For at least the last few generations it was assumed that a college education was the ticket to success in life. Parents encouraged their children to strive for that college degree. But, like all assumptions, it’s a good idea to examine them periodically.

       A provocative article in USA Today by Patrick Welsh, a high school English Teacher does just that. And, what he found could provoke some heated discussions. His main concern is that many of the kids you enter college have no chance at earning a bachelor’s degree. He points to cases where 70% of students entering college drop out. His wonders if colleges are admitting students that they don’t expect to succeed solely to grow their schools and make more money.

       That’s the type of thing that’s almost impossible to prove, but sure looks like it could be true. More students means more professors and clerical workers. It means bigger paychecks for the administrator’s, too. It also means more clout in the community and with every one the school does business with.

       Unless I miss my guess, none of those administrators will have their pay reduced if too many students drop out. Nor will they bear any responsibility if students end up with debts that are much too big for their income level. In fact, they won’t have to face the problem since student debt doesn’t require payments until the student leaves school.

       Studies show that the average graduate has more than $23,000 in debts (NY Times). Which is a lot of debt for someone who might be making $30k per year or less. But, debt is especially nasty for students who don’t complete a degree. Their income potential and ability to repay student loans is even less.

       Now I’m not saying that everyone should avoid college. Far from it. Based on what I see many, many jobs will require continuous education. It will become very difficult to find a job where you don’t need to continue learning.

       But, I expect college to change in the next decade. The idea of devoting full time to college and attending classes in person will gradually give way to a different approach. One that’s not nearly so expensive. One that doesn’t require as many professors and ivy covered buildings. A continuing education model that will take what we need from colleges and blend that with an internet world. A new paradigm that will be much, much more affordable for students (yes, you can call it more frugal!).

       In the meantime, don’t be surprised to see an explosion of college debt defaults. There’s a little more than $600 billion in federal education loans outstanding (FinAid.org) and $45 billion are in default (7.5%). It’s almost impossible to get relief on student loans. Generally even declaring bankruptcy doesn’t make them go away. So the former students will drag these loans around. For some the choice will be between food/shelter or paying their loans. Guess which choice will win out.

       So should you plan on going to college? Well, maybe. If you know what you want to do and going to college is the only way to do it. But, for many people, the idea of going to college just so you can say that you went is becoming a very expensive luxury. A luxury that you might pay for the rest of your life.

       Keep on Stretching those Dollars!

_________

       Gary Foreman is the publisher of The Dollar Stretcher.com, a website dedicated to frugal living. Click here for more information about how to find money for college.

Related Articles at Provident Planning:

1. Debt Is Not Evil
2. Lower Your Taxes: Deduct Your Student Loan Interest
3. You Don’t Need to Be an Expert to Be Successful
4. How to Get Out of Debt: Step 6 – Make a Plan to Pay Off Your Debt
5. Weekend Reading – 02/26/2010

       I’m a big fan of Alton Brown and his series Good Eats. One of his major tenets is to avoid unitaskers as much as possible. So when my wife and I were registering for our wedding (and later buying the rest of the cookware we needed), we consulted Alton’s book Gear For Your Kitchen. We wanted to make the right decisions about which items we should have to avoid a cluttered kitchen. There’s no use in spending money or space on something you’ll hardly or never use.

       But the other reason we consulted his book was to learn where quality counts and how to choose the right tool for the job. This doesn’t mean always buying the “best” tool. It just means buying (or making) the tool that will get the job done well at a reasonable price for the level of quality needed. So we pored over the book and made a list of what we felt were the items we should have in our kitchen (that I didn’t already have before we got married).

       We found that expensive kitchen tools aren’t always the right tools. For some pots and pans, it’s important to have high quality materials (which do cost more). But for others, the cheap option is just fine.

       Choosing the right tools matters because cooking can be much easier and much more fun if you’re using the right tools. If you hate cooking, it could be because you lack the right tools. Or it could be because you have too many tools and no space to cook!

