A Financial Education Event
 

It’s Academy Time! (#USAFA, #USNA, #USMA) – Part 3

The Resume and Essay

In the first two parts of this blog series, we talked about the steps you need to take to help your student maximize their opportunity to get into a service academy. In the third and final part of this blog series, as promised, we are sharing some additional examples of a resume and an essay that helped to successfully secure multiple nominations to multiple academies.

 

The Resume:

Once in high school, the resume fodder begins. Keep in mind that these schools are looking for the “whole person” approach and the resume will need to show accomplishments in academics, athletics, community involvement and leadership. Here is a sample of one of our son’s winning resume that garnered one million dollars in college scholarships from USNA ($425,000), USAFA ($425,000) and UCLA ROTC ($180,000).

Experience:

Lancaster City Youth Commission Chairman (this is legitimate, sworn-in commissioners for Lancaster City. It was after and application process, an interview, and a popular vote to get to chairman out of at least 50 top youth in the region)

Assistant Manager and tutor for Math Magicians in Quartz Hill  (July 2010-present)

Blockbuster Video (August 2009- August 2010)

Intern at the Honorable Buck McKeon’s office in Palmdale, (Summer of 2009)

Captain for DCHS Varsity Volleyball team for 2 years

Captain for DCHS Varsity Mathletes

Current Class Rank: 2 of 107

Cumulative, Unweighted GPA: 3.97, Weighted: 4.2

Over 1250 hours of volunteering since 9th grade

Summer of 2010

–  Attended the United States Air Force Academy Summer Seminar

–  Attended the United States Naval Academy Summer Seminar

2009-2010: Junior, Desert Christian High School

–  ASB, Activities Representative (Coordinator)

–  Vice President of CSF (California Scholarship Federation)(VP of 80+ members)(Is a position for a 12th grader, achieved in 11th grade)

–  Member of NHS (National Honor Society)

–  Varsity Cross Country (Runner, and Manager)

–  Varsity Soccer

–  Varsity Volleyball (Team Captain as Junior)

–  Varsity Mathletes (Starter)(year round)

–  Worship Team, Leader (In charge of 13 musicians), at Desert Christian High School, at The Highlands Christian Fellowship, and at Central Christian Church (playing Guitar, and Bass Guitar)

– Approved Tutor: Chemistry, Biology, Algebra I, Algebra II, Geometry, Physical Science, Math A, English 9, English 10, English 11, Spanish I, Spanish II, Spanish III

– Attended RYLA (Rotary Youth Leadership Awards)(Recommendation from School Administration, then accepted through application process)

Awards for Junior Year:

–  United States Achievement Academy: National History and Government Award in AP United States History

–  United States Achievement Academy: National Leadership Merit Award in Leadership

–  United States Achievement Academy: National Leadership and Service Award for being an All American Scholar

– ACSI Distinguished High School Student for outstanding Achievement in both Academics and for Leadership

(Note: All of these awards are based of raw data [grades, service hours, activities, demonstrated leadership] as well as multiple teacher recommendations. During this awards night, I was one of 3 people, of 400, to receive the last two awards)

2008-2009:, Sophomore, Desert Christian High School

– Varsity Volleyball

– Junior Varsity Mathletes, (Team Captain)

– Worship Team

– Honors English 10, Algebra II, Chemistry (All advanced courses, the only ones offered)

– World History, Spanish II

– California Scholarship Federation, Cabinet, Sophomore Class Representative (3.5 GPA and above)

– National Honor Society (3.2 GPA and above)

– National Honor Roll Award

– Chemistry, Biology, Algebra I, Algebra II, Geometry, Physical Science, Math A, English 9, English 10, English 11, Spanish I, Spanish II

2007-2008:, Freshman, Desert Christian High School

– JV Volleyball

– JV Mathletes

– National Honor Roll Award: Academics, Honor Roll

– Honors English 9, Geometry, Biology, Advanced String Ensemble-Cello (All advanced courses, the only ones offered)

– Spanish I, Freshman Studies (Speech and Health)

– California Scholarship Federation

– Worship Team Member

Education:

– Graduate, Desert Christian Middle School, 4.0 GPA (All A’s, no weighted classes offered)

-Student, Desert Christian High School. Expected graduation: June 2011

Special Awards/Recognition:

– National Honor Roll Award: Academics, Honor Roll

– International Foreign Language Award: Spanish

– Presidential Award for Academic Excellence

– Mathletes, Team Captain, 2007-2008, 2008-2009

– Student of the Month: Leadership (Freshman and Sophomore Year)

– Student of the Month: Genuineness (Junior Year)

– Desert Christian High School Letters:

-Varsity Cross Country, Soccer, Volleyball (2 years)

-Fine Arts (Advanced Strings Ensemble)

-Academics (3.5 or higher) (6 of 6 possible Semesters)

-CSF

-NHS

-Clubs

-Principle’s List: Freshman, Sophomore, and Junior years

The Essay:

It’s never too early to begin to think about what you would like to write in your admissions application essay. These are very important and should be well thought out before submitting. Be sure to have you liaison officer review it before you submit it or ask an academy graduate to help. It also wouldn’t hurt to have a faculty member from your school review it as well. More eyes on the project can mean a broader perspective, but it still needs to be your own voice, so you will have the final word on the essay.

The following is an essay that garnered another one of our son’s appointments to both USNA ($425,000) and USMA ($425,000) .

