted annual rate of pending U.S. home sales
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Chart shows seasonally adjusted annual rate of pending U.S. home sales
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In this Wednesday, Oct. 21, 2009 photo a sign for a home under contract is seen in Philadelphia. The volume of signed contracts to buy previously occupied homes rose for the eighth straight month in September as buyers scrambled to take advantage of a tax credit for first-time owners that expires at the end of this month.(AP Photo/Matt Rourke)
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In this Wednesday, Oct. 21, 2009 photo a sign for a home under contract is seen in Philadelphia. The volume of signed contracts to buy previously occupied homes rose for the eighth straight month in September as buyers scrambled to take advantage of a tax credit for first-time owners that expires at the end of this month.(AP Photo/Matt Rourke)
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Chart shows new home sales for the past 13 months, seasonally adjusted
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Shea Homes townhouses are seen at the Victoria Gardens development in Rancho Cucamonga, Calif., Tuesday, Oct. 27, 2009. The number of buyers snapping up new homes dipped unexpectedly last month as the effects of a temporary tax credit for first-time owners started to wear off. (AP Photo/Damian Dovarganes)
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Chart shows new home sales for the past 13 months, seasonally adjusted
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In this photo made Oct. 26, 2009, a new development of townhouses is seen in Wakefield, Mass. Sales of new homes dropped unexpectedly last month as the effects of a soon-to-expire tax credit for first-time owners started to wane.(AP Photo/Lisa Poole)
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In this photo made Oct. 26, 2009, a new development of townhouses is seen in Wakefield, Mass. Sales of new homes dropped unexpectedly last month as the effects of a soon-to-expire tax credit for first-time owners started to wane.(AP Photo/Lisa Poole)
AP
New home models are shown in Homestead, Fla., Tuesday, Oct. 27, 2009. Sales of new homes are expected to post their sixth consecutive monthly gain as builders reap the benefits of a tax credit for first-time owners that expires at the end of next month. (AP Photo/Alan Diaz)
AP
Some say no. Increases in car and home sales have been spurred by federally-backed incentives like the $8,000 first time homebuyer tax credit and the cash for clunkers program. These increases don’t stand on their own as signs of consumer strength. So what can we use to define economic recovery?
Writers at the Wall Street Journal believe the jobless rate is a much more meaningful benchmark. But right now it is too soon to tell exactly where that rate is heading based on the statistics available now. So even the jobless rate cannot help us develop a reliable economic recovery definition until we have more information.
Let’s try looking to the president for his definition. The POTUS has declared: “The benchmark I use to measure the strength of our economy is not just whether our GDP is growing, but whether we are creating jobs, whether families are having an easier time paying their bills, whether our businesses are hiring and doing well.” (CBS News)
As unemployment remains high and it is still difficult for people to get loans, we are clearly far from a lasting economic recovery — by the definition of the president himself. But as we have faced the worst economic decline since the Great Depression, it is silly to expect our economy to fully recover after a few months of federal intervention. Obama’s stimulus plan may not have created a full economic recovery within months, but it has helped many families survive what could have been a much worse financial scenario. It has also supported state governments that provide social services like police and teachers to all.
This type of relief may not fit an expert’s economic recovery definition, but it has helped society overall in the short term. For that alone the president can be commended.
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Obama’s Fed Chairman Makes Racially Ignorant Remarks: Dr Boyce Analyzes
Filed under: Dr. Boyce Money, News, The Economy, Education
I’ve always had mixed feelings about Federal Reserve Chairman Ben Bernanke. I feel that he is better than the previous chairman, Alan Greenspan, but the Fed Chairmanship (like the presidency) is almost never given to the right man. Just the fact that it is almost always given to a man is problematic enough, and the truth is that only white men need apply for the job.
Well, when you are limited in your option pool for the top job, bad leadership and flat out ignorance can sometimes be the result. While Fed Chairman Bernanke might know some nuts and bolts about economics, he appears to be shockingly misinformed about economic disparities between blacks and whites. His embarrassing and highly inappropriate statements at Morehouse College serve as a significant case in point.
In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and whites. In response, Bernanke said that the gap was due to a lack of “financial literacy” and “financial education” on the part of African Americans. That’s all he mentioned.
