Black Man Black Woman

Tag: Finance

  • Nicolas Cage Money Problems: Balling Without a Budget

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    I grow weary of the fact that whenever the media presents an entertainer going broke, we almost always see a black man. Well, the tables do turn, even on the best of them. Actor Nicolas Cage is allegedly having major financial problems, having his property foreclosed and admitting in court that his former business manager may have milked him of millions of dollars.

    In a major court battle, the actor lost two of his homes worth a combined total of $6.8 million dollars. Cage owes over $5 million in mortgage payments and more than $150,000 to the city of New Orleans in real estate taxes. Cage is also suing Samuel Levin, his former business manager, claiming that Levin was responsible for his financial demise.

    Here are some quick and dirty thoughts on the plight of Nicolas Cage:
    1) Is there a change in the language? I noticed that a CNN article about Cage mentions the recession as one of the reasons that Cage is struggling financially. However, most commentary about the financial problems of NBA star Antoine Walker attributed his woes to financial irresponsibility. Not to accuse anyone of racism, but I wouldn’t be surprised if it were difficult for the world to imagine the great Nicolas Cage as being financially irresponsible.

    2) Hollywood money is not what it seems to be: By having five major projects slated for 2010, it’s tempting to believe that Nicolas Cage is going to be financially free by the end of next year. Not so fast. After actors finish paying the agents, lawyers, managers, and the IRS, they may only get 30 – 40% of their total pay package. That means that if Cage gets $10 million for his film, he is only going to see three or four million dollars of that money.

    Whatever the case may be, it does appear that Nicolas Cage was certainly living it up. Few A-list actors are as blockbuster-worthy as Cage, so there is no excuse for him to ever go broke. But given that Cage has purchased personal islands, castles, and other extravagant items, he put himself in a situation where he needed a lot of money in order to simply stay afloat. Michael Jackson had the same problem during his life, as he was easily spending five to ten million dollars per month. No matter how much money you have, you can always go broke. We should all live beneath our means.

    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.

     

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  • Boost Mobile President Matt Carter: His Sprint to the Top

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    Boost Mobile President Matt Carter tells why $50 cell phone service is a deal most people won’t refuse.

    As a kid in Boston, MA, Matt Carter looked up to the local post office clerk. Today an entire company looks for his stamp of approval before any decisions are finalized. The first African American president of a major telecommunications company, Carter leads Boost Mobile, a division of Sprint Nextel. As president, he is responsible for the business’ marketing, product development and finance teams. Despite hailing from the City of Champions, leading Boost to a whopping $600 million in new revenue – in less than two years – was no easy feat. The telecommunications brand was in an oversaturated niche market and lagging in the race against its competitive set when Carter took the helm. Carter recently talked to Black Voices about how he was able to revitalize the failing brand, and shared his insights on how African Americans can compete in corporate America. Matt wants us to know why it’s still important for black business people to create a league of our own to compete in — as we win in new fields.

    What led you to Sprint?
    I started my career off in marketing. I had worked for Bristol Meyers and Coca-Cola in New York in a variety of marketing positions on a global basis. I got recruited by Sprint three years ago to run their customer management group and when the new CEO came aboard he tapped me to go run Boost Mobile, a division of Sprint. I’ve been at Boost for 18 months, really focusing on revolutionizing the wireless industry.

    What made you accept the position as President of Boost Mobile?
    It brought together all of my experience in leadership, marketing, sales and technology. In addition, at that point in my career I was ready to lead a major division of a company.

    What are some of the challenges of your position?
    Typically when you’re coming in, you’re a change agent, but it didn’t take me long to help them understand that they needed to evolve. I had to put my foot down – a skill I learned from being the oldest child in a large, loving family. I let them know that the path we were on would lead to extinction. We had to figure out how to grow this business, and decided to create a brand that would be the advocate for the consumer. We realized that at the end of the day people are looking for simplicity. Think about it. The one bill you open up with trepidation every month is your wireless bill. You think you’re paying $49, but that turns into $65. So that was the opportunity: Let’s simplify it. So, we created a flat fee system of $50.

    What experiences helped equip you for such a powerful role?
    I was the oldest of five, so it was instilled in me early on that I had to set the example for everyone. That made me realize the importance of discipline and sacrifice. When you’re the oldest you’re constantly looking out for folks and I carry that with me today; I look out for my team. I also earned a degree in communications from Northwestern and an MBA from Harvard. Plus, I have more than 20 years of experience working with companies like Bristol Meyers and Coca-Cola.

    What pivotal moment led you to enter the business world?
    My first student loan bill. I was like, “how am I going to pay for this?” I went to Northwestern because I wanted to be a director. When I graduated I did what most kids do: I went to LA and became a waiter. My father couldn’t fathom how I could go to school then wait tables. I felt bad and eventually came home and got a job working as a supervisor at a factory where my mother was employed. I got a good taste of business there. I enjoyed motivating people and I liked competing. I gravitated towards marketing because it coupled my practical and creative sides.

    Finance Blogger S. Tia Brown Interviews Boost Mobile President Matt Carter

    When did your dreams change from wanting to be a mail man, or a job similar to your role models growing up?
    When I got to Harvard I realized that I was holding my own. Along the way you start to see that the privileged students are not any brighter or any better, so your confidence level begins to grow and you start thinking bigger. Going to Harvard raised my expectations about the possibilities of what I could do. I thought, ‘I could be the president of the United States.’ That was liberating.