The Essay – Following in a Father’s Footsteps

In the military lifestyle, heroes beget heroes. There are so many families that have a history of military service, and oftentimes, military “brats” will grow into adults who have the desire to serve, as well. Here’s is Philip’s essay:

Growing up in a military home, I saw very little of my father at times. As an officer, he was often gone taking care of his troops, performing his duties, and faithfully serving his country. I never truly understood why he did what he did until his dream became mine. When I walked on the campus of the Naval Academy this past summer during the Summer Leadership Seminar, I saw greatness. I saw an institution that taught men and women to be leaders, thinkers, and people of character. But most important, I saw my cadet commanders as men of high leadership with a servant’s heart. They put our comfort ahead of their own, as my father did with his men.

All my life I have dreamed of one day leading hundreds or possibly thousands of men and women. I have sacrificed much in the process of becoming a competitive candidate for the academy. It was not Summer Leadership School that made me want to be in the military, it was my father’s integrity and service. However, it was the midshipmen that I met that made me determined to attend Annapolis. It was my goal to become an officer; now it is my goal to become a warrior and a gentleman, in the finest sense of the word. To learn “Integrity first, service before self, and excellence in all we do.” I desire to carry on the legacy of the service academies and to achieve a sense of accomplishment that no other college or career can offer.

Many nights I would stay up late, wondering if my father would come home or be deployed. I wondered if he was okay, or if it was his life that had been taken in one of the plane accidents that occurred in his various Air Force squadrons. However, these experiences did not make me turn against the military—it was quite the opposite. I began to see my father as someone very different from my friends’ fathers. I saw him as a warrior and a true hero. So many times I read about or see the actions of evil men. These are men who would not hesitate to strike down those whom I have come to love and cherish. I knew there was only one thing standing between me and those men—it was my dad. It was men like my father and those with whom he served that rose to stand up to people who seek to destroy everything we hold dear. I knew that I was called to be one of those men who took a stand, and I know it is the service academies that will teach me to stand, and to stand strong and proud.

“The ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy.”—Martin Luther King Jr.

It’s Academy Time! (#USAFA, #USNA, #USMA) – Part 1

This is the Academy time of the year—no I don’t mean the heat of summer, although this time of year is lovely in Southern California. But I mean it’s the time of the year when students begin to fill out applications to compete to get a little piece of paper in the mail worth more than $425,000. This would be an appointment to the Air Force Academy in Colorado Springs, the Naval Academy in Annapolis, West Point in New York or the Merchant Marine Academy and the Coast Guard Academy.

As both an ALO (Admission Liaison Officer for the Air Force Academy) and a mom of three sons who went to academies, I’m here to say that this is a VERY exciting time for applicants to work toward their appointment! I remember when my sons received theirs, we ate on “Happy Plates” (a Kay family tradition when we celebrate a family member achievement). If someone in your world is interested in pursuing this kind of a dream, then share the following insiders tips with them to maximize their opportunities to succeed.

 

Service Academies and Military Funded Education

A couple of our sons garnered one million dollars in scholarship offers, and in both cases two of those offers were from federal service academies.  These are highly competitive and look at the whole person. So it’s not enough to be a brainiac, they are also looking for students who are exceptional in the area of athletics, community involvement and leadership.  In return for this amazing education valued at $425,000, your student will be required to serve in the military for their “commitment” period. The commitment is a minimum of 5 years of service and can be longer, depending on a number of factors in regards to additional training after graduation. For example, our Air Force Academy grad owes 10 years of service because he went to pilot training to fly the F15E Strike Eagle.  If you have a “hero at home” who wants to go to a service academy, there are several things to keep in mind.

One of the first places to visit is your service academy’s admissions site:

USAFA – The United States Air Force Academy

USNA – The United States Naval Academy

USMA — The United States Military Academy

USMMA (Merchant Marine)

Coast Guard Academy (does not require a congressional nomination)

From Prospect to Appointee:  

  • Prospect:  A student who has filled out the initial response form showing interest. This means they are essentially on an admissions mailing list. You can fill this out as early as middle school by going to the academy’s website.
  • Applicant: The individual has filled out a pre-candidate questionnaire and provided initial info on PSAT/SAT/ACT scores, grades and extra-curricular activities. This is usually done NO LATER than the spring of their junior year. This is also the time to contact your congressman and senator in regards to a nomination. In addition, if the student’s parent is qualified for a Presidential nomination, (see nominations and appointments below) then the student can contact the academy directly to pursue this nomination as well.
  • Candidate: To move from applicant to candidate indicates that you have cleared your first competitive hurdle. This step is decided by the Academies admissions staff in the early summer of a student’s Senior year. Not all students will get to this point, but this is when they will be interviewed by the Academy Liaison Officer (or the equivalent). It is from this list that appointments will be offered as early as the fall. For example, one of our sons was offered an USNA appointment by October.
  • Appointee – This means that the candidate has been offered an appointment into the Academy. They can choose to accept it or turn it down, but it means they have not only received an official nomination, but they have also been approved by the Academy’s admissions board and offered an actual appointment.

Basic Requirements

It’s important to check the specific military academy website for updated information on your desired academy, but in general, here are the basics that you will need before you even consider applying:

  • A United States citizen
  • Unmarried with no dependants
  • Of good moral character
  • At least 17, but not past your 23rd birthday by July 1 of the year entering.

Recommendations

Because it is so incredibly competitive to gain entry into a service academy, the following high school courses will help make the applicant more competitive:

  • Four years of English
  • Four year of college-prep math
  • Four years of lab science
  • Three years of social studies
  • Two years of a foreign language
  • One year of computer study

Character

One of the academies defines character as “One’s moral compass, the sum of those qualities of moral excellence which compel a person to do the right thing despite pressure or temptations to the contrary.” (USAFA) They also define leadership as “The process of influencing people and being responsible for the care of followers while accomplishing a common mission.”  These academies are looking for future leaders with the highest moral character possible.