What? Sorry Ben, but did you ever hear of this little thing called “slavery”? What about this other thing called “Jim Crow laws,” which made it nearly impossible for African Americans to pass wealth onto their children? Do you truly believe that whites have the bulk of American wealth because they were simply harder working and more intelligent in their wealth building strategies? Do you know how silly you sound?
According to the 2007 Survey of Consumer Finances, the median household wealth of white Americans is 10 times greater than that for African-Americans. And in spite of what the Fed Chairman might believe, it is not due to the fact that black people are financially ignorant. Rather, it is due to leaders such as Bernanke who refuse to acknowledge how 400 years of racially-biased wealth distribution can impact structural and financial inequality.
The other point that Mr. Bernanke fails to mention is that white American saving and investing habits are incredibly problematic as well. The recent financial crisis was due to the fact that the American savings rate had become negative for the first time since the Great Depression. Additionally, Americans (not just black people Ben) were borrowing money for homes they could not afford and not preparing for retirement. So, the idea that Chairman Bernanke would sum up the black/white wealth gap as “White people smart….black people illiterate” is a shocking disappointment and a glaring reminder of the fact that our economic captains in the Obama Administration have almost no understanding or respect for the unique economic challenges of the African American community.
I won’t even get into Obama’s appointment of Lawrence Summers as Treasury Secretary, given that Summers disrespected Dr. Cornel West, one of the most significant black scholars in American history. During a spat when Summers was president of Harvard, he criticized Dr. West’s work as not representing “appropriate” scholarship. Translation: you are doing something that white scholars don’t understand, which thus implies that you must be inferior – I get it all the time here at Syracuse, a school that hasn’t tenured a black man in Finance in their entire 140-year history – perhaps we lazy black folks are just not good enough. Professor Summers is also the one who implied that women might have a natural deficiency in their ability to understand mathematics. The idea that Obama supports individuals who continue to embrace mindsets reflective of white male supremacy should be problematic to us all. The financial team within his administration needs a makeover, and their “expertise” and qualifications should be questioned by the American people.
A note to Chairman Bernanke: The present around us has been created by a set of tasks that were performed in the past. If you are only able to see wealth disparities through a lens created in the year 2009, one that is blurred by your own biases as a white male in an elitist profession, you are missing 99% of the picture. To cite African American ignorance as the sole driver of wealth gaps in America is a reminder that our leadership still thinks of black people as second class citizens. Rather than presuming cultural superiority on the part of whites, why not engage in creative and intelligent policy analysis that might actually fix the problem that America has created. It was not the flaws of black America which created structural inequality; it was poor decision-making on the part of the very institution with which men like Bernanke, Summers and Obama are employed. It’s time for some personal responsibility.
Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr Boyce commentary delivered directly to your email, please click here. -
Higher SAT Scores and Getting Ready for College: Dr Boyce Tips
Filed under: Education
I was asked recently how to prepare for college. I was also asked how to pay for it. Well, what might surprise you is that paying for college and preparing are actually closely related. The better prepared for college your children are, the easier it will be for them to pay for college with scholarships and other financial support. So, rather than spending money on new Air Jordans for your child, spend that money to help them to find a tutor.
Here are four things about getting higher SAT scores and preparing for college that you should keep in mind when dealing with your kids.
1) Good ACT and SAT scores don’t come naturally, you have to prepare. Some people think that you are going to magically end up in college just by saying that you want to go. Some think that you should take the ACT and SAT cold, and that natural intelligence will carry you through. That’s not the case. Your child should prepare for college like it’s a part-time job: studying 2 – 3 hours each day, for several months straight. Yes, that sounds like a lot of work, but is it really very much when compared to the fact that most of our kids are fine with working at McDonald’s for four or five hours a day, or going to football practice for three hours a day after school? Education MUST be the number one priority in your household if you want your children to have a bright future.
2) Make sure your child is taking classes that will truly prepare him/her for college. With the horrific state of the American educational system, the truth is that we can’t trust the system with our children. Making good grades is not enough when it comes to ensuring that your kids are prepared. Make sure that they are taking classes that meet the standards of attending college, and this will reflect itself in higher SAT scores. Check with the university of your choice to ensure that your child is enrolled in the classes necessary to get into that school.
