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Yahoo
5 days ago
- Business
- Yahoo
Parents are sacrificing retirement, taking second jobs, and liquidating investments just to afford college for their kids
With the cost of college soaring, many parents are making major financial sacrifices like delaying retirement, liquidating savings, or taking second jobs to help their children avoid student debt. More than 60% of parents now go beyond traditional college funding methods, often without a clear savings strategy. Financial advisors suggest this could lead to risky financial decisions. Parents make countless sacrifices for their children. And now that college is more expensive than ever, they're jeopardizing their own financial futures to try to secure their kids'. In a survey of 1,000 parents from Citizens Bank released Tuesday, respondents say they are taking on a second job (19%), borrowing against their 401(k) or liquidating personal funds (30%), pausing investing entirely (26%), and cutting back on major purchases or vacations (66%). And more than 60% of parents reported they expect to delay their retirement in order to pay for their kids' college education. The cost of college has ballooned: It's 40 times higher than it was in 1963, according to the Education Data Initiative. And between 2010 and 2023 alone, tuition costs at four-year public universities jumped more than 36%, Education Data Initiative said, with the average cost of college today nearly $40,000 per year. That's led more than 60% of parents to need to go 'above and beyond' typical financing options like 529 plans and federal loans, according to the Citizens survey data. 'Compared to just a few years ago, the pressure has increased due to rising tuition, inflation, and greater uncertainty around future costs,' Tony Durkan, vice president and head of 529 college savings at Fidelity, told Fortune. 'Many families are still underprepared, often relying on rough estimates rather than clear savings goals.' Pam Krueger, investment advisor and founder of Wealthramp, said the phenomenon of parents taking on side gigs, pulling money out of retirement, and refinancing their homes to pay for college is incredibly common. 'It's coming from a place of love and a desire to protect their kids from the burden of student debt—but it's also very risky,' Krueger warned. 'These choices can set parents back in a way that's really hard to recover from.' Part of the problem is the disconnect between college admissions and financial planning, according to Citizens. Survey data showed one in five parents admitted they just focused on getting their child into college without thinking about how to pay for it. And it's such a touchy and embarrassing topic for parents, almost 50% of survey-takers said they would rather talk to their children about drugs and alcohol. While pulling money from retirement, taking on another job, or refinancing your home may feel like the only option to come up with enough funding for college, financial advisors say there are other options. Of course, a 529 savings plan can help—but that has a longer runway. These tax-advantaged plans can sometimes allow you to pay for tuition ahead of time, but many people save for many, many years to fund these accounts. Still, 'the earlier you begin saving, the more time your money has to grow through compounding,' Durkan said. 'Even small, regular contributions can add up significantly over time.' Plus, any funds that aren't used can be transferred to a sibling, cousin, or back to yourself, meaning no wasted money—and it stays in the family, Krueger said. But if it's too late in the process—like if your kid is already in high school—an alternate strategy is needed. Krueger said this requires open and honest communication with your child about what you can actually afford. 'Sit down with your child and talk openly about what's realistic. Explore schools that are generous with merit aid or have transparent pricing,' Krueger said. 'And look at the full cost—not just tuition, but room and board, books, travel. Sometimes the 'big name' school isn't the best financial fit—and that's okay.' For parents just starting to plan for college while their children are in high school, Brian Safdari, founder and CEO of College Planning Experts, also suggests moving around investments and assets and as well as applying for grants, scholarships, merit-based aid, and institutional aid starting as early as ninth or 10th grade. Even private colleges with sticker prices of $95,000 or more a year could offer generous aid that make the final cost the same as a public school or even less, he told Fortune. Still, 'the expected cost minus savings minus free money will likely still leave a gap,' Safdari said. 'Once we have that number, we can start figuring out how to fund it over four years, while minimizing student debt and leaving enough money to retire.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
22-06-2025
- Business
- The Hill
Picking a college major? These pay the worst after graduation, data shows