       Having quality cookware in just the right amount is key to good, enjoyable cooking. You’ll be able to prepare your food easier and possibly even tastier (as you continue to improve your own skills). It’s also the key to having a frugal kitchen. Having tools that you don’t use or don’t need (because another tool can do that job) is simply wasteful. So I’m touching on two ideas here – the value of quality cookware and the value of having just the right tools (and not every possible tool).

       If you want to learn about having just the right tools, you really ought to buy Brown’s Gear For Your Kitchen or check it out from your local library. One of the most useful aspects of his book is helping you know how to decide if you really need a tool or not and which features you need and don’t need. He also discusses the quality aspect and let’s you know when it’s best to go more expensive on an item.

The Problem with Quality Cookware

       The problem with quality cookware is that it is often expensive. And that’s what keeps many people from buying the good stuff. I’m not saying you need to equip your kitchen with copper everything. But being frugal is not about being cheap. It’s about getting a good value for your money and making sure you get the best price you can at the same time.

       It’s obvious that frustrating yourself with cheap, useless, or too much cookware will make for some miserable cooking. You know that quality cookware matters. The only part left is for you to figure out what you need and then how you’ll get it. (Again, I can’t recommend Gear For Your Kitchen enough for helping you figure out what you need.)

       If you can’t afford quality cookware all at once, you’re better off picking a couple of the most useful items and building up your set of tools from there. In our kitchen, the 3-quart saucepan and the 5-quart Dutch oven get the most use by far. If I had to recommend just one pan and one pot to use, those would fit the bill. They can cover most of your cooking needs. So I’d start there. And to help you get started, I’ve got a $100 giveaway for you from CSN Stores.

Enter for Your Chance to Win $100!!!

       CSN Stores has agreed to sponsor this $100 giveaway by offering the winner a $100 gift certificate to use at any of their online stores. They’ve got over 200 different online stores (you can see them all here) so you’re bound to find something you want. This $100 gift certificate even covers domestic shipping (sorry, international shipping isn’t covered), so as long as you don’t go over $100 on your order you won’t have to pay anything.

       Want to enter? I’m making it easy. All you have to do is sign up for free updates to Provident Planning via RSS or email, then leave a comment here letting me know you’ve done that. If you sign up by email, make sure you confirm your subscription before leaving your comment on here. (I’ll know if you haven’t!)

Get Free Email Updates:

       If you’ve already signed up for free updates to Provident Planning, just leave a comment on this post letting me know you’ve already done that and would like to enter the drawing for this giveaway. Be sure to use a valid email address when you leave your comment so I can contact you if you win. The deadline to enter is Thursday, July 15, 2010 by 5:00 P.M. EDT. I’ll use random.org to select an entry and announce the winner in my weekend reading roundup on Friday.

       And just in case you do win, here are my recommendations on how you could spend the $100 at CSN Store’s Cookware.com. For the pan, I’d go with either Calphalon’s 3-quart non-stick saute pan or their 5.5-quart anodized shallow sauce pan. For the pot, I think Calphalon’s 5-quart Dutch oven would work well. But like I said, you can spend the $100 at any of CSN Store’s online shops so don’t feel like you have to use it on cookware!

Related Articles at Provident Planning:

1. Thrift Store Bargains
2. 10 Ways to Clip Your Food Costs without Clipping Coupons
3. Frugal, Cheap, & Inexpensive Mother’s Day Gift Ideas
4. 6 Cheap, Homemade, Natural, & Organic Weed Killer Recipes
5. Use It Up, Wear It Out, Make It Do, or Do Without!

Check Your Local Resources

       If you’re looking for events or even just some ideas, your local resources will be a great first stop. Look for county, city, and community websites and publications that offer a calendar of events. Possible resources include newspapers, government agencies, schools, radio stations, churches, libraries, museums, recreation centers, parks, tourism websites, volunteer organizations, and so on.

       Some groups offer online calendars that are updated regularly. If you’re lucky, you’ll be able to sort out the free things to do. If not, you’ll have to sort through your options to find the free things. If you’re a family, make this a group effort to find something everyone is interested in.

