Advice for a 15 year old

[lgslgs]

what are some good paying careers

If you are good at science and math, look into chemical engineering. NOT chemistry, math, physics, or biology. There is a huge difference in income and employability between the high demand engineering fields (chemical and electrical) and the much lower paying and less employable straight sciences.

Lynda

[Scanner]

While I definitely 100% agree with the grandmotherly advice being offered here of save, save, save. . .there is a conundrum that exists for a 15 year old.

Let's say she is able to squirrel away $1000/month for 3 years into savings - it will probably disqualify her for any financial aid for college as she will have amassed probably in the neighborhood of $50,000 for college.

Could we perhaps be more specific for her?

Would putting her money into a Roth IRA shield not only taxes but allow her to qualify for financial aid on forms for college?

As far as careers, you will have to narrow it a bit - if you are interested in healthcare, you can ask DisneySteve or I (I think InDebtinDC is in healthcare too). Or are you interested in technology? Sales as someone said? Academia?

You have to define "good career" for us.

To a male, it may mean "I wanna be my own boss and make lotsa dough."

To a female, it may mean, "I want job security and an ability to have maternity and benefits and raise a family" (teaching).

[jIM_Ohio]

While I definitely 100% agree with the grandmotherly advice being offered here of save, save, save. . .there is a conundrum that exists for a 15 year old.

Let's say she is able to squirrel away $1000/month for 3 years into savings - it will probably disqualify her for any financial aid for college as she will have amassed probably in the neighborhood of $50,000 for college.

Could we perhaps be more specific for her?

Would putting her money into a Roth IRA shield not only taxes but allow her to qualify for financial aid on forms for college?

As far as careers, you will have to narrow it a bit - if you are interested in healthcare, you can ask DisneySteve or I (I think InDebtinDC is in healthcare too). Or are you interested in technology? Sales as someone said? Academia?

You have to define "good career" for us.

To a male, it may mean "I wanna be my own boss and make lotsa dough."

To a female, it may mean, "I want job security and an ability to have maternity and benefits and raise a family" (teaching).

Investing causes tax problems and financial aid problems. I would agree the OP should do some research on these issues as appropriate. I would not suggest the OP avoid saving to learn about these issues though.

I was clueless on taxes when i started investing at age of 23. 12 years later I am much smarter for the mistakes I made. I would suggest to the OP it is OK to make mistakes investing (I did), just learn from them and move on.

As far as careers, I would suggest OP follow their heart. The most common attribute of successful people is they are good at what they do. Being miserable in a day job because it pays lots of money is no way to live a life.

The investing world, IMO has known limits. We all use the same investing world, so to find someone who's only skill is "making money" by investing is not the goal of investing. It is a calculated way to transfer burden of income from employment to retirement. I haven't met anyone which complained they had too much money in the bank yet. Savings and setting money aside is a good thing.

[InDebtInDC]

Let's say she is able to squirrel away $1000/month for 3 years into savings - it will probably disqualify her for any financial aid for college as she will have amassed probably in the neighborhood of $50,000 for college.

Could we perhaps be more specific for her?

Would putting her money into a Roth IRA shield not only taxes but allow her to qualify for financial aid on forms for college?

This is definitely a consideration for need-based aid. That's why I advised above to consult a financial planner to minimize the impact of financial aid savings and vice versa.

The other alternative is to get a full merit-based scholarship. That way, you don't have to dib into savings at all.

As far as careers, you will have to narrow it a bit - if you are interested in healthcare, you can ask DisneySteve or I (I think InDebtinDC is in healthcare too). Or are you interested in technology? Sales as someone said? Academia?

You have to define "good career" for us.

To a male, it may mean "I wanna be my own boss and make lotsa dough."

To a female, it may mean, "I want job security and an ability to have maternity and benefits and raise a family" (teaching).

I used to do health care management consulting. Now I do the legal side of health care.

Consulting is a really good career because you can always find work. The downside is that the work is hard and there isn't much security.

[mom-from-missouri]

Our 5 children have done similar, but we have taught ours that the first 10% goes to the church.

[Scanner]

Consulting is a really good career because you can always find work. The downside is that the work is hard and there isn't much security.

Isn't that a bit of an oxymoron? You can always find work but there isn't much security?

You know the old joke about a consultant?

What do you call an unemployed man with a business suit and briefcase?

A consultant.



