FOR MORE THAN 20 years, I’ve been the biology department manager at a small, liberal arts college located in the Pacific Northwest. My job is unique because I interact, on a daily basis, not only with students, staff and faculty at the college, but also with various building maintenance personnel, sales reps and instrument-repair folks who are critical to the successful operation of the department. For me, it’s an interesting study in contrast. I see students in their 20s taking on debt to fund their education. Once they graduate, some have difficulty landing jobs in their field of study. Those who find meaningful employment may struggle for several years as they manage their debt payments, alongside various other financial obligations. I also meet blue-collar workers, many in their 50s and 60s. Most don’t have any formal education beyond high school and they face a completely different struggle. They’re discovering it’s nearly impossible to find members of the younger generation who possess the skills necessary to replace them once they retire. For years, economists have been talking about a skills gap that exists in the current job market. Many of the articles blame a lack of relevant training on college campuses. Economists have found technology is changing at such a rapid pace that it’s nearly impossible to keep students up-to-date as they make their way through school. Indeed, major tech companies, such as Google and Apple, no longer require new hires to have a bachelor’s degree. Instead, many of these companies are increasingly relying on new hires who received their education at coding boot camps or through vocational classes. General laborers are also facing their own skills gap. The lack of skilled blue-collar workers is often attributed to the fact that, for the past few decades, a college education has been touted as the only real path to a successful career. Meanwhile, millions of trade jobs, many of which pay well above minimum wage, are left unfilled. Younger workers aren’t flocking to high-paying construction and equipment-repair jobs. Result: The cost of getting this type of work done is on the rise. From my own vantage point, I see the results of both skills gaps. Tuition rates at colleges continue to increase each year, with the average tuition and fees at a four-year private college currently averaging about $32,000 per year. The amount of debt students accrue during their college careers directly impacts their life for years to come. Meanwhile, the cost of having equipment repaired, and having building maintenance performed, also continues to spiral upward. I recently needed to hire an instrument repairman to come to the college to fix a broken piece of equipment. Because there wasn’t anyone in my immediate area who possessed the necessary skills, I had to pay for someone to travel three hours to our location. The travel time was billed at $249 per hour, while the actual labor for the repair cost $349 an hour. An obvious question: Will today’s young adults start weighing the cost of a college education against the handsome incomes available from some trade jobs—and decide four costly years at college aren’t a good investment? Kristine Hayes's previous articles for HumbleDollar include a series of blogs about her  2018 home purchase: Heading Home (I), (II), (III), (IV) and (V). Kristine enjoys competitive pistol shooting and hanging out with her husband and her two corgis. [xyz-ihs snippet="Donate"]

A FRIEND RECENTLY asked me the interest rate on my credit card. I admitted I had no idea. I pay off the balance in full every month and therefore don’t know, or care about, the interest rate. I’m a minority in this regard. Only 35% of us pay off our credit card balance each month. We’re dismissed as “deadbeats” by profit-hungry credit card companies, perhaps with some justification: We reap the benefits of credit card rewards programs designed to lure the other 65% of the population into using their cards on a regular basis—and then foolishly carrying a balance. There are different credit card rewards strategies. One involves having multiple cards and matching purchases to the card offering the highest reward for that specific item. For instance, you might use a credit card that offers 4% to 6% back on groceries at the supermarket, while using a different card—one with enhanced travel rewards—when purchasing a plane ticket. Another system involves carrying just one credit card, which offers a somewhat lower percentage cash back, but on a wider variety of items. Since I have a relatively low disposable income, and don’t travel much, the single card system works best for me. I do, however, try to figure out ways to maximize the rewards I get. A recent example: I decided to replace my well-loved Kindle Fire with a newer model. Instead of purchasing the device directly through Amazon using my Costco Citi Visa card, I chose instead to purchase an Amazon gift card at my local grocery store using my credit card. This allowed me to earn 1% cash back, as well as a 30-cent-per-gallon discount off my next gasoline purchase. The grocery chain I shop at frequently runs this promotion to entice people to purchase gift cards through their stores. I then used my gift card to purchase the Kindle and used my Visa card to buy my discounted gas, generating an additional 4% cash back. So far this year, I’ve racked up $340 in cash back. When my rewards check arrives next February, I’ll cash it in at my local Costco. I could, instead, use the check as credit toward items I purchase at Costco. But I’d rather continue to charge those purchases on my card, thereby earning additional cash back. Taking advantage of credit card rewards programs pays off handsomely for those of us with the discipline never to carry a monthly balance. What if you don’t pay off your balance in full? The rewards you collect will likely be tiny compared to the interest you end up paying. Kristine Hayes is a departmental manager at a small, liberal arts college in Portland, Ore. Her previous articles include Driving Down Costs and Getting Sued. [xyz-ihs snippet="Donate"]