Diversity

Academies are looking for people from a wide variety of life experiences and the word “diversity” at these institutions no longer applies exclusively to race or cultural background. USAFA defines diversity as: “a composite of individual characteristics that includes personal life experiences (including having overcome adversity by personal efforts), geographic background (e.g., region, rural, suburban, urban), socioeconomic background, cultural knowledge, educational background (including academic excellence, and whether an individual would be a first generation college student), work background (including prior enlisted service), language abilities (with particular emphasis on languages of strategic importance to the Air Force), physical abilities (including athletic prowess), philosophical/spiritual perspectives, age, race, ethnicity and gender.

Join us again for part two of this blog series when we will cover nominations and appointments, The Liaison Officer, and Summer Leadership Programs. Please share this blog with someone you know would love to attend a service academy and who has the potential to be among the best and brightest in our nation who will be offered appointments.

5 Do’s and Don’ts For a Smooth Transition to College or A Service Academy

When my daughter, Bethany was 4 years old, we called her “Bunny” because she hopped from heart to heart. She loved to play with her little girlfriends and one afternoon she spent the entire afternoon with Amanda. She was a little girl who felt life deeply and could go from being on top of the world to the depths of despair in nanoseconds.

When I picked her up from her friend’s she bounced to the car and chatted all the way home. We walked in the door and I asked her how Amanda’s older sister was doing. Suddenly, she began to sob, uncontrollably.

“What’s wrong, Bunny?” I handed her a Kleenex.

“I don’t want to leave you, Mama!” she wailed.

“Why would you think you have to leave?” I was really confused.

She looked at me through her tears, “To go to COLLEGE.”

Apparently Amanda’s older sister was preparing to move to go to college and Bethany couldn’t imagine a day when she would have to leave her Papa and myself to go to school. The good news is that fourteen years later, she was a little bit more prepared when she moved from California to Chicago to go to college. She got a B.A. in Communications, with an emphasis in Electronic Media and was in her element.

Today, Bethany and I host The Money Millhousepodcast and still get just as emotional, on occasion, while putting her college degree to good use. We made a point of preparing Bunny and all the Kay kids for college, long before they went to Freshman orientation. Three of the Kay kids went to service academies, which meant they only had less than a month at home after high school graduation.

Whether you are prepping kids to go to a civilian university or whether they are going a service academy like three of our sons (USMA, USAFA, USNA) here’s some “homework” in the form of five do’s and don’ts to make a smooth move.   

  1. Don’t – Fill up free time with friends at the expense of family. 
  • Friends come and go but family is forever.
  • Only a small percentage of your friends from high school will still be your BFFs throughout college. Less than 2% of boyfriend/girlfriend relationships will last until college graduation.

          Do – Tell your mama (and papa) that you love them early and often.

  • Mend fences and build bridges with family members.
  • Expect there to be some pre-separation anxiety on both sides (parents and kids) so give each other a lot of grace.
  • Students, please understand that this is hard on your parents, especially if you are moving away to go to school.
  • Parents, understand that this is hard on your kid because they are about to go do something they’ve never done before. For those going to service academies, it’s going to be big and scary and you won’t be there.
  • Students, take the time to thank your parents, grandparents, friends, educators and coaches.
  1. Don’t – Take a break from physical fitness, especially if attending a Service Academy.
  • My husband, Bob, and our son, Jonathan, went to The Air Force Academy and they used to say that “The Air Force Academy is at an altitude of 7258 feet—far far above Annapolis or West Point.” That’s why physical fitness was important.
  • If you’re going to a service academy, you’re going to take a Physical Fitness Test as soon as you get there.
  • Engage in risky behavior, now is not the time to push the limits legally or physically. Don’t take up space jumping or quad racing because a broken limb could cost an appointee their service academy appointment.

          Do – Continue to workout and make wise choices.

  • Physical fitness is a healthy way to cope with pressure in college.
  • Even if you go on a family vacation or have a lot of things to do.
  • For service academy appointees, run 3 miles 3-4 times a week and then do 50 pushups and 50 sit ups every day.
  1. Don’t – Make this all about you.
  • Parents, don’t create drama before they go or after they’ve gone.
  • Moms, don’t sob and cry and tell them you don’t’ know how you’re going to survive without them. Shedding a few tears is OK, but doing what Oprah calls “the ugly cry” isn’t all right.
  • Parental, sibling or significant other drama is a distraction to the service academy appointee going through basic cadet training or “beast.” Distractions can lead to accidents and accidents can lead to a turn back (meaning they have to go home.)
  • Don’t post a bunch of “poor me-isms” on social media

          Do – Keep it positive. 

  • Right now, service academy portals will have a mailing address for the student. Give this address to friends and family and with your network because cards and letters mean everything during basic training. “Basics” aren’t allowed access to computers, phones or social media.
  • Do send simple cards and letters – no perfume on the cards, no kissy marks on the envelopes, no care packages during beast, and no food. After beast is over, you can send these.
  • Do tell your student funny stories about a younger sibling or the dog.
  • Do send pictures of the dog or pet.
  • Do keep it light and not heavy.Students, do make your social media channels private or have them go dormant.
  • Do clean up these channels because you never know what the cadre will get ahold of and you don’t want to embarrass yourself or become a targ
  1. Don’t –Be Han Solo – you don’t have to do this alone.
  • My husband’s advice to our sons for basic cadet training was. “Keep your mouth shut and help your classmates.”
  • Don’t stand out as the first, the most knowledgeable or the best or worst
  • For parents, don’t go this journey alone, join a parents club or booster club.
  • Remember, parents, sometimes you don’t know what you don’t know.

