I have been a little busy. However, never fear your advisor to the financial underdog is here! Ha ha.
Let’s get to it.
The student loan pause has been extended. The Biden Administration has announced that the payment pause on federal student loans for 43 million students will extend through June 30, 2023. Payments will also not start until 60 days after, August 30, 2023.
This means the loan forgiveness first announced in August 2022 will have time to work its way through the Supreme Court (SCOTUS).
I'm confident that our student debt relief plan is legal. But it’s on hold because Republican officials want to block it.
That's why @SecCardona is extending the payment pause to no later than June 30, 2023, giving the Supreme Court time to hear the case in its current term. pic.twitter.com/873CurlHFZ
If you are a Pell grant recipient, that means $20,000 in loan forgiveness for you, if approved, and for all others $10,000, if you meet the eligibility criteria for forgiveness.
This is good news indeed, as it will give many Americans time to squirrel away funds for saving, beef up investments or additional savings accounts, and pay off debt.
My advice is always to start with an emergency fund of $2,500. Then work your way to three to six months of expenses. As debt is paid off, you can increase your savings and investments.
The 0% interest rate while loan payments are suspended is also an added bonus. That means if you owe an average of 6% on the median $38,000 of student loans, then you are saving $2,280 a year on interest. Even higher for those that owe more.
The three-year repayment pause has allowed Americans to save a collective of millions of dollars in unaccrued interest. Basically, the saving on interest has turned this into a form of loan forgiveness.
In addition, to the $10,000 or $20,000 loan forgiveness, if approved, would effectively turn those amounts into grants.
So keep your figures crossed and make this a wish on every star and birthday candle, if you are one of the ones that will get forgiveness as this will allow you to receive 100% loan forgiveness.
Without these estimated $300-$500 loans payments hanging over your head, you are now able to start saving for your future in the form a home down payment and socking money away in your 401(k).
And by the way, the IRS has now raised the 401(k) limit to $22,500 per year. If you were to max out your retirements account with this amount of money, with a historical stock market return since 1980 of 11.34%, you would basically be a millionaire in 16 years with a balance of $978,768.96.
Put every dollar to work that you possibly can.
The math tells you that being a millionaire is within your grasp.
College is a reward for surviving high school. – Judd Apatow
Let’s face the facts. A college degree is not as valuable as
it used to be.
Many folks are landing starting salaries well below what it
cost them to get that required degree before starting that job that pays less
than what it cost to go to school to qualify for the job in the first place.
According to PayScale, the typical college graduate with
zero to five years of experience is raking in $48,400.
The National Association of Colleges and Employers (NACE)
states that average starting salary for graduates is about $50,004. So what
does that say about paying $100,000 for that creative writing degree? That it
is overpriced.
Let’s get down to brace tacks.
HOW MUCH MORE IS COLLEGE TODAY?
The price of college has now outpaced inflation.
college-education.procon.org
The average yearly cost of 4-year public college cost from
1971-2016:
2016: $20,967
1971: 8,734
140.1% increase in college costs
During that same period of time wages decreased by 5.4% over
those 45 years.
You read that right. Wages actually went DOWN instead of UP
with a college degree in your hand.
WHAT IS THE PRICE OF COLLEGE VS THE VALUE OF YOUR EDUCATION?
After you get that degree, then you have go out and get that
coveted job. You want a great starting salary, but most employers will tell you
they cannot quantify your knowledge but so much.
Really?
Cause college are sure about to slap a price tag on getting
that knowledge.
Why not offer the same salary as the cost of the degree?
For instance, if you pay $45,000 for your sociology degree,
then that would be your starting salary.
Let’s think about that for a second.
What if colleges and employers printed the cost of degree
and payment for that degree? Then you would see something like this:
Petroleum/Mechanical Engineering: Degree cost and starting
salary $90,000.
Psychology: Degree cost and starting salary $47,000.
That would alleviate a lot of stress and salary negotiations
right there.
THE MOST EXPENSIVE DEGREES ON THE PLANET
“A university is just a group of buildings gathered around a library.” ― Shelby Foote
Education is an asset. And investing a great deal of money
in a degree doesn’t necessarily guarantee a first-class education. However, it
can alter the trajectory of your life if you are able to parlay all those late
nights writing papers into some serious coin.
As of 2019, Harvey Mudd College has taken the crown for the
most expensive college in the world costing students approximately $57,401 for
the upcoming 2019/2020 academic school year.
If we time that by four, which is being nice considering the
average college kid is graduation in 5-6 years, then we get a mind-blowing
$229,604!
For some perspective, if we invest that money instead over
four years and let it ride, then after 30 years with an 8% return you would
have $2,310,426.27! Yes, those four years cost you over $2 MILLION!
You literally could have used your college savings and
invested every penny in the stock market and gotten a higher return than what
many will get after 10 years of drudgery repaying that $200,000.
It gets even more expensive if your kid starts in at the top
and goes to a private school from K-12. This could cost you even more and the
losses start to really pile up!
Say those adolescent years are spent in some swanky private
school at $50,000 a year. Over the course of 13 years, you would have paid
$650,000! Add that $229,604 and you are staring at education bills of almost
$900,000!
I would take a check for $900,000 at the age of 22 any day
of the week over going to fancy private schools for 17 years!
And just in case you were wondering.
If you invest that $50,000 private school money over 13
years in the stock market, you would have $1,160,746.02 with an 8% return. And
add in four years of college, that would net you $1,822,512.19.
Going to public school isn’t looking so bad now is it?
Here are some of the most expensive colleges in the United States and the world.
