Stiegler

CompilationPaper

CADS3700Spring2017

KatherineStiegler
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Ihadnoideawhatthiscoursewouldhold.Quickly,itwasclearthatGender,Wealth,and

Philanthropy,wouldbethemostrealworldclassIwouldtake.SittingdownattheCaryCenter

withAlyseandfellowstudents,duringthesecondthesecondweekofclass,ascaryreality

check.Realizingthattheuglytruththatyourdreamsmightbecostlyandyouridealfuturecareer

mightnotbeabletoaffordthat,anditmostdefinitelywillnotbeabletoaffordyourdream

apartmentatfirst,especiallywhenyouwanttoliveinNewYorkCity.Thiswasnotsomething

thatIdidnotknowbuthearingandseeingthenumbersofmyfuturecostswasdifferentthanjust

assuminghowmuchmyfuturefinanceswouldbe.Itwasthehardtruthandtherealityofthe

situation,thatishowIwoulddefinethiscourse:thehardtruth.Thiscoursehasembeddedinmy

headhowimportantitistoconsistentlygivemytime,treasureandtalentstoorganizations.This

coursetaughtmehowimportantitistosaveearly,regularly,andaggressively.Thiscourse

taughtmehowtotakewhateverlifethrowsyourwaybyusingrecoverykey.Thiscoursetaught

metothinkaboutthefutureasitwashappeningnow.

DuringthefirsthalfofthesemesterwhilereadingJanetBodnarsbookMoneySmart

Women:EverythingYouKnowtoAchieveofFinancialSecuritywelearnedalotabouthowto

beindependentasadultwomen.Bondargoesthroughallthephasesofthesinglelife,married

life,howtostaymarried,whenyouhavekids,howtoinvest,retirement,divorce,takecareof

yourparents,andhowtobepreparedforwidowhood.Whilereadingthisbook,Ilearnedalot

aboutmyselfandwhatIneedtodotoprepareforthefuture.

Bodnarfirstwantsyoutorealizewhattypeofspenderyouare.Therearefouroptions:

theaccountant,thesocialworker,theCEOandtheentertainer.IfoundthatIamamixerofthe

entertainer,whichissomeonewhoyougoouttodinnerwithyourfriends,pickupthetab,or
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hostbrunchonSunday.Youneverbalanceyourcheckbookandcantbebotheredsavingreceipts

(Bodnar4).Iamalsothesocialworker.Thisissomeonewhowillingtospenditonthe

people,andcauses,youlove(Bodnar4).Thiswasaneyeopenertobebecausealthoughgiving

isgreatIalsoneedtosaveandmakesureImnotspendingmoneyIdonothave.EversinceI

haverealizedthetypeofspenderIamIhavebeenworkingonit.BecauseIcurrentlydonothave

anyincomejustanallowanceanddonothavethemoneytobebuyingfriendsdinners.Ihope

thatonedaywhenIgetacareerIcanaffordspontaneouslypurchasingdinnersorgiftsor

donations.

AnothertopicthatBodnardiscussesandprobablythemostimportantinmyeyes,is

thinkingsingle.Bodnaremphasizestheimportanceoflivinglifewiththemindsetyouaresingle

solelyforfinancialbenefits.Sheexplainsthisbysaying,Evenifyouremarriedorina

relationship,youneedtothinksingletomaintainyourfinancialindependence,sothatif

anythinghappenstoaspouseorpartneryouwontfacefinancialdisasteraswellaspersonal

tragedy(Bodnar20).Bodnarisonehundredpercentrightaboutthis.Igrewupinahousehold

wheremymomwasastayathomemomandmydaddealtandbroughthomeallthemoney.So,

whenmyparentsgotadivorceafter24yearsofmarriagemymomwasbroke.Shehadtorestart

herentirelifefromthebottomupandthatisntsolelybecauseshedidntliveherlifewiththe

mindsetshewassinglebutthatwaspartofit.Mostpeoplebelievewhenyougetmarriedyou

taketwopeopleandbasicallymaketheirlivesintoone.Theygetjointbankaccounts,emails,

etc.ButBodnarhasmadeareallygoodpointabouthowlivingwiththesinglemindsetisinyour

bestinterest.
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Next,Bodnardiscussesthefivestepstobecomingfinanciallyindependent.Becoming

financiallyindependentispossiblythebiggeststepinadulthoodandsomethingIknowIwill

strugglewith.ButBodnarsstepsandsimpleandclear.Thefirstbeingtopayoffyourdebt.

