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Guess Who Is Going to Business School

Written by on December 21, 2011 · 29 Comments

Apparently, I am.

I have received my first official acceptance of this application season, to one of “the 15 schools who make up the Top 10 MBA programs in the U.S.”*

I am so happy and grateful that all that legwork and homework have paid off. For this one school in particular, I attended their West Coast receptions 3 years in a row, when I first started thinking about an MBA. I visited the campus twice. I talked to probably 15+ people over a course of 2-3 years to try to get an understanding of what is important to me in an MBA program and what is unique about this school. For my other schools, I have done the same thing – multiple visits, many conversations with many folks, lots of hard thinking about what I value and what schools would best fit me and that I can best contribute to.

I’m not sure what the financial aid picture looks like just yet, but my fingers are crossed for some type of scholarship/grants.

It’s such a relief to know that I am actually going to school next year. I have a number of plans and goals for 2012, before the MBA (save $$, get married, travel) and during the MBA (make friends, learn new things, avoid the poorhouse). It should be an exciting year. icon smile Guess Who Is Going to Business School

*The schools play musical chairs with rankings every year! One spots down, two spots up, and so on and so on. I don’t think you should ignore the rankings entirely, but it’s not dogma. I applied to schools in the Top 10 and Top 20, and I would be happy at any one of them because I know they fit my personality, will challenge me, and will help me accomplish my career goals.

 

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How Much Is That MBA In the Window?

Written by on September 1, 2011 · 31 Comments

How much is that MBA in the window?
That two-year three-lettered degree?
How much is that MBA in the window?
The loans will be the death of me!

The MBA application season has started (cue resume updates, essay writing, interview prep, cross-country campus visits, and lots and lots of $$$). Even though the application process and travel is costing a pretty penny, I know the REAL big expenses will come once I am accepted into the hallowed halls of graduate education.

The cost of a 2-year MBA program usually runs $160,000+ including tuition, books, and room and board. Wharton, in fact, suggests a $180,000 budget for two years for new incoming students. To say that number is intimidating would be putting it lightly. With 12 months until I hopefully start my MBA journey, I’ve decided to look at my finances and see how I can meet that cost. No Debt MBA is an MBA student who plans to graduate without any debt. I may not be as ambitious as she is, but I would like to keep my total debt under $50,000 and I’d like to pay off, not capitalize, accrued interest during my 2 years in school. Here is how I plan on paying for my business education while minimizing student loans.

$80,000.

That’s how much I have right now, around $40,000 in personal savings and $40,000 in promised family contributions. To stretch this money as far as possible, I plan on living with roommates, getting by without a car, and limiting my purchases. Baaaack to student living! The family contributions will come from the sale of my grandmother’s apartment. My grandmother, despite never having gone to college, was a great proponent of education. So, my mother has decided that this will be her gift to me. I think she would be happy I’m using the money to go to school.

The rest?

I am crossing my fingers that I get some grants (i.e., “free money”). If I could get the $30,000+ a year that No Debt MBA did, I would be over the moon. If I can get even $10,000 a year, that would help tremendously. My 401K and Roth IRA hover around ~$70,000 (give or take $5,000 depending on which way the Dow blows), but I’m leaving those funds alone. Aside from the penalties and fees, I’d like to think that that money isn’t even mine – they belong to a nice old lady 60  years from now who will be mighty glad I didn’t raid her retirement kitty. icon smile How Much Is That MBA In the Window?

After graduation, I’d like to go into a marketing or marketing consulting role. While I should be able to make a good living from these jobs, they are not the $200K+ salary and bonus figures that finance types boast of in their first year out of school. So I want to be very careful about how I take on student loans. (A new blogger I just found, No More Harvard Debt, is a 2009 Harvard MBA who is blogging about paying off $90K in debt in 8 months). In any case, I don’t want to make too rosy a projection of my post-MBA finances. You get in trouble that way. Making $100,000 when you thought you’d only get $80,000 = Wundebar! Making $200,000 when you planned for a $250,000 lifestyle? No bueno.

Furthermore, getting married means that I am no longer just concerned about “my” finances. CB is also going to a masters program. He will also take on loans, although I am hopeful that he will receive many more grants than I will. The more we minimize our educational debt, the more flexibility we will have down the road.

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Do Schools Have a Responsibility to Teach Us Personal Finance?

Written by on October 4, 2010 · 23 Comments

Several years ago I first wondered about the lack of personal finance education in our K-12 education and post-secondary schooling.

My mother taught me the importance of saving, my middle school teacher introduced me to Roth IRAs in college, and everything else I’ve learned on my own through blogs, books, and articles. Given that money management is such an important topic for the rest of our lives, should personal finance curriculum be instituted as a part of a public education?