Seriously, I think you hit upon an issue maybe beyond the scope of this thread - there are certain professions/lines of work that don't really involve unemployment as much as "underemployment."

IN some ways, underemployment is worse than unemployment - I do think consulting probably fits into that category.

JimOhio,

Good points - don't avoid saving because of a fear of making mistakes. Just ignore what I wrote, OP.

[jIM_Ohio]

Isn't that a bit of an oxymoron? You can always find work but there isn't much security?

You know the old joke about a consultant?

What do you call an unemployed man with a business suit and briefcase?

A consultant.



Seriously, I think you hit upon an issue maybe beyond the scope of this thread - there are certain professions/lines of work that don't really involve unemployment as much as "underemployment."

IN some ways, underemployment is worse than unemployment - I do think consulting probably fits into that category.

JimOhio,

Good points - don't avoid saving because of a fear of making mistakes. Just ignore what I wrote, OP.

If OP knows how to design web pages, I would suggest they get into consulting at age of 15, and see if they like it.

My wife works for a company which consults her out. She makes 50% of what she could make on her own as a consultant, but she loves the hours and benefits.

My wife works in HR (Human resources). She had worked in 4 office jobs in prior 6 years within HR. The last 2+ years she has worked as a consultant doing same/ similar things.

Each HR department saw downsizing as an issue. Whether doing the RIFs herself or just working on the compensation packages, there is something about home life which gets disrupted when she knows on Friday what she has to do on Monday. In addition other organizations would ask for legal counsel (like on hiring, writing up people for being late etc) yet members of same company would ignore HR advice and do their own thing, creating more work in the future for my wife. Now as a consultant they are paying for her advice and expertise- so she only has to recomend what to do, she gets paid regardless if the company takes her advice.

Consulting reduces this stress level considerably!!! My life has improved as a result and from that perspective, I would not write off consulting.

I would not go into college thinking that the goal at graduation is to be a consultant though.

Several companies hire people to consult. Anderson Consulting, Deloitte and Touche, IBM, ATT all come to mind as companies which hire college grads to consult as IT professionals, Business process people or similar.

I think a better way is to choose a career (like engineering) then find a job- using consulting as an option. Know there are pros and cons. My wife has had to take several tests to get a professional license (which helps her be a consultant). If you are an engineer, these tests are less than trivial. Lawyers and Doctors both have similar tests (called the Bar or a residency) to make them consultants. Those tests are even harder. Same with a CPA- that test makes an accountant a consultant of sorts.

Most professions will have tests and certifications to validate a consultant's skill.

[Hot dog]

I would say you should read read and then read some more. Try the Wealthy Barber and Automatic Millionaire by David Bach. They are both very easy to understand. The main thing is to start saving if you decide to save 10% make sure you pay yourself first. Get it direct deposited into a savings account. Then you could try the Roth IRA I don't think it would impact your financial aid and then do not touch it until you are ready to retire. Let it sit there that is what makes it grow-- time. Good luck!

[InDebtInDC]

Isn't that a bit of an oxymoron? You can always find work but there isn't much security?

No. If I quit my job today, I will be employed next week as a management consultant. That's pretty much a guarantee.

What's not guaranteed is job security once you get in. They have such high turnovers that it's a revolving door. Most of the work will be on a contractual basis so there may not be a renewal after expiration.

There are companies who will hire full time consultants and move them through different contracts. These companies offer better stability.

You know the old joke about a consultant?

What do you call an unemployed man with a business suit and briefcase?

A consultant.

I've heard a lot of jokes about consultants and such, but just like any other profession (doctors, lawyers, therapist, personal trainer), it depends on the person.

Some of my previous co-workers had some seriously rare skills. Those guys have a very secure job because most people don't have that kind of on-the-job legal training. Most people don't even understand the budgeting and accounting process.

It's pointless to argue which job is better than which. It's all relative to what you can do. If you don't understand management and financial accounting then you need to do what you understand and can do well. The only caveat is that people always think they know everything, until they have a problem.

I think the job fits me because I have always been able to draw a clear demarcation between what I do know and what I don't know. What I do know I know very well. What I don't know is usually the technical aspect of the business, but I do try to educate myself at least on the functional level.


For example, the client would ask "we have $500 billion and 5 years to do X. Where do we start?" We would then analyse their goals, how they current exist, formulate a strategy, sequence out the work, provide backup plans, etc.