These 12 colleges are currently the most expensive in the United States:
12. Duke University (18) 2018-19 Tuition & Fees: $55,960
11. Bucknell University 2018-19 Tuition & Fees: $56,092
10. University of Southern California 2018-19 Tuition & Fees: $56,225
9. Tufts University 2018-19 Tuition & Fees: $56,382
8. Amherst College 2018-19 Tuition & Fees: $56,426
7. Franklin and Marshall College 2018-19 Tuition & Fees: $56,550
6. Landmark College 2018-19 Tuition & Fees: $56,800
5. Harvey Mudd College 2018-19 Tuition & Fees: $56,876
4. Trinity College 2018-19 Tuition & Fees: $56,910
3. Vassar College 2018-19 Tuition & Fees: $56,960
2. University of Chicago 2018-19 Tuition & Fees: $57,006
1. Columbia University 2018-19 Tuition & Fees: $59, 430
These 11 colleges are currently the most expensive in the world:
11. Yale University 2018-19 Tuition & Fees: $49,480
10. UCL (University College London) 2018-19 Tuition & Fees: £9,250 or $12,080 USD
8. University of Chicago 2018-19 Tuition & Fees: $57,006
7. Princeton University 2018-19 Tuition & Fees: $43,450
6. California Institute of Technology 2018-19 Tuition & Fees: $45,390
5. University of Oxford 2018-19 Tuition & Fees: £9,250 or $12,080 USD
4. Harvard University 2018-19 Tuition & Fees: $46,340
3. University of Cambridge UK (United Kingdom) 2018-19 Tuition & Fees: £9,250 or $12,080 USD
2. Stanford University 2018-19 Tuition & Fees: $46,320
1. Massachusetts Institute of Technology 2018-19 Tuition & Fees: $47,704
Those are expensive colleges.
Did you know you could go to university cheaper abroad?
For some perspective on exactly how expensive colleges are in the United States, as an international student you could go to the same college as Prince William and Duchess Kate Middleton for less than it costs to go to Harvard, Yale, or Princeton! The cost is £20,770 or $27,125 USD. That is what it would cost annually to attend the University of St Andrews.
NOT ALL DEGREES ARE CREATED EQUAL
Education is not an equalizer. If you go to the same college as a science nerd majoring in Math, while you are majoring in philosophy, you both are not on equal footing by a long shot.
In light of the recent college bribery scandal, let’s talk top-tier universities.
If you were to get an acceptance into Yale or Duke University,
congrats to you, as you are among the college elite. However, don’t break out
the celebratory champagne just yet.
Although you and another student may be paying the same amount to go Duke, if you major in a different field, then that degree can easily eclipse yours.
Put it this way. You and another student both pay $48,000 a
year over four years. That is $192,000. You become an engineer raking in big
bucks right after grad by getting a starting salary of $95,000. Your friend on
the other hand, let’s call him Joe, majored in piano or violin and is only able
to get a starting salary as a backing musician for $38,000.
That is a difference of $57,000 a year.
You ask how is that so? We went to the same university. We
paid the same amount.
Yes, but your degree is in higher demand than Joe’s.
Then you may ask yourself: Well why didn’t Joe pick a more
in demand degree? And therein lies the rub.
Joe is a skilled musician. That is where his passion and
interest lie. Even if he would have seen a brochure, which there aren’t any in
wide circulation on any college campuses that I have ever been to, showing the
starting salaries of majors he still would have chosen music.
The playing field of majors is not level. Therefore, you
need to decide before you even step foot on a college campus what you want to
be.
This is a small list of what employers are paying for
college majors.
My suggestion is that you do a search on what it costs and
what it pays to be a lawyer, accountant, doctor, or violinist. When you know
what your options are, then you can at least make an informed decision.
After seeing it being reported today in the media, that there is a huge college admissions scheme involving wealthy parents (CEOs, Hollywood actors), I thought of writing this post.
ALTERNATIVES TO TRADITIONAL FULL-TIME ON-CAMPUS COLLEGE LIFE
Here are just a few things I will throw out there. I am sure
some of it is already being done, but just not on a massive scale in the United
States.
Dear parents of college-bound kids,
I would like to share with you some things I have learned
about college alternatives. Here goes.
FLAT-RATE TUITION. How about a flat-rate tuition to help improve graduation rates? Much like a flat-tax would probably improve the economy (and closing loopholes in the tax code), a flat-rate means that once you reach a certain amount, it does not matter how many credits you take for that semester.
COMMUNITY COLLEGE. Community college is cheaper. You can also transfer to other state colleges without losing credits. Just be sure to find out first.
Starting at a community college or cheaper college then transferring to a bigger more expensive university is college arbitrage. You pay less, but have that flagship college on your resume.
COLLEGE LEVEL EXAMINATION PROGRAM. CLEP – testing out of courses can save you thousands of dollars.
FLEXIBLE ONLINE LEARNING WITH STRAIGHTERLINE. StraighterLine – an online educational website that allows students to take college courses for cheaper. For example, $99 a month would allow you to take as many courses as you can handle and then transfer those credits to major universities, saving you thousands!
ADVANCED PLACEMENT. AP courses – Advanced Placement testing that could offer you college credits. One student graduated from University of Virginia (UVA) in one year and paid only $1,000! He took so many advanced courses that he came into college with 60 credits and took 18 classes in two semesters and one in the summer to graduate early.
APPRENTICESHIP OR INTERNSHIP. Pick a major early or career path and stick with it. You can always learn on the job or find other ways to learn about a career. Do an internship or shadow someone? Changing majors is costly and time consuming. Changing colleges can be just as damaging without proper planning. Avoid it at all costs.
GAP YEAR. Take a gap year and save. It is no shock that many college students get burnt out. Mainly because they did not decompress from high school. A gap year give students a chance to recover from high school before tackling college.
