TIME Money

You’ll Never Guess College Students’ Biggest Regret

87333296
Female student worrying about money Image Source—Getty Images/Image Source

It's not what you think

You might think that when people look back on their college years, their biggest regret would be not being more involved socially, choosing the wrong major or partying too much. In reality, the biggest regret college grads face is a much more grown-up one, and it’s one with repercussions that can follow them well into their adult years.

According to a study conducted by Citizens Financial Group, 77% of former college students age 40 and younger regret not doing a better job of planning how to manage their student loan debt.

Student loan debts have ballooned in recent years, even as the demand for higher education has boomed as more companies in nearly every industry require that job applicants have college degrees. Earlier this year, Federal Reserve Bank of New York data showed that Americans collectively owe $1.1 trillion in student loan debt. By comparison, we owe $8.2 trillion in mortgage debt and $659 billion in credit card debt. Each indebted borrower owes nearly $30,000 upon graduation, and many of them are struggling. Citizen’s survey finds that current students carry roughly $25,000 of student debt, while their parents carry an average of $22,000.

Nearly a quarter of former students in Citizen’s survey say they can’t stay current on their debt payments, and almost two-thirds say they’re uncomfortable with their debt load. Almost half say they would have reconsidered going to college entirely if they knew how burdensome their debts would be years or even decades later.

Current students aren’t faring much better: Seven in 10 don’t think they’ll have enough financial acumen to do a good job managing their debt, and more than 80% say they wish they knew more about the long-term impact of carrying this debt — which will take nearly two decades to pay off for many borrowers, according to the survey responses of former students. What’s more, more than a third of former students don’t even have a guess when they’ll have those debts paid.

A lack of communication seems to be a big contributing factor to this situation: Families don’t talk about student loan debt or make a plan to tackle it in advance. Only 15% of former students and just under a quarter of today’s students report having detailed discussions with their parents about how to pay off those debts — 46% of former students say the topic never came up at all.

The heavy debt burden has some wondering if it’s even worth it. While almost 90% of current students think taking out loans to pay for school will be worth the investment, only about two-thirds of former students think so. And while nearly three-quarters of current students think college is necessary no matter what the cost, only 59% of former students feel the same way.

Vote Now: Who Should Be TIME’s Person of the Year?

TIME Uruguay

Watch Uruguay’s President Give This Homeless Man Money During a TV Interview

"I want you to be President forever!"

Correction appended: Nov. 27, 2014, 2:25 a.m. E.T.

Uruguayan President José Mujica was talking to journalists in the capital Montevideo on Tuesday night when a homeless man asked him for some change.

“Give me a coin of yours, Pepe,” the man said.

“Look, brother,” replied the President, “I don’t have a coin but don’t cry!”

Mujica then handed the man a 100 peso bill.

The man shouted, “I want you to be President forever!” to which Mujica replied, “No, no … You’re crazy!”

The footage aired on Uruguay’s Teledoce TV channel.

Correction: The original version of this story misstated that President José Mujica gave a homeless man a $100 bill. He gave the man a 100 peso bill.

TIME Money

Your Credit Score Reveals Way More Than You Realize

168262356
Credit Balance Report teekid—Getty Images

Bad scores can be a sign of poor health

Never mind the blood pressure test: A new study finds that you can tell how healthy someone’s heart is just by looking at their credit score.

The study, published in Proceedings of the National Academy of Sciences, finds a correlation between high credit, cognitive ability and self-control. Researchers studied health and financial data from more than 1,000 people who had been monitored since birth for nearly 40 years. They discovered that your credit does a lot more than tell a bank whether or not it should give you a loan.

Employers, insurers and even landlords regularly pull the applicants’ credit already, treating it as a proxy for a vague sort of approximation of your diligence, honesty and character. Consumer groups have raised questions about the use of credit as a way to assess things like people’s ethics, arguing that the two aren’t necessarily related.

“Credit reports were not designed as an employment screening tool,” says nonprofit group Demos. “Employment credit checks are an illegitimate barrier to employment, often for the very job applicants who need work the most.” In a survey of job-seekers, Demos found that one in seven people with blemished credit said that they’d been denied a job as a result.

But scientists insist the link is real and they have the proof to back it up. “What it comes down to is that people who don’t take care of their money don’t take care of their health,” study leader Terrie Moffitt says in a statement.