    Fierce Wireless magazine named you No. 25 on their list of Most Powerful People in Wireless. You are also the only African American. How does that feel?
    I’m very humbled and appreciative of the recognition, but it’s reflective of what the team has done. In addition, I’ve gone through a lot of ups and downs in my career. You’re going to find people who still view your race as a stigma. People will do things to you because you’re not part of the “club.” You have to have the internal fortitude to maintain your composure when you’re faced with things meant to break you.

    What’s next for Boost Mobile?
    We’re the fastest growing wireless brand; we’ve acquired 1.7 million new customers in the last quarter. People are responding because there’s finally a product out there making things simple — this is not about economics or credit worthiness. We believe that we need to continue to broaden the appeal of our device portfolio. But I can’t reveal the new products that are on the radar.

    Your team has taken a product initially created for a niche market and made it mainstream. Did you have to create a different marketing strategy to appeal to the masses?
    Boost has a deep legacy in the African American community; we don’t want to abandon that. We want to build on it. Everyone, regardless of your culture, race or sex, is looking for value. So if you can get a $50 plan with unlimited, voice, web and text nationwide [you’ll want it]. It has nothing to do with skin color — only the color green.

    A lot of marketing campaigns geared towards African Americans perpetuate stereotypes. How do you feel about the use of the typical images of blacks in advertising campaigns?
    I’m always bothered by commercials that have people dressed up in the church robes, singing and dancing, like we’re still out of some minstrel show. You certainly have to be sure that there are messages out there that resonate with your target audience, but you’ve got to figure out how to reflect them smartly. You don’t want to turn people away. Our goal was to try to figure out how we could be relevant to a sort of rainbow coalition of clients.

    Speaking of marketing, it seems like you’ve been able to be stand out strongly amongst your peers, a great example of self-marketing. Why do you think Sprint recruited you?
    You’ve got to be known for doing something. I always look at people’s resumes and they are all over the place. What is your brand? What do you stand for? Mine is deeply rooted in marketing, so I am perceived to be a highly accomplished marketer who also demonstrates the ability to work across a variety of industries. I’ve worked in pharmaceuticals, telecommunications and financial services. My advice is to really be good at something and demonstrate that across a variety of industries so you leave yourself open for other opportunities.

    Unemployment is soaring and people are looking for career opportunities in new markets. What is your suggestion for anyone interested in the telecommunications industry?
    I don’t see a lot of African American engineers. I think we need more people with technical skills; that’s where the high-paying jobs are, in technical development. The engineers are the new artists and we’re not there.

    You have a great job and a successful career, but you’re still working on entrepreneurial ventures, like helping to create Ameritales (a historical cartoon series). Why divide your time?
    You can’t expect that you’re going to go work at a company and be there until you retire. We have to be smarter as a group around creating opportunities. African Americans are very creative but we haven’t parlayed it into true economic growth. I don’t know if it’s fear or a lack of mentoring.

    What tips do you have for those looking to start their own businesses?
    First of all, you must be willing to take a chance. Then, there are three key elements to being a successful entrepreneur:

    1. Preparation: People may want to start a company, but don’t know a thing about running one, like how to read a balance sheet or income statement. You should use your time while working for others to gather as many skills as possible.
    2. Network: Build a network of people that you will eventually need.
    3. Talent: Use all your talents to go out and create something. And don’t limit yourself to things like soul food restaurants and cleaning businesses. We now have a generation of African Americans with more exposure and training. We can create the next Google.

    What’s next for you?
    I plan to continue to grow, learn and see what the future holds. I’m under no illusion about life in the corporate world. I enjoy what I do today but I’m well prepared for many things.

    A trained life coach, S. Tia Brown has spent the last 10 years following her passion for journalism as an editor, writer and TV correspondent. Brown has worked for CNN, E!, MSNBC, the NY Daily News, Essence and Black Enterprise. Most recently she served as Senior Editor for In Touch Weekly magazine. Check out her advice column ‘Do Better, Be Better’ at www.tiabrown.com.

     

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  • NBA Star Antoine Walker is Broke: Five Lessons We can Learn

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    When I went to The University of Kentucky with Antoine Walker during the 1990s, we all knew he was going to be a star. He was headed for great things and would represent his family well. No one would have guessed that he would one day become the poster child for what NOT to do when you earn $110 million dollars.

    Antoine is busted, or as my friends would say, “broker than the 10 commandments.” He was recently arrested for not paying $800,000 in gambling debts he owed to a Vegas casino, and that’s when the financial roaches started coming out of the closet.

    In the midst of Antoine’s situation, we can all learn lessons. I thought I’d lay out a few for us to consider:

    1) Watch who you allow to handle your dough. It might sound good to say that you have an accountant, but the truth is that you are always vulnerable when someone is doing things with your money that you do not understand. Additionally, allowing friends and relatives to have access to your financial accounts is a very bad idea. While I have major issues with Bill Cosby, I was always impressed by the fact that he takes care of his own money. Also, one of the sad realities of NBA athletes is that most of them were not properly educated during college, given wimpy little majors that didn’t interfere with their athletics schedules, so some of them are unprepared to protect the wealth they work so hard to earn. Get an education- you’re going to need it.

    2) Don’t judge Antoine Walker harshly, this can happen to anyone. Going broke or going to jail is not just something that happens to bad or irresponsible people. The same is true for a gambling addiction. While we are tempted to attack Antoine Walker for his situation, the truth of the matter is that gambling problems impact hundreds of thousands of people every year: Campuses are being overrun by TV poker challenges and other seemingly harmless, yet financially devastating temptations. If you don’t yet have a gambling problem, be careful not to start one. That’s an easy way to go broke.