I say yes. Even though I believe parents are the biggest potential influence on their kids’ spending and saving habits, in many situations parents might not be able or willing to discuss money with their kids. But personal finance is a serious enough topic that all children should have some exposure to it.

Given numerous public school budget cuts, however, it’s difficult to see where this money to talk about money might come from.

Categories: School

Question From a Reader: Where and When to go to Graduate School?

Written by on June 8, 2010 · 14 Comments

One of my readers, “Em,” is thinking about going back to graduate school so she can transition in a career in Human Resources.  I thought I’d open her question up to all of you.

why graduate school 300x297 Question From a Reader: Where and When to go to Graduate School?I am in a bit of a career rut.  I received my BA in 2006, and have since been working in assistant/office manager/receptionist-type roles.  I am 26, and have been thinking it’s time to start thinking seriously about my career and the steps I need to take so that I can start down an official Career Path.  I know there are no typical, proven, Total Success Guaranteed ways to approach the elusive Career Path, that different careers have different requirements, and that people find their dream jobs in multitudes of ways.  However, I am finding myself stuck in this rut, and not sure how to move forward.

I would like to pursue a carer in Human Resources, specifically in the area of employee onboarding/training and learning and development programs.  In this job market, I’m finding that you need previous HR experience even for the most entry-level jobs in the field, and because I cannot figure out how one gains experience in a position that requires the experience to be hired (which came first, the chicken or the egg?!), I’m thinking about going back to school.

However, school costs money.  I do not want to stay at my current job long enough to take advantage of their education reimbursement program (I’d be required to stay at least another two-three years, if I even qualify for it, which I might not, since it is hard to justify how an HR program is important to my role as a receptionist in a company that doesn’t even have an actual HR department), but I have been thinking about my options, and trying to see what is worth the investment.

There are a few Human Resource Management Certification programs that I’ve been looking into, ranging in cost from $1500-$6000.  The higher cost comes with the UC Berkeley (extension) label, better classes, and a (somewhat) closer proximity to where I live (though it’s still about a half hour.  The lower cost comes with a California State school label, less interesting-sounding classes, and a location that I might not even be able to get to (I would likely be attending these classes at night after work).  The other option is a strictly online university, but I’m not sure that would carry the same weight as even a state school.

The other option that I have just started thinking about is some sort of Masters program, though I haven’t begun to research programs, schools or costs yet.  I always said I would only go back to school if it was necessary for furthering my career, and I’m starting to think that it’s time, but we’re talking about a lot of money here! Although the other side of me says “$1500?  That’s like one, nice vacation.  Or my portion of two month’s rent.  It’s not THAT much, if it means doors opening to a new career.”

How do you decide when a higher degree is a necessity for career advancement, and then how do you decide how much money is worth it to spend?

image source: studentbranding.com

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Graduate School: (When) Should I Go?

Written by on April 5, 2010 · 29 Comments

graduate school Graduate School: (When) Should I Go?Graduate school is a significant undertaking both in terms of time and money. During the last few months, I’ve felt some pressure from concerned family members about going to graduate school. I know they only want the best for me, but I’m glad I followed my gut instinct and pursued more work experience instead. A business school education has been a professional and personal goal of mine since graduating college, but right now is not the time for me to go. Bottom-line: I only get one chance at an MBA, so I wanted to do this right.

The answers to “Should I go to graduate school?” and “When should I go to graduate school?” depend on the individual. I know very successful people with no graduate (or even college) degrees. I know very successful MBAs who had only two years or three years of experience before they headed to business school (if you are a college student looking to get an MBA a few years after graduation, check out Harvard’s 2+2 program). But I knew going right now wasn’t the right decision for me. I wanted more experience before I go because I’d have more to contribute to and more I can gain from an MBA experience if I have a few more years of seasoning. From a financial standpoint, I’d like a few more years to bolster my savings so that I can minimize the loans I’d have to take out.

Graduate education, be it medical school, law school, business school, or other masters programs or Ph.D. programs, exacts a hefty price. Medical school takes four years and often costs $200,000+ in tuition and living costs. Law school is 3 years (full-time) and 4-5 years (part-time), and the costs cross into the multiple six-figure territory as well. Business school is shorter at 2 years, but the average total cost for full-time students range from $100,000 to $140,000 for the two year program.

Given the costs, it’s very important that before making such a big commitment, people understand what they are getting into, and what the purpose for such a commitment would be. Here are three helpful questions I’ve asked myself to determine if graduate school is right for me, right now:

What will you do with a graduate school degree?