          Do – Be a team player.

  • Look for ways you can help others get through Beast.
  • The friendships you make in BCT and college will last a lifetime. My husband, Bob and I just had dinner with a classmate of USAFA class of l978.
  • Do take advantage of the sponsor family program, a program that allows local families to “adopt” a cadet or midshipman.Some of these friendships may become like a second family—or at least get you to the airport.
  • Parents, do join a parents clubfor your respective service academy. Your civilian friends don’t get it, other service academy parents do understand the unique situation your family faces.
  1. Don’t – Ever forget the “why” of what this education and your career means.
  • Service Academy Appointees are choosing something hard, something their civilian friends will never understand, but there’s a big “why.” They want to serve their country as officers.
  • During BCT and during your 4 years there, you’ll have to sometimes take life a meal at a time, a day at a time.
  • Parents, don’t forget that being a good parent means you let them fly and you support their choice to serve. You don’t have to like it or feel good about what those choices may include.
  • Parents, DON’T borrow tomorrow’s trouble. While they are there, they are safe, they are not deployed, they are not in harm’s way. Today has enough challenges of its own without borrowing on tomorrow. As long as they are in training, they aren’t in combat. If and when that day happens, you’ll have the strength you need to cope. We know this, having had one son serve in a combat zone in both Afghanistan and Iraq.
  • Appointees, remember your goals in getting through BCT and the academy—to fly, to serve, to go into cyber security or intel, or missles or space. Your goal is much bigger than BCT and that’s why you’ll get through.

Do –  Remember the Legacy

  • You are part of a long line of military service.
  • Think about the parents, siblings, grandparents, aunts or uncles who have ever served. You are part of that legacy.
  • Your legacy keeps American free.
  • Putting on a uniform doesn’t make someone a hero, but those who put on that uniform and serve with integrity first, service before self and excellence in all they do—that’s pretty heroic.
  • There’s another kind of hero as well, the Heroes at Homeand those are the parents, siblings, grandparents and family members of those who serve. America thanks you as well. 

“It starts and ends with character, and it’s a journey, not a destination. Leadership is a gift, and it is given to us by those who follow.”

General David Goldfein

Air Force Chief of Staff

Financial First Aid Kit – Military Appreciation Month

In honor of military appreciation month, I’d like to highlight our Army son, Joshua. When he was born we started saying, “If he had been our first, he would have been our last.” That little boy had more energy and could get into more scrapes than all our other children combined. When he was eighteen months old, he stripped down to his diaper, took a plastic sword and chased his four older siblings around the house, thus earning the nickname “Conan, the baby barbarian.” By that age, he had also jumped off the top bunkbed (three stitches) and “flown” off our travel trailer (four stitches). Joshua was the reason we purchased a serious first aid kit. He’s now an Army Lt jumping out of airplanes at Fort Benning.

Just as every family needs a good first aid kit for those unexpected accidents, they also need a financial first aid kit, or practical ways to help safeguard their financial future.

  1. An Emergency Savings Account – This account is not an investment account, it doesn’t include IRAs, retirement accounts or CDs. Its purpose is not growth, but safety. These are funds that are accessed in the event of spouse unemployment, emergency home repairs, or unexpected auto repair bills. The best way to build this account is to establish a family budget. Go to your base’s Family Readiness Center to develop a budget for your current season of life. I recommend automatically transferring funds from a paycheck or checking account into a savings account every week. A good guideline is to save three months of living expenses for dual income households or six months for a single income family.
  2. Life & Health Insurance – For life insurance, you will need enough money so that your dependents could invest the money and live modestly on the proceeds. For military members, the best buy is still SGLI, or Servicemember’s Group Life Insurance. Members are automatically insured for the maximum amount of $400,000 unless an election is filed reducing the insurance by $50,000 increments or canceling it entirely.  Family Servicemembers’ Group Life Insurance (FSGLI) is a program extended to the spouses and dependent children of members insured under the SGLI program. FSGLI provides up to a maximum of $100,000 of insurance coverage for spouses, not to exceed the amount of SGLI the insured member has in force, and $10,000 for dependent children. The rates are inexpensive. If your situation requires additional life insurance or you are transitioning out of the military, look at USAA for the best rates for military members and their families. For health insurance, there’s healthcare.gov where you can find out about open enrollment season and how to get insurance plans changed or updated. Another good place to research a variety of plans is found at eHealthInsurance where you can compare plans. There’s also
  1. A Will –Here’s another easy one, that’s as easy as making an appointment with the JAG or taking advantage of mobile services that are sometimes offered at military conferences such as Yellow Ribbon. The main section of this critical document will assign a guardian for your children. In many states, the surviving spouse may only get one-third to one-half of the assets that were in your sole name. Your children get the rest and if they are minors, a court administrator could handle their money until they become adults. Make sure that the beneficiary designations on any 401(k) plans, IRAs, life insurance and bank accounts are also up to date. Another option is legal zoom, which can prepare a quick will at a low cost.
  2. A Retirement Account –A surprising number of military spouses, or reservists do not take advantage of the terrific tax-deferred accounts offered by their employer, which include 401(k) plans. The Thrift Savings Plan (TSP) is a Federal Government-sponsored retirement savings and investment plan and has great rates with low fees for administering the account It’s part of the new Blended Retirement System that is currently in place. This plan offers the similar tax benefits that many private corporations offer their employees under 401(k) plans and they are full portable upon leaving the military. Be sure your current TSP funds are not in the “G” fund for maximum benefit.
  3. A Good Credit Rating – The best way to rebuild good FICO, or credit score, is found in three steps: pay more than your minimum payment (even if it’s only $5/month more), pay a day early rather than a day late (set up automatic transfers from your checking account to your credit card company for minimum payments) and never let your available credit fall to less than 30% of the total credit available (for example, $2000 on a $6000 credit line.)  Each year, get a free copy of your credit report by going to Annual Credit Report or go into the base’s Family Support Center where they can also run a free copy of your report and check your score.
  4. A College Fund for Those Babies!–Select a college savings account that has low fees, a good selection of investments, plus a tax break. One of the many options is a Qualified State Tuition Plan, also known as 529 Plans. Be sure to research your state of record and their plans. These contributions will be tax-deferred and could even be tax-deductible from your state income tax if you are a resident of that state (check with your tax specialist). When the money is withdrawn for college, it is only taxed at the student’s income tax rate. If the child does not go to college, the money can be designated for another beneficiary or removed at a 10% penalty.