Luckily,Idonothaveanydebt.ThatisalsoanotheraspectthatIhavelearnedfromthisclass:

howluckyIamthatIwillgraduatedebtfree.ButifIevergetaloanBodnarsuggeststhat,

monthlypaymentsoninstallmentdebtcreditcardbalances,carloans,andotherborrowing,

excludingahomemortgageshouldnotexceed20percentofyourtakehomepay.Abroader

ruleistofigurethatyourtotalmonthlydebtpayments,includingamortgage,shouldntexceed

36percentto40percentofyourgrossmonthlyincome(Bodnar21).Theseareimportantrule

forfuturereferenceswhenImakebigpurchasesthatrequirealoan.Thesecondstepistowrite

yourcredithistoryonacleanstate.EventhoughIdonotcurrentlyhaveacreditcardIlearned

thatgettingonesoonwouldbesmartsoIcanbuildupacreditscore.Youcanevengetcredit

cardsthathaveacertainlimit,suchas$200amonth,whichcanbeagoodstartingpointfor

youngadultsorfirsttimecreditcardholders.Thirdistoplumyourcashcushion.Bodnarsaysit

best,statingthat,financialexpertswilltellyou,youshouldhaveenoughcashtuckedawayto

cover3to6monthsworthoflivingexpenses(Bodnar29).Thisisanotherbigeyeopenerfor

me.IfthereisonethingIdonotdoatall,issave.IhavehadajobsinceIwas15andIwould

saveandsaveuntilIfeltIhadenoughmoneythenbasicallyblowthroughit.Mymomwould

alwaysattempttomakemerealizehowimportantitwastosaveandfordifferentthings.She

wantedmetohaveasavingsaccountforspendingincollegeandforemergencies.Bothwere

greatideasandsomethingIregretnotdoingbutIwassofocusedonmycurrentsituationrather

thanlongterm.NowasIbecomeanadultitsevenmoreimportanttosave,especiallyhavingan
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emergencyfound.Bodnarpointsoutyouneverknowwhatlifeisgoingtothrowatyousoits

goodtohavesomemoneytobepreparedforit!Eveninclasswelearnedtosaveearly,regularly,

andaggressively.Whenyoustartsavinginyourtwentiesinsteadofyourmidthirtiesorforties

thedifferenceoftheoutcomewillbesubstantial.Thefourthstepistoopenaretirementaccount.

Bodnarsaysitbestwhen,Savingisnevereasierthanthedayyoustartworking,nomatterhow

muchyourincomegoesupinthefuture(Bodnar32).So,shesuggeststhatifyouremployer

givesanoptiontoinvestin401(k)or403(b)totakefulladvantageofit.Becauseyouremployer

willautomaticallydeductthecontributionfromyourpaysoyouwonthavetothinkaboutit.As

abonus,youwonthavetopaytaxesontheofyourincomethatyoucontribute(Bodnar33).

Readingaboutretirementplansmademerealizehowimportantthatistotalkaboutwithfuture

employers.Thefinalstepistobuypeaceofmindinsurance.Healthinsuranceisabigdealand

veryimportant.Luckily,IgettostayonmydadshealthcareuntilIam27.ButevenwiththatI

needtomakesureIlookatwhatmyfutureemployerswillprovideandtheoptionstheyhave.I

havebeenfortunatetobeonhealthinsurancemyentirelifeandIknowIwilldowngradeonceI

amoffmyfathersbutitisimportanttothinkaboutwhattypeofhealthIwillneed/canafford

whenIamoffmydads.Bodnarsfivestepstofinancialindependenceareclearandhavesimple

plansandsolutionstoallofthem.