(NEXSTAR) – The cost of attending college has more young people (and their financially stressed parents) questioning whether it's even worth it to pursue a degree. The answer, it turns out, could largely depend on what you study. Not every degree will provide the same return on investment, with some having higher unemployment rates and lower income prospects post-graduation. A database updated this year by the Federal Reserve Bank of New York allows people to explore which college majors tend earn the most – and the least – after students get their diploma. The lowest wages right after graduation go to foreign language majors, who earn a median of $40,000. Those who study social sciences and performing arts don't fare too much better, the analysis found. Over time, education majors seem to have the lowest income ceiling. Those who studied early childhood education, elementary education, special education and other related fields not only had low early-career wages, but those wages stayed relatively low even in mid-career. Anthropology majors, meanwhile, found themselves with the highest unemployment rate at 9.4%. The U.S. Census Bureau hasn't released updated data yet in 2025, but the latest available data from the Bureau showed similar findings. Those with a bachelor's degree in visual and performing arts, education, psychology, multidisciplinary studies, and literature and languages had the lowest median income. Low wages can add insult to injury if a recent graduate finds themselves weighed down by hefty student loans. As student loan collections have restarted in the U.S., millions are having trouble keeping up with payments and getting hit with credit score penalties. In March, the Federal Reserve Bank of New York estimated about 25% of people with student loan accounts were more than 3 months behind on payments. The average cost of attending college in the U.S. is $38,000 per year when you account for tuition, supplies and living expenses, according to the Education Data Initiative. On the other side of the spectrum from education and the arts are the students who majored in engineering, computer science, physics, finance and math. Those fields of study tend to have the highest early- and mid-career earnings.
Forbes
12-06-2025
- Business
- Forbes
Graduation Options: College, The Military, A Job, Or Entrepreneurship?
Graduating from high school marks a pivotal moment in a young person's life, presenting a variety of choices that will influence their future. For many, the question of what to do next is both exciting and overwhelming. While many opt to enroll in college, others choose to join the military, enter the workforce directly or pursue entrepreneurship by starting their own businesses. Each option offers unique opportunities and challenges that require careful consideration. So, which should they choose: going to college, joining the military, entering the workforce, or starting a business? Let's take a look. Excited graduates look forward to their future. A common paths chosen by high school graduates is continuing their education, which provides opportunities for intellectual growth, career preparation, and personal development. According to the U.S. Bureau of Labor Statistics, 61.4% of recent high school graduates enrolled in college in 2023. Among college students, 74.6% were enrolled in a four-year college or university, compared with 25.4% who were enrolled in a two-year college. Earning a bachelor's degree is usually a four-year process. However, 22.3% of student take more than four years to complete their bachelor's degree, according to the Education Data Initiative. As for specific degrees: Soldier using a laptop and radio during a military operation. Another path high school graduates might consider is joining the military, which offers structure, career training, and educational benefits in exchange for service. According to the 2023 Military Teen Experience Survey, enlisting in the military was the second-most common plan after high school, with 10% reporting these plans, while 73% of respondents planned on going to college. Reasons to join the military after graduating high school include earning a living, saving money for future education, gaining experience/work skills, and making 'a positive difference in my community.' Young barista serving coffee at a cafe. The labor force participation rate of young people not enrolled in school was 78.5%, according to the Bureau of Labor Statistics. A comparison between the earnings of college grads vs. high school grads showed a larger payoff for those who pursued higher education. The Census Bureau estimated that in 1999, the average lifetime earnings of a bachelor's degree holder was $2.7 million (2009 dollars), 75% more than that earned by high school graduates. Today the gap is even larger; since 1999, the premium on college education has grown to 84%, according to the U.S. Department of Education. It is also important to compare different occupations. For instance, waiters and waitresses earn a median hourly wage of $16.23, culminating to annualized median earnings of approximately $33,760 (as of May 2024). Retail sales workers earn a median hourly wage of $16.70, culminating to annualized median earnings of approximately $34,730 (as of May 2024). Finally, sales and related occupations overall earn a median annual wage of $37,460 (as of May 2024). A young entrepreneur. For entrepreneurial-minded high school grad, starting a business can be an appealing