3) Apply to at least 12 universities. The more irons you have in the fire, the more likely it is that one of them is going to get hot. Have your child do one college application every two days for one month. that will give him/her roughly 15 applications to various colleges. You can then find out which schools have needs that match the things your child has to offer, and you should make sure that your ACT and SAT scores are high enough to get into the places you apply. You’ll never know what opportunities are out there unless you apply for them.
4) There should be no use of the word “if” when preparing for college. I hate the fact that there are so many people who are afraid of college or think that it only works for someone else. I teach at a university that charges over $30,000 per year, and I argue that any 10th grader of average intelligence could get a good grade in my class, if they study each day consistently. I don’t care what your SAT scores happen to be, college is not nearly as difficult as some might lead you to believe, and the truth is that it can change your life forever. It certainly changed mine, and I was told that I wasn’t smart enough for college in the first place.
Dr. Boyce Watkins is a professor at Syracuse University and author of the book, “Everything You Ever Wanted to Know about College.” To have Dr. Boyce commentary delivered directly to your email, please click here. -
Professional Women and their Love Lives: Money and Matrimony Sometimes Conflict
Filed under: Personal Finance, Careers, Dr. Boyce Money
I have become obsessed recently with trying to figure out how successful black women find a way to get it all done. Now, by “successful,” I’m not referring to the woman who works 70 hours a week while seeing all of her relationships die in the process. I am referring to the women who do some of the most important jobs in our society (nurturing children and maintaining their relationships) while finding success in their professional lives. Call me old fashioned, but I think that there is no job in the world more important than being a mother.
This week on Financial Lovemaking, S. Tia Brown and I speak with Dr. Towanna Freeman, a life coach and women’s empowerment guru, about what it takes to maintain love, life and everything in between. We ask Towanna the hard questions about her business and her family and try to determine the formula for keeping it real and keeping it realistic.
One thing that Towanna makes clear is that you don’t have to be perfect to be happy. She also reminds us that successful people are not successful all the time. The key is having the right mindset and always striving for success, whether you are feeling successful or not. I can personally say that I fail at roughly 90 percent of everything I do: But it’s striving for that last 10 percent which helps to set me apart.
The interview with Towanna is below. Enjoy!
Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here. -
Teen Tips for Entrepreneurship
In this, the third article of a four- part series about youth entrepreneurship, three teens tell the stories of how they started businesses and learned how to find fun while financing their futures.
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Lesson Plans for Young Entrepreneurs
In part two of BlackEnterprise.com’s four-part series on youth entrepreneurship, we’ll be looking at resources for parents and teachers on the basics of entrepreneurship. There are a number of tools available, from Web-based and online activities to classroom simulations, for educators and parents to get students thinking like an entrepreneur.
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What To Do Today to Prepare For This Year’s Taxes
It’s not tax season yet, but by the time you finish feasting on turkey and calculating the damage from holiday spending, it’ll be time to gather receipts, fill out forms, and calculate deductions. Before Uncle Sam comes knocking like an unexpected visit for that surly, lazy cousin you tried to avoid all holiday season, check out what you can do today to prepare your 2009 taxes.
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Mistakes Couples Make When Mixing Love and Money Together
Filed under: Personal Finance, Dr. Boyce Money
As I prepare for an appearance on ABC News to talk about money and relationships, I thought I would share the answers to some of my questions that were asked of me by the producers. Perhaps this can be valuable information that can be used to help others. There is more in my book, Financial Lovemaking, which goes deeply into the struggles that couples have when negotiating the challenging task of merging love and money together.
1) What do Love and Money have in common?
People think it’s taboo to mix love and money in a conversation, but it’s not. It’s actually essential that you do so. Loving together means living together. In most relationships, you spend more time talking about functional aspects of life, such as paying the bills and purchasing decisions than you spend on “lovey-dovey” stuff. Also, like making love, merging your assets involves sharing something of value with another person. Similar to the act of sharing your body, merging your assets with someone else can either be a fulfilling experience or a devastating one, depending on who you choose as your partner.
2) What are the biggest mistakes couples make when it comes to managing love and relationships?