  • You don’t need to map out your career from graduation to retirement, or list out every possible contingency, but it’s a very good idea to carefully consider what you can do with your graduate degree once you get it. The point of graduate school can be for personal enrichment or career advancement, although for most people it’s a combination of the two. But unless you have a substantial trust fund, you can’t make a career out of being a “professional student.”
  • Do you need a graduate degree? How will it help you achieve your goals? Some fields require a degree to enter – i.e. if you want to practice law, you need a J.D. If you want to become a pharmacist, you need a Doctor of Pharmacy degree. If you want to teach at the post-graduate level, you need a Ph.D. and published research. You do not need an MBA to do business, although an MBA can be particularly helpful for career changes.

When is the right time for you to go to graduate school?

  • Some students decide to head to graduate school right after college. Some decide to wait a few years or decades between college graduation and a J.D., an MBA, or an MD. If you go to graduate school right after college, you will still be in the “student mindset” and will be able to start your post-graduate career sooner (i.e. if you are studying to become a lawyer, a professor, a doctor, a pharmacist, an accountant, etc.).
  • If you go back to school after working, however, you have the chance to save for graduate school and gain valuable work experience. Business schools especially prefer work experience (average age of a business school student is 27 to 28 at entrance), although the quality of work experience and the candidate’s maturity matter more than the quantity of experience. Make your decision with all these factors in mind.

How will you pay for graduate school? Is the debt load sustainable?

  • Don’t think about graduate school without also consider how you will pay for it. Many “professional” schools (medical school, law school, business school) in the U.S. may not offer much in terms of grants (i.e. money you don’t have to pay back). The expectation is that you will be able to make enough after graduation to service your loans. (From my limited understanding, many Ph.D. programs offer tuition grants and living stipends for their students, so the financial outlay is more reasonable at these programs.)
  • You can get more money out of these places if you are a stellar candidate whom they want to attract (many schools have a full-tuition or half-tuition fellowships that are awarded to the top sliver of students), or if you seek out outside scholarships. You can also apply to be a teaching assistant. Many schools offer loan forgiveness programs for students who go into nonprofit or government work. If you are considering this line of work, be sure to ask about such programs.
  • If you go to school part-time, you will have your income during school. But it will take you longer to finish your degree. If you go full time, you will lose X years of income. Some schools may also discourage full-time students from seeking work during the school year.
  • Going to grad school will give you higher chances of getting the job of your dreams. For example, people in law enforcement will consider a masters in criminology to acquire administrative positions and get promoted quickly. You just have to find your passion.”

image source: insidesocal.com

This post was featured in Carnival of Personal Finance #252

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Free GMAT Study Resources

Written by on March 17, 2010 · 14 Comments

gmat Free GMAT Study ResourcesTaking and prepping for standardized tests isn’t cheap, fortunately, there are many free study resources available online. I’ve taken advantage of most of these resources when I was preparing for my test last year. Hopefully you will find them helpful as well.

Free Online Study Materials

  • The GMAT Uncovered by ManhattanGMAT: A free guide with detailed overview of the GMAT, strategies for solving GMAT problems, a section examining common myths about the exam, an introduction to the business school application process, and more. The GMAT Uncovered comes with a bonus Free Sample GMAT Test.
  • ManhattanGMAT Flashcards: I love this set of flashcards – they served as my primary flashcards during prep time because the information and explanations are presented in a clear and concise manner.
  • BeatTheGMAT Flashcards: You’ll need to sign up for beatthegmat.com and log in to download the flashcards, but it’s free to join and I’ve found the flashcards useful to flip through during the 5 minutes here and there during the day.
  • BeatTheGmat Math Review: Basic review of math topics for those who need brushing up. As with the flashcards, you will need to sign up and log in to download.

Free Practice Tests: Best resources for learning to execute under time-pressure.

  • Kaplan Test: Must register for test online and go to a Kaplan testing center to take test.
  • ManhattanGMAT Free Sample Test: Computer-adaptive test available online.
  • GMATPrep Tests: 2 practice tests developed by the makers of GMAT – the gold standard for practice tests because in addition to featuring actual (but retired) test questions, the computer format is exactly the same as what you’d see on the day of the test. You will receive access to these tests after you register for the GMAT. The downfall of these tests is that no explanations (only answers) are provided.

Forums: Online spaces where you can ask questions or share insights with other GMAT-takers.

This post was featured in Carnival of Personal Finance #249: Pirates vs. Ninjas vs. Nuns vs. Robots vs. Real Estate Agents

Categories: School

Standardized Test Costs: GMAT, MCAT, LSAT, GRE

Written by on November 19, 2009 · 6 Comments

04strategy.190 Standardized Test Costs: GMAT, MCAT, LSAT, GREFor graduate schools, there are generally four big standardized admissions tests: the GMAT, the LSAT, the MCAT, and the GRE (I think it’s funny how most of them rhyme – why are you such a rebel, GRE?!).

