jess-acolin-blog

[jess-acolin-blog]

More about money

Hey folks,

3 hours straight was clearly not enough to say everything there is to say about financial literacy. (There are people who study this for a lifetime, so 3 hours is but a drop in the bucket...granted, these people are investigating phenomena and tools that most people never need to know about, so this might not be the best comparison.) Props to you all for sticking through it.

As requested, this blog post will be an extension of the workshop and will cover taxes/tax season and credit unions v. commercial banks.

Taxes

I’m going to try and provide some general, but what I find to be crucial, information about taxes in America. I believe the question was specifically about tax season...so I’ll try to say something about that as well.

First, what are taxes? Taxes are mandatory contributions to (your) governing bodies on the federal, state, and local levels. Taxes are how the government gets money. So just like how your parents may give you allowance and that’s all you have to spend...the government gets taxes, and that’s what they have to spend. In turn, the government uses that money to pay for 2 types of things: 

1. Items that everybody can use and that people can’t be prevented from using, such as parks and defense;

2. Items where everybody is better off if everybody has it, even if they don’t always want it or can afford it, such as schools and healthcare.

I want to make this point because taxes and government spending can be demonized in the media, sometimes without great awareness of what that tax money is for. Taxes are not just the government trying to take your money...in theory, government spending benefits society.

(And if you disagree, then you are supposed to VOTE, not refuse to pay taxes. THAT’S THE POINT OF DEMOCRACY. Please vote, everybody.)

There are a couple different kinds of taxes, such as sales tax and income tax. Sales taxes are taken when you buy something. Income tax is taken out of your income. Pretty straightforward. You can think of taxes as another potential spending category (related to contribution to society maybe?), since it is a place where your money is being spent.

Income tax can be taken out of your paycheck before you get the money. That’s what’s happening to you guys right now. All of you are earning $7.25/hour gross pay. Deducted from that are state and federal taxes of  approximately 13%, so you have a net pay of $6.31/hour. 

The amount being taken away from you is an estimated amount by the government and is called withheld, or withholding. This may or may not happen to your parents as well. But, since it’s an estimate, you need to tell the government exactly how much they should be taking. And that’s what tax returns are for.

In your tax return, you report exactly how much you earned and, in turn, how much you should be paying in taxes. How do you calculate how much you should owe?

The US federal government has a progressive tax system, meaning that people earning more money pay a higher percentage of their income. This is set up through tax brackets, or different groups split by income level being assigned a separate tax rate. See the US brackets here

(Note how confusing it looks. Important point!! When you move up a bracket, it is not ALL of your income that is taxed at a higher rate. All the money that falls in the first bracket is taxed only at that rate. So if bracket 1 is 0-$10,000 at 10% and bracket 2 is $10,000-$35,000 at 15% and you’re earning $11,000, then that first $10,000 is taxed at 10% and only the additional $1,000 gets taxed at 15%. FYI. Now I’m getting into too much detail, so I’ll move on.)

It is also set up so that people earning below a certain amount , or who have particular costs (such as childcare and dependents) do not need to pay taxes. This is set up through deductions. To figure out which tax bracket you belong to, you take your net income and minus any deductions that apply to you. For instance, there is a standard deduction that applies to everybody of $6,300 (if you are single and without children). If your net income is $6,300, then $6,300-$6,300=$0 --> You pay taxes on $0, meaning no taxes. Check out standard deductions here.

But remember how taxes are withheld from your income before you get it? If you earned something like $6,300/year and the government took some of it, but you should actually have paid none of it, then the government owes you money. 

(The flip side is also true: if you paid less taxes than you really owe, then you owe the government money...)

So now, tax season! The Internal Revenue Service (IRS), or the federal body that does all the tax stuff, has decided that tax returns are due every year on April 15. Tax returns are like homework for adults, and the IRS is that teacher who gives you a hard time. In your tax return, you can show how the government calculated your taxes correctly or incorrectly. After everything is turned in, the government may owe you money, in which case you get sent a refund check...or you may owe the government money, in which case you send them a check...or everybody’s math may have been fine, and nothing else happens (except you don’t go to jail or pay a fine for not doing your taxes).