WHAT SOME BOOKS BY EXPERTS SAY ABOUT COLLEGE
In the book, A New U: Faster and Cheaper Alternatives to College, it states that; every year, the cost of a four-year degree goes up, and the value goes down. The book looks at alternative routes to great first jobs that do not involve a bachelor’s degree. Bootcamps, income-share programs, apprenticeships, and staffing models are attractive alternatives to great jobs in numerous growing sectors of the economy: coding, healthcare, sales, digital marketing, finance and accounting, insurance, and data analytics.
Another book called Debt Free U, I actually read this one, discusses how one student manages to graduate college on-time and with no student loans. He recommends student work their way through school. Find a place you can afford. Make a budget. And find a way to earn the money to pay for each semester. If a semester costs $3,000, then you must first earn that money before starting that semester. He says stay away from scholarships that make you pay a fee to apply. In addition, he also recommends books like The Brazen Careerist and Getting from College to Career.
College (Un) Bound discusses the four-year college experience is as American as apple pie. So is the belief that higher education offers a ticket to a better life. But with student-loan debt surpassing the $1 trillion mark and unemployment of college graduates at historic highs, people are beginning to question that value. The great credential race is having long lasting consequences. Alternatives such as MOOC’s, apprenticeships, trades, and lower cost options are discussed where you can get a top-tier education for middle-tier college prices.
There Is Life After College: What Parents and Students Should Know About Navigating School to Prepare for the Jobs of Tomorrow. Saddled with thousands of dollars of debt, today’s college students are graduating into an uncertain job market that is leaving them financially dependent on their parents for years to come—a reality that has left moms and dads wondering: What did I pay all that money for? The book offers practical guidance for how to navigate life after college.
If you can find a way to cut out taking several classes or shave
entire years of college, like that guy in the example I gave above at UVA, you
could save anywhere from $500 to $60,000 or more!
Think of it like this.
If going to the University of Chicago costs $50,000 a year
in tuition, and you can cut out two years of college by using CLEP,
transferring credits, AP credits, and internships; then you save $100,000!
“No. I can survive well enough on my own— if given the proper reading material.” ― Sarah J. Maas, Throne of Glass
Where do I begin?
Let’s start here. The cost of college.
College is expensive. According to the College Board, the average cost of a 4-year in-state public university hovers around $9,970, at private colleges $34,740, and $25,620 for out-of-state residents attending public universities.
Many folks don’t just have $10,000-$30,000 sitting around in their bank accounts.
According to numerous reports, many Americans do not even have $400 for an emergency. How the heck are they going to come up with 10 times that amount or more for college?
I, myself, had to become an extremely massive saver in order to stop living paycheck-to-paycheck.
This required me to become very frugal and find ways to earn more, cut spending, or both from my household budget.
Most of my problem was the revolving credit card debt I had. So, I had to come up with a plan to get it paid off. Every time I paid off one debt, I started saving that money.
What I really noticed about college besides just the price was that many of the things we’re learning came from equally expensive textbooks. Couldn’t I have saved tons of money by just skipping college and reading the textbook instead? Literally, all I would have needed is the syllabus of the course.
I went on Amazon to see books about the cost of college being worth it. It is right? Well, maybe.
The point I am trying to make with this article is to examine the following:
Challenge the conventional wisdom that college will solve all your problems
Going to college will make you rich
Prestige is to be pursued at all and any cost
THE COST OF COLLEGE
It has been well-documented that college is coasting more and more every year.
The amount of student loan debt in the United States alone stands a $1.5 trillion.
I cannot even wrap my head around that number. Basically, it means that many people are either going to be paying back their loans for a long time or will not ever be able to repay them. That is a sad fact indeed.
We are mortgaging our young people’s future.
Many are unable to buy homes, start families, get married, and put down roots.
The cost of college is especially hard to manage for those that are of low-income. The issues of poverty do not stop with a college acceptance letter.
We are starting to create a reality in where the poor inherit their parents’ poverty while the rich hoard opportunities for their kids.
That glass floor is real. When poor kids are getting 1200 to 1600 SAT scores and pulling hard A’s but still unable to graduate, while trust fund babies are barely pulling soft C’s is just ridiculous. That means, a rich kid can get a college degree simply because their parents have wealth, income, and resources.
I have heard stories of low-income college students dropping out for owing less than $1,000 to get their degree. Frankly, this saddens and alarms me.
And I am not buying avocado toast at $10, according to one politician, who will remain nameless.
The cost of a Bachelor’s (BA/BS) degree is just too darn expensive. The worst part is that an education is not an equalizer. Just because you went to Harvard doesn’t mean you are going to get the corner office. That fancy C-Suite is the carrot being dangled in front of all those Ivy League hopefuls.
Many do not make it there.
Don’t believe me.
Check this out.
When I looked up books on colleges, admissions, and the Ivy League online, I found the following titles:
Excellent Sheep
Nudge
No Sucker Left Behind
Where you go is not who’ll you be
The Chosen: The Hidden History of Admission at Harvard, Yale, and Princeton
The Price of Privilege
Paying for the party
Pedigree Elite: How Elite Students Get Elite Jobs
The Blessing of the B Minus
Academically Adrift
Winners Take All
Generation Debt: How Our Future Was Sold Out for Student Loans, Bad Jobs, No Benefits, and Tax Cuts for Rich Geezers–And How to Fight Back
Equity and Excellence in American Higher Education
How to Raise an Adult
iGen: Today’s super connected kids are growing up Less Rebellious, More Tolerant, Less Happy – And completely unprepared for Adulthood
I have read a few of the books listed above. Many are eye-opening recounts of their experiences with elitism, the Ivy League, college admissions, debt, student loans, finances, etc. Paying high prices, as much as $100 an hour for instruction, for college, taking on tons of debt and then receiving low starting salaries.