    3) Stay away from the vices: Drugs, gambling or other costly addictions have led to the financial downfall of many people. In addition to gambling, other vices such as drugs or alcohol can accelerate your path to the poor house. What’s worse is that the temptation to engage in these activities is greater when you have more money to burn. NBA and NFL stars are still quite young, and the idea of giving a 22-year old $10 million dollars a year is a scary thing. Even I would have made terrible mistakes if I’d received that much money so early in life. If you are in a relationship with someone who regularly engages in any of these bad habits, you might want to reconsider that relationship. It can cause you a great deal of trouble later on down the road.

    4) Show your love, but put a cap on it: Antoine Walker has shown himself to be a generous man, giving to children and taking care of relatives. The problem is that it’s difficult for anyone to be a one-man welfare machine. I only call it welfare when someone is asking for something for nothing. I find that it is more productive to ask for something before you give something away; put the relative to work on productive activities that will help save you money. It will make both of you feel better in the end. Also, budget your charity to ensure that you don’t go overboard in your giving. Typically, those who are asking you for money today won’t be anywhere around when you are having financial problems.

    5) Watch how hard you bling: While “blinging” and “balling” might be incredibly tempting, you should limit the number of status symbols you acquire in order to show your wealth. Antoine Walker has always loved to “do it big,” renting limos for every occasion and not wearing the same suit twice during the playoffs. While he gets a lot of points in style, the truth is that such financial extravagance is not only financially draining, it also makes you a big target. Years ago, when Antoine was robbed of several thousand dollars during a trip to Chicago (and again later at his home in Miami), we can probably assume that the robbers knew they were coming after a wealthy victim.

    I am not here to attack Antoine Walker. Instead, my goal is to make his challenges into a true teachable moment. The old model of the black athlete getting rich, staying uneducated, balling out of control and going broke has absolutely got to change. We must aim for something better.

    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.

     

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  • Antoine Walker is Broke: Five Lessons We can Learn

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    When I went to The University of Kentucky with Antoine Walker during the 1990s, we all knew he was going to be a star. He was headed for great things and would represent his family well. No one would have guessed that he would one day become the poster child for what NOT to do when you earn $110 million dollars.

    Antoine is busted, or as my friends would say, “broker than the 10 commandments.” He was recently arrested for not paying $800,000 in gambling debts he owed to a Vegas casino, and that’s when the financial roaches started coming out of the closet.

    In the midst of Antoine’s situation, we can all learn lessons. I thought I’d lay out a few for us to consider:

    1) Watch who you allow to handle your dough. It might sound good to say that you have an accountant, but the truth is that you are always vulnerable when someone is doing things with your money that you do not understand. Additionally, allowing friends and relatives to have access to your financial accounts is a very bad idea. While I have major issues with Bill Cosby, I was always impressed by the fact that he takes care of his own money. Also, one of the sad realities of NBA athletes is that most of them were not properly educated during college, given wimpy little majors that didn’t interfere with their athletics schedules, so some of them are unprepared to protect the wealth they work so hard to earn. Get an education- you’re going to need it.

    2) Don’t judge Antoine Walker harshly, this can happen to anyone. Going broke or going to jail is not just something that happens to bad or irresponsible people. The same is true for a gambling addiction. While we are tempted to attack Antoine Walker for his situation, the truth of the matter is that gambling problems impact hundreds of thousands of people every year: Campuses are being overrun by TV poker challenges and other seemingly harmless, yet financially devastating temptations. If you don’t yet have a gambling problem, be careful not to start one. That’s an easy way to go broke.

    3) Stay away from the vices: Drugs, gambling or other costly addictions have led to the financial downfall of many people. In addition to gambling, other vices such as drugs or alcohol can accelerate your path to the poor house. What’s worse is that the temptation to engage in these activities is greater when you have more money to burn. NBA and NFL stars are still quite young, and the idea of giving a 22-year old $10 million dollars a year is a scary thing. Even I would have made terrible mistakes if I’d received that much money so early in life. If you are in a relationship with someone who regularly engages in any of these bad habits, you might want to reconsider that relationship. It can cause you a great deal of trouble later on down the road.

    4) Show your love, but put a cap on it: Antoine Walker has shown himself to be a generous man, giving to children and taking care of relatives. The problem is that it’s difficult for anyone to be a one-man welfare machine. I only call it welfare when someone is asking for something for nothing. I find that it is more productive to ask for something before you give something away; put the relative to work on productive activities that will help save you money. It will make both of you feel better in the end. Also, budget your charity to ensure that you don’t go overboard in your giving. Typically, those who are asking you for money today won’t be anywhere around when you are having financial problems.

    5) Watch how hard you bling: While “blinging” and “balling” might be incredibly tempting, you should limit the number of status symbols you acquire in order to show your wealth. Antoine Walker has always loved to “do it big,” renting limos for every occasion and not wearing the same suit twice during the playoffs. While he gets a lot of points in style, the truth is that such financial extravagance is not only financially draining, it also makes you a big target. Years ago, when Antoine was robbed of several thousand dollars during a trip to Chicago (and again later at his home in Miami), we can probably assume that the robbers knew they were coming after a wealthy victim.

    I am not here to attack Antoine Walker. Instead, my goal is to make his challenges into a true teachable moment. The old model of the black athlete getting rich, staying uneducated, balling out of control and going broke has absolutely got to change. We must aim for something better.

    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.

     

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  • Professional Women and their Love Lives: Money and Matrimony Sometimes Conflict

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    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.

     

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  • Mistakes Couples Make When Mixing Love and Money Together

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    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.

     

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  • Dr. Boyce Money: Do Entrepreneurs Need an MBA? Probably Not

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    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.

     

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  • Banks Offer College Saving Deals: Are These The Best Financing Plans?