 

If you’re a family with a “Conan,” then make sure you have a First Aid Kit on hand. But don’t forget the fact that your family need a Financial First Aid kit as well.

I wanted to issue a special thank you to all our military families who serve, we appreciate you!

Are You Teachable?

When I was a young mom, we had five babies in seven years and moved 11 times in 13 years. While on that journey and at my husband’s urging, I decided to go back to school and finish my Bachelor’s degree. Yes, I went back into the classroom between babies #3 and #4 to reach that personal goal. Colorado Christian University had a program designed for adults who worked full time and taking care of all those kids was a full-time job! In my class were other adults including Madeline, a 70-year-old great-grandma who wanted to finish her Bachelor’s degree. When the professor asked each of us our motivation for enrolling in this difficult, accelerated program, Madeline sweetly replied,

“I always want to keep learning and remain teachable.”

She became my hero that day.

Madeline finished the program and walked the stage with the rest of us, then she went on to publish three books—always remaining teachable.

As a veteran speaker of 2000+ paid gigs, an author of 15 published books, a spokesperson for 100+ brands, and a media veteran of 2800 interviews, I’m often asked to mentor neophytes on how to succeed in these areas. It seems that everyone (and their mama) wants to write a book, become a brand ambassador or launch a professional speaker career. That’s cool, it’s great to have dreams. Many have read that they should “go to someone who is successfully doing what you want to do.”  Consequently, some will come to me. That’s not a bad thing, that’s what I did when I started out. I’ve received hundreds of requests for this kind of coaching and the requests infer a pro bono offering. This can be overwhelming.

How do you decide who to mentor when you have a limited amount of time?

My answer:  they must be teachable.

I have a business and non-profit to run, a podcast to push out, a husband to flirt with, and several grandbabies to visit. Time is limited and I can’t take every meeting that I’m asked to take. How do I decide who gets a meeting and who will get the closed door answer: “I’m honored you would ask, but I regret to say that I cannot accept.”

I’m not alone, you’re probably juggling work and home, trying to find that work/ life balance that is ever illusive. You need to know what meetings to take and which ones deserve a pass. Or, you may be the person asking for the meeting—why should the experienced veteran in your field, take a meeting with you?

They need to be teachable.

Just like Madeline, are you willing to humble yourself, do the work you’re asked to do and realize that you have something to learn?

I’ve found that the least teachable people are those who feel they have nothing to learn. Some of the worst speakers I’ve ever heard are Generals, CEOs, actors, teachers, and preachers—those who speak in front of groups often. They feel that because they are already doing it, they don’t need to improve. The English teacher who is not a publishable author feels she knows her grammar, but that doesn’t mean she can write a book. The professional speaker, who can’t make the leap to media interviews because he doesn’t know how to deliver a sound bite. You get the idea.

I have several ways of vetting someone before I take a meeting. For example, I’ll send them a file on the topic they want to discuss with me, “call me after you’ve read the file and we’ll set up a time to answer your questions.” Roughly 9.5 out of 10 never read the file—BAM! I don’t take that meeting.

Or for those who want to be speakers, I’ll say, “attend a Toastmasters meeting and then we can talk.” But they don’t do the bare minimum—attend one, little meeting! In both vetting cases, the proposed mentee feels they are advanced well beyond the need to read a file or attend a meeting.

The same thing happens at conferences, when attendees have a chance to speak with the faculty to talk about their work. Occasionally, a faculty member or speaker will request more material from an attendee.  According to my literary agent, Steve Laube (super agent extraordinaire) 9 out of 10 attendees never send him their info on the rare occasion he requests it. It’s a huge open door that they won’t walk through due to fear, laziness or procrastination.

After I spoke at FinCon one year on the topic of monetizing brand ambassadorships, an attendee followed up with me as I requested. She did her research, followed my advice and today, she’s a very successful brand ambassador. You can read about “The Budgetnista” and see the work she’s doing in the space—a truly teachable lady who found success.

Madeline, from my CCU class all those years ago, remains a hero of mine and I want to grow up to be like her. Towards that end, even after 25 years as a professional speaker, I remain teachable in my primary areas. I attend Shop Talk Toastmasters, and practice new material, receiving feedback from those Toastmasters. After every speech that my speaking team does with the Heroes at Home Financial Event, I get feedback on the presentation from my team. This way, I continue to learn and grow.

Are you teachable?

Are you willing to do the work?

Do you have a way to vet your time to determine what meetings you’ll take?

Have you ever been asked for a response from someone in your field of interest and what did you do?

For more information on how to structure your work/life balance, listen to our interview on the Money Millhouse with an exceptional life coach, Ann Vanino.

Where ever you go and whatever you do, remaining teachable is the best way to grow and continue to find success along the journey.