WHEN I FINALLY MADE the decision to apply for a mortgage, time was of the essence. Mortgage rates were rising daily and I wanted to lock in a reasonable rate as quickly as I could. Luckily, I’m one of those people who pride themselves on being well-organized. The loan officer at my credit union sent me a lengthy list of financial documents I would need to provide before she could begin processing my loan application. Having online access to my financial accounts, and digital copies of my tax returns, made the whole process easy. I was able to upload all my documentation to the credit union website within an hour of the request. A couple of days later, I got a text from my loan officer. I nearly choked when I read the message. She told me I’d qualified for a $403,000 loan, with as little as a 5% down payment. I’d been going on the assumption I’d qualify for no more than a $200,000 loan and was figuring my overall house-buying budget would be no more than $250,000. In hindsight, I probably shouldn’t have been surprised. I have no debt, a credit score that’s labeled “excellent” and more than $300,000 in my retirement accounts. With about $80,000 in liquid assets that I could use toward a down payment—and a $403,000 loan—I realized I could purchase a house costing nearly half-a-million dollars. But since I make just $71,000 a year, taking out a loan that large seemed ill-advised. Between the mortgage payment, property taxes and insurance, well over 50% of my take-home income would be going toward housing. In looking at my loan options, and what my monthly payment would be, I ultimately decided to look at homes in the $380,000 range. At that price, I could afford a 20% down payment—thereby eliminating the need for private mortgage insurance—and still be able to find a house in a neighborhood that would allow me a reasonable commute. My monthly payment would be higher than what I was paying in rent, meaning I could put far less money into my retirement accounts than I had been. But it was a tradeoff I was willing to make to have a place of my own to call home. Kristine Hayes is a departmental manager at a small, liberal arts college. This is the second in a series of articles about her recent home purchase. Her previous articles include Heading Home (I), Happy Ending and Material Girl. [xyz-ihs snippet="Donate"]

AS AN OBSESSIVE organizer, I like having everything tidied up before the start of the new year. I spend considerable time reviewing my finances and making sure my retirement plan is on track. As I was filling out my financial notebook this year, I added a new section: a list of lesser-known “benefits” I’ve recently discovered and intend to use more frequently in future. For instance, after publishing a blog post about car ownership, a HumbleDollar reader suggested my insurance company might provide a more reasonably priced roadside assistance program than my current AAA coverage. A quick email to my agent revealed that I could indeed get roadside assistance added to my current policy for just over $10 per year—a savings of nearly $50 compared to AAA. When I wrote about earning credit card rewards, it prompted me to take a closer look at the benefits included with my card of choice: the Costco Citi Visa. I discovered I have access to the card's price rewind benefit. If I purchase an item using my Citi card and it goes on sale within 60 days, I can receive a refund of the price difference. I also discovered my card provides me with extended warranty coverage on many purchases, as well as rental car insurance. Earlier this year, when I decided it was time to come to grips with estate planning, I contacted the employee assistance program available through my job. I was able to get a simple will, as well as medical and financial powers of attorney, drawn up for $150. In addition to offering legal referral services, the program provides other benefits, ranging from financial coaching to discounted gym memberships. Amazon continues to impress me with the number and variety of perks included with its Prime membership program. In addition to getting access to thousands of television shows, movies, books and songs, Amazon now offers a 2% rewards program for members who reload their gift card balances using a checking account. The program is currently offering a $10 bonus for members who reload their gift card accounts with $100. I frequently take advantage of Amazon’s free two-day shipping for Prime members, but recently I’ve had two instances when an item didn’t show up on the day it was promised. Both times, I sent a quick email to Amazon’s customer service department to tell the company about the delay. I was rewarded for my efforts with a one-month extension of my Prime membership for the first incident and a $10 Amazon credit for the second. Kristine Hayes is a departmental manager at a small, liberal arts college in Portland, Oregon. Her previous blogs include Keeping It Private, A Rewarding Experience and Driving Down Costs. [xyz-ihs snippet="Donate"]