I can list some common mistakes very simply: Not communicating about money, stepping into something without knowing what you’re getting into. Not being honest with yourself or your partner. Allowing love to dominate your logic when it comes to determining if someone is right for you. Not critically analyzing the spending, saving, borrowing and investing habits of your partner and how this is going to play out in the long-term. Not analyzing the long-term earning potential of your partner and determining if you are comfortable with it.
3) What does it mean for a couple to “get financially naked with your partner?”
In regular love, you eventually have to get naked. That means the person sees your physical assets and liabilities. The same should be done financially: you and your partner should share debt levels, income levels, spending habits, credit scores, perceptions of money and all the things that your partner needs to know. The key to making good love is communication and the same is true for financial lovemaking as well.
4) Is financial lovemaking only a topic for couples or those seeking relationships?
No. Part of the lovemaking process means learning to love yourself. That means understanding your own relationship with money and how you are going to reach your own financial goals. Good financial health is not just for the benefit of current and future partners, it is also important for you. Additionally, financial lovemaking affects how money and relationships merge in all kinds of scenarios: with your children, relatives, friends, etc. By being financially healthy, you are ready to merge assets in an effective way when the right situation comes along.
5) How does bad financial lovemaking spread beyond your significant other? What about other offspring, relatives, etc?
Many financial lovemaking problems come from our children and parents. If you don’t raise your children to be financially independent, they can become liabilities during retirement rather than assets. If you don’t know how to manage your financial relationships with loved ones, you might find yourself being drained in a way that frustrates both you and your partner. Love is something that permeates every dimension of our lives, so effectively managing our money can be a tool toward making good love.
6) What is a “life portfolio” and what do you mean when you say that “our most significant financial assets in life having nothing to do with money?”
The most valuable things in your life are usually non-financial: your health, your happiness, your love and your time. All of these things were granted to us from birth and have nothing to do with money. Many times, I see people destroying the most valuable assets in their lives, all in the pursuit of money, and I find that to be sad. Money should be a tool for the enhancement of that which is most valuable to you, not a weapon to destroy the things that matter.
Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here. -
Dr. Boyce Money: Do Entrepreneurs Need an MBA? Probably Not
Filed under: Personal Finance, Careers, Dr. Boyce Money
I am going to say some things that will take money out of the pockets of people like myself. But darn it, it has to come out. I have taught MBA and undergraduate business students for the last 16 years, at many major universities. I believe strongly in the value of black entrepreneurship and I believe in the power of compassionate capitalism. The problem, however, is that there are times when I wonder about the power of an MBA. Fenorris Pearson, a successful black entrepreneur, has shared the same concerns, and I can’t say I disagree with him completely.
Here’s the deal. An MBA can be a powerful tool to learn how to manipulate your way through the complexities of corporate America. Most programs teach you how to analyze charts, create spreadsheets and do all the little things that your boss is going to ask you to do. The problem, however, is that the vast majority of professors teaching MBA courses at major institutions have never actually done the work they are teaching you to do.
An MBA student at an Ivy League institution recently told me that when he asked his professors how to actually implement the strategies that they were teaching on the chalk board, the responses from professors were always disappointing. The student aspires to be an entrepreneur, where being able to do something matters far more than your educational background. In fact, entrepreneurship is the ultimate test of your business skill: If you can’t do the job, your academic credentials aren’t going to help you win customers. Someone buying your product doesn’t care if you have a Harvard MBA; they only care if you are giving them good service for a fair price.
The reason that university professors in many business schools across America have become ineffective at transmitting necessary tools to their students is that campuses have turned toward a commitment to research over practical skill building. Publishing complex research papers in journals that almost no one reads becomes the Ivory Tower’s elitist way of proving that they are better than you and that they don’t actually have to care if you aren’t getting what you need to be successful. The MBA becomes a bought and sold commodity, where any student who can cough up the cash is almost certain to walk out of the institution with a piece of paper in his/her hand. While this doesn’t define all MBA programs, it’s hard to find anyone who would not argue that there is not some degree of grade inflation.
The professor you ask to help you find a job sometimes can’t do a thing because he has few contacts in industries in which he has no experience. The faculty member who is asked if he has seen his models used in practice can only show you his publication in the Journal of Finance. University faculty have become as weak and complacent as special interests in the health care system when it comes to remaining committed to an ineffective educational process that takes care of the few individuals in power. It won’t be until more practical models of education become preferred by society that university faculty will finally get the point. What is saddest is that many black scholars in business have also bought into the elitist “look, but don’t touch the public” model of scholarship, leading many of our greatest minds to rot away their potential. I am not being critical of their achievements; rather, I am encouraging them to not be afraid to leave the intellectual plantation.