       The links for Lancaster County residents are below. The rest of this article is just a list of ideas (93 ideas to be exact!) for things to do. Most are free or at least very cheap (unless you make them expensive). You won’t like everything on these lists, but you’ll probably find at least one thing you’d like to do. Enjoy!

Links for Lancaster County residents:

• Lancaster County Online List of Schools & Libraries (Government Website)

 

• Lancaster County Parks

 

• Lancaster County Conservancy

 

• Lancaster Historical Society

 

• Lancaster Online (The Intelligencer’s website)

 

• Engle Online (Publisher of The Advertiser and other community papers)

 

• PA Dutch Country’s List of Free Things to Do (Tourism website)

 

• WJTL (Local Christian Radio Station)

 

• WDAC (Another Christian Radio Station)

 

• United Way of Lancaster County

 

• Water Street Ministries

Get Outside

• Take a walk

 

• Take a Hike

 

• Go birdwatching

 

• Go stargazing

 

• Just go outside and sit

 

• Go to a park

 

• Take a walking tour (of your neighborhood or city)

 

• Garden or landscape

 

• Forage for wild foods (Be careful! Be sure you know what you’re picking!)

Get Creative

• Cook something new

 

• Write poetry

 

• Read a book

 

• Paint or draw

 

• Bake some bread

 

• Make something with your hands (woodcraft, knit/crochet, crafts, etc.)

 

• Take digital photographs

 

• Create some graphic art

 

• Start a blog

 

• Try origami

 

• Watch a classic, foreign, or independent film

 

• Make your own movie

 

• Stock up on homemade greeting & holiday cards

 

• Write a journal

 

• Play some music

 

• Listen to some music (really listen)

 

• Read some poetry

 

• Act out a play

 

• Write a play

 

• Make up a game

Get Smart

• Go to the library

 

• Learn a new skill for your career

 

• Take a free community class or workshop

 

• Read a newspaper

 

• Watch an educational video or show

 

• Memorize Bible verses

 

• Do some puzzles (crossword, sudoku, jigsaw, etc.)

 

• Learn a new language (or just 10 words in a new language)

 

• Refresh your brain on school subjects you’ve forgotten

 

• Visit a museum or zoo

 

• Learn auto, home, or appliance maintenance & repair skills

 

• Study the basics of a new subject

 

• Read about something you’ve always wanted to do & learn how

 

• Learn to play a new musical instrument

Get Personal

• Play a board or card game together

 

• Write a letter to an old friend, your parents, or a relative

 

• Go meet your neighbors (combine with baking cookies)

 

• Take time to be intimate with your spouse

 

• Call someone and keep in touch

 

• Study and research your genealogy

 

• Talk about your goals with your spouse/family

 

• Join an interest group (like a book club)

 

• Write a letter to your future descendants

 

• Play with your pet(s)

 

• Host a potluck & movie night with your friends

 

• Go to church

 

• Pray and read the Bible together

 

• Clean up your neighborhood (with your neighbors!)

Get Organized

• Clean out a closet or a room

 

• Plan your next vacation

 

• Make or buy Christmas gifts

 

• Work on your will & estate documents

 

• Clean your whole house (inside or out)

 

• Have a yard sale (get rid of stuff you don’t use & make some money!)

 

• Scan your old pictures and documents, then organize them in folders on your computer

 

• Organize your financial papers

 

• Review your budget & net worth (and look for savings)

 

• Create a to-do list (with deadlines, next actions, and categories)

 

• Inspect your house for maintenance tasks that need to be done (make a list)

 

• Sort through your books, CDs, DVDs, etc. and get rid of what you don’t want

 

• Create an emergency information binder (health & financial records, account #’s & passwords, etc.)

 

• Clean off your desk, refrigerator, or table (wherever you pile stuff)

 

• Cook some meals in advance and freeze them

 

• Rearrange your furniture

Get Active

• Play some Frisbee

 

• Join a community sports team

 

• Exercise

 

• Go for a bike ride

 

• Play football, soccer, or catch

 

• Learn yoga or tai chi

 

• Take martial arts lessons (the first one is often free!)