Financial Education Month – How to Resolve a Credit Dispute


In our Heroes at Home Financial Event tour, we work with military members to make sure their credit history keeps them flying high! Even pilots can get grounded if they can’t hold a Top Secret security clearance and they can’t hold a clearance if their credit is awry. There are some pilots with one million dollars in training assets invested in them. It would be terrible for them to have to fly their last sortie because of this important issue. But security clearances are something that every military member has to protect. That could be an expensive mistake. Thankfully, some of these issues are able to be resolved with the help of Airman and Family Readiness, but it still had an impact on military readiness.

You may not have a million dollars in national security assets invested in you, but you’re still a valuable person to your family, friends and community. Whether you are a military aviator or a mom who works from home–it’s important to regularly check your credit report from all three providers (Experian, TransUnion and Equifax). You can get a free copy at Annual Credit Report where federal law allows you to get a free copy of your credit report from each of these reporting bureau once every twelve months. The law also allows you to ensure that all the information on your credit reports are accurate and up to date.

One of our financial education speakers is the ever knowledgeable presenter, Rod Griffin, from Experian. We recently discovered something new going on

at Experian regarding  enhancements to its dispute center that make it easier and faster to file a dispute.  Many people do not understand how to correct mistakes on their credit reports – so financial literacy month is a good time to help educate them on the process and take away the fear that it’s a daunting or complicated task.

Here are some of the highlights of the dispute center where consumers can:

  • Use their smart devices as it’s mobile-optimized
  • Upload photos of supporting materials directly from their smartphone
  • Get a free Experian credit report
  • Follow contextual links designed to help them better understand and access various sections of their report
  • Receive timely alerts updating them on the current status of their active disputes
  • Sort and view the accounts listed on their credit report by alphabetical order, date opened or status, and filter by categories such as collections or installment loans.

Be sure you share this with anyone you know who may have a credit report dispute and be sure that you check the credit reports on everyone in your family. Hopefully, you won’t find a credit history on your four year old daughter or 1 year old son, but identity theft is knows no age!

Knowing your options will help you with your credit report spring cleaning–especially if you find anything out of place! Once your work is done, sit back, make yourself a cup of coffee and don’t forget to join me and my co-host, Bethany Bayless in The Money Millhouse podcast for our interview with Rod Griffin, Gerri Detweiller and other credit financial experts.

 

Driving Cars for Free

In our Heroes at Home Financial Event Tour, one of the most popular segments deals with “how to drive a car for free.” The concept is fairly simple, but less than 10% of Americans actually follow the steps to experience debt free living when it comes to transportation. We love our military audiences because even though some military members are “ordered” to attend our show, by the time it is over, they are laughing, they’ve learned something and they realize how much fellow Americans loves them.

So how do you do it? Just follow three steps:

  1. Start with a Debt Free Car – This is usually going to be the car you just paid off. Or, it might be a vehicle a parent or someone else gave you (it might even have seen better days). In our lives, we were “given” one car and we gave away 8 cars. It might be that you agree to be a one-car family for 18 months instead of a two-car family. This is how the Kays did it to start with. If you don’t absolutely have to drive a car (you are a one car family, public transportation, driving someone else’s car, etc.), then you can go to step #2.
  1. Pay Yourself – The monthly payment for your car that you used to pay before it was paid off is a payment you will now pay to yourself instead of to the lienholder. So let’s say your car payment was $300. You will pay yourself $300 every month for 18 months. At the end of that time, you take the $5400 you have saved and then sell your existing vehicle for as much as you can get for it. You will get more money for your vehicle if you detail it, get everything running as well as possible (without a huge investment) and then sell it yourself. Go to KBB for 10 steps on how to sell your car yourself.  Let’s say you sell it for $8000. Now you have $13,400 to work with.
  1. Pay Cash for Your Next Car – Follow my steps from my previous blog on Car Buying Dos and Don’ts – Even if you aren’t a USAA member (for an additional military discount), you can still follow the steps listed to pay the least price possible for your next vehicle. Make a special note: You cannot do this with a new car! It has to be a used car. The average new car depreciates $8000 in 8 seconds (when you drive it off the lot). So you have to buy a car that is slightly used (or real used until you trade up). The example in my blog shows how I traded up consistently until I was driving a modest Mercedes. (Is there such a thing as a modest Mercedes? I believe there is).
  1. Trade Up Until You’re Satisfied – After you’re in a new-to-you “paid for” car, then start with step number two all over again and start paying yourself. Let’s say you bought a car for $13,400 and you got into it low (as I showed you how to do in my previous blog), then in only 18 months a used car won’t depreciate that much (if you take care of it and try to keep low mileage on it) and you can sell it for close to what you paid for it. You sell it after 18 months for $13,000 and add the additional $5400 that you have saved by paying yourself every month. Now you have $18,400 going into step #3 and you can trade up your vehicle.

Does this work? It absolutely does. Not only do I do this in my own family, but I have children who do it as well. When my kids ask for my advice (sometimes it’s nice having a mom who is America’s Family Financial Expert ®), I advise them to not be wasting money on expensive car interest payments or crazy expensive leases. The difference is enough money saved over the course of five years to be able to put money down on a house instead of having to rent. It truly adds up!

Keep trading up until you are satisfied with your car and you can trade up into a car with a substantial manufacturer’s warranty (or negotiate that warranty). I do practice what I preach, and I did this to get my 2014 Mercedes, which is under mfg warranty until 2022. The only perceived downside is that my dream car is red and I thought that red cars get more speeding tickets than other colors. But good news! That’s a myth. Pedal to the metal!

What can you do today to drive your cars for free tomorrow? Let me hear from you!