At least some of the factors that influence both health and credit have deep psychological roots. Moffitt’s team found about 20% of the correlation between credit scores and cardiovascular health can be attributed to attitudes and behaviors that are either innate or ingrained very early — the attributes in question were all observed before the participants were 10 years old.

On one hand, it makes sense that someone who exercises poor impulse control when it comes to their diet or fitness regimen might be similarly lackadaisical about their finances, but this doesn’t mean that hard-wired personality traits doom you to poor health and poor credit. Social scientists say they hope the knowledge can lay the groundwork for people to make positive changes in their lives.

“It provides hope that early life intervention can impede the development of life-long patterns of illness and financial struggle,” says Lamar Pierce, an associate professor of organization and strategy at Washington University in St. Louis, who was not involved in the study.

TIME Parenting

What Bill Gates’ Kids Do with their Allowance

How do you teach insanely wealthy kids how to manage money?

The rich are different from you and I, but they still want to give their kids an allowance. So what do the world’s richest man’s kids do with their money? Melinda Gates came to TIME’s offices to talk about her new focus on women and children and especially on contraceptives, but she spilled some secrets about how she tries to get her kids to be purposeful with their money.

First of all, she tries to be true to her values, to articulate them and live them out. Then, they do a lot of volunteering together, at “whatever tugs at their heartstrings” says Gates. And of course, they’ve traveled with her. “They have that connection I think to the developing world,” she says. “They see the difference a flock of chicks makes in a family’s life. It’s huge.”

Read the 10 Questions with Melinda Gates here

Gates has always made a point of getting into the streets and poorer neighborhoods when she travels for meetings and conferences. And sometimes she takes her kids. It’s there, she says, that she meets mothers who tell her that their biggest struggle is having so many children. Although Gates was raised Catholic, she is heading up an initiative to get family planning information, contraceptives and services to 120 million more women by the year 2020. That includes new technology, better delivery system and a lot of education, including for men.

She’s similarly rigorous about her home life. Her kids save a third of their allowance and designate a charity they’d like to give it to. (They can also list donations to charities on their Christmas wish list.) As further incentive, their parents double whatever money they’ve saved. Which means they may be the only children in the world to get a matching grant from the Gates Foundation.

Parents Newsletter Signup Banner
TIME
TIME Money

These Cities Have the Highest Rents in the Country

Liverpool FC Training At Fenway Park
General view of Fenway Park during a training session at Fenway Park on July 22, 2014 in Boston, Massachusetts. Andrew Powell—Liverpool FC via Getty Images

Rent in Boston is a real green monster

In addition to the price of a beer at Fenway Park, Bostonians—and esteemed guests of Fenway alike—now have something else to complain about: Boston has the highest rents in the country.

Here at FindTheBest, we’re on a mission to collect, structure, and connect the world’s data. Taking the most recent Five-Year American Community Survey (ACS) data released by the U.S. Census Bureau in late 2013, we set ourselves the task of determining which U.S. cities have the highest rents. Defining a high rent conservatively to be a contract rent (i.e., excluding utilities) of more than $1,500 per month, we identified where rents are more likely to take a big bite out of your paycheck.

These major U.S. cities—all with more than 500,000 residents—have the greatest proportions of high rents in the country. You can tap anywhere on the table to explore a given city in more detail.

The West Coast has been supplanted in at least one regard. Although four of the five richest cities in America—and six of the top ten here—are on the West Coast, Boston has the most expensive rents. Moreover, it’s also the only East Coast city in which more than 30 percent of rents are over $1,500 (48.8 percent).

A list of the top ten cities for highest rents reads like a rap sheet of the usual suspects, with perennially expensive West Coast metropolises San Francisco, San Diego and Seattle interspersed with East Coast behemoths like Washington D.C. and New York City.

In general, cities with greater population densities tend to have higher rents, as seen in the scatter plot below. The precise reality, however, is more complicated.

Among the ten cities where rents are highest (again defined as the percentage of contract rents over $1,500), New York is both the most densely populated city (27,308 people/sq. mi) and the one with the highest proportion of renter-occupied dwellings (68.3 percent). Yet it’s not even in the top five for greatest proportion of rents over $1,500. Boston, on the other hand, has a 66.8 percent rental rate—the second highest on the list—along with the third-highest figure for population density (13,007 people/sq. mile). So cities with higher densities and renter occupancies tend to have higher rents, but it’s not gospel truth.