option that offers independence, creativity, and the potential for financial success. Success is not as dependent on a college degree as one might think. In fact, billionaires Bill Gates, Mark Zuckerberg, and Steve Jobs all dropped out of school to start their businesses. If you have an entrepreneurial spark and believe you have a successful business idea, you still have to do your homework, so to speak, whether you are a high school grad or an MBA. An important step in launching a business is doing your research and developing a business plan that provides a road map for success. The business plan should defines clear goals, explain how the company plans to overcome competition and other challenges, and convince investors to back the venture. Young woman writing business plan outline with marker on whiteboard. Your business plan must outline what the business will be, who will run it, where it will be located, when it will start, and why it will succeed. It should not be a one-year plan, rather the plan should project 3-5 years ahead and outline milestones and revenue growth goals. A business plan should be thought of as an ongoing guide for your company, not a one-time exercise, and it should be referenced frequently and updated. Here are the key elements of a business plan: 1. Executive Summary: A one or two-page concise explanation of the firm, including its business goals, operations, marketing efforts, and revenue model. (This may indeed be the only portion of the business plan that a loan officer will bother to read. Make sure it is succinct and compelling.) 2. Business Description: What does the company do? How will it make a profit? 3. Local Market and Competitive Landscape: An important section of the plan. Assess the competition as objectively as possible and then describe how you plan to differentiate your business. 4. Description of the Product or Service: Explain how your product or service works. Articulate the key differentiator(s). 5. Sales, Marketing and Promotion: Outline how you will educate the marketplace about your business and build brand awareness. Describe the mix of advertising, social media promotion, public relations (traditional), trade show attendance, sampling and sales promotions that you will do. Be sure to invest in a strong website that incorporates Ecommerce, if you are selling products. 6. Management: Explain who will run the business and their areas of relevant experience. This section should include short bios of partners and key team members. 7. Financial Data: Provide a break-even analysis, cash flow projection, and sample balance sheet and profit-and-loss statements. 8. Investment: How much of your own money are you investing? (Tip: If you are unwilling to put your own money into the venture, investors may be wary about sinking theirs into it.) It is important to provide an estimate of sales, revenues growth and what type of return investors can expect. 9. Appendices: Include supporting documents, including research you done, charts and graphs, logos and other images, references, etc. Obtaining the funding required to get a business off the ground is much different from established companies. A recent high school graduate is unlike to have a strong credit history, which is typically expected from traditional sources of funding, such as bank loans. So how where can a young entrepreneur secure financing? 1. Personal Savings: A recent high school grad might not be in a position to start a business right away. In fact, it may take some time to build up some financial resources. Investing in your own company demonstrates to future funders that you have 'skin in the game.' The downside, of course, is that if the business fails, there can be significant personal financial loss. 2. Family and Friends: Aspiring entrepreneurs will often approach relatives and friends for financial backing. While they may be more likely to invest in you and your idea and likely will have more flexible repayment terms, the downside is that these individuals may become intrusive with their advice or even expect to be involved in decision-making. Failure of the business could result in strained relationships with family members and friends. 3. Crowdfunding: Platforms such Kickstarter and Indiegogo took personal appeals to a wider audience. Investors might not expect to become partners. In fact, they may be satisfied with samples of product or some type of public acknowledgement. Crowdfunding enables entrepreneurs to raise money without having to apply for bank loans, pitch VCs, or give up equity in the company. It helps prove there is a market for the product and provides marketing and exposure for the company while building brand loyalty and a following. Frequently, crowdfunding backers provide valuable input that can help improve the business and its offerings. However, crowdfunding does come with risks. If the campaign fails, it can hurt your credibility and the brand's reputation. Also, an inherent risk of sharing information about your venture publicly is that someone could copy your idea, improve it, and bring it more quickly than you can, thereby eliminating first-mover advantage. Lastly, detractors can be vocal and unforgiving online. If you production encounters a scarcity of resources, cost overruns, or a labor shortage that prevents you from fulfilling orders, the damage to you and the company's reputation could substantial and possibly fatal. 