WHEN I ANNOUNCED I’d be retiring at age 55, the most frequent question I received from friends was about how I’d pay for health insurance. They knew I wouldn’t be eligible to receive Medicare for a decade. They also knew paying for 10 years of premiums would likely leave a large crack in my nest egg. Fortunately, I was able to take advantage of a health insurance benefit provided by my former employer. As an early retiree, I’m eligible to receive health care coverage for the rest of my life. It’s a benefit no longer offered to new employees. I maximized the benefit by retiring on my 55th birthday—the first day I was eligible to receive it. For the next 10 years, my former employer will pay a sizable portion of my health insurance premiums. Once I become eligible to receive Medicare, my old employer will provide me with a monthly stipend to purchase whatever supplemental coverage I want. In 2023, my former employer will pay a total of $8,790 toward the cost of my health care coverage. That’s equivalent to two months of my take-home pay at the time I retired. I have to pick up a portion of the premium cost. Starting in January, my share will be $173 a month. In October, I received my open enrollment information. Since my husband and I relocated to  Arizona after I retired, I’m limited to one option for insurance coverage. But that option allows me to receive care from any provider within the U.S. Out of curiosity, I wanted to see how the plan I have compares to those available through the health care exchange set up under the Affordable Care Act (ACA). I discovered there were no ACA plans with a $1,000 deductible, which is what my current plan has. Looking at plans with a $2,000 deductible, there were three options. The least expensive of those would cost me $1,354 a month. That plan came with an annual out-of-pocket maximum of $8,700. My current plan has a $3,000 maximum. It wasn’t clear to me if the ACA plan would allow visits to the hospital and clinics located in the retirement community where I live. Having the ability to see providers—whose offices are less than two miles from my home—is a convenience I can’t put a price on.

WHEN THE COLLEGE where I work switched to a remote learning platform for the remainder of the academic year, I suddenly found myself out of work. The majority of my job responsibilities revolve around preparing laboratory classes for students—students who are no longer on campus. Thankfully, I’m still receiving a paycheck, but only time will tell whether I’ll be furloughed or have my hours cut back like so many other employees at colleges and universities. In the meantime, spending most of my time at home has given me the chance to tackle several personal finance projects—including these four: 1. Preparing legal documents. Getting my will updated had been on my to-do list since I remarried in 2018. By subscribing to an online legal service, my husband and I were able to create several legal forms quickly and easily. Our goal was simple: create a set of documents allowing us to avoid costly probate proceedings upon our death. During the first night of our estate-planning project, we created three transfer-on-death deeds, one for each of the homes we own. For less than $400, we were able to create the deeds, have them notarized and file them with the county recorder’s offices in each of the states where we have a residence. Next up were wills. Our finances are relatively straightforward, so we were able to create simple wills specifying how our assets should be dealt with upon our death. We also made sure the beneficiaries on our retirement accounts and life insurance were up to date, as well as making a list of personal property and specifying how it should be divided up among family members. 2. Organizing financial papers. Using a high-speed scanner, I digitized the tax returns, retirement account statements and mortgage documents we’d accumulated over the past decade. Purging huge piles of paper from our filing cabinet felt good and made me feel productive at a time when productivity feels like it’s at an all-time low. I also took photos of the credit and debit cards in my wallet. In the event my wallet is stolen, I’ll know exactly who to contact about cancelling my accounts. And after finding out I’d been part of a financial website’s security breach, I enrolled in an identity-theft monitoring program so I’ll be alerted if my personal information is compromised again. 3. Coping with financial uncertainty. Three weeks before our state’s mandatory stay-at-home order was issued, my personal net worth hit a record high. My financial anxiety was low and I felt good about my prospects for retiring early. As I watched my net worth plummet in the month that followed, I spent several nights awake worrying about my job and overall financial health. Amid all my nervousness, I sat down and started to write out a worst-case scenario. A scenario that found me unemployed. A scenario where my husband and I had no income from our rental house. And when I looked at our accounts, our assets and our lifestyle, I realized we’d likely be fine even if that worst-case scenario came to pass. There’s no doubt our lifestyle would need to be adjusted, but we wouldn’t find ourselves bankrupt overnight, either. I was able to pause and reflect that, as bad as the economy was just over a decade ago, it bounced back. I made the decision to increase the amount of money I contribute toward retirement, something I didn’t do during the Great Recession. 4. Getting a puppy. Adding a German shepherd to our family certainly wasn’t a planned financial move—and I know it’ll add to our expenses at a difficult time. It has, however, been a decision we haven’t regretted. Having a new puppy to train has helped make the pandemic stay-at-home orders more bearable. Most important, it’s provided me with a much-needed distraction from checking the news and the stock market’s performance throughout the day. Kristine Hayes is a departmental manager at a small, liberal arts college. Her previous articles include Attitude Adjustment, Few Absolutes and Why FI. Kristine enjoys competitive pistol shooting and hanging out with her husband and their dogs. [xyz-ihs snippet="Donate"]