Stagnant wages and student loans are a dangerous cocktail.
The one book that still haunts me is No Sucker Left Behind. In this book, he describes college as a rip-off as he feels that colleges are involved in price-gauging schemes. Colleges, in his opinion, have become profit-obsessed businesses with an approach that is more reserved for used car salesman.
There are some Ivy Leaguer’s that become Corporate America rock stars. However, the majority go on to careers in the same type of jobs that those that do not go to top tier colleges.
COLLEGE EARNINGS
You think the Ivy League is the only way to go. Well, think again.
You hear all the time that a college degree means higher earnings, like $1 million more in income over a working lifetime. What you do not hear are the tales of people paying $100,000 for that sheepskin and then getting a $35,000 starting salary right out of college.
He looked up profiles of people that went to Elite Schools.
Mostly more of the same from elites: people chasing money.
Surprise, surprise many end up in investment banking and consulting. If places like Harvard are the playgrounds of the rich, then places like investment banks are close behind. The Elite School graduate sandlots.
I have come to believe that you should pursue what is in your heart and your God given talent. Whatever that may be. God does not give anyone anything he doesn’t want them to use. Sacrificing doing any less than your best is to sacrifice the gift. Figure out what you are good at and then pursue that! The money tends to follow.
Some studies have followed, like the one above, people who attended Ivy League schools and others accepted to those schools but who chose lower ranked schools instead. The result: There wasn’t a difference in lifetime earnings. In other words, Ivy League caliber people don’t need an Ivy League education to have high earnings.
WHY FOUR YEARS OF COLLEGE?
Remember that $100 an hour for instruction that I previously stated? Due to that, the real cost of college is costing some students $100,000 a year, according to the book No Sucker Left Behind. So, that is what part of the reasoning behind four years is. Collecting the tuition and fees.
The BA/BS degree takes no less than 120 credits to complete.
Why is this?
Should we not question this? I get it. You do not want a doctor that is immature performing surgery on you. However, I value work ethic and experience over age.
Why not have a degree take 48 credits to complete?
How we would do this is to cut out all the unnecessary courses one needs to graduate. Forget the gen eds and endless electives. Stick to what we need to graduate.
A college degree should be done as quickly as possible so that people can get out there and work. Most families do not have 4 years to let junior go off and explore. They need him out there working and bringing home the bacon today!
I read an online forum called college confidential where it asked why is college in America so long. Great question. Here are some of the responses. This is how it went down.
Why is it that it takes so long to get a professional degree in the US?
In order to study Optometry or Medicine or Dentistry etc you need to do 4 years in college first, not even 1 or 2 years but 4 years whereas in the UK the 16-18 education is enough to prepare you for it.
People may want to start/support a family and at the same time pursue their passion but the length of study is off putting.
Answers were the following:
Gen eds.
The US is looking for mature people to be their doctors and lawyers, not a 21 year old whose frontal lobe is not yet fully developed.
If you have many AP/IB credits, you can get your degree in 3 years, too.
I would not want my doctor/dentist to have had only 1 year of formal education.
It’s a business. The more classes one is required to take, the more money the school makes.
What I suggest is that colleges get straight to teaching you all you need to know in your field. This would cut down on the time and expense of school.
And as for those who say people need to mature. Sure, I’m all for that, but how many people know 30 year-olds that are still wet behind the ears? Lots.
If you want people to mature, put them to work. Nothing makes people grow up faster than responsibility and accountability.
If maturity is really an issue, then have people start in at the bottom.
Nothing beats entitlement out of you like taking orders, scrubbing toilets, and fetching coffee.
Make people work their way up. After college, they could apprentice and work while learning their jobs. Get paid to train and work instead of paying for more training. It is just that simple.
I think college should allow student s to do an intensive 8 months and 48 credits
You would take 4 three-credit classes every 8 weeks. This would mean doing 4 eight-week semesters instead of 8 three-month ones. You would earn 12 credits every 2 months.
A college schedule could be like this:
Year One. English, Economics, major, major.
Year Two. Economics, Science, major, major.
Year Three. History, Math, major, major.
Year Four. Economics, major, major, major.
You see what I did there. I focused on the major and getting people out of college. That should be the point of college, right?
Why the focus on finance? Other than the fact Greenbacks Magnet is a financial blog, it just makes sense to teach people about money as they have to manage it for their whole lives.
After 8 months, you earn 48 credits and graduate. That took less than one year. It also saves you heaps of money. If four years costs you $40,000, then 8 months should run you $6,667. That is huge savings!
I was gobsmacked to hear of doctors owing $300,000 to $1 million in student loan debt. Do you know what type of interest you pay on that kind of debt? It’s immoral.
Interest of 5% on $1,000,000 is $50k a year. That means after income taxes you have to pay $50,000 just to pay the interest on this debt. To service this type of debt, you would have to pay more than $50,000 a year just to touch the principal.
I remember reading one lawyer say that he expected to have that student loan bill tacked to his coffin.
Just utterly insane!
PRESTIGE AND CLASS
I read a book called Class Matters by the New York Times and Bill Keller. The book discusses how people chase money and prestige. Class determines everything about you: where you live, who you marry, what you do to earn a living, where you shop, and who your friends are.
The zip code you grow up in can ultimately make or break you.
In the book, it discusses how Americans have long thought of themselves as unburdened by class distinctions. There is no hereditary aristocracy or landed gentry, and even the poorest among us feel that they can become rich through education, hard work, or sheer gumption. And yet social class remains a powerful force in American life.
Class―defined as a combination of income, education, wealth, and occupation―influences destiny in a society that likes to think of itself as a land of opportunity.