  • GMAT (business schools): $250
  • LSAT (law schools): $132
  • MCAT (medical schools): $225
  • GRE (general graduate programs): $150

GMAT is the most expensive test out of the bunch. The MCAT is not far behind, but whereas the MCAT is an 8-hour test, the GMAT is 3.5 hours. From a layman’s perspective, this means that MCAT will take longer to grade and require more resources in that regard.

So, why is the GMAT the most expensive test? Hmmm. Perhaps the computer adaptive nature of the test is one reason? Although my understanding is that GRE is also computer adaptive.

Pearson (the testing organization that runs the GMAT) did note that they reinvest 40% of all testing revenue in to research and development of the test. And judging by those pesky adaptive questions…. I don’t doubt them!

Recently, a few business schools have quietly begun to accept GRE scores. A year ago, the New York Times dubbed this “a feud brewing in the graduate-school testing world.” Pearson is, not surprisingly, none-too-pleased about this development. In fact, one of the arguments in favor of the GRE is that since it’s $100 cheaper than the GMAT, it will offer more access to prospective students who cannot afford the $250 GMAT fee.

Colleges already have a dual-standardized testing model where both the SAT and ACT are equally accepted. I wonder if one day GMAT and GRE will reach that stage for business school admissions.

If Pearson is really worried about the cost of GMAT turning away financially-challenged students, I think increased fee waivers or reduction would be a step in the right direction. Apparently, schools can request fee waivers for their prospective students, but I’m not sure how many students that benefits. It might be more effective for students to be able to apply for waivers on their own.

My personal belief is that Pearson charges the $250 for the GMAT because they can – I paid $500 to take the test twice, and I know people who have taken it 3 times.

Have anyone made the decision to take one test over the other for financial reasons?

Categories: School

Big Long Post Inspired By An MBA Reception

Written by on November 13, 2009 · 14 Comments

A few weeks ago I attended a reception for an East Coast business school. I was surprised at how many alumni showed up, given that the alumni network out here in California must not be that big. I was very impressed by the speakers – their passion for their school obviously shows.

Here are a few of my thoughts (and it’s a big long post – you’ve been warned!)

…on business schools, alumni, and networking:

  • From my experience, b-school alums seem so much more passionate and outspoken about their alma mater than students of most other graduate school (maybe except for law school). It might be the financial investment, but medical school students spend a lot of money on their schooling too – maybe doctors are just more reserved?
  • Of course there’s a self-selection bias going on here – the alumni who are willing to make the time to come to these recruiting events are more likely to be ones who have been satisfied with their on-campus experience and post-MBA job situations.
  • I chatted with a few alumni (including a senior executive at Disney and another executive who specializes in computer gaming security – very exciting!) and was impressed by how articulate and at-ease they were.
  • The night was also great practice in how to gracefully enter and exit different conversation circles and how to react to lulls in the conversation (ask a lot of questions about the other person).

…on the next 50 years:

  • China and US will be two of the biggest economic powerhouses in the world. There is a lot of money to be made in doing business in China – introducing Chinese consumers to American products and Americans to Chinese businesses. India, Brazil, Russia, etc. will be up there as well.
  • There will be an unprecedented number of newly-created middle-class consumers, whose desire for products and services will be a huge driver in future economic booms.
  • The boom in green / sustainable energy will be the pursuit of how to provide all these services and products to the newly created middle class in an environmentally-responsible manner. Because… if you’re going to tell the Chinese they can’t have XYZ nice thing that Americans have because we’ve already used the resources and now it’s time to conserve… good. luck.

…the economy, applications, and work experience:

  • From my conversations, I was reassured that my unemployment / freelancing right now wouldn’t be held against me, especially in light of the economy. A few prospective students and alumni there were also in transition. Apparently, if you have to be unemployed and take a break, 2009 is the year to do it in.
  • Speaking to the alums also reaffirmed my decision to work for a while longer before I go back to pursue an MBA. I told an alum about the possibility of going to work in China, and he strongly recommended that I do that before going back to school.

…women and the MBA:

  • An alumna I spoke to graduated school in the mid-1980s, when the school only had 20% women. Now, top business schools generally have around 30%, 35% women, and a few (NYU Stern comes to mind) has breached the 40% mark.
  • I don’t know if business schools will ever achieve parity between male and female attendance. Law school and medical school both have roughly 50% of men and women attending, so it’s a possibility, especially with the trend of more women graduating from college than men. And it’s not that far of a leap from 40% to 50%… is it? Though it has taken over 20 years to get from 20% to 30%.
  • On the flip side, a lot of women didn’t grow up being interested in business (and I count myself among them), and business school tends to cut in the years (ages 26-30) when may women are looking to start a family. Ideally, I’ll be 26 when I start business school, and 28 when I graduate – this way I can get all my schooling done before 30. Grandmama would’ve been proud. My other grandma actually told me once that I shouldn’t date until I finish my masters. I love her emphasis on education and self-development!
  • Every school reception I visited placed a great emphasis on increasing its number of women, so that is always encouraging. At business schools, there are also a number of women’s initiatives and “get-togethers”, often hosted / attended by traditional big recruiters such as consumer products companies, management consulting firms, finance firms, etc.