When it comes to the MBA, the bottom line is this: MBAs can be good for alumni networking and they are good for certification that allows you to obtain a position with a company. They may not, however, be very good at actually showing you how to start and run a successful company. You might get a better education on Google.com.
Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here. -
Youth Use Entrepreneurship as a Pathway to Success
Running a successful business is not an easy feat no matter what your age. Yet there are teenagers, like Kalief Rollins, the winner of the 2009 National Youth Entrepreneurship Challenge, who were able to benefit from business start-up education and learn not only the value of a dollar, but how to claim the value of his life.
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Motor City Overhaul
When black enterprise announced its decision to have its 2009 Entrepreneurs Conference + Expo in Detroit, the move raised more than a few eyebrows. After all, if the nation was in a recession at the time, surely Detroit must be in a full-fledged depression. The automotive industry—the city’s lifeblood—was facing its worst business climate ever, prompting massive layoffs, restructurings, and, in General Motors’ case, bankruptcy. The city, which was struggling prior to the events in the auto industry, had to contend with high rates of unemployment and poverty as well as real estate values that had plummeted to the point where a significant portion of the population found their mortgage balance exceeded the value of their homes.
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Banks Offer College Saving Deals: Are These The Best Financing Plans?
Filed under: Personal Finance, News, The Economy, Financial Aid
Banks and credit unions are developing new methods of helping families finance college educations. In this economy, families have seen certain accounts set aside for financing education, such as those funded by stock portfolios, steeply decline in value. On top of that, tuition costs at top schools have increased by 62% over the past ten years, cutting sharply into education savings. To help families cope with these trends, “a growing number of financial institutions are rolling out incentives to help families save or pay for higher education,” according to USA Today.
Two examples of these college saving offerings include:
Citizens Bank is giving a $1,000 bonus to consumers who open a college savings account by a child’s sixth birthday. Justice Federal Credit Union – which serves Department of Justice and Homeland Security employees – is offering a discount on a loan to pay for college costs. And Grow Financial Federal Credit Union in Tampa is donating money to student scholarships based on a local university football team’s “return yards,” which is how far players run with the ball after receiving a punt or kick. (USA Today)
A new college saving deal offered by your bank may be the right thing for your family. Yet, financial experts urge consumers to carefully evaluate any college saving incentive. The motive for lending institutions to create these deals is to build better relationships with a future generation of customers. The student of today will need loans for grown-up purchases like houses once a college education is fully financed. Thus a bank’s offering may not necessarily be in your best interest. You will still want to shop around for college savings plans that net you and your student the best deal.
What are some additional ways of saving for and paying for college during tough economic times? State 529 plans are one important tool in a parent’s arsenal for paying for college, and should be explored fully. Please see SmartMoney.com for more great college saving advice.
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A Voyage into the Black Diaspora
In many respects when African Americans travel, they are no different than travelers from every culture, says Nelson George, travel expert-at-large for BlackAtlas.com. At the same time, they are often curious to learn about the black people, neighborhoods, restaurants, and historical sites in a city that have particular historical significance to the black experience.
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Natural Born Hustler
Is entrepreneurship learned or innate? While working on a young entrepreneurs package slated to run on BlackEnterprise.com tomorrow, a co-worker questioned how many of the subjects in the series had a family member who inspired them to venture into entrepreneurship.
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Boston Market $1 Meal Deal
Filed under: News, The Economy, Coupons
KFC isn’t the only game in town offering cheap eats. Now through Monday, Nov. 1, you can stop by your neighborhood Boston Market and get an entire MEAL for $1. You read it right, $1 MEAL! Click this link to download your free coupon for the $1 Boston Market chicken meal coupons. Only one coupon can be redeemed per person, per visit.
Coupons are good for a quarter chicken, mashed potatoes and corn bread. Don’t miss out on this great deal. You’ll also find other valuable coupons on the Boston Market site valid until Nov. 25. But none like the $1 deal!