Ellie Kay

Smart Money Habits for Millennials (and Their Mamas)

The Kay Family had five babies in seven years. That roughly adds up to 3 kids in diapers at once, 10 years of not sleeping through the night, 4 teenage drivers at the same time, 3 kids in college at once and today, we have 5 millennials in their 20’s simultaneously.

Fun .

But the good news is that they eventually slept, pottied, drove, graduated and even mastered money habits in the journey. Here are the habits we helped teach our millennials to make sure they didn’t have to move home, they could remain financially independent, have a great start for their families, and still buy their mama nice birthday gifts.

Habit #1 – Create and Live By a Spending Plan

Many millennials have heard of the value of creating a budget and even have apps that help. But it’s of little use if they don’t know how to stick to it. Here are my favorite apps to help:

  • Mint Budgeting App – I met the founder of Mint, Aaron Patzer, in a green room, years ago, when we were both going to be on ABC News in NYC. At the time, he was building his success with Mint. I just remember him being (as he says in the video) “full of myself.” Ha! But his budgeting app is probably the best out there because it makes it easy to create a budget. You connect the Mint app to your bank and the app uses your details to help create a personalized budget.
  • PocketGuard Budget App – This app also connects to your bank accounts and shows you what you currently have in your pocket. It tracks your money to show what you are spending and automates where you’re going off budget and where you need to cut back.
  • You Need a Budget – This app’s claim to fame is that it creates a budget you can stick to based on the info provided in your bank accounts and spending habits. It even teaches you what to do if you overspend and how to live on last month’s income. This is the only app that cost money in my list and it’s $50 for the year, but there are hoards of devotees that say this app helped them to finally live on a budget.
  • GoodBudget – Back when dinosaurs roamed the financial space, there was an “envelope system” where you put the money you needed in each envelope labeled with expenses such as gas, food and entertainment. It helped Bob and I get out of 40K in consumer debt in only 2.5 years when we were first married. This app is the digital version of that system, making sure that everyone knows how much is left in the “envelope.”

You might need a money buddy to stay on track, too. Tiffany Aliche, The Budgetnista, talks about her journey on our fun podcast The Money Millhouse and how she went from broke to anything-but-broke through techniques that kept her on track.

Habit #2 – Cook Creatively and Consistently

Money evaporates when you order out for lunch or dinner more than one or two meals a week. Bob took leftover dinners (the

re’s a microwave and fridge at work) for our entire marriage and we calculate that he’s saved $20,000 by doing this! Make Pintrist your pal or watch The Food Network to learn easy ways to create nutritious and tasty meals. Ask for an Instant Pot for your next birthday and make more than you need for dinner so you’ll have leftovers for either lunch or dinner later in the week. Or freeze the leftovers. My daughter lived with roommates for a few years and they would assign different nights for each of them to cook to simplify the work. Cook more and your wallet and your waistline will thank you.

Habit #3 – Care About Your Retirement

When we take our Heroes At Home Financial Event on the road, we teach young service members the miracle of compounding interest with the mantra: start early, start small and stay committed. Be sure to start with funding a Roth IRA and take advantage of your company’s matching portion of your 401(k). Lacey Langford, an Accredited Financial Counselor gave some great tips on a segment called “I Aint Afraid of No Money.”  She discussed retirement planning from her experience in working with the military (but many tips apply to civilians as well.) If you’re military, be sure to go into your Family Readiness Center to discuss the Blended Retirement System and what your options are for your situation. It’s free and a benefit you can use early and often.

Habit #4 – Count the Cost of Debt

The average millennial college grad owes 37K in student loan debt and the average household owes $8500 in credit card debt. Work on minimizing the debt you accrue and pay off the debt you have so that you’ll have the flexibility to move or wait on the right job. One of my sons worked for JC Penney, and they eliminated his entire department. Most employees were freaking out because they had student loan debt, consumer debt and car debt—but not our son. He made a practice of living on less so he wouldn’t accrue debt and he was able to have less worry in the process of finding a new job.

Be sure you also pay attention to your credit score. Rod Griffin, from Experian, came over for a discussion on coffee and credit. He works with us on our tours and he teaches that if you have bad credit, you’ll pay an average of 360K more (over your lifetime) for the use of basic credit, than the person who has a good score. Improve your score by paying on time, paying more than the minimum balance due and make sure you never use more than 30% of your available credit.

Habit #5 – Choose Contentment

This is a tricky habit because it’s a mindset that you choose. There will always be something to spend money on to make you go off budget or get into financial trouble. There’s the new phone, tablet, car, vacay, boyfriend/girlfriend, baby, or a plethora of other reasons to want to spend more and have more. This is where your friends, family and even faith come into play. Coveting what others have or do is a lesson in futility and discontentment. Your friends either contribute to this mindset or they keep you focused on what matters most. If keeping up with their lifestyle is an important platform in your friendship, then you may want to find new friends. Remember that this financial journey is a marathon not a sprint. I’ve always said, “you can have it all—just not at the same time.”

What is one habit you are good at? What is one habit you want to improve upon? Share it with us, a friend or even a money buddy, so that you can be fiscally healthy in 2018 and for a lifetime.

 

Saving Every Day, the Kay Way

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This week, I got a phone call from Jonathan, my fighter pilot son, sharing his latest bargain. He may have gotten his flying abilities from the World’s Greatest Fighter pilot, but he learned how to save from another family member, who will remain nameless. He talked about how he scored a new bedding set at Bed, Bath and Beyond by layering the savings. As he shared, his excitement gained momentum,

“Yeah, so the regular price for the bed set was $245, it was on clearance for $109, then the clearance was marked down another 50% for one day only, so it was $55. Then I used my 20% off coupon (found at Retail Me Not) and saved $21 more.” He came up for air, with the coup de gras,

“I only paid $34 for a bedding set valued at $245.”