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    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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  • Financial Lovemaking: Man Shoots Boy for Sleeping with His Daughter

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    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.

     

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  • Dr Boyce Money: Everything You Need to Know About Credit Scores Pt 1

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    Given the growing importance of credit scores in our economy, I thought I would do a Dr. Boyce Money series on credit scores and how they affect your life. These might answer many of the questions you have about your credit report and how the scores are calculated. We will also cover your rights as a consumer and how you might improve the score you’ve got. Enjoy!

    Who are the major credit bureaus and where do the scores come from?

    In the US, there are 3 major credit bureaus, Experian, Trans Union and Equifax. These are the three agencies that others can ask for credit information about you. Under the old system, your score would range from 375 to 900. There is a new system in place with VantageScore, which ranges from 501 to 990. The system is considered more consistent across the various bureaus, but it does not change much in terms of your credit worthiness. So, if you were a AAA borrower before the fact, you are going to be one now.


    How can I get a copy of my credit report?

    One way to get a copy of your report is to go to Myfico. You can order a report from any of the 3 bureaus, or you can order all 3. Another method for obtaining a credit report is to go to free sites such as freecreditreport.com (although there are conflicting viewpoints on whether this service is actually free). Under the law, the reporting agencies are entitled to give consumers at least one free credit report every year. Also, if you are denied credit for any reason, you can send a copy of the rejection letter to any credit bureau and receive a free credit report. Otherwise, the report is going to cost you about $8.

    How is a credit score calculated?

    The model for credit reports is based on what they call “The 4 C’s of Credit”: Character, collateral, capacity, capital and conditions. What are they?

    Character is their way of trying to decide if you are a good person or not. Effectively, if you have a history of not paying your debts, they define you as not having the character to repay. This is a bit silly, since some people don’t repay their debts because they are having financial trouble, not because they are bad human beings.

    Collateral is represented by assets you are willing to pledge against the loan as additional security in case you aren’t able or willing to pay.

    Capacity is represented mostly by income level and future earning opportunities.

    Capital is reflected mostly in your cash reserves, and other relatively liquid investments. High capital implies that you can pay the fees that are owed.

    Conditions are things that are basically out of your control: the state of the economy, your line of business, or any other issues on your credit report that do not necessarily reflect personal choices made by you.

    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.

     

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  • Method Man, Wesley Snipes Arrested for Taxes, but Not Nicolas Cage?

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    I’ve met Method Man only one time, and I’ve never met Wesley Snipes or Nicolas Cage. In spite of his mixed public image, Method Man actually comes across as an intelligent, attentive and down-to-earth human being. At the time I met him, I’d only been on national TV a couple of times, but he talked to me as if he’d known me his entire life. He even recited the lyrics to Ice Cube songs that I brought up and told me stories about Tupac. I was quite impressed.

    The closest I’ve ever come to Nicolas Cage is when his movie came out about the 911 attacks and they forgot to include the black guy’s character. It was incredibly tacky, but effectively, there was an African American named Jason Thomas who played a huge role in 911 – large enough for them to include his character in the film. But somehow, in all their exhaustive research for this multi-million dollar blockbuster movie, they simply forgot that his character was black. Instead, he was cast as a white man. How the producers could have overlooked something so obvious was beyond me. In fact, I find it hard to believe that this was an accidental oversight.

    I don’t have much to say about Wesley Snipes, except for the fact that he should watch what he says about black women. Oh yeah. He needs to also pay attention to his tax bill.

    Where Nicolas Cage, Wesley Snipes and Method Man cross paths in my psyche is on the touchy issue of tax evasion. I listened to Method Man (in this interview) take full responsibility for the fact that he was arrested for owing $33,000 in back taxes. He even jokes about it, which is better than I’d be able to do.

    Nicolas Cage owes far too much money to joke about anything. In various media reports, Cage owes over $6 million dollars to the IRS. Now, I have no idea why Method Man is in handcuffs, Wesley got a prison sentence and Nicolas Cage just has to put his castle and mansion on the auction block (yes, the dude really owns a castle – that’s what my friends might call “Intergallactic ballin” – I came up with term that myself). I am also unsure how a man who’s made so much money could be so far behind on his taxes. At the same time, tax problems are human, and there are tons of Americans in all income brackets who have tax trouble every year.

    As you know, I enjoy finding true teachable moments in everyday life. Given that an IRS audit increases your chances of getting you into tax trouble, I thought I’d bring the classroom to the web and share a few facts with you about taxes, audits and finance.

    Here are 4 things that can increase your likelihood of being audited by the IRS:

    1) Having an income that is greater than $50,000 per year – When you make the cheese, you become a big fish and worth the time to audit. The IRS doesn’t have time to go after little wallets.

    2) You are self-employed – Statistics show that self-employed people tend to do the most wiggling and fudging on their taxes, so having your own business flags you as an audit risk.

    3) Making a mistake on prior tax returns – if you’ve made mistakes in the past, you are likely to make another one…at least more likely than everyone else. This will flag your return for a possible audit.

    4) An excessive number of tax write-offs – if the dollar value of your deductions exceeds a certain percentage of your income, then the IRS may come after you. Make sure that any write-offs you have are well documented and legal. You don’t want to cheat on your taxes or get too greedy when filing.

    Remember that tax problems can happen to anyone, so if you are subjected to an audit, don’t panic. Go buy a book on dealing with audits, “fess up,” pay your fine and go on with your life. You’re not in the same boat as Method Man.