What was jaw-dropping was this part of the book: And we see how class disparities manifest themselves at the doctor’s office and at the marriage altar.
For anyone concerned about the future of the American dream, Class Matters is truly essential reading. I agree with that assessment given to the book.
THE CREDENTIAL RACE
Grades are important. Sort of. Those getting straight A’s have to conform. Visionaries are not conformists. A New York Times (NYT) article quoted Dr. Karen Arnold as saying, “Valedictorians aren’t likely to be the future’s visionaries.”
The NYT article also noted the following:
This might explain why Steve Jobs finished high school with a 2.65 G.P.A., J.K. Rowling graduated from the University of Exeter with roughly a C average, and the Rev. Dr. Martin Luther King Jr. got only one A in his four years at Morehouse.
THE REAL GRADUATION RATE
Did you know that the average graduation rate is 6 years?
Roughly 57% of students graduate in 6 years. Only 20% of American students graduate in 4 years.
Most students are not even graduating in the already exceedingly long period of 4 years’ time.
According to Complete College America, for a non-flagship public university, only 19% of students graduate on time and even at flagship research public universities, the on-time graduation rate is only 36%. Only 50 of the more than 580 public four-year institutions have graduation rates above 50%.
According to 2013 data from the University of Texas at Austin, students who graduate on time will spend 40% less than those who graduate in six years.
That means more time out of the work force and more debt.
According to Forbes, staying out of debt and saving are the best ways to build wealth.
WHY SHOULD COLLEGE BE 8 MONTHS?
Why can’t you do your 10-year plan in 6 months? – Peter Thiel, angel investor of Facebook
I whittle it down to this one reason: No student loans or a lesser amount of them.
Building wealth requires you staying away from and out of debt.
They say student loans are good debt.
I say that all debt is debt. You must repay it. Not having to pay back $20,000 or more of debt with interest is life changing.
If you want to be wealthy, stay away from debt. Save every penny. Learn to turn every dollar into two.
Earn the spotlight on your own merits. You’ll feel better. – Serena
I was reading a book when I decided to take a walk down memory lane and watch Gossip Girl on Netflix.
For those of you that may not know or remember the show, Gossip Girl was a show about privileged American socialite teens at an elite and exclusive academic prep school in Manhattan’s Upper East Side (UES); whose every move was texted out through an eblast via tips to an anonymous site called Gossip Girl.
What is Gossip Girl and what it does?
What’s the difference between gossip and scandal? So glad you asked, UES Forever. Anyone can commit a minor indiscretion and generate a day’s worth of buzz. But in order for gossip to birth a true scandal, it requires the right person to be in the wrong place. – Gossip Girl
Live in such a way that you would not be ashamed to sell your parrot to the town gossip. – Will Rogers (1879-1935)
The show was on the WB, then the CW, and aired from September 19, 2007 through December 17, 2012. The show was narrated by Kristen Bell (as Gossip Girl). Scandals, scoops, and hemlines run amuck. The show may have had a serious lack of ethics, but it did make for some interesting television.
Gossip Girl is based on a popular book series of the same name written by Cecily von Ziegesar. The adapted television series in 2007 came about from the book series she started in 2002.
Gossip Girl will always have a special place in my heart.
It was in 2007 that I heard this line from the show: You know, Dad, there’s this thing called MySpace where you can post all of this information online. Save some trees, have a blog. – Dan Humphrey
It peaked my interest in blogging. Then, I started this one, Greenbacks Magnet, 9 years later.
Some of the dialogue may be a bit harsh in its tone and delivery, but there was some truth behind some of their words.
Gossip Girl likes to keep things classy and somewhat true. – Serena van der Woodsen played by Blake Lively
Serena is so grateful because she likes to see the best in people. I like to see the truth. – Blair
So, let’s get right into it.
MEET THE MONEY PLAYERS
You got me thinking. If my class is so important to you maybe I ought to make it worth your while. So for the next seven weeks it’s fewer models and martinis, more flow charts and footnotes.– Colin Forrestor played by Sam Page
Last month, on Thanksgiving Day, I decided to watch some Thanksgiving themed movies and television episodes. And I settled on watching Gossip Girl.
The series follows Upper East Siders throughout their never ending drama filled lives that is often self-inflicted. It Girl Serena van der Woodsen is centered around it all and is the star of the show. Her friends and family make up the rest of the cast.
One of my favorite scenes is actually from the first episode of the series. It was a face-off that was incredible between two young women and it set the tone for the show.
The 4 top-billed (in my opinion) and main cast includes the following:
Blake Lively as Serena van der Woodsen AKA S
Leighton Meester as Blair Waldorf AKA B
Chace Crawford as Nate Archibald AKA Golden Boy
Ed Westwick as Chuck Bass Always
If you pay close attention to their conversations, they are dropping some serious money gems.
These little nuggets of life and money wisdom, when interpreted and applied correctly, could transform lives and bank balances.
Let’s begin.
WORK FOR WHAT YOU WANT
Never in my 16,982 hours of schooling have I ever been sentenced to detention. – Blair
Throughout the show, the main cast is always discussing their futures and going to college.
It was almost incessant in the amount of pretentious ponderings of how to be sartorially correct while interviewing for a top spot as a Yalie. And yes, that is a quite accurate assessment of the character known as Blair on the show.
Blair would look and act so innocent and demure like she couldn’t melt butter, but her stare and looks were as cold as ice. Very entertaining.
Here she goes on one of her tirades.
I am so a better fit for Yale than that Rory. – Blair
Now, she’s belittling and disparaging the character of one of my favorite shows Gilmore Girls.
But enough of the $50 words. Let’s talk about the rest of the show.