….business school lingo on salary and remuneration:

  • One never “makes a lot of money” after business school, one “achieves a financially rewarding career” by “creating value through risk-taking, creativity, and innovation.”
  • Graduates don’t “make $xxx,xxx in their first post-MBA job”, instead, they “are valued by the marketplace, and that value is reflected in their compensation.” icon wink Big Long Post Inspired By An MBA Reception

I realize that money is not the be-all and end-all of things, not by a long shot, but cf course, I want to have a financially rewarding career. I don’t think there’s any shame in that. What I came away from this reception was a renewed sense that business is exciting and it’s challenging. And right now, I’m young and I can take risks. And I do want the grounding that a solid business education can give me. And in a few years, I’ll be ready to go back to school.

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Visit to Columbia University

Written by on September 23, 2009 · 6 Comments

columbia university artistic 300x225 Visit to Columbia University

While I was in NYC, I took the opportunity to visit Columbia University and sit in a couple of business school classes. The Morningside campus, under the bright September sun, looked something out of a postcard. I spent 30 minutes just sitting on a bench, enjoying the sunshine, watching students walk by, soaking in the ambiance.

Must be the nerd in me – there’s just something about institutions of higher learning that makes me feel warm and inspired. Especially when said institutions have storied histories.

I sat in a marketing class that focused on customer segmentation, and a corporate finance class that discussed capital structure. Both were quite interesting, guided by enthusiastic professors and anchored by thoughtful in-class discussions. I came away from my visit thinking two things: 1. Everyone there is so smart and accomplished, and 2. I can do this, and I can see myself fitting in and contributing to the class.

I don’t know if those two thoughts seem contradictory or self-congratulatory. I suppose it’s this: it’s easy to be intimidated through any application process, because you tend to imagine your peers to be much more desirable candidates. It’s the achievement treadmill, and everyone else seem to have logged more miles than you. That’s where self-doubt creeps in to make a home, like a nasty cold virus that just won’t go away.

But the truth of school applications is akin to the truth of personal finance (indeed, and of life): there will always be people who are doing better than you (by any measure), and there will always be people who are doing not as well as you (by any measure). All you (and by you, I mean, me) can do is to make the best possible case, and stop worrying about everyone else.

So I sat in those two classes, I listened to the professor, and the students, and I knew: I can fit in here. I can succeed in this environment. I can contribute to the community and take the fullest advantage of my two years in graduate school. Doesn’t mean I’ll get in – but I know that if I don’t get into to my top choices, I will still do well for myself.

And it was a pretty good feeling.

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Should Parents Pay For College Education

Written by on September 14, 2009 · 21 Comments

A college education has, for a large percentage of society, become the de rigueur entry-level degree. “Should parents pay for college education” is a question where the answer is always, “it depends.” In today’s economic climate, I imagine that many parents are having the difficult talk with their kids as tuition savings have fallen or parents have lost jobs. The Wall Street Journal reports that because of recession, many parents are deferring saving for their children’s college educational expenses.

Because of the economic crisis, 47% of parents are saving less or aren’t saving at all for their kids’ education, according to a Gallup survey released in May by student-loan provider Sallie Mae.

college savings 300x200 Should Parents Pay For College Education

No, parents shouldn’t pay for college education:

Some say that paying for one’s own education through scholarships, jobs, or loans instills a true appreciation for the education and gives the kid the satisfaction of “making it on his/her own”. Parental financial responsibility doesn’t extend to college. Parents should focus on their retirement first.

Yes, parents should pay for college education:

Others argue that colleges and the government expect a certain level of family contributions. The cost of attending college dramatically outpaced inflation in the past 20 years. Too much work during college may delay graduation and a heavy debt load is crippling after graduation. Parents have a responsibility to prepare to contribute to tuition.

My thoughts:

My parents experienced the Tech Bust of the early 2000s right before I went to college. They still paid for the bulk of my college education, but I knew they made huge sacrifices to do so. Mom has also indicated willingness to give me some money for graduate school when the time comes. Education is one of the ways that my parents show they show their support, and I’m so grateful for that.