BV came across another fast food deal. You may have heard about the new Black Jack tacos at Taco Bell. Well, it seems most of its participating restaurants are doling out free Black Jack tacos on Halloween night from 6PM to midnight. No coupon is necessary. Just stop in and get your freebie! -
Chris Rock Gets Real Sensitive About AOL and Good Hair
Filed under: Celebrity News, Careers
Maybe everybody hates Chris, but I don’t hate him at all. Most of us know Chris Rock for the genius that he is, and the way he intelligently and hilariously describes the world around us. So, you can imagine my dismay when I got a call from Charlamagne Tha God, morning host for 100.3 “The Beat” in Philadelphia, who told me that Chris Rock had some choice words for AOL Black Voices and the criticism he has received for his film, “Good Hair.”
Chris seemed to feel that those claiming that the movie bombed at the box office were incorrect, since the film was only released in a few theaters. He even (accurately) explains that saying his film bombed is like “comparing the movie ‘He Got Game’ to ‘Star Wars’.” Good point. Here are some other issues that Chris brought up and how some of these issues relate to wealth, power and ownership.
Chris discusses how difficult it is to do shows, commentary and films for a black audience. This is true, given that African American audiences are not as large as non-black and global audiences. In fact, when Ice Cube (my favorite rapper) released “Janky Promoters,” one of the statements made by an executive at the studio was that black movies have almost no global sales market. I am not sure if this was a racist fact or not, but it certainly is a fact.
Chris’ interview (below) was quite intriguing for a number of reasons:
1) He was criticized for saying that Oprah looks like a slave in one of her pictures. He says that he wasn’t saying that she looks like a slave (Oprah is one of his wealthy and powerful friends, he wouldn’t be that stupid – I learned firsthand about the backlash you can get from criticizing Oprah); he was saying that the picture was so old that it looked like a slave picture.
2) Chris seemed incredibly emotional and highly flustered in the interview. I am not sure if this is an act, but I certainly hope it is. Chris Rock is a vet in the game, and I’d be shocked that he would be so sensitive about criticism for his film. Chris sounds like he needs a hug from his mama. If his mama is not available, he can borrow mine.
3) Chris mentions in film that black men can be portrayed any old way, while people seem very sensitive to any portrayals of black women that are in the least bit critical. I actually agree with Chris when he says that anyone who criticizes his film needs to see it first. Also, being critical of black women is not exactly a popular thing to do – I find it interesting that all the problems of the black family and black relationships mentioned in Essence Magazine tend to be blamed almost entirely on men. The truth is that in a community, it takes two genders to Tango.
4) Chris is a businessman: He mentioned that he would not release a film about black women if black women didn’t like it. During survey testing, he claims that 99 out of 100 black women like the film. The lesson here is that most products are not released to the public unless they are fully market tested. Also, the size and scope of the African American market makes room for a small number of films. At the same time, it is my hope that Chris Rock and others will take ownership of the film making process to ensure that more movies are made for black audiences, using appropriate images. Anyone who saw the “ghetto girl” in the cinematic flop “Couples Retreat” knows what I’m talking about.
5) He seems to have a bit of a beef with AOL Black Voices. When asked about critical comments that Chris received in AOL BV, the entertainer went back into “Need-a-hug-from-mama” mode. I have two things to say to Chris: First, AOL Black Voices is PLURAL, implying that there is no one voice, but many who represent a variety of viewpoints. I, for one, think that Chris Rock’s work is outstanding, but I don’t represent all opinions on this site. Secondly, if Chris has a concern with comments that have been made, he should do what he did today – stand up for himself!
In China, they have a saying, “The fattest pig will always get slaughtered.” Chris my man, you’re the fat pig – so don’t be surprised when the haters come out to turn you into pork chops. But make sure you also remember that everybody doesn’t hate Chris, a lot of people think you’re pretty cool.
Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here. -
Obama Announces Small Business Bail Out
Filed under: News, The Economy
President Obama has finally outlined a bail out plan for America’s small businesses. Perhaps due to mounting criticism that the administration is only helping huge corporations weather the economic storm, the Obama Administration outlined a series of policies targeted to direct more capital to small banks and community institutions that lend to small businesses, especially in economically deprived areas. The New York Times reports:The measures, announced by Mr. Obama at a small records storage company in Maryland, would allow smaller community banks to borrow at low rates from the Treasury Department’s Troubled Asset Relief Program. It would also raise the loan caps on several popular Small Business Administration programs.