InchapterthreeBodnartalksaboutmarriage.Mergingtwoseparatelivesandmakingit

onehouseholdwillbedifficultfornumerousreasons.Abigfactorthatcanquicklycauseissues

inmarriagesisfinances.Actually,onthefirstpageofchapter3Bodnarpointsoutthat,Both

menandwomensaycashisthenumberoneitemtheyaremostlikelytohidefromtheirspouse

(Bodnar47).Whenitcomestomoneyitisimportanttohaveopenandhonestcommunication
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aboutit.Bodnartellsusthatworkingasateamisveryimportantandprovidesanexampleofa

couplewhodealswiththehusbandsdebttogether.Forme,marriagehasneverbeenagoalor

mindsetIhave.Becauseofthat,Idontthinkaboutthingslikethis.Thischapterwasimportant

tomebecauseittaughtmewhattalksIneedtohavewithmyfuturehusband,beforeIget

marriedtohim,whenwefirstgetmarried,andconversationsthatneedtobeconsistent

throughoutourmarriage.Oneofthoseconversionsthatneedstohappenpriortomarriageis

abouttheircreditscore.Itisimportanttoknowyourspousescreditscorebecauseiftheyhavea

badcreditscoreyoudontwanttomakeajointaccountwiththem.Simplethingslikethatare

wouldnotevencrossmymindifIdidnottakethiscourse.

Next,Bodnartalksabouthavingchildrenandthenewfinancialchallengesthatcomewith

parenthood.Oneofthebigdiscussionsinhavingchildrenisifthewifewillbeastayathome

momornot.Workingmothersisnotasuncommonasonewouldthink,Morethan60percent

ofmotherswithatleastonechildundersixyearsoldareintheworkforce,asyouaremorethan

threequartersofmotherswitholderchildren(Bodnar89).Whilestayingathomeandworking

bothhavefinancialconsequences.Whileworkinghasalotoffinancialbenefits,includingsome

independence,thebiggestfinancialconcernwouldbechildcare.Notworkingwouldrequireyou

tobecomecompletelydependentonyourspouse.Itcouldalsomeanthatyoucouldbecomein

changeoffinancessinceyouhaveagoodamountoftimetofocusonit.However,alotof

familiesworryaboutlivingononepaycheck.WhenyouhavechildrenBodnargivesfour

financialrulestohelpwithaddingchildrentothepicture.Cutbackonexpenses,beefuplife

insurancecoverage,writeawillandnameaguardian,startacollegesavingsplan.Ibelievethere

arecertaindecisionsthatcannotbemadeuntilyouareinthatsituationthisbeingoneofthem.
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Although,youcansayyouwanttobeastayathomemomoryoudontwanttobeastayat

homemomyoudontknowifyoucanuntilyouaremarriedandhaveachild.Yourhusband

mightnothavethesalarytoprovideforyouandyourchildononecheck,etc.ButBodnarbrings

upgoodpointsthatwillbegoodtolookbackonwhenIaminthatsituation.

ThenBodnargivessixmoneyskillsthatkidsneedtomaster.Howtomanageacash

allowance,manageacheckingaccount,howtosaveforagoal,compareprices,howtofigurethe

timevalueofmoney,howtogetoutofdebt.Allofthesearegreatthingstoteachchildren/my

futurekids.GrowingupIgotanallowancebutwasallowedtospenditonanytoyIwantedand

wasnotadvisedtosaveit.IwouldonlysavewhenIwassavingforatoy.Asachild,myparents

nevertaughtmeanythingaboutmoney.Ididntrealizehowimportantitistomanage,saveand

keepupwith.IthinkbecauseofhowIwasraisedIneverputalotofimportanceonmoney.So,

embeddingtheserulesachildatayoungagewillbeextremelybeneficialtotheminthefuture.

Bodnarendsthissimplybysaying,Andtheresonemorethingkidsneedtoknowthatonly

MomandDadcanteach:Theywontgeteverythingtheyaskfor(Bodnar111).Thisis

somethingthatIthinkisbyfaroneofthemostimportantthingachildcanlearn.Iftheylearnat

ayoungagethattheywillnotbehandedeverythingtheyaskfortheywillknowthatlateronlife.

Asayoungadult,Icaneasilytellifasomeonewasspoiledornotwhilegrowingupsimply

basedontheirreactionstothings.Lifeisharderforteenagers/youngadultswhentheydont

realizethattheyarenotentitledtoeverything.Itcanbeeasytowanttomakeyourchildhappy

andgivehim/herwhattheywantbutitismorebeneficialinthelongruntosayno,attimes.