They attend the fictitious Constance Billard School for Girls and St. Jude School for Boys. In addition, throughout the show you may hear them casually drop names of other schools.
In the Gossip Girl (book series) — it contains the line “two little Sacred Heart girls in their cute red and white checked pinafores were walking an enormous black Rottweiler” on page 86 in the first novel of the series.
Many of the parents are part of high-society and are on boards of prestigious organizations, own businesses, and live in penthouses. They go to great parties, opening nights to the ballet, and fashion week.
You get the impression that these kids know to base their lives around money and making sure to earn piles of it is a must.
They are tireless paragons of poshness. The parties are lavish, the lifestyle is glamorous, and the fashion is couture and expensive. Makes for a great show.
What I noticed was that everyone in one way or another was working hard at trying to make their own way in the world apart from their rich and or famous families.
They chased their dreams relentlessly. Like a boss.
And made huge sacrifices to get what they wanted.
Great leaders only need three hours of sleep! – Blair
They worked, started or interned at major businesses, magazines, for fashion designers, newspapers, literary writers, politicians, and fashion houses.
You’re not likely to get or keep those gigs for long if you are playing around.
“When and if we end up together, it has to be as equals.” – Blair
Yes, indeed. Be independent.
BET ON SELF
Here’s my advice: Have a little faith, and if that doesn’t work, have a lot of mimosas.– Blair in the Wild Brunch Season 1 Episode 2
My family is really into waffles. – Jenny Humphrey sister of Dan Humphrey played by Taylor Momsen
If you want something, go get it. Have some faith in yourself. And good food and conversation go together. I have learned a lot about people when having lunch with them. It’s a great way to build relationships. My favorite meal is brunch. I too love waffles!
Their membership is so restricted, it makes Soho House look like a halfway house. – Blair
They say of you want to increase membership to something then increase the selection criteria.
The Ivy League have made this an art form. As you see on this show, even the wealthy were concerned about their college admissions. There was even some talk of donations to a school to get in. In the end, you see deep down, we all have our insecurities. Accept it, and move on.
I have learned that I am no better than anybody else, but I am always just as good.
KNOW YOUR WORTH
You deserve someone who would move mountains for you if he had to. – Blair to Serena
Normal people don’t get an endless number of chances, no matter the situation. That’s just you. – Dan to Serena
I have heard people say that well-behaved women seldom make history. At least that is what Eleanor Roosevelt said. I guess you can take her word for it as her husband FDR made history.
“I have an idea for you: quit. Your boss is a bi*ch. Let’s go to lunch.”
I have actually done just that very thing. I quit a bad job. Got a better job. And never looked back.
“I’m not a stop along the way, I’m a destination.” – Blair
That line could be someone’s Bumble Bee bio. I call it sophisticated confidence.
“He ended up treating me like something he owned instead of something he earned.” -Blair
You’re worth more than a guest lecture fee, everyone knows that. – Dan to Serena
A man who own a tuxedo shows that he has the means and can afford to provide for his family – Blair in Belles Du Jour Season 4 Episode 1
One of my favorite lines from the show comes from none other than Nate Archibald while talking to Chuck Bass.
Excuse me? Where’s my boy? “Seal the deal.” “Tap that a$$.” “Money marries bigger money.”
Wow. Money marries bigger money. That’s kind of cold, but ok.
I could care less about his Bassets and probably he’s filtering his assets through some foreign government so I won’t know. – Blair on Chuck Bass.
S: So you hired escorts? B, you couldn’t just tell your mom you don’t have friends at NYU?
B: Prostitutes are people, too, and they have a lot of disposable income. – Serena and Blair
Yes, people are focused on income, A LOT.
Take a cue from them and subscribe to The Wall Street Journal, pick up Fortune, TIME, instead of a gossip magazine and follow financial experts on Twitter. Become a devoted student of money, and you can master the science of getting rich.
Jane Austen also so eloquently puts how much emphasis people put on income in two of her novels. And also how to treat others with or without money.
FOR THE LOVE OF HEADBANDS
I know you disapprove of me, but can’t you at least do so in a tuxedo?– Lily van der Woodsen played by Kelly Rutherford
This show loves their tuxedos. And themed parties. Masquerade. Kiss on the Lips. You name it.
It is often said when you look good, you feel good. Well, I concur. You feel more confident as well.
I remember going to a job interview where some folks didn’t take it seriously. I wore a nice dress and some of the men wore suits while others wore jeans.
After I got hired and when I later started the job, I noticed on my first day that all the people that got hired were the ones that were well-dressed.
If you know one thing about GG, you know it’s all about the fashion.
The well-heeled wear nice heels. Blair was known for her love of headbands. People were always giving her grief about it.
Your era is over, and so is that headband. – Jenny
No headbands in college, okay? – Dan to Blair
Et tu, Dan?
SvdW was known for her fantastic sense of style.
And she had more loose interpretation of a school uniform than any person on the planet. The Tie Goddess. See for yourself.
EDUCATION IS PRICELESS AND THE PRICE OF INTELLECTUALISM
S:Wow, and I thought college would be different from high school.
B:Who would want that? – Serena and Blair
These kids were not just applying to any colleges, but the Ivy League. They wanted to be HYPsters (Harvard, Yale, Princeton) or the like. What Blair called the Holy Trinity of colleges. Which are all expensive colleges. We are talking $50,000 USD per year or more.
It was a constant stressor of theirs during the shows first four seasons. Case in point, here is a list of the schools they were trying to get into or that their parents attended.
For instance, Serena wanted to go to Brown and that college and Harvard are where her parents went. Blair wanted Yale and Nate was considering UCLA over Dartmouth like his father. There was also talk of Columbia, Georgetown, and NYU on the show.