(Another important deduction is education expenses. If you’re paying for college, for example, that money you’re paying for college is deducted from your income to decide how much you owe. This is another common way to get a refund.)

So that’s all for taxes for now. Shoot me any questions you have.

If you want to learn more, and in particular about all the anger around billionaires being taxed very little, check out this video.

Credit Unions

Phew, this is going to be a long post.

So, what are credit unions, and how are they different from the other great big banks we know and love (or hate)?

Remember how I said that the bank has an interest in their money, which is why they charge you lots of money to lend it? That is because most banks are for-profit institutions. That’s exactly what it sounds like: their ultimate goal is to make more money.

A credit union, on the other hand, is a non-profit institution. (BPSOS, by the way, is also non-profit.) Again, straightforward: this institution is not driven by profit. Instead, a non-profit institution just wants to exist, serve its mission, and hopefully not lose money. (If they lose too much money, they won’t exist anymore.)

Where in a regular bank, you are a customer and, by opening an account, you are lending the bank your money to do whatever they want...in a credit union, you are a member and, by opening an account, you are essentially buying into the institution. You are a shareholder, a co-owner.

What does that mean for you?

1. Generally, lower fees, more flexibility, possibly higher interest rates on savings, probably more personalized service and flexibility if you have problems, and more decision power by YOU. Since you co-own the credit union, you in theory are also somebody who makes the decisions. (You, and all the other people in the bank. It can be like a huge group project.) Also, since the credit union is not looking to turn a profit, what would count as profit at a bigger bank will just turn into returns for you, the member.

2. Smaller institutions with less products and less services. It costs money to run a bank, to have people working in it, to come up with many options for loans and checking accounts and online infrastructure and ATMs. A credit union is smaller and may not have the funds to do all that. So you may have lower fees, but you may also have lower options. That’s not necessarily a bad thing, especially if looking at Bank of America’s 30+ banking options is overwhelming to you.

3. A wide variety in quality. A credit union is member-owned and -run, so how good it is can depend on who’s in it and how much they know about what they’re doing. Just like with a regular bank, you should do your research.

4. Restricted access. Again, a credit union is like a member’s club...and so they can also choose who gets to join or not. There are specific credit unions for teachers only, or firefighters only, or people who live in this neighborhood only.

Knowing how a financial institution works (that it’s a home for money that can then be moved around by the bank, for example, and that the bank itself has different values that guide their decisions) can help you decide what is the best option for you. The big difference between credit unions and other banks is this for-profit/non-profit nature, which then plays out into how the institutions are run. As mentioned (over...and over...and over...!!!) in the workshop, the most important thing is to do your research and make fully informed decisions!! 

Read about credit unions here, the information is similar to what I had here and pretty accurate.

And as always, shoot me any questions you may have. Our goal is to inundate your brains in the 6 weeks we have with you, and I’m not sure you’re drowning in the information yet ;)

See you all tomorrow,

Jess A

[jess-acolin-blog]

Q&A, continued.

Hey everyone,

Great questions! Here are my responses, hope you find something helpful.

What if I feel as if this area of work is not for me?    That's not a problem--at least now you know. Sometimes, the real experience can differ from what you expected. By trying something, you may discover that you don't like something you thought you would, or that you like something you thought you hated, or it may confirm your suspicions. In every case, knowing through experience is valuable.    However, every kind of work has different facets. There is the content of the work (for example, accounting) and the skills involved in the work (attention to detail, research, time management...). Are there any skills in the work that you do like? Do you enjoy data entry more than cold calling people? There are still things to learn.