Although,itisnotsomethinganyonewantstothinkaboutdivorcemighthappen.How

youprepareforitissomethingBodnarcovers.Iwillprepareforitbyalwayslivingwiththe
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mindsetthatIamsinglewhichmeansIwillhavemyownsavingsaccountandputmoneyintoit

monthly.IfadivorceisinevitableIwillmakesureIgetatherapisttohelpwithmyemotional

helpandifIhavechildtrytoreasonwiththemtogotooneaswell.IfIdohavechildren,Iwill

makesureIdonotgettheminvolvedorputthemthroughanyextraemotionalstrainthatwould

comealongwithmeconfidinginthemaboutthedivorce.IwillmakesureIonlyconfideina

handfullofpeoplethatItrustthemost.Somekeyfactorsthatareextremelyimportantwillbe

gettingagoodlawyer,makeanewbudgetnowthatmyfinanceshavechanged,ensurethat

childrenarekeptasthepriority,andonlytellaselectnumberofpeopledetailsofthesituation.

Keyrecoveryisallabouthandlingwhateverlifethrowsatyou.Dealingwithdivorceisdifficult

process.Nooneeverthinkstheyaregoingtogetone.Whichiswhyitsimportanttogeta

mentorandfindasupportgroup,soyoudontgothroughitalone.

Youwillberememberedforalotofthingsbutyourlegacymightbeyourmost

important.Thatishowtheywillrememberyouractions,thethingsyousaidandthethingsyou

did.Myfathergrewupinaverypoorhousehold.Hehadtopayforcollegeonhisown,start

fromthegroundup,getadegree,etc.Hehadnobackbonefromhisparentssoheworkedhis

wayuptomakesuremysiblingsandIdidnothavethesamefamilylifeashehad.Becauseof

this,mydadhasalwaystoldushowimportantitistogivetopeoplewhoarelessfortunateandif

wecannotgivetoalwaysbekind.Iwanttoberememberedforthat.Forbeingopenminded,

accepting,loving,andgiving.IhopewithinmylifeIcanhelpchildrenandfamilieswhoareless

fortunatethanIbygivingmytime,talents,andtreasuretowhatIwaspassionateabout.

ThroughoutmylifeIwanttovolunteeringatlocalorganizations.Onecurrentlybeing

BoysandGirlsClub.BecauseeventhoughIamnotataplaceinmylifewhereIcangivealotof
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money;givingtimeisalsoveryvaluable.HelpingwiththeBoysandGirlsClubhasbeensucha

greatexperience.Igoonceaweekanditsanafterschoolprogramforchildrenwhohave

parentsthatworkandcantbeathomerightafterschool.Theprogramsmissionistohelpkeep

kidsoffthestreetandhelpthemwithschool.Theywanttocreativeafunenvironmentforthese

childrensothattheywilllookforwardtogoingthereafterschool.Whatwasabigsurprisefor

whilevolunteeringtherewaslearninghowmuchIactuallylikekids.Priortogettinginvolvedin

BoysandGirlsClubIalwaysthoughtIdidntlikekids.So,alotofgoodthingshavecomeoutof

volunteering.AsIgetolder,graduatefromcollege,getacareer,andmaintainasalary,thatis

whenlookforwardtogivingtoafeworganizationsthatmeanalottomeandthatIam

passionateabout.

Workingontheclassassignedgroupproject,ourFeaturedPhilanthropist,wasagreat

wayforustoresearchandlearnabouthowotherpeoplegivetheirfourts.Ourgroupchoose

KanyeWest,whowouldntnormallybesomeoneyouwouldconsideraphilanthropist.Thats

whytheprojectwasevenmoreinterestingformebecauselearningaboutwhatKanyedoesto

givebackwasverysurprising.Heevencreatedafoundationdedicatedtohismother,Donda

West,tohelpteensinChicagointhearts.Itslikeanafterschoolprogrambutyoucanbe

involvedintheDondaWestfoundationuntilyouare24yearsold.Whatmakesthisorganization

souniqueinmyeyesisthefactthatittakesbothDondaandKanyespassionandcreatesitintoa

programforkids.Dondawasaprofessorandvaluededucation.Kanyevaluestheartsandhaving

aplacetopluginyourcreativeoutlet.Thefoundationtakesbothofthoseandcombinesitinto

oneorganization.KanyealsopartneredwithCommontocreated20,000jobsforteensin

Chicago.BydoingthisprojectInotonlylearnedaboutwaystogiveandhowincorporatewhat
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youloveintoit.Italsowasagoodremindernottojudgeabookbyitscoverorbyhowthe

mediamakespeopleseem.Kanyehasaterriblereputationforsomejustifiedreasonsbutatthe

endofthedayheistrulyagoodguyandmostpeopledonotknowthat.IknowIdidntpriorto

thisproject.