    If you want to hear this right out of my mouth, feel free to click on the video below. I’m going to hang out in Chicago:

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a leading African American Speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr Boyce: Dr King’s Kids Fighting Over Money – What We Can Learn

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    Most of us know about Dr. Martin Luther King’s childrens’ fight over money. We are all saddened and disappointed that it has come to this, but this shows that the family is human like the rest of us. But there are things all of us can learn from this dispute when it comes to leaving money for your children.The dispute between the kids is now resolved, but that doesn’t mean that the teachable moment has ended. The video below breaks it all down in our Dr. Boyce Web Chat. Enjoy!

    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. To follow Dr Boyce on Twitter, please click here.

     

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  • Dr Boyce and Rev. Al Sharpton Discuss Couples, Money and Michael Vick

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    This week on “Keeping it Real with Rev. Al Sharpton,” the good reverend and I discussed some issues that many people might find interesting. First, there was the conversation about love and money. Most of us know that money matters in life. We tend to think about money every day and a good way to end up in the dumps is to have someone take your money away from you. Money is also a weapon of mass destruction in many relationships, especially in the African American community. And just for the record, Rev. Al stands firm that there is nothing to his rumored relationship with Lisa Raye. If only I were privileged enough to have people think that I had a thing for Lisa Raye….now THAT would make my day!
    Our second topic of discussion was Michael Vick. I personally believe that in spite of media reports to the contrary, Nike is still waiting in the wings to sign Vick to a real deal, because Vick has always been the real deal among NFL athletes. The great challenge for Vick is that he has to start from scratch to rebuild his respectability as a top notch quarterback. He also has to let that ‘dog fighting’ issue get behind him.

    I recently did an online webchat about Michael Vick, which explores the similarities between Michael Vick and Jack Johnson, the first African American heavyweight champion of the world. You’ll notice that the way America has vilified black male athletes is nothing new to our country – there is a long history behind it.

    The conversation with Rev. Al is below. Enjoy!


    Dr. Boyce Watkins is a Finance Professor at Syracuse University and a leading African American Speaker. He is also the author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered directly to your email, please click here. To follow Dr Boyce on Twitter, please click here.

     

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  • Dr. Boyce and Keith Murphy Discuss Economic Empowerment

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    In this interview below with the great radio legend Keith Murphy, we discuss the power of high expectations, education and economic empowerment when it comes to dictating your own destiny.

    Keith Murphy is the host of “The Urban Journal” on Sirius/XM Satellite. He is a good brother and one of the few people who supported me when nobody knew who in the heck I was. I will always respect him for that.

    I told Keith that much of the empowerment process in the African American community comes down to education and economics. If we really push our kids to be their best educationally, that will open a million doors for achievement. It’s not difficult to be a good student: you only have to treat it like a part-time job. If a kid can work 8 hours a day in McDonald’s, that same person can sit and study for 4 hours a day. Any college student who studies 4 hours per day, every day, is going to earn As and Bs in most of his/her classes. It’s really that simple. In fact, most universities give you a “B” in the class just for doing what you’re supposed to do. College is not nearly as difficult as some would like for you to believe.

    When it comes to economics, it’s all about a couple of things: learning to save and invest and understanding the foundations of entrepreneurship. My belief, for example, is that every ex-convict who can’t find a job should study entrepreneurship so they can find ways to make money without earning dump wages from someone who doesn’t respect them. If the world rejects you, you have to find a way to still get what you want. It’s possible if you believe.

    The interview is below if you’d like to listen. Enjoy!

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a leading African American speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Dr Boyce Money: Five Ways to Know You are a Credit Card Crackhead

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    Sometimes your finances can get so out of whack that you can only laugh in order to keep from crying. Well, I am a big advocate of the art of laughing, so I thought I would share five symptoms that show you might be a credit card crackhead. As we know, millions of Americans have been sucked into credit card addiction, especially before the recent financial crisis, where the average savings rate for American consumers was actually less than zero.

    African American wealth     is also affected, as many of us in the black community are very good at whipping out the credit card to handle any old financial concern. Here is a list of five ways to know that you might be a credit card crackhead:

    1)Are your roommates and children trained to tell the bill collectors you’re not home? Running from bill collectors might make sense, but you eventually have to deal with them. I recommend working with a consumer credit counselor, who can help you to renegotiate your debts. Many of them can save you thousands of dollars in the process.

    2) When shopping, do you whip your credit card out faster than John Wayne’s gun? Food, clothes, haircare products are not the kinds of things that should be purchased with a credit card. Credit card use should be limited to major and emergency purchases. Using cash is an easier way to keep a cap on your spending. You might want to get a set amount of money out of the ATM every week and don’t spend more than that amount.

    3)Do you break into a cold sweat when you make a charge because you think that your credit card might be maxed out? Yes, a maxed out credit card is embarrassing. But banks have made it “easier” for you: many of them will go ahead and pay the charge if you go over your limit. In fact, they encourage you to overspend. Why? Because they will charge you a massive fee for doing so, to the tune of nearly $40 per transaction.

    4) Do you do the happy dance when you get a free credit card offer in the mail? If you are smart, then you would just throw it away. These offers are not as prevalent as they were before the financial crisis, but the credit card crackhead has a problem with seeing credit card offers as free money. Most of us think we need credit cards, but really you don’t. One credit card is usually enough to achieve your financial objectives.

    5)Do you have so many credit cards that your wallet hurts your butt? Or if you are a lady, do you have credit cards for all of your favorite stores? If so, the high interest payments you are making are probably killing your ability to save money. Get rid of store credit cards, since they encourage you to overspend on meaningless junk. They also tend to charge outrageous interest rates.