He is my favorite son. *

After I complimented his money savings prowess, I excitedly told him about my recent discovery from our local County of Los Angeles Public Library in Quartz Hills. I found out that instead of paying $14.95 for Audible, (which is a good deal if you listen to a lot of audible books) you can get them for free at the library online. It was so easy. You just download the Overdrive app for free, register your library card and voila! I’ve already downloaded Dr. Who, The Underwater Menace and Jodi Picolt’s Small Great Things. Since it’s a digital download, I can listen to iton my phone in the car or on a plane–all for FREE. When I’m done, it’s automatically returned on the system.

Truth be told, I taught my kids from an early age how to save money. It’s in their DNA and it’s served them well as millennials in the cold, sometimes cruel world of adulting. The good news is that these skills can be learned, even if you weren’t taught from the womb how to get the best bargain.

For example, my daughter’s friend, Kristen, went to Downtown Disney with my daughter and I recently and we educated her at the Rainforest Cafe in a major way.

The first perk we received was when we called ahead to make a reservation (at 4:00 PM) and were told there were no reservations left until 9:00 PM. To which I replied,

“But I’m a Landry’s Select Club member.” I heard a quick intake of breath on the other side of the phone.

“Oh well, that’s different. Just come to the front of the line when you get here and they’ll be a 15-minute wait max for you.”

Sweet dreams are made of this.

We were happily seated upstairs at a table overlooking the two-story Atlas fountain and right in front of our own personal monkey. While we perused our menus, I explained how the Landry Select Club works.

“You only pay $25 to get the card and you earn a $25 credit for every $250 you spend at hundreds of participating restaurants, casinos and hotels across the county. It’s not a credit card, it’s just like a membership card. Restaurants like Bubba Gump, the Chart House, Saltgrass & McCormick and Schmick’s.”  I paused for a quick breath and continued,

“Plus, you get $25 credit your birthday month. There’s no renewal fees and you always get priority seating.” About that time, the Manager came over and asked us how it was going (another perk of being a member.) As soon as the manager left, my daughter added,

“Also, as soon as you register your new card online, you automatically get a $25 credit. So it pays for itself right away.”

Just then the storm began with a loud clap of thunder. The elephants at the end of the aisle started snorting loudly and our monkey friend kind of freaked out at the weather.

It was the end of our educational session. But not the end of our passion about saving money every day–the Kay way!

What are some of your day to day savings discoveries? Let me know!

 

*To be  clear all of Ellie Kay’s kids are her favorites.  She’s not a horrible mom who loves one child more than another. (Except when they buy her gifts for no reason, then they really are her favorite because gift giving is her love language, which really is a thing.)

Back to College – The Kay Way – part two

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When people ask me how we are put our kids through college debt free, the answer is multi-fold.

First, we train our children from a young age that going to school, doing your homework and getting good grades is their primary “job.” By teaching them a good work ethic, we are laying the groundwork for scholarships and more.

Secondly, we send them to schools that we can afford or where they get the best scholarship offers to cover the most expenses.

Thirdly, we have saved a modest amount of college money to help them pay their room and board and partial tuition in some cases.

Lastly, but certainly not least, we require that they work part time in the summers or during the school year (through a work/study program or a regular job) in order to do their part in paying for college. By implementing these four disciplines, graduated debt free, with our most recent grad finishing up this past May. The older Kay kids had over ½ million in scholarships and and the last two garnered over a million dollars in scholarships.

Priorities
In any discussion of college costs, it’s important to keep priorities straight:
Parents need to leave yourself some fun money for retirement. How else can you afford that mechanical bull riding lesson and those parasailing flights (been there, done that, LOVE it)?
I really believe that you, as a parent, should try to avoid borrowing on your future in order to pay for your child’s future. Why would you want to take one of your greatest investments and leverage it for college expenses? Yet millions of parents make that devastating financial choice every year. I’m talking about avoiding any college funding plan that includes a home equity loan, a HELOC (home equity line of credit) or refinancing of an existing home mortgage. These options reduce the amount of equity in your home, increasing the risk of possible foreclosure and you incur costs in interest charges that may cost you more if the term on the new mortgage is greater than the remaining term on the existing mortgage.

The College Mantra
When I began a young adult, got married and began having kids (in that order) I was first exposed to the whole idea of “the college my child gets accepted to.” As a mom of many I frequently heard, “What college did they get accepted into?” The part of that question that amazes me is that the answer that is most impressive are also the most expensive (Columbia, Harvard, Stanford, Yale, etc). While an average of 40% of the students who attend these schools either get financial aid, grants or scholarships, they only average out to an assistance of $9600 per year. This leaves a boatload that the student and mom/dad owe for college. Most of this is usually in loans of some kind. So then the average student graduating from some of the most prestigious colleges have student loans upwards to $80,000 or more.
So why is the question: What college did they get accepted into?
The question should be: What college did they get accepted into that they can afford?
Why do you want to leverage your future (through HELOCS or loans) or leverage their future (through massive consumer debt) when it will take many years of earning power, for them to pay back those loans? One of the most common problems in young married Millennials is the burden of dual student loans in a marriage.

I’m doing what I can to help families minimize student loan debt so that both the parents and the graduates can have a better quality of life with more flexibility once they start those new careers. For more practical aspects of very specific ways you can pay for college. Please email assistant@elliekay.com and put “College Crunches” in the subject line. Our offices will send you a wonderful resource file that I wrote to help you fund a quality education for a fraction of the debt.

Ellie Kay

 

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