While Boston may be the most expensive place to rent based on our working definition, there’s a fair bit of nuance to the list. Denver and Baltimore, for example, have a relatively low percentage of rents over $1,500 (8.1 and 6.3 percent, respectively). In the next tier down ($1,001-$1,500), however, these two cities have percentages high enough to launch them into the top ten within that next tier (19.6 and 19.5 percent, respectively).

In fact, by adding the two rental buckets together (“$1,001-$1,500 + “$1,500+”), San Jose has the highest percentage of rents over the $1,000 mark (80.7 percent compared with Boston’s 80.5 percent). And $1,000 or more per month is nothing to scoff at.

With a mean of 12.7 percent and a median of 5.3 percent (the middle point in the data set), the percentages of rents over $1,500 are skewed upward toward Boston, San Jose, and San Francisco (the top three in that category).

Using $1,500 as a proxy for cities with the most expensive rents allows uncapped extremes to factor into the comparison. While considering the next-highest tier of rents ($1,001-$1,500) changes the picture somewhat, one thing is for sure: Boston wins out when it comes to extreme rents. And in Beantown, neither the beer nor the price of admission at a Red Sox game is cheap enough to get over that.

This article was written for TIME by Ryan Chiles of FindTheBest.

More from FindTheBest:

10 Dangerous Cities Where Violent Crime Is Going Down

Here Are the Senate’s Biggest Winners and Losers

Best Cars on the Market for Under $20,000

TIME ebola

Cost of Ebola for West Africa Far Lower Than Once Feared

Financial toll for hardest-hit region could fall between $3 billion and $4 billion, or about one-tenth of what the World Bank initially forecast. In its latest report on the global Ebola epidemic, WHO counted 5,177 deaths out of 14,413 reported cases of the disease

An aggressive response to the Ebola epidemic in West Africa has reduced a massive $32.6 billion economic tab initially forecast by the World Bank, a top official at the organization said Wednesday.

Francisco Ferreira, the World Bank’s chief economist, said at a lecture in Johannesburg that the outbreak’s total financial toll in the region could fall between $3 billion and $4 billion, according to Reuters. Ferreira pointed to successful efforts to contain the disease in some West African countries as a sign that the World Bank’s worst-case scenario is unlikely. But, he also warned that Ebola could still spread if those efforts are not maintained.

“It has not gone to zero because a great level of preparedness and focus is still needed,” Ferreira said, according to Reuters.

In its latest report on the global Ebola epidemic, the World Health Organization counted 5,177 deaths out of 14,413 reported cases of the disease. Liberia has seen the most deaths by far, at greater than 2,800, followed by Sierra Leone and Guinea at more than 1,000 each. The United States has had four reported cases of the disease and one confirmed death.

This year’s outbreak has affected businesses in West Africa and worldwide. A number of airline stocks dipped last month following reports that a potentially-infected woman had flown from Cleveland to Dallas on Frontier Airlines. Meanwhile, the stock market in general suffered in October, in part due to investor concerns over the spread of the disease.

This article originally appeared on Fortune.com

TIME Money

Millennials Will Make These 15 Companies Tons of Money

Bags of tortilla chips sit in a row at a Chipotle Mexican Grill Inc. restaurant in Hollywood, California on July 16, 2013.
Bags of tortilla chips sit in a row at a Chipotle Mexican Grill Inc. restaurant in Hollywood, California on July 16, 2013. Patrick T. Fallon—Bloomberg / Getty Images

Where Millennials choose to spend their money could pay off serious dividends

The question on every Wall Street trader’s mind these days: “What do millennials like?”

Or at least it should be, according to a new report released Tuesday by Morgan Stanley’s equity strategy team. The report paints a pretty compelling picture of the millennial generation’s spending power five years out.

First, in terms of sheer size, millennials outnumber baby boomers as the largest demographic group. But more importantly, they are aging into some of the spend-happiest years of their lives. In the average lifecycle of the American shopper, spending tends to spike between the ages of 25 and 39:

Screen Shot 2014-11-18 at 3.54.45 PM
Morgan Stanley Research

 

Where they choose to spend that money could pay serious dividends to a few savvy stock pickers. Which brings us back to the question, “What do millennials like?”