    When it comes to managing a credit card addiction, it’s all a matter of making wise choices. Credit is a good thing and very powerful, but it should also be used responsibly. Get your butt in rehab right now.

    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.

     

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  • Dr. Boyce Money: Is a Lack of Sex Grounds for Divorce?

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    I live in New York, so I get the chance to meet a lot of interesting cab drivers. I love listening to older people so I can understand the world a little bit better. One driver, a man in his late 60s, was especially candid with me about his life, his relationships and the personal choices that got him to where we were at that very moment.

    He told me that he was married young, to a beautiful woman. The driver then began a very open description of why he left the marriage. “She was throwing so much sex at me that I didn’t know what to do with it,” the driver said. “Then, after we got married, I had to beg for it and she wasn’t budging, so I told her I needed to get a divorce.”

    “A divorce?” I asked.
    “Yes, there was no point in pretending,” the man responded.
    While it may seem extreme for the man to get a divorce because he wasn’t getting enough sex, it wasn’t as if he was simply jumping from one wife to the next. A few months later, he met and fell in love with another woman, to whom he has been married for the last 35 years. They’ve produced 5 children and 9 grand children, and according to the driver, they still “get busy” every chance they get.

    Alrighty then.

    The cab driver’s story, as odd as it may seem, brings up an interesting question: Is a lack of sex grounds for divorce? Some say that it should be, since they argue that there is an implicit agreement from both parties to fulfill the needs of the other person. Some say that it is immature to leave your mate due to a lack of sex. At the same time, couples regularly cite infidelity as their grounds for splitting up. Does it make sense to agree to only have your needs met by someone who refuses to meet your needs in a satisfactory manner? Probably not.

    Legally, is a lack of sex good cause for divorce? I asked an attorney about that.

    Christopher Chestnut, a prominent attorney out of Gainesville, Florida, argues that it, “depends upon the state. For instance, Florida is a No Fault state, thus, justifiable reasoning for a divorce is not dispositive to a case. Notwithstanding, lack of sex in marriage may be a grounds for divorce in some states.”

    S. Tia Brown and I discuss sexless marriages and whether or not this gives you just cause to roll out or sneak out of your marriage. Listen up and 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.

     

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  • Financial Lovemaking: Managing "Baby Mama Drama"

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    Most of us know about “baby mama drama,” since some of that drama may occur within your own home. What is also forgotten is that there is a huge emotional and financial toll taken by the mating and dating choices that we make early in life. Having multiple children is expensive enough, but having multiple children in multiple households leads to a peculiar mix of unpredictable and complex psychological variables which may impact your ability to find peace and happiness.In this episode of “Financial Lovemaking,” S. Tia Brown and I discuss the art of managing multiple households and all the responsibilities that come with it. Here are some quick pointers on financial responsibility when dealing with and avoiding “baby mama drama.”

    1) Don’t create the drama in the first place. I tell my daughters that if you don’t think someone would be a good parent for your children, you shouldn’t sleep with them. In fact, you shouldn’t even go on the first date. This may sound far-fetched, but how many young parents go on a date with someone they just planned to “kick it with”, only to find their children being raised by the ignorant fool that they knew they should never have messed with from the beginning? Those who are not intelligent about their dating and mating choices early in life can end up with a lifetime of incredibly expensive child support. These huge financial obligations will virtually obliterate your ability to have another family or reach your personal financial objectives.

    2) Realize that there is no substitute for time. Some parents are tempted into believing that sending a big check is a replacement for spending time with their children. This is ultimately incorrect. Your kids are going to remember the time you did or did not spend, not how much money you sent.

    3) Create a budget. If you have a long list of parental obligations, make sure you keep a carefully designed budget and stick to it. You may also want to consider the fact that having a bunch of kids in multiple households is going to require you to have massive earning potential. I paid 18 years of child support myself, and I honestly think I spent enough money to fund NASA and the United Negro College Fund. Although I adopted kids later in life (I believe it takes a village to raise a child and black men should be willing to step up to do this), I was at least smart enough to avoid another pregnancy. I have made many mistakes in my life, but I usually only make them one time.

    4) Don’t play favorites. Emphasize to your children the importance of making sure you treat them all the same. How you deal with your kids will have a lasting impact on them into adulthood. You can’t guarantee that they are going to believe that you were fair (there’s always one who thinks the others were treated better), but you can at least do your best to avoid this problem.

    5) Realize that it takes two to Tango. You didn’t create the baby by yourself, so you should ensure that the non-custodial parent has an opportunity to spend time with his/her children – in fact, you should demand it, even if the kids aren’t interested. As much as black men get a bad rap for not wanting to see their children (sometimes rightfully so), there are thousands of fathers across America who’ve been victimized by mothers who want money, but don’t see the significance of influencing the children to spend time with their father. They are his children too, remember that, and if you are speaking negatively about the father when the kids are around, you should realize the long-term damage you are doing to your own offspring. Children should be targets of our love and affection, not possessions to be used as a source of power – think about that when you use the words “MY kids” when speaking with the other person who created them.

    The episode is below, check it out!

    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.

     

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  • Dr Boyce Money: Learning Entrepreneurship from Madam CJ Walker

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    The other day, I caught up with Fenorris Pearson, CEO of Global Consumer Innovations. Fenorris is not only a highly successful entrepreneur, he was also one of the youngest Vice Presidents at Dell Computer and a highly successful speaker in the African American community.

    When asked about the keys to success, he points to a quote by Madam CJ Walker, the first female millionaire in American history.

    Here is what Walker had to say:

    “I am a woman who came from the cotton fields of the South. From there I was promoted to the washtub. From there I was promoted to the cook kitchen. And from there I promoted myself into the business of manufacturing hair goods and preparations….I have built my own factory on my own ground.”