4. Micro-loans: SBA microloans can be beneficial for startups and early-stage businesses. By definition, the funding comes in small amounts that are more manageable to repay. They are ideal for companies that need only a modest amount of capital. The loans can be up to $50,000 and more often are in the $10,000-$15,000 range. They typically come at interest rates between 8% and 13%. 5. Credit Cards: We often hear of entrepreneurs who 'max out their credit cards' to get their companies off the ground, such as Vita Coco co-founders Michael Kirban and Ira Liran, who launched the $1 billion coconut water business. They were honored along with me and my brother, Ramit, as Crain's New York Business's Top Entrepreneurs of 2011. However, maxing out your credit cards is not an advisable way of securing startup capital since he typical interest rate on credit cards is generally above 20% and sometimes approaches 30%. This is a very high cost of capital. Related: 3 Reasons Small Businesses Should Borrow At Today's Interest Rates Once a business gets up and running and begins to grow, startup founders can begin looking toward a future of growth. Young entrepreneurs should know that in order to qualify for a small business loan for growth traditional banks typically require two years or more in business. SBA loans (government–backed funding by SBA-approved lenders) also look for at least two years of business operations, although some exceptions apply. Bank loans usually have the most attractive interest rates. Companies with less than two years of operation under their belt, a short history of paying debts, or a less than stellar credit history, may need to look to non-bank lenders that provide funding based on factors such as cash flow and credit card receipts. These funders are able to provide more quickly than bank would, since banks typically require more paperwork, but the cost of capital for non-bank funding is almost always higher. There are many things to consider when opting to start a business. Recent high school grads should seek information and advice from adults, including their parents, business owners they may know, organizations like SCORE, which provides business mentorship for free, SBA local business offices, and other knowledgeable sources. Related: What Great Mentorship Really Looks Like (And How To Find It) Ultimately, young people who pursue entrepreneurship take their future into their own hands. The ones who are most successful are optimistic, innovative, hard-working, knowledgeable, motivated, and resilient. Over the course of time, the ones who succeed are those who learn from their mistakes, understand how to become more efficient, build strong teams, and understand the market for their products and services.
USA Today
09-06-2025
- Business
- USA Today
Jobs that don't need a college degree − and won't be replaced by AI
Jobs that don't need a college degree − and won't be replaced by AI Show Caption Hide Caption Gray collar jobs: Tips for making money without a college degree Dan Roccato, a professor at the University of San Diego, talks about the importance of gray collar jobs and how you can make money even without a college degree. Fox - 32 Chicago If you think most Americans finish college, think again. Going to college is an American rite of passage. But not everyone goes to college, and many students never make it to graduation. Among Americans ages 25 and over, only 38% are college graduates, according to the Education Data Initiative. A new report from the resume-writing service Resume Now identifies 13 careers that offer good pay and long-term stability and that don't require a college degree. Better still, none of the jobs are likely to be replaced by AI. The analysis 'focused on three or four fears that people have right now,' said Keith Spencer, a career expert at Resume Now. Americans worry about signs of a softening job market. They're concerned about the cost of college, and whether a degree is still worth it. And employees in many fields fear that AI – or robots, or other nonhuman hands – might sweep in to replace them. Despite the slow creep of automation, many fields still require the human touch. To build out this list, Resume Now found careers that require only a high school diploma, that pay at least $50,000 a year, and that represent growing fields with high-demand skills. The report draws on Bureau of Labor Statistics data. 'They sort of all have some similarities, in terms of the need for significant human interaction,' Spencer said. 