It just goes to show you that getting an education is still mighty important.
Serena van der Woodsen or SvdW for short – Brown University, Columbia University
SvdW parents attended – Harvard University and Brown University
Fun show Fact: SvdW dropped out of Brown at the last minute because she wanted to find herself and she felt that moving away to another city wouldn’t help her achieve that. The classic one-year hiatus otherwise known as the infamous gap year before entering college.
This is what Blair had to say to her about going there.
Your deductive-reasoning skills are perfect for a place like Brown. An enclave of trustafarians and children of celebrities who major in drum circles and semiotics, whatever that is. I can’t wait for you to come home next Thanksgiving a militant veganista, anemic and proud. – Blair
It left me speechless.
Blair Waldorf – Yale University, Columbia University, New York University (NYU), NYU – Tisch School of the Arts
Nate Archibald – Columbia University, Dartmouth
Chuck Bass – Columbia University
Dan Humphrey AKA Lonely Boy played by Penn Badgley – NYU
Vanessa Abrams played by Jessica Szohr – NYU
Eric van der Woodsen played by Connor Paolo – Sarah Lawrence
Some character’s shots at the sheepskin, in my opinion, and other honorable college mentions include:
I’m telling you, I learned everything I know about women from Judy Blume’s Forever. – Dan
According to List Challenges, “Gossip Girl” (2007 – 2012) : here is a listing of some of the favorite authors and books of the characters or simply the ones mentioned by them and showed along these 6 seasons, books studied in university, etc.
Many characters also name dropped or were caught reading well-known books by famous authors.
I love the Snowflake Ball. It reminds me of Anna Karenina, only by Anna Wintour. – Serena
Maybe if we become famous writers one day, they’ll publish [our letters] after we die, like Sartre and de Beauvoir. – Vanessa
They also liked to travel extensively. Especially, in Europe such as Paris, France. In addition, they speak more than one language such as French while in Paris.
Elliott’s the perfect mix of smart and fun: He speaks three languages, but he has a subscription to People magazine. – Eric
List of titles includes:
House of Mirth by Edith Wharton – read by Juliet Sharp played by Katie Cassidy
The Lorax by Dr. Suess – Mentioned by Dan
Colette by Gigi – Blair read this on a bench in Paris
Jane Austen books – Pride and Prejudice, Emma, Mansfield Park, Northanger Abbey, Persuasion
Charles Dickens novels – A Tale of Two Cities, A Christmas Carol, Oliver Twist, Les Grandes Espérances
C. S. Lewis books – The Chronicles of Narnia, Alice’s Adventures in Wonderland
William Shakespeare – Othello, Romeo and Juliet, MacBeth, Henry V, Hamlet, King Lear
A few other famous works, Rabbit Redux by John Updike, Cyrano De Bergerac by Edmond Rostand, Les Liaisons Dangereuses, The Crucible (Arthur Miller), Wuthering Heights (Emily Bronte), I Know Why the Caged Bird Sings by Dr. Maya Angelou, The Art of War, The Crucible (Arthur Miller), Madame Bovary, The Old Man and the Sea (Ernest Hemingway), The Beautiful and Damned (F. Scott Fitzgerald), Cinderella (Charles Perrault),The Canterbury Tales by Geoffrey Chaucer, Faust, In Cold Blood by Truman Capote, Anna Karenina by Tolstoy, Walden, The Great Gatsby (F. Scott Fitzgerald), and Beloved by Toni Morrison.
There, I have just given you a reading list that every good high school student or Ivy League hopeful should have. Some of which I have read. My favorite author is Jane Austen. A close second is Louisa May Alcott, as I just love Little Women and the 1994 film starring Winona Ryder. But Austen’s Sense and Sensibility (1995) just amazes me every time. That along with Pride and Prejudice (2005) and Emma (1996).
The rich seem to be highly educated. They also tend to get ahead in life. Therefore, be well-read.
However, these trust fund babies did end up leaving college and higher education after a while to set out for their own fortunes in the real world.
For people like us a college degree is just an accessory. – Chuck
So, this too let’s you know that it is not always about what you know, but who you know.
You never know who you may run into at expensive coffee shops, libraries, restaurants, college, and hotels like the Palace in New York.
So, go build up those relationships.
MONEY AND RELATIONSHIPS
Just to clarify, I do think you deserve to be with someone who makes you happy. – Dan
True words indeed.
I read, like, five self-help blogs on how to turn friends into lovers. Yes, they used that word. – Dan
Come on, Cece’s heart pumps secrets and gin. – Dan
And there was lots of secrets on this show. Relationships and secrets were everywhere.
Sex is meaningful, like art. And you don’t rush art.– Dan
All great things are built or done slowly.
If you watched this show, then you may remember the season 3 episode with Lady Gaga. Here is her take on relationships that is so Blair Waldorf.
“Some women choose to follow men, and some women choose to follow their dreams. If you’re wondering which way to go, remember that your career will never wake up and tell you that it doesn’t love you anymore.” ― Lady Gaga
Marriage
Settling down means death. Less sex, more silence. – Blair on marriage
Blair also had some of the best lines on the show. EVERY. SINGLE. EPISODE.
Case in point, check this out.
And she actually said this too.
That’s the thing. You need to be cold to be queen. Anne Boleyn thought only with her heart, and she got her head chopped off. So her daughter Elizabeth made a vow never to marry a man. She married a country. Forget boys. Keep your eye on the prize, Jenny Humphrey. You can’t make people love you, but you can make them fear you. For what it’s worth, you’re my queen. I choose you. – Blair
As, I am a history buff and studied up on Queen Elizabeth I of England, my mouth fell open when she said this.
Check it out here.
And I am not the only one who feels she should get some praise for her talented banter.