    National Negro Business League Convention, July 1912

    What’s the lesson from Madam Walker’s quote?The lesson from Walker’s experience is that when she thought like a laborer, she earned the wages of a laborer. When she began to think like an owner, that is when she opened the door for true wealth.

    Mr. Pearson spoke this week at the Congressional Black Caucus Event alongside the Honorable Barbara Lee, a Democratic Congresswoman from California. In the seminar, Fenorris uses his experience as an entrepreneur and corporate titan to make the following points:

    1) 95% of all new businesses eventually fail. In order to have a different set of outcomes, you must engage in a different set of activities. In order to ensure that you are not part of the other 95%, you should be fully committed, willing to take a few calculated risks, and do an extraordinary amount of planning in order to make your business succeed. You should also expect the unexpected – you never know what it’s like to run a company until you’ve done it.

    2) Most of these business fail for the following reasons: Lack of access to capital, poor management, expanding too quickly or starting the business for all the wrong reasons. Pearson argues that many of these problems can be avoided if a company engages in proper planning and organizational strategies. One of the things I’ve noticed is that you can’t run a large company the way you once ran a smaller one. Many black entrepreneurs run into challenges as their companies grow, because they have not gotten used to the idea of delegation. Once your business reaches a certain size, you should find ways to share the more trivial tasks with others so you can focus on the more important objectives. A billionaire once said to me, “Running a company is not a matter of what you do, it is what you get others to do that actually matters.”

    3) There are ways to avoid this kind of failure. With his company, Global Consumer Innovations, Inc., Pearson teaches business owners how to avoid the common causes of small business failure. He argues that by using specific steps toward proper product innovation and market delivery, a firm can find itself in a strong position in its chosen market.

    When starting a business, the bottom line is this: The truest path toward wealth creation and social power within the black community is not through politics. The path to power is economic prosperity, combined with a conscientious desire to improve the plight of those around you. True activism is not achieved through charity and personal freedom is not achieved by hoping for it. By thinking like an owner and having a willingness to take intelligent risk, you can achieve your wildest economic dreams.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a prominent black speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Don’t Let Your Spouse Control All of Your Finances

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    Financial News Blast for the week of September 26, 2009 – Click on the link for the title to read the article on the given topic:

    1) Don’t let your spouse control all of the family finances: This is a great article on how the entire family should be involved when making financial decisions for the household. When I wrote my book, “Financial Lovemaking 101,” I noticed that far too many American families are allowing their entire financial future to be controlled by one partner. You should be aware of what’s going on with your money, even if you’re not the one making all the decisions.

    2) Harvard Study: A Lack of Health Insurance Causes 45,000 Deaths Each Year: The healthcare reform debate has literally become a matter of life and death. We’ve got to find a way to get this done.3) How to get a home loan with bad credit: Many Americans suffer through credit problems. Where you’ve been doesn’t matter nearly as much as where you’re going. Getting a home loan can open the door to wealth and also create opportunities for you to rebuild your credit. Take a look at this article to find out how.

    4) The most lucrative college degrees: Going to college doesn’t guarantee a strong financial future. It’s going to college and choosing the right major that makes all the difference. Make sure you pick the right major for you and your children.

    5) Financial illiteracy is an epidemic in the United States: Banks and corporations are certainly predatory in their behavior. But you don’t have to allow yourself to be their prey. You must find a way to obtain basic financial literacy, for a lack of financial literacy was one of the primary causes of the 2008 economic downturn. If this epidemic is not managed, we are going to have serious problems for many decades to come.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a leading African American speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Money Blast: What You Should Know about Credit Scores

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    Financial News You need to know:

    What you need to know about credit scores: Get educated on what it takes to have the score you need. Your credit score can affect whether you get the job you want, as well as the cost of your insurance. Additionally, the formulas used by companies to calculate credit worthiness are changing as we speak.
    What social security underfunding means for your retirement: Social security is financially sick. African Americans are going to be hit the hardest, since we have the least wealth to prepare for economic challenges. Find out what all this means for your retirement, as the retirement landscape in America is going to change dramatically in the future.

    The federal government may continue to help first time home buyers: Many people don’t know about the $8,000 tax credit the Obama Administration is giving to first-time home buyers. Well, the government is considering extending the credit, which can add to your personal bottom line.Students are borrowing more money than ever to attend college: Along with the cost of healthcare, Americans are finding it more and more difficult to pay for their children to go to college. In fact, most young people under the age of 40 are going to die in debt. This does not have to be the case, since there are less expensive ways to pay for school if you seek out alternatives.

    Factors that may increase your chances of personal bankruptcy: Bankruptcies are skyrocketing due to the recession. There are things you can do to avoid bankruptcy, like negotiating with creditors or keeping a budget. Also, things like carefully noting the quality of your health insurance can make a difference as well.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University, a prominent black speaker and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Black News in Black America

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    Big Black News from Dr. Boyce gives you a list of the biggest black news stories in the areas of money and education. Consider it to be our gift to you.

    President Obama declares National HBCU Week

    Student shot and Killed at Spelman College in Atlanta

    Chris Brown tries to rebuild his brand on Larry King Live

    Will Whitney Houston Ever Be the Same Again?

    No, Roxanne Shauntay DID NOT get a PhD

    Should Personal Finance Be Taught in School?

    University of Michigan Football Gets its Cover Blown on alleged Mistreatment of its athletes

    Nas, Kelis, Money and Craziness: How much money does Kelis Need to Live?