How should I try to make it better in order to last six whole weeks?    Make friends. Beautify your workspace. Enjoy your free time with your hard-earned money. Find small ways to challenge yourself. Make your learning into a game. Smile. Keep a sense of humor. Dress up. There are lots of ways to cope with sub-optimal solutions, and most of them come down to your attitude. Generally, focusing on the negative makes things seem worse. Focus on the positive!

Is this program supposed to help me decide which career path I want to take?    That is one goal, but career decisions can span a lifetime. Yes, hopefully you will learn something about yourself and your work preferences that will help with your career choice. More specifically, in this program, you will gain work experience (important if applying to future jobs, since every employer wants to see previous experience), practical knowledge on professionalism (soft skills that can't be taught in school), and personal growth knowledge (what you are good at or not, what you like or not, what you want to learn and improve).

Is it okay to use my cellphone during break?    Yes. It's your break, you can do what you want. If you're making calls, though, just don't be in a place where you would bother your colleagues.

Do the other workers know why I am here, or they think I am a new REAL worker?    The best way to find out is to ask, or to introduce yourself!    (But they probably know, since I'm guessing you are younger than most other employees.)

How do I question the students’ opinions in order to provoke them to broaden their way of thinking without automatically influencing their final thoughts or decreasing their confidence?     There is no one answer to this question, but here are a couple ideas. First, "provoke" may be the wrong word. Think of guiding, questioning, or probing--if you are going into the conversation with the intention of pushing, challenging, or arguing, then you are much less likely to get your point across.    Second, listen. Try to understand your student's point of view before trying to change it. People who felt understood are usually more willing to listen.    Third, focus on the behavior and not on the student. Sometimes, saying that somebody's answer was "wrong" may make them feel like they themselves were wrong, which can contribute to them not wanting to participate. Encourage and praise the student, even as you disagree with and offer feedback on their words.

Is the key point in working with others all about communication?    Working with others is multifaceted; there is not really one single key point. Communication is very important, since without communication, you're not really working WITH others. However, it's not enough just to talk. Trust, respect, and accountability are also key in working with others. People you work with need to know that you will do what you say you will do, and that you will take responsibility for any problems. There are many things that go into effective team work.

How do I improve my communication skills to help me become a more confident person and professional speaker? How can I gain confidence in working with students?    Practice, practice, practice. Think about what you mean by confident and professional. Find mentors or role models that you can learn from, and set intermediate goals. Maybe first, you want to work on not stuttering. Focus on that for some time. Once you master that, you can focus on standing and not fidgeting. Improvement takes time, but clear goals and step by step progress help make sure you get there.

How do I get past the awkwardness of asking questions when it comes to something I do not understand?    Focusing on the end goal might help. Remember, the reason why you need to understand is to do your job well. You are not asking questions just for fun. You are not asking questions to bother your supervisor. You are obtaining the necessary information to get the job done, and to do it well. It's not personal! (And your supervisor would probably appreciate giving the answers before you start the job, rather than finding out you didn't understand only when your work is not what they wanted.)    On that note, though, there are good and bad times to ask questions, and there are also good and bad questions. Do not expect your supervisor to always be available to answer your questions. Use your judgment to see if the question needs an immediate answer, or if it can wait until a scheduled meeting. Also, is your supervisor the only person who can answer that question? Or could somebody else (or Google) answer it for you? Balance these factors and use your judgment.

Should I choose the path that will create many struggles (in terms of money and employment) or be logical/reasonable and choose a “normal” (ex.-nurse, accountant) job?    We talked about this in PD#1: there are costs and benefits to each choice. Your job as you grow up will be to weigh those costs and benefits to see what works best for you. No matter what, you will need enough money to support yourself. You may find over time that what kind of lifestyle is important to you--and how much you need to earn for that lifestyle--may change.    Challenge what you see as normal. There are people who grow up with parents who are artists, and becoming artists is what is normal to them. There are others who grow up with parents who are surgeons, or lawyers, or marketing consultants, or political organizers, or philosophers--and that's what's normal to them. Right now, you have the chance to explore and learn about the many many options out in the world. Use it well!