Allinall,whatIwillprobablyremembermostwasdoingtheBigFourWorksheets.That

wasthefirstprojectwehadtodo.Itwasasscaryrealitycheckforalmosteveryone.Iremember

whenIwassittingatthattablewithabouttenothergirlsandyoucouldlookacrossthetableand

weallhadalookofdisbeliefonourfaces.LikeIsaidearlier,IwanttoliveinNewYorkCity

aftercollege.Iknewitwasexpensivebutlookingatthenumbersforrentandthencomparingit

tomymonthlysalarywasshocking.Thatwasthebestthingthisclassgaveme:arealisticview

ofmyfinanciallifeinthefuture.Itwasmentionedinclassoncehowweareallusetoacertain

lifestylethathasbeenprovidedtousbyourparents.Buttheydidntstartoutwiththelifestyle

thattheycurrentlyhave.Aftercollege,wewillmostlikelybebrokeandmostofusarenot

accustomedtothat.Whichwhyitissoimportanttobudgetaccordinglytoyourincome.

Especially,sinceIamgoingoutofcollegedebtfreeIwanttokeepitthatway.Goingintodebt

canbeextremelyeasyifyoudontknowwhatyouredoingwithyourfinances.Thatiswhythe

BigFourWorksheetsaresoimportant.Youcansplitupallyourmoneyandseeifyouspending

toomuchandifyouhavetoomuchleftoveryoujustputitintosavings!Andwheneveryouhave

adifferentsalaryorbudgetthesheetscaneasilybemodified.Ithinkthesheetthatwillhelpme

themost,evennow,isthetrackingworksheet.Toseehowyouspendyourmoneydailyisvery

eyeopeningandthenyoucanpinpointwhenyouspendtoomuch.
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ReadingBodnarsMoneySmartWomenanddiscussingitduringclassishowIve

learnedthemostvaluablelifelessonstothisdate.Priortothiscoursesaving,investing,finances

ingeneral,werenotathoughtinmyhead.IsupposeIjustassumedbecomingadultwouldcome

naturallyandtheresponsibilitiesofbeinganadultwouldjustsuddenlybeknown.Everythingwe

learnedfromthisbookisreallifeinformation.Weallneedtoknowtheharshtruth,thereality,of

life.Nooneisgoingtoforceyoutosavebutyouprobablyshouldbemultiplereasonsbutthe

mainbeingyouneverknowwhatisgoingtohappen.Sobeingpreparedfortheunknownis

reallyimportant.Idontthinkmostcollegestudentsrealizetheimportanceofsaving,IknowI

didnt.Iwouldhaveneverthoughttocheckmyfuturehusbandscreditscore.Thesearesimple

thingsthatcanhelp/saveyouinthefuture.Theotherbookweusedinclass,Inspired

PhilanthropistbyTracyGarywasagreatreadaswellandtaughtmealotaboutmyself.Gary

provideslotsofexercisesthatmakeyoureallythinkaboutwhatexactlywhatyouwanttodo

withyourtime,talent,andtreasureandhowyoulldoit.Doingtheseexercisesmademerealize

whatIwastrulypassionateabout.Evenjustdoingassignmentsrequiredtaughtmesomuch.

AssignmentssuchastheBigFourWorksheets.Thoseworksheetswerethemosteyeopening

activitywecouldhavedone.Itmadetherealityoffinancessinkitandtaughtusthatourdreams

mightneedtobealteredtoamorerealisticlifestyle.Becauseofthiscourseandthesetwobooks

Ilearnedalotaboutmyself,values,futurefinances,howtosave,andthatIneedtostartsaving

now.WithIdontthinkthisclassshouldberequiredforstudentsbuthighlysuggestedtotake

whenstudentsareseniors.Forsomestudentsalreadyknowallthisinformation.Forstudentswho

arecluelessaboutthisanddonthavethefirstideaonhowtoadultthenIwouldhighly

recommendit.
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Citations

Bodnar,J.(2006).MoneySmartWomen.Chicago,IL.KaplanPublishing

Gary,T;Adess,N.(2008).InspiredPhilanthropy.SanFrancisco,CA.JosseyBass