    President Obama Plans to Address Congress to Push his Healthcare Plan

    Dr. Boyce Watkins is a Finance Professor at Syracuse University. To have Dr. Boyce commentary delivered directly to your email, please click here.

     

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  • Dr. Boyce Talks Money and Sex on ABC News

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    I recently appeared on ABC News to talk about Financial Lovemaking, and the link between sex and money. I’ve discussed relationships and money several times on AOL in the past, but I think that I should quickly lay out some very interesting similarities that may not have crossed your mind. As I teach my Personal Finance Class at Syracuse University this semester, I am reminded that managing our money is linked to managing our love, which is critical to the ultimate goal of effectively managing our lives.

    1) Many people think about both sex and money every single day. Don’t lie, you know you enjoy thinking about sex, even if you aren’t getting any. But chances are, you also think about money, whether it’s figuring out how to get what you need or how to keep what you’ve got. Even most rappers spend all their time talking about either sex, money or how they use their money to get more sex. It’s actually a universal concept.

    2) Both sex and money can make you feel good. If I wrote you a check for a million dollars, you’d probably end up having a good day. If I offered you the sexiest person you could think of to do as you wish, you might have an even better day. Both sex and money have the effect of giving us a natural high that leads to human beings spending their lives obsessed with obtaining both commodities.

    3) Both sex and money can devastate you if you are irresponsible. Promiscuous sex can lead to a life of disease and drama. Promiscuous spending can lead to a life of financial turmoil. Both sex and money, being the powerful drugs that they are, should be managed with both responsibility and moderation. They are both meant to be enjoyed, but not meant to be abused.

    4) It’s scary to share either one of them with another party. Your body is valuable, so you don’t want to share it with the wrong person. Your money is valuable too, so the same logic applies. Sharing your financial or sex life with the wrong person can lead to years of regret. Emotional, physical and financial investments are all quite risky.

    5) Both sex and money require trust if you are engaged with another person. I’ve heard women talk about financial betrayal by their partners in the same context as emotional betrayal. If you trust someone with your money, you are trusting them with your life. The same is true when it comes to trusting them with your body.

    6) It’s no fun to share either your sex or your money with someone who doesn’t know what they’re doing. Sex is better with someone who knows how to do it right. Well, sharing your financial future with someone who knows what they’re doing can actually lead to dramatic improvements in your quality of life. So, when you consider how good a person looks or how great they make you feel, also consider how great they can make you feel in the long run by providing both financial and emotional security, which can effectively be the same thing.

    7) One is often used to obtain the other. On average, guys with more money get more sexual opportunities and those who give good sex could use it to get their bills paid if they wanted to (Come on, let’s be honest here – what’s the oldest profession in the world again?). There are biological reasons that men with greater access to resources tend to make better mating options for women. The rapper Ludacris noticed how he suddenly went from “ah-ight” to “handsome” when he started to make money. That’s to be expected.

    In the episode of ABC News below, we talk about these links between sex and money in more detail. 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.

     

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  • Is College a Good Investment During a Recession?

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    I was invited onto “Tell Me More with Michel Martin” to discuss college and whether or not it makes sense to invest in college during an economic downturn such as this one. I have written extensively on the value of going to college, since I argue that education plays a huge part in determining whether you end up being a true player in life or just end up getting played. Black college students must really note the significant impact of attending college, since people of color benefit the most when we get ourselves educated.

    Here are some thoughts regarding whether or not college is a good idea during a recession:

    1) You must decide if college is a necessity or a luxury item for you. If you are a wealthy kid who can rack up $80,000 in debt to major in Philosophy and Theatre, then God bless you. But just make sure you are aware that the major you choose plays a huge role in your ability to manage debt after graduation. This is not a slap at those who choose majors that don’t have a strong job market, it’s just a reminder to make sure you know what you’re stepping into. Personally, I majored in business, because college was not just my path toward educational enlightenment, it was my way to pay the bills when I got older.

    2) Figure out what you hope to get out of college. If you want to simply get a good education and are not worried about the job market very much, then you don’t need an expensive school to do that. Education is what you make of it. I’d rather be a student at a state university who studies 7 hours a day than to be a frat boy at Yale living at the bottom of a beer bottle. The student who studies is going to learn; the one who doesn’t study won’t learn a thing. College is what you make of it. But if your goal is to use the name of your campus to open doors for great job opportunities, then this might justify the cost of an expensive university.

    3) Parents, the debt is not all yours. You are getting ready for retirement, your children are young. Pretty soon, they will be earning more money than you. Does it make sense that you’ll spend your golden years paying student loans for an able-bodied adult? Perhaps it’s time for your children to learn how to take care of you? They will never learn to be financially independent if you don’t teach them. Allowing your child to manage some of his/her student loan debt doesn’t make you into a bad parent. You got them to age 18 in one piece, some would say that you’ve done enough.

    4) Grad school anyone? Some majors require additional education for you to be competitive in that particular market, some do not. Think through this carefully when deciding if you want to make the massive investment of going to graduate school. I believe that an MBA is usually worth the investment, while a masters in Anthropology may not always get you the job you’re seeking. But outcomes can vary depending on the major, and you should do your homework.

    5) Education gives you job security. One thing that many autoworkers learned during the recent economic downturn is that having a good job with little education makes you highly vulnerable to economic flucuations. African Americans were the hardest hit during the recession, and many of us lost our jobs when the auto industry tanked. Even if you earn a lot of money, you should never stop believing that additional education doesn’t have value for you. You don’t want your financial future to be in the hands of someone else.

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    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Everything You Ever Wanted to Know about College.” To have Dr. Boyce Commentary delivered to your email, please click here.

     

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