So it is with that background that I would like to (and plan to) pay for a large portion of my kid’s college education (educational costs is one reason why I’m strongly considering having a single child, if I do have children). Of course, I expect he/she to work hard, apply to scholarships, and take out  loans, but I would also expect that as a parent, especially one who has received so much educational support from her parents, to offer substantial financial assistance to my child’s education.

I don’t see kids in my future for a long time, but by the time I become a parent, I want to be financially prepared. I definitely think that retirement should come before kids’ educational expenses, but with proper planning, I hope to save for both goals.

Some personal finance bloggers have opened 529 plans for their children. Overachievers that they are, some (such as Jonathan of MyMoney Blog) even open 529s BEFORE they have kids. That’s my plan of action as well. I’m going to focus on saving for my future and investing in myself, so that once I decide to have a child, I can appropriately divert some resources to the Grand Enterprise of Kid-Raising (which will probably be more expensive than I can fathom. But I’m NOT going to start saving for my kids’ diapers right now).

Are you planning to contribute to your kid’s college education? How does your experience with your parents influence your thoughts on the subject?

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When To Pay For Private Lessons?

Written by on September 10, 2009 · 10 Comments

Today I had my first class with my tutor (whom I shall call Madam Instructor) for Mandarin class. I was pretty happy with how the session went and pleasantly surprised that I retained more comprehension than I thought I would.

Madam Instructor gave me a text that focuses on professional Mandarin – after we finish this text, she said, I should be able to read newspapers, business articles, and op-eds without any trouble. I am eagerly awaiting that day! Must use that for motivation as I begin the painful process of memorizing characters…

A few readers were surprised at the expense ($67 per hour – ouch. It hurt a little to write that). I chose private tutoring to get the best results within a short period of time. Even though private tutoring is expensive, I think the one-on-one attention and individualized curriculum are worth it.

MoneyMateKate commented in my previous post,

Here in NYC, state certified teachers make on average $50-60/hr for private tutoring. If your tutor isn’t a fully trained language teacher (as a former EFL teacher, I promise you, the methodology is different) and simply an expert because it’s her native tongue, you are paying about 3x what she’s worth. I’ve used both kinds of private tutors, and the difference is enormous.

I definitely agree that Madam Instructor is much more expensive than many other tutors. On Craigslist, I can find Mandarin tutors for as low as $15 / hour, and many more at $35-$50 per hour. I can, of course, also enroll in group classes at a much lower rate. But I went with Madam Instructor because of her experience teaching professional Mandarin (and because she was the most responsive to my inquiry). At the end of the day, I know her fee is high. But I don’t know if it’s too high. I hope not.

If I had unlimited funds, I would take private lessons in Spanish and Argentine tango. Hmm… maybe I can spend a few months in Buenos Aires, where I can learn Spanish during the day and dance tango at night! Mandarin was a more easily justified expenses because 1. It’s a professionally useful language, and 2. I already have a background in the language, so with some effort and time I can make a lot of progress.

Have you taken private lessons? Do you make a distinction between professionally-useful skills such as languages or golf versus purely recreational hobbies such as sculpture, dance, skiing, etc.?

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Ni Hao Ma? Learning Chinese (Not On A Budget)

Written by on September 9, 2009 · 27 Comments

I’ve been talking about improving my Chinese Mandarin abilities for years now, but just haven’t really buckled down and gotten it done. Well, now is the time for me to invest in myself – and that investing usually means $$$.

I found a tutor to give me one-on-one private lessons at $800 per 12 hours of instruction, which evens out to ~$67 per hour. That seems like a fair price. Right now, we have tentatively set up tutoring for 3 hours a week, but if all goes well I may increase the lessons to 6 hours a week.

After Mandarin I really want to improve my Spanish, although the two languages are different enough that I can study them simultaneously. I briefly studied German in college, but decided to focus on Spanish instead.

With English, Mandarin, and Spanish under my belt, I can probably talk to most of the world’s population. Once, when I was in Prague, I got lost looking for a supermarket. A nice couple tried to help me – but I didn’t speak Czech and they didn’t speak English. So I tried speaking Spanish and they understood me. And pointed me towards el mercado. Oh the power of languages in an interconnected world! icon wink Ni Hao Ma? Learning Chinese (Not On A Budget)

And besides, it’d be pretty cool to be trilingual. What languages do you speak or want to learn?

Categories: School, Spending - Tags: ,

The Lessons That College Keeps On Teaching

Written by on August 4, 2009 · 6 Comments

One of my cousins is heading to a Seven Sisters college this fall. I am unbelievably excited for her. When we were little, I’d braid her hair and play dress-up. One summer, we made tents in the family room with chairs and sheets, and “camped” at night. How the years have flown.