Why not close nursing homes and have independent living for senior citizens?

   This is a complicated question. There are a lot of factors that go into nursing homes, and there are different types of facilities depending on the needs. The most important question, though, is what does the senior citizen need? A primary reason for nursing homes is to provide necessary medical care, and nursing homes are staffed with trained professionals. Of course, there are better and worse nursing homes, and many have received a bad reputation for not doing their job well. This may not be a problem with the nursing home model, but rather a problem with that particular nursing home (and how much money they have or don't have).    If you're interested, here is an article that discusses how different needs match different senior care facilities: http://newoldage.blogs.nytimes.com/2011/06/10/assisted-living-or-a-nursing-home/?_r=0

[jess-acolin-blog]

Introduction

Hi everyone!

My name is Jessica Acolin, and I am one of the SYCEP coordinators this year. Recently (in June), I graduated from Drexel University with a MA in Dance/Movement Therapy and Counseling. I also have a BA from the University of Pennsylvania in Humanistic Philosophy (with a minor in French). I've worked in a charter school, a public school, a Taiwanese cram school, a weekend camp for children with autism and other developmental disabilities, a pediatric hospital, as a freelance writer, in the Philadelphia family court, in psychiatric facilities (inpatient and outpatient), and here--at BPSOS, both as a dance/movement therapy intern and as a youth program coordinator. I've lived in Singapore, Taoyuan (Taiwan), Philadelphia, Los Angeles, Sao Paulo (Brazil) and Lyon (France). In the future, I am interested in continuing with community organizing work, as well as contributing to research concerning the mind, body, and health. My career path hasn't been linear, but every step I took and experience I gained has contributed to who I am today.

I've read several of your blog posts, and a question that has come up several times is: how do you know what the right career is? And I want to ask right back at you: what do you mean by right?

Do you mean what your parents think you should do? Do you mean what society will value most? Do you mean what will keep you interested everyday? Do you mean what will allow you to provide for yourself and your family? (And does provide mean have food and shelter, or does it mean having yearly vacations to Hawaii, Greece, Australia...?) Do you mean what will push you to keep learning? Do you mean what will most benefit society? Do you mean what will most benefit your community? Do you mean what will make you happiest?

These are important questions, and it's possible that you will keep seeking their answers your entire life. Essentially, what they're asking is: what do you value? And that, I've learned, is one of the hardest questions.

It's hard because everybody has a different answer, and figuring out your individual response--distinguishing it from what you've been taught from infancy, or from what popular culture tries to convince you of through glossy ads or catchy videos--is really, really hard. It's also hard because life is complicated. It's not possible to make a decision based solely on the salary, or your interest, or the work environment, or the availability of jobs, or your family's preferences. Each of these things co-exists with each other, and your unique answer will have to take it all into account.

One thing I've learned from my peripatetic (this is a good word to use if you want to show off: look it up!) lifestyle is that the best way to find answers is through experience. You'll never learn if you don't try. You'll never succeed if you're not willing to fail. (But take that second statement with a grain of salt: you'll also never succeed if you're always aiming to fail. You have to prepare, and work hard, to achieve success.) I think all of you have taken the best first step by participating in this program and gaining experience this summer. Maybe you'll love your job. Maybe you'll hate it. Maybe you'll be left a little confused, liking some parts but not others. Every one of these conclusions is a success, because you will come out of this summer knowing more about yourself, the world, and the workplace than you did before. And that knowledge can then guide you in all of your future decisions.

I'm so excited to be working with you all this summer and hearing about the experiences you'll be having. It might be hard at times, and we're really going to try and push you, but know that in the end--it's all about you. Your learning, your growth, your experiences.

Happy first week, and see you all at PD.

Cheers, Jessica A.

[jess-acolin-blog]

Get ready for SYCEP 2015!

Excited yet??

This post is just a test of the awesomeness that will come out of these blogs these next weeks.

#sycep2015