“Fast casual dining, hotels, buying online, gaming (social and online, less so casinos), eating organic and healthy, and working out more,” writes Morgan Stanley’s consumer stock researchers. They winnowed down a shortlist of 15 companies that hit those millennial sweet spots, and presented them as a “millennial basket” for investors’ consideration before the flood:

Screen Shot 2014-11-18 at 3.52.44 PM
Morgan Stanley Research

 

 

 

 

TIME Terrorism

ISIS Is Minting Its Own Money

A member loyal to the ISIL waves an ISIL flag in Raqqa
A fighter from the Islamic State in Iraq and Greater Syria (ISIS) waves a flag in Raqqa, Syria on June 29, 2014. Reuters

It will be circulated in areas of Syria and Iraq

The militant group Islamic State of Iraq and Greater Syria (ISIS) said Thursday that it plans to introduce its own currency in the areas under its control because it wishes to “emancipate itself from the satanic global economic system.”

ISIS said it will be minting new gold, silver and copper coins as part of a new currency called Dinar, according to a message translated by SITE Intelligence Group, an organization that monitors terrorist activity.

MORE: ISIS leader’s new orders: ‘Erupt volcanoes of jihad”

It is not yet clear how ISIS will produce the currency, which will be “based on the inherent value of the metals,” but the group says its “Treasury Department” will organize minting and circulation.

ISIS did not say when the currency would be launched or specify in which areas it would begin circulating the currency.

MORE: How to financially starve ISIS

TIME justice

Ex-Wife of Oil Magnate to Appeal $1 Billion Divorce Award

7th Annual Heath Corps Grassroots Garden Gala
Harold Hamm ,CEO of Continental Resources, attends the 7th Annual Heath Corps Grassroots Garden Gala at Gotham Hall on April 17, 2013 in New York City. Brad Barket—Getty Images

This high-stakes divorce case isn't over yet

The ex-wife of an oil magnate will appeal the divorce award of over $1 billion in cash and assets that she was handed this week, in one of the largest divorce cases in U.S. History, her lawyers said Thursday.

Attorneys for Sue Ann Hamm said the $995 million sum that her ex-husband, Continental Resources CEO Harold Hamm (worth an estimated $12.6 billion), was ordered to pay her was “not equitable,” according to Reuters. She was also allowed to keep additional assets, including homes in California and Oklahoma that are worth tens of millions of dollars.

Hamm, a lawyer and an economist, worked at Continental during parts of their 26-year marriage.

Continental Resources’ shares have fallen since the divorce proceedings began. Harold Hamm holds more than 68% of the company’s stock, a stake valued at around $13.5 billion today, but was worth $18 billion nine and a half weeks ago since the trial began. The appeals process could take months or even years.

[Reuters]

TIME Money

Swiss Pocket Watch Sells for Record $24 Million

SWITZERLAND-LIFESTYLE-AUCTION-LUXURY-JEWELLERY-WATCHES
The Henry Graves Supercomplication timepiece made by Swiss watchmaker Patek Philippe in 1932 is photographied during a press preview by Sotheby's auction house on November 5, 2014 in Geneva. Fabrice Coffrini—AFP/Getty Images

Designed by luxury Swiss watchmaker Patek Philippe

A Swiss-made pocket watch fetched a record $24 million, the most ever paid for a timepiece, at a Sotheby’s auction in Geneva on Tuesday.

The Henry Graves Jr. Supercomplication is named after a New York banker who competed with the car manufacturer James Ward Packard to commission the most elaborate watch possible in the early 20th century, the Wall Street Journal reports. Sotheby’s said afterward that the sale of the watch, designed by luxury Swiss watchmaker Patek Philippe, “re-established its supreme status as the most valuable timepiece in auction history,” beating the $11 million record set in 1999.

The timepiece boasts 24 “complications,” or features, besides the basic telling of time. Some of these functions include showing moon phases, the time of sunset and a perpetual calendar that won’t’ require resetting until the year 2100. The device has 920 individual parts, including 430 screws, 110 wheels and 70 jewels.

[WSJ]

Your browser, Internet Explorer 8 or below, is out of date. It has known security flaws and may not display all features of this and other websites.

Learn how to update your browser