In college, I didn’t have a good idea of details of personal finance and investing – all I knew was to spend less than I made. I had an emergency credit card that Mom cosigned. Senior year, I got my own credit card to begin establishing credit. I worked part-time as a research assistant, and I was fortunate enough that the money I made can be used for discretionary purchases.

There weren’t that many things I would’ve changed in college, but if I can go back in time and counsel my 18-year-old self, this is what I would’ve done a little differently:

1. Opened a Roth IRA earlier. It would be nice to have another thousand or two in Roth right now. Although I can’t feel too badly about this one. I opened, and maxed out a Roth the first year I was able to. Frankly, despite PF tributes to the amazing wonders of compound interest, there’s usually not a huge difference if you started saving at 20 vs. 25, especially if most kids have only savings in the hundreds or low thousands. Earlier is better, sure, but it’s definitely not an insurmountable amount.

2. Valued money less. Let me explain: in college I won a fellowship to study in Europe for a summer. While I was there, I had the chance to visit a friend in London. I didn’t take that trip because I thought it would’ve cost too much. If I can go back, I’d hop on a plane in a heartbeat. That’s not a mistake I lose any sleep over, exactly, but I knew it would’ve been a great, great experience with a good friend that now I’m no longer close to.

3. Taken even more time to get to know professors as people – as really successful, top-of-their-field professionals who have found their calling and who somehow manage to be good and genuine at the same time. One of my professors still give me alumni contacts when I have questions, and wrote me a thank-you card for a measly $10 donation that I made. Another one of my professor is a phenomenal woman who speaks 5 languages, has 3 kids, and is by far one of the most eloquent and thoughtful speakers I’ve ever known.

4. Stop stressing out so much. I once called Mom in tears because I was certain that I failed an economics exam (luckily, I didn’t). But in the grand schemes of things, feeling stupid because I didn’t understand a lesson or feeling bad because I got a B+ on a presentation when I expected at least an A- or feeling worried because I had the worst registration time in my class didn’t matter. What mattered was that I had amazing classroom experiences, did to the best of my abilities, and made some really good friends.

5. Taken more time to ponder. Think about not just how do I make a living, but also, how do I live a life. In between the classes and internships, I wish I would’ve spent just a bit more time thinking about the “bigger questions”: What kind of person do I want to be? How do I define success? And how can I achieve it? What do I need to do to build the best life that I can?

College has taught me a lot. But as I’m discovering, many of the lessons it is still teaching require perspective to appreciate and understand. As I move farther away from my college experience, I imagine I’ll be learning that much more.

Categories: School

Another Cost of Studying: "Coffee Money"

Written by on July 6, 2009 · 11 Comments

When I was preparing for the GMAT, I’d frequently go to Coffee Bean & Tea Leaf, Starbucks, or Borders to study.

Often I would be too distracted to study at home. The libraries around my apartment would close at in the early evenings… that’s way too early considering I usually got my studying in between 9PM and 11PM.

At $3-$6 a sitting (I’d usually get a drink, sometimes I’d splurge for a sandwich), these study sessions aren’t cheap. I went out to study at least once or twice a week. Assuming an average expenditure of $10-$20 a week, I was spending $50-$80 a month on coffee drinks alone!

I don’t know how I got into studying at coffee shops - it’s a habit that started in high school when I first started cramming for statistics at a Starbucks.

Mentally tallying up all the coffee money I’ve spent in the name of studying…. must have been in the hundreds.

image source: reallynatural.com

Categories: School, Spending - Tags: ,

Cash goes fast when it comes to standardized tests

Written by on June 28, 2009 · 11 Comments

Or, all the money that went to College Board / ETS and GMAC over the years.

As a veteran standardized-test-taker who have recently (and happily) said goodbye to standardized tests, I’ve decided to take reader S’s suggestion and tally up all the money that went into this little 1-person enterprise of standardized test-taking.

The numbers will be an approximation (to the best of my memory + googling) for the tests I took in high school.

  • 10th grade: PSAT:
    Cost to take: $10-$14 (?)
  • 10th-12th grade: Advanced Placement Tests (5 total)
    Cost to take: $135 each = $675 total
  • 11th grade: SAT I (taken twice – I might be showing my age, but when I took it the full score was 1600, not 2400)
    Cost to take: $25 each = $50 total
    Cost to send top score to colleges (12 colleges) = $8 each = $96 total
    Test-Prep: $0 – my high-school counselor somehow got me into a class that a prep organization was doing as a pro-bono project.
  • 11th grade: SAT II (3 tests, each taken twice)
    Cost to take: $25 each = $150 total
    Cost to send 3 top scores to schools: $8 each = $18 total
    Test Prep: $500-$1,000? I was sent to tutoring every day after school for a couple of months.
  • Post-college: GMAT (taken twice)
    Cost to take: $250 each = $500 total
    Test Prep: ~$1,800 – this includes a formal 9 week prep class and a couple of additional workshops.

