Money Lessons from 2 Countries - Chapter 2

We talked last week about the differences between the school systems in Romania and the US. I would like to take this post to go over some other differences within the school systems, as well as the life of the students and their families during this period.

As I mentioned, during the communism, every high school graduate was offered a job - not one that required a lot of specific training or a certification, but still a job. Also, at the time that everyone graduated university, they were offered a job in the field of their studies. For instance, doctors, teachers and engineers ended up with jobs in their field - the only "catch" was that they went to very small cities and especially in villages. The only way for them to be in a big city or close to their hometown was to ask for favors or to bribe someone.

By contrast, after the revolution, just like in the United States, many of the graduates from different universities work in jobs that are different from their field of study. Also, with the increase in new universities after 1989, there are a lot more graduates than before. With all the changes that came with the revolution, the high school graduates had more options for university, and therefore many attended classes in fields that they were not passionate about, such as going to law school - similarly with many American students getting a degree in criminal justice.

While growing up both during the communist regime and afterwards, in Romania, teenagers and college students didn't have an opportunity to work - without the fast foods and grocery stores, like the big chains in the US, we didn't have a chance to earn money and have entry-level jobs that show up as "experience" on a resume. I still remember how hard it was after graduating college when I started looking for a job and everyone was asking me about experience. Yet nobody would hire me to give me the "experience" they were all requiring. 

I guess in this I always considered the students from Western Europe and the United States as fortunate to be able to achieve a certain level of financial comfort by providing the cash they needed for the things they wanted through their own jobs and efforts. As a funny side note, I also didn't grow up with an allowance, so I didn't have a "weekly wage" as a child, with which to make plans for things to buy. I always had to earn the money I wanted by maintaining good grades - which was not a hard thing for me (fortunately). 

Going away to college gave me an opportunity to manage my money while making sure I could buy the things I wanted while also having money to go home every time I wanted. For many Romanian students college is the first chance to leave home for a number of years and become independent (or at least depend on the parents less). What happens many times after graduation though, is that the graduates return to live with their family for a while longer - unless they find opportunities for work (most often out of the country). 

I used to think that the American and Western European systems, encouraging their youth to move out form their parents' homes in their late teenage years, was such a great set up. I longed to be independent back in my adolescence...

We will explore some of the other changes in the next weeks. Stay tuned! 

Prosperity Mindset Month - Chapter 1

This is the month when many lives change in the US. Whether it is the college graduation that launches the new adults into the real world, or the wedding that unites the lives of two people (formerly single), May is a month of changes in many lives.

I will apologize right now for playing the role of Debbie Downer! Since this a blog related to finances, and especially to YOUR relationship with money... we will talk about the increase in personal debt the month of May brings about: student loans that now need to get paid, wedding expenses that add up to a high balance on your credit card if you didn't plan it right, and maybe even a new mortgage if you timed your home purchase with your wedding.

Since we already learned that we always eat an elephant one bite at a time, we will tackle one of these scary debts in this first post - stay tuned next week for another exciting episode (LOL). Today we will talk about the student loans, and some information that may help you pay them down faster, or at least to plan appropriately for when you can be rid of them.

For those of you who are the parents of students, please think twice before co-signing on the student loans. Now, please don't get offended, and don't accuse me of not being sympathetic to your desire of being a great parent and helping your child financially. If you can provide the capital for them to go to school, by all means, do so. Even if you want to take on some loans to help them out, that is entirely your choice, and I can respect that. 

Having worked in the financial industry for more years than I care to acknowledge (since I'm still 25 years old), I have met a lot of people who have put their retirement in danger by taking on loans they could not really afford. If your budget doesn't suffer by adding another monthly payment (such as a student loan payment), then by all means, take on a loan for your child. Otherwise, please consider helping them in other ways that don't risk your ability to retire. One idea for you is to check out some grants offered by smaller organizations in your area. If you are not familiar with such organizations in your town and still have some time before your student goes to college, please consider reaching out to organizations in the community; it will be an opportunity to meet some great community leaders.

One great resource that I came across while watching Shark Tank (valuable resource for entrepreneurs) is an app called Scholly - provides a list of many organizations and companies that provide scholarships. This can cut down on your research time. 

Please feel free to share in the comments any resources you have that can help another un-broke woman with money for college and limit the amount of student loans.