Under the administration plan, banks with less than $1 billion in assets could borrow from the program at a lower interest rate than financial institutions are required to pay.
In exchange, banks must demonstrate how they would increase lending to small businesses and follow up with quarterly reports. According to the White House, most business loans by the community banks that are eligible for the new rules are made to small businesses.In addition, community groups that lend to small businesses in low-income areas under a Treasury Department program will be able to borrow relief money at just 2 percent annually for eight years. In the past, banks have been leery of the such loans because the program allows the government to buy warrants for the banks’ common stock and because it requires the institutions to limit executive compensation. But the small banks probably will not have to issue warrants in that program rules contain an exception for infusions of less than $100 million. The proposal as described Wednesday caps the infusions at $20 million.
To learn more about Obama’s small business bailout program, be sure to check out these sites:
+Obama Announces Small-Business Lending Push
+Community banks to get bailout money as Obama seeks to boost small business
+Obama refocuses bailout on small businesses -
An Affinity for Philanthropy
More recently affinity groups are asking their employers to return that favor by investing in the communities that they represent.
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Triple Threat – Mother, Wife, Career Woman: What Does it Take?
Filed under: Interviews, Personal Finance, Careers
An entrepreneur doesn’t think like everyone else. She is willing to take chances, disciplined enough to focus on a dream and passionate enough to pursue that dream. Towanna Freeman is in that category. AOL Black Voices had the chance to catch up with Towanna, to get some advice on striking out on your own, as well as managing a marriage, children and career, all at the same time.1) What is your name and what do you do?
Have you noticed how so many people seem to be living an unbalanced life or living beneath their full potential? Well, I assist people, particularly women, who are ready to take life changing action to get that sense of balance back along with that greater feeling of fulfillment and happiness. I am also the principal consultant of Towanna Freeman & Associates, a management consulting firm with the primary emphasis on leadership coaching and employee performance improvement; the founder of the Young Women’s Empowerment Network a nonprofit organization that produces empowerment workshops, conferences, and other special events for teen girls; and the author of “Purposeful Action, 7 Steps to Fulfillment.”
2) You are a successful entrepreneur. What does it take mentally to run your own business, as opposed to the safe route of working for someone else?
Every entrepreneur has his or her own reasons for wanting to own a business. Some are drawn to the idea of financial and creative freedom, being their own boss, and being in charge of their own financial future. Others make the decision because they are dissatisfied with demanding bosses, office politics, or lack of recognition. Regardless of the reason, successful entrepreneurs share several common characteristics like confidence, determination, organization, self-discipline, and flexibility.
3) You are a “triple threat” – wife, mother and business woman. What are the challenges that come along with juggling everything in your life?
With all my successes, there has been a great sacrifice. My most challenging task is not allowing my determination and drive to cause me to spend every waking moment working and juggling the needs of my household. Having a balanced personal and professional life requires separating business demands, activities, and accomplishments from the rest of your life. To ensure that I stay committed to a balanced life, I build in an hour a day to relax and engage in pleasant activities. For example, I will stretch out on my sofa with my favorite magazine. I will put on my headphones and listen to my favorite music. I will eat lunch in the park. Finding a good balance between work and fun will help you meet the challenges of running your business and household.
4) Why do you work to inspire young girls? Did you have a personal experience that led you to have this passion?
Mentors have always played an important role in my life – even now as an adult. It was in 1997 when I was alarmed by a series of national and local statistics that showed startling trends surrounding the teen girls of America. The lack of organized youth activities in poor neighborhoods, the increased number of single-parent households, and families with two working parents all reducing the number of adult role models. So, as a response to the community demands for assistance, I founded the Young Women’s Empowerment Network (www.ywen.org) a nonprofit organization established to provide role models, resources, social and emotional help to teen girls. Through our programs and events, we are able to help them realize their full potential to succeed in life.
5) Do you feel that Black women are respected the way they should be by the rest of America?