Adding up all the numbers… comes to out to around $4,000. Just on testing and test-prep alone.

There are some people who are innately good at standardized tests. They study for two weeks and get a 99.999th percentile on the first try. They are the ones who get 780s on GMATs and 176s on LSATs. (Yes, I know people like them. I try not to hate too much. icon wink Cash goes fast when it comes to standardized tests ).

Then there are people who really struggle with standardized testing in general – they may be very smart individuals who are just not good at these types of tests.

I think I fall somewhere in the middle – I usually score better than median on the diagnostic just as a benefit of the education I have received to date (and as an avid reader my verbal skills tends to rank fairly high off the bat), but I definitely need to study over a consistent period of time to get a good score.

That’s where test preparation (and the financial resources it required) has helped me a great deal.

Categories: School, Spending

Saying Goodbye to Standardized Tests

Written by on June 26, 2009 · 13 Comments

Parting is such sweet sorrow – except in this case.

Finally took the GMAT today.

Before the test and during breaks, I kept repeating to myself – just do what you know how to do. I knew that if I just did the questions that I know how to do – if I just performed at my ability, I’ll get a score I’m happy with.

And I did. 95th percentile! Not the 98th or 99th percentile that I know people gun for, and frankly I could’ve gotten a few percentiles higher in the Verbal section (although I did much better in Quant than I thought I would) – but you know what, it’s okay. I’m truly happy with what I got.

Hey, I won’t be lowering the average of any school. icon smile Saying Goodbye to Standardized Tests This brings me a HUGE sigh of relief. The score is good for five years, so I won’t have to worry about it again.

Speaking of standardized testing, it’s been a long road paved with study guides, prep books, and three-ring-binders full of notes and practice problems…

Here are all the standardized tests I’ve taken throughout the years (not including state-mandated testing):

  • 10th grade: PSAT, AP European History
  • 11th grade: SAT (twice), SAT II Math Level I (twice), SAT II Writing (twice), SAT II US History (twice), AP US History, AP Statistics, AP English Language
  • 12th grade: AP English Literature, AP Calculus AB
  • College: Blissful, standardized-test-free four years
  • Post-college: GMAT (twice)

Now I’m DONE. Standardized tests, we’ve had our time together, but it’s time to part ways. Truly.

Categories: School

To all you math whizzes, this might be easy, but for me? I'm pretty darn proud I figured it out*

Written by on February 20, 2009 · 7 Comments

Circle O (see below) has center O, diameter AB and a radius of 6. Line CD is parallel to the diameter.

What is the perimeter of the shaded region?circle1 To all you math whizzes, this might be easy, but for me? I'm pretty darn proud I figured it out*

The perimeter will be the length of the arc CAE and the line segments CB and EB.

Calculate arc CAE

Step 1: Angle X = 30 degrees, because they are alternate interior angles

Step 2: Angle CBE = 2X = 2*30 degrees = 60 degrees

Step 3: Angle COE = 120 degrees because COE is a corresponding angle of the inscribed angle CBE. Corresponding angles = 2x inscribed angle’s measure

Step 4: arc = (120 degrees / 360 degrees) * circumference = 1/3 * 2(radius)pi = 1/3 * (2)(6)pi = 4pi

Calculate lines CB and EB

Step 1: Triangle ACB is a 30-60-90 triangle because one it’s in a semicircle. Angle C = 90 degrees.

Step 2: 30-60-90 triangle = x – rad3(x) – 2x

Step 3: line segment CB is opposite 60 degrees, so the length is radical3(x) = radical3(6)

Step 4: line segment EB is the same as CB, so EB = radical3(6)

Add them together:

perimeter of shaded region = 4pi + radical3(6) + radical3(6)

perimeter of shaded region = 4pi + 12 radical3

*after the timed practice test & looked at my notes, but still. I RULE (for one, brief, shining moment).

Categories: School

Can I say blah?

Written by on February 2, 2009 · 7 Comments

That’s how I’ve been feeling lately.

I feel tired and frustrated. Most days I battle the twin evils of wanting to go to bed at 8PM and the guilt of not-studying. You’d think it’d all be easier if I’d just STUDY, right?

Right.

It was so easy in college. ALL I had to do was to study and do fun extracurricular activities. Sigh. This is another reason why I don’t consider a part-time program – working and studying for the GMAT is unpleasant enough, I can’t imagine what it’d be like working 8+ hours a day and then going to a class on Modeling Consumer Behavior for 3 more hours.

Okay. I’m going to quit complaining and hit the books.

Categories: School

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