C: It’s a facility for the disturbed or addicted.
B: You must have your own wing.
C: You don’t get enough credit for your wit.
– Chuck and Blair
If you go back with an uncertain heart, there will be drama and disaster for all. – Blair
You better believe it. In life and relationships, to be successful, you have to commit.
LOVE
B:Love me?
C:Always.
– Blair and Chuck
They were the best characters on the show, in my humble opinion. The two of them together was gold. Take a look for yourself.
But ultimately, I have learned that love is what we are all looking for.
MONEY DOESN’T BUY HAPPINESS
Trouble is moving in, and it’s looking to make the Upper East Side it’s bi*ch.– Gossip Girl
You would think that folks in tuxedos and ball gowns are the happiest, but these people seemed so unhappy.
Happiness can’t be measured in things. It comes from having the things that really matter like people who love you for who you are.
Doing the right thing takes courage and strength. At least that’s what I’ve heard. – Blair
Well, I hope you had fun going down memory lane with me and I will bid you adieu in the best possible way to end this post.
“Um, Anya, while I completely trust you to take care of the inventory and the money, um, dealing with people requires a certain… finesse.” – Giles, Buffy the Vampire Slayer
Yes, indeed. Say it with me, finesse. PEOPLE. REQUIRE. FINESSE.
I cannot tell you how many times I have done business with people and their attitude caused me to cancel my transaction. All I ask for is a little kindness. Being nice can go a long way.
If you are passionate about what you do, then you are generally more pleasurable as well.
People will forget the things you say or do, but they never forget the way you make them feel. I learned that from Maya Angelou. And it is so true.
Today, I want to share with you some advice from my peers. Money Bloggers.
You better believe it. I read every contract. Cross every T. And dot every I. The reason I have an Emergency Fund is for my peace of mind. It means no matter how much the government changes the laws, your job sucks, the lack of integrity around you, or people’s scruples, you are protected.
Here are some of my posts on the importance of emergency funds and having money in the bank.
You don’t need money in 8 banks, 20 credit cards, and 3 homes if you can’t find a way to manage it. Simplify it. Hire a financial advisor and property manager. Or just decrease the amount of banks and credit cards you use, homes you own, and stuff you have.
No matter what, simple is best. KEEP IT SIMPLE!
3. YOU DON’T HAVE TO SPLURGE ON EVERYTHING
Things Worth Spending MAX Money On For A Better Life – https://t.co/IXRyboM4Cm – You don't have to splurge on everything. Just the most important things. What's missing from the list? pic.twitter.com/3aM4LU7KGX
Absolutely, you don’t. I read a book years ago on health and fitness called Beyond Diet. She stated instead of buying all organic just get a few main items such as milk to keep your budget in check.
I have always spent my money on the things that mattered most. Namely, my health, education, a good pair of shoes, a good coat, and reliable transportation.
See more on saving and buying what really matters.
Because I'm a money nerd and a comics nerd, one of my favorite things is when these two obsessions come together in the form of (drum roll, please): financial graphic novels! You might think that's a niche I just invented, but you'd be wrong. https://t.co/ea0q30ojwlpic.twitter.com/e13jgOoPrs
I take every chance I get to educate someone about money. I bought the Automatic Millionaire for my best friend years ago, so she could get better acquainted with Mr. Benjamin, cause it’s all about those Benjamin’s.
If you don’t teach your kids about money, they will grow up not knowing how to earn and manage it.
If your not sure where to start, check out my post on Scrooge McDuck. It’s kid friendly.
You think you know where your money’s going, but you have no idea.
Well, welcome to the club. Most people have no idea where their money went.
I suggest you start tracking it right now. Yes, stop reading this post and go track your net worth right now!
You can only do better when you know better.
7. A CAR IS NOT AN INVESTMENT
A car is not an investment, it's a tool. It's ok to spend more money to buy a nicer tool. Especially if it's a tool that you use often and needs to be relied upon.
There is nothing wrong with owning nice things, just don't lie to yourself by justifying it as an investment.
Don’t even get me started on cars. Like money, it is just a tool.
I paid off my car about a decade ago. Here is a screen shot of my $0 balance. I paid off that car and out that money to work for me. Forget cars! You do not need an expensive car.
Ah yes, they say ask and you shall receive. However, you still have to ask and do the work. Nothing is for free.
The sorted topic of coin is a tricky one. Money is emotional. But side hustles can get you more money, so I say why not try to EARN money by doing something you are good at and do for free already. Just a thought.
How do you FIRE? Basically, you work your butt off when you’re young, live on like 50% or less of your income and save and invest the rest. You have a better chance of achieving this if you can save and invest 50-70% of your income.
From what I have read, most aspire to FIRE with 25 times their income. Could be anywhere from $500,000 to $2.5 million. Then live off the interest.
However, whether or not you FIRE, you can help others. It can be done with money or time. Either way, with financial independence comes the ability to choose what you do, as you become the master of your time when you no longer have to punch a clock.
When is it time to leave your job and FIRE?
Ask yourself: Would you do this job for free?
You want to be able to do your passion right? Then, you have to make some changes. Leave the grind of the 9-to-5. Get out of the proverbial rat race. It all starts with what you earn and what you spend.
Financial freedom allows you to spend more time doing the things you want. You can spend more time with family, take more vacations, serve in the peace corps, help build homes for habitat for humanity, and the list goes on.
Hope you enjoyed this post, as much as I enjoyed writing it. It was nice to remember some of the things I’ve learned along the way on my own journey to wealth.
However, whether or not you FIRE, you can help others. It can be done with money or time. Either way, with financial independence comes the ability to choose what you do, as you become the master of your time when you no longer have to punch a clock.