If not, then why? Black women have been a crucial part of America’s history. Thankfully, the lack of respect from America did not hinder the Black woman’s steady progress and determination to achieve success. The Black woman’s history is a story of hope in the face of great obstacles. In my opinion, receiving respect from America is less important than receiving opportunities from America. It is through opportunities to achieve greatness that we create pride, self-worth and true life fulfillment. Today, there is a new generation of Black women that has flourished with remarkable achievements in academia, business, politics, and sports. Women such as Ruth Simmons, Ann Fudge, Condoleezza Rice, and Venus and Serena Williams. As I continue to achieve greatness, the next generation of Black women leaders that I influence is destined to reach higher heights.6) What are your plans for the future?
Helping women and teen girls identify and effectively pursue personal goals to fulfill their lives is what I do – it is my purpose. I see my coaching practice and management consulting firm overwhelmed with success story after success story. And my upcoming book, “Purposeful Action, 7 Steps to Fulfillment,” was written specifically for women to aid them on their journey to living an abundant and purposeful life. Purposeful Action is not about merely making a New Year’s resolution or a vow – it is about setting goals for life and then acting upon them.
Towanna Freeman is a Life Coach, Management Consultant, Inspirational Speaker, Author, Principal consultant of Towanna Freeman & Associates and founder of the Young Women’s Empowerment Network. For more information, please visit www.TowannaFreeman.com.Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here. -
Quick Books 2010 is Here!
Filed under: News
Quick Books and other financial management applications are integral to how many small business owners manage their affairs. If you are an accountant or business owner looking to upgrade your software, you are in luck! Accountingweb.com reports that:
Intuit, Inc. has announced the release of its new version of QuickBooks financial software designed for small business owners. QuickBooks 2010 allows users to get connected to a wider array of powerful online services.
With its new online capabilities, QuickBooks 2010 delivers valuable features designed to help small businesses save and make money, such as an e-mail marketing service to attract new customers. For millions, QuickBooks is an essential part of their business. Nearly 70 percent of small businesses recently surveyed say the financial management software helps their business be more profitable.To get the full specs, head on over to Accountingweb.com. Interested in the FREE online version of Quick Books? Click here.
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Financial Lovemaking: Man Shoots Boy for Sleeping with His Daughter
Filed under: Personal Finance, News
I have daughters and I love them all. They are all at “that age,” between 16 and 20, where they tend to love the boys that you want to beat down the most. Every time I hear them express their undying love for Lil Wayne, I can only think about him having 3 women pregnant at the same time. When I see a Chris Brown poster in their room, I remind them that Chris was accused of having boxing practice on Rihanna’s face.
But as a father, you can’t protect your daughters from themselves. Some things they have to learn on their own. And if sleeping with a pants-saggin, “purple stuff dranking,” gold grill wearing, 10,000 tattoo having buffoon is the way they need to learn their lessons, you just kinda have to deal with it.I empathize with Wade Edwards, the man accused of shooting a boy for sleeping with his step daughter. Wade shot the boy four times, aiming for the “relevant zone” with each bullet. But while I can understand Wade’s anger, I do not, for one second, condone his actions.
You see Wade, it takes two people to “get busy.” If your daughter was choosing to sleep with this boy, that was her bad decision, not yours. Sure, it was disrespectful for them to get naked under your roof, but fathers have been getting furious about this kind of thing since the beginning of time. Sex is a powerful drug, the essence of the existence of all mankind, so the urge of human attraction can be strong enough to lead to seemingly deviant behavior.
The problem for Wade, however, is one that merges with the lessons we teach in Financial Lovemaking: Allowing your love for another person to cause you to do things that are going to be financially and emotionally devastating for your family. Wade might feel that he was somehow protecting his daughter (he claims that it was self defense, but I don’t buy that logic), but the truth is that he has now dragged his family into a draining legal drama that is going to cost them thousands in attorney’s fees and even more financial loses when one of the primary providers for the household has to spend his time in prison.
Any father can relate to how Edwards might have been feeling. Also, every father has to wonder how far he would go to protect his children. I personally would give my life to save my daughters and not think twice about it. At the same time, I would not allow myself to go to prison to keep my daughters from having sex. Sexuality is a natural part of life, even when we feel that the person is too young to be doing it. Don’t pretend like you don’t know what I’m talking about; you probably did it too.
The episode of Financial lovemaking is below. Enjoy!
Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here.