I think in order to be a good consultant, your brain needs to understand processes really well and be able to formulate the optimal solution on the fly. It's like playing chess. You anticipate what may happen next and you prepare instead of react. Most people discount it, but foresight is not something you can teach easily. It requires intuition and experience.



In a sense we are all "consultants". You have to make the best decision with what you have. I know a lot of people use the term loosely but I am referring to traditional management consulting at the executive level.


That's a glimpse for you. If your mind thinks like that then it's a good career. If not then there are plenty to choose from.

[lgslgs]

Oh - as you look at possible careers, also look at being a pharmacist. Always high demand and high pay - no matter whether you want to live in the city or a rural area.

[cptacek]

I would suggest investing in a Roth IRA.

First of all, the FAFSA (the form you fill out to determine if you get Federal Financial Aid for college) doesn't consider Roth IRAs as an asset. Some colleges might, though, as the following article points out.
Roth IRAs and Financial Aid - Kiplinger.com

Here is another article about financial aid...this one points out that state schools generally use the federal formula, while private schools might not:
Roth IRA - not a great gift for a 16-year-old? « Student Loan Info for Parents

But one thing that I think this author is missing is that if you invest $4000 in a Roth IRA and even if that gets counted as an asset, the formulas don't expect you to cash the whole thing in to pay for college. As the first article says, maybe 25%. So, you would have to come up with $1000.

The great part of the Roth is that that you can take money out of it at any time, including to pay for college...up to what you put in. If you put in $4000 this year and $2000 next year, and you then need to pay for college, but the account is now worth $7500 (because the stocks went up), you can take out $6000 any time and not pay a penalty on it.

Maybe look at my blog to see a little more about beginning investing...
Beginning Investing: Cptacek's Personal Finance Blog

[Scanner]

I swear I wasn't knocking consulting (I guess I consult too as I do independent medical exams in my field). . .it just seemed like an odd suggestion to a 15 year old.

I agree with pharmacist - if you just look at the numbers for that professsion, it's a great career investment.

[jIM_Ohio]

I would suggest investing in a Roth IRA.

First of all, the FAFSA (the form you fill out to determine if you get Federal Financial Aid for college) doesn't consider Roth IRAs as an asset. Some colleges might, though, as the following article points out.
Roth IRAs and Financial Aid - Kiplinger.com

Here is another article about financial aid...this one points out that state schools generally use the federal formula, while private schools might not:
Roth IRA - not a great gift for a 16-year-old? « Student Loan Info for Parents

But one thing that I think this author is missing is that if you invest $4000 in a Roth IRA and even if that gets counted as an asset, the formulas don't expect you to cash the whole thing in to pay for college. As the first article says, maybe 25%. So, you would have to come up with $1000.

The great part of the Roth is that that you can take money out of it at any time, including to pay for college...up to what you put in. If you put in $4000 this year and $2000 next year, and you then need to pay for college, but the account is now worth $7500 (because the stocks went up), you can take out $6000 any time and not pay a penalty on it.

Maybe look at my blog to see a little more about beginning investing...
Beginning Investing: Cptacek's Personal Finance Blog

If a person is smart enough to open a Roth at age 15 or 16, then I would hope that same person is smart enough to borrow for school at 5% (or less) while Roth grows at 10%+ while in school.

Cashing the Roth out for education does not seem right to me.

Financial aid is highly overrated... most aid I received was in subsidized student loans, which had an interest rate .25% below the unsubdized loans I also received.

The amount parents make will influence the calculation more, and I would not make an investment decision based on a 4 year period of time (college) where assistance might be offered or rejected based on the investment choice.

A 16 year old should be investing for long term, college is a short term need. I would even suggest a 16 year old which is investing might be better off working at ages of 19 and 20, setting more money aside, then do night school or go back to school at age 21 as an independant. In this case there are great tax deductions for students to take (tuition is tax deductable, I think).

[xdork4lifex]

Oh - as you look at possible careers, also look at being a pharmacist. Always high demand and high pay - no matter whether you want to live in the city or a rural area.

I'll second this. I'm in pharmacy school and it really is a great career. Low stress, high demand and good pay. I'll finish school in a little over a year and have already been offered $55/hour (works out to over 100k/year). Also, there's ample overtime should you want it. You can work in hospital, community or industry depending on what your interests are.

[Hot dog]

How do you become a pharmacist? What is the time and schooling involved? What are the majority of classes in? What is it that should interest you and should you be good at to be a pharmacist?