'Maybe they require manual dexterity in unpredictable environments, or high levels of creativity.' The list comes in two parts: jobs with relatively low AI risk, and positions with 'moderate' AI risk, based on the need for human decision-making, manual labor, personal interactions and other factors. Some of the jobs listed below require 'a level of relevant experience,' Resume Now reports. But none, apparently, requires a college degree. Here's the list, including job descriptions for less familiar positions, and median salaries for all. Jobs with low AI risk According to Resume Now, these careers offer a good income and strong job security because they require skills that go well beyond the capabilities of AI. Forest fire inspectors and prevention specialists Job description: Judge fire hazards, investigate wildfire causes and enact prevention strategies. Why they're AI-resistant: Fire prevention requires humans in the field and cannot be entirely automated. Median pay: $71,420 a year Flight attendants Why they're AI-resistant: AI can't serve meals. In-flight customer service requires a human touch. Median pay: $68,370 a year Lodging managers Job description: Think 'The White Lotus.' Oversee lodging operations, manage the staff and keep the guests happy. Why they're AI-resistant: AI can't unclog a guestroom toilet. You need people to provide the personal touch. Median pay: $65,360 a year Electricians Why they're AI-resistant: AI can't install your chandelier. Electrical work requires a human presence. Median pay: $61,590 a year Plumbers, pipefitters and steamfitters Job description: Plumbers install and service water and gas systems in homes and businesses. Why they're AI-resistant: Plumbing is unpredictable work. AI-controlled robots could handle some of it but not all. Median pay: $61,550 a year Industrial machinery mechanics Job description: Maintain mechanical systems in industrial workplaces. Why they're AI-resistant: AI would struggle with the real-time problem-solving demands of the work. Median pay: $61,170 a year Chefs and head cooks Why they're AI-resistant: AI can't taste the soup. Recipe development and food prep require a creative touch. Median pay: $58,920 a year Hearing aid specialists Job description: Work with hearing aids and provide patient care. Why they're AI-resistant: AI can't handle the hands-on requirements of the job. Median pay: $58,670 Personal service managers Job description: Oversee wellness programs, event planning or luxury concierge services. Why they're AI-resistant: The work requires personal interactions, emotional intelligence and decision-making that AI cannot handle. Median pay: $57,570 Jobs with moderate AI risk These careers involve tasks that eventually could be automated, Resume Now reports. But, for now, they still rely on human judgment and adaptability. Maintenance workers, machinery Job description: Close cousins to the industrial machinery mechanic, listed above, machinery maintenance workers perform routine upkeep on industrial machinery. Why they're AI-resistant: Complex repairs require real-time problem-solving by humans. Median pay: $61,170 a year Insurance sales agents Why they're AI-resistant: AI can handle some underwriting tasks, but this career requires personal service. Median pay: $59,080 a year Aircraft cargo handling supervisors Why they're AI-resistant: AI can handle some aircraft cargo tasks, but you need human supervisors to handle the unexpected. Median pay: $58,920 Security and fire alarm systems installers Why they're AI-resistant: Installing and troubleshooting security and fire systems requires humans. Median pay: $56,430 a year
Yahoo
04-06-2025
- Business
- Yahoo
University of Memphis to increase tuition by almost 5% for upcoming school year
In-state University of Memphis students will be paying more for tuition and mandatory fees for the upcoming school year. The increase, voted on by the University of Memphis Board of Trustees on June 4, is 4.92%. For a typical 15-hour course load per semester for undergraduate students, the increase will equate to $264. The university said in a press release the decision to raise tuition comes in response to rising operational costs. "This increase reflects our ongoing commitment to preserving academic excellence and student success while maintaining affordability," said Board of Trustees President Cato Johnson in a statement. "We are making targeted investments that will strengthen the student experience and prepare our graduates for success.' The university said the revenue from the additional tuition costs will help "support a range of University priorities." Some of the specific reasons are: The launch of a new Doctor of Physical Therapy program at the Lambuth Campus, set to begin in fall 2026; The launch of The Polytechnic @ UofM Initiative, focused on workforce needs in applied technology fields such as advanced manufacturing, applied cybersecurity, applied artificial intelligence, and organizational leadership; Needed staffing and operational support for the university's new University Crime Information Center; Expanded programming in the division of student affairs and renewed funding for the office of first-generation student success, which lost federal support this year; and Cost increases tied to software, utilities and property insurance. The Tennessee Higher Education Commission has to approve tuition increases above 6.5%, but since the university's increase is below that, the move does not have to be approved. According to the Education Data Initiative, the cost of tuition at public 4-year institutions increased 36.7% from 2010 to 2023. Brooke Muckerman covers education and children's issues for The Commercial Appeal. She can be reached at This article originally appeared on Memphis Commercial Appeal: University of Memphis increasing tuition for upcoming school year