 

• Go swimming (at a friend’s house or in a stream/creek/river/pond/ocean/etc.)

Give Back

• Volunteer your time

 

• Help out an elderly or disabled neighbor or friend

 

• Take a nap (give back to yourself)

 

• Donate some stuff to charity (combine with organization activities!)

 

• Be a friend to the needy and the outcast (spend time & develop a relationship)

 

• Help out with a church project

 

• Plant a tree

 

• Gather the recycling for your neighborhood (if you don’t have a service)

 

• Write a how-to or knowledge article for Instructables, Wikipedia, etc.

 

• Make a useful video for YouTube

 

• Help out with an open-source software project (if you know or want to lean programming)

 

• Hold a fundraiser for a charity

Share Your Ideas

       The best ideas are the ones you come up with yourself. If you’ve got a good idea on how to find free things to do or just know some free things anyone can do, share them in the comments below!

Related Articles at Provident Planning:

1. Why Are You Here?
2. Frugal Tips from The Complete Tightwad Gazette: Track Your Spending for 3 Months
3. Frugal Tips from The Complete Tightwad Gazette: Everything You Already Know
4. Ad Policy
5. Provident Planning’s Ad Policy

       The largest investment many of us will ever make is the purchase of a home. Many people purchase this “product” at least once during their lifetime. This “product”, however, is often so expensive that only a small fraction of potential buyers can actually afford to buy it in full at any given time. Few future homeowners have $300,000 in cash in their hands. Most of us will likely earn far more money than this over our lifetime, but we don’t have access to it all at once. In the meantime, we need a place to live.

       A mortgage helps solve this problem. Banks, with access to large sums of money, agree to give you the $300,000 you need right now at a price. This price is what we call interest, and you may have heard it said that “interest is the price of money”. This is true in one sense, but in reality what you’re paying for is time. Remember, you will undoubtedly earn far more than $300,000 over the course of your career. The interest, the “price” that the bank charges you, is not buying you the actual $300,000 itself. You will eventually earn that either way. What you get is time. The bank gives you $300,000 and time, often 30 years or so, in which to earn this money. You ultimately give the bank $300,000 back plus the price of the time.

       Different banks charge different rates for their time, and of course, the amount of time you’re buying will differ from bank to bank as well and will depend on your personal situation. But at the core, this is how mortgages work.

       What’s the value of a mortgage refinance? Simply put, a refinance allows you to repurchase the time that you’ve bought from your bank at a different interest rate, one that is lower and more favorable to you. You can also extend the life of your loan, buying you additional time at this decreased rate. A refinance, then, is like purchasing additional time at a lower price. If you can find or arrange such a deal, a mortgage refinance can be immensely valuable.

       There’s the logic behind it. As you consider whether this financial step would benefit you, remember one thing. Time is a commodity. You can buy it from any financial institution. Educate yourself and learn what your options are. Find the lowest mortgage rates that are available to you, because the lowest rate will get you the best price on the time that you’ve purchased.

* This article contains affiliate links. Read my ad policy here.

Related Articles at Provident Planning:

1. How Big of a Mortgage Can I Afford?
2. The Mortgage Interest Deduction: It’s Not as Good as You Think
3. Investing Basics: What Is a Bond?
4. How to Get Out of Debt: Step 6 – Make a Plan to Pay Off Your Debt
5. Why We’re Not Buying Life Insurance (Yet)

       As of this coming Sunday, my wife, Michelle, and I will have been married for one year! It’s been a great year, and I’m looking forward to many more. Since I’ve got our anniversary on my mind, I thought I’d make this Festival of Frugality all about anniversaries and events for June 1st.

Editor’s Picks

       BWL presents 10 Creative Ways To Give posted at Christian Personal Finance. This was actually a guest post by Craig Ford. I really liked the ideas he gave for creative ways to give.

       vh presents How to Rescue a Scorched Pan—Easy! | Funny about Money posted at Funny about Money. I’m including this as one of my picks because it’s such a great way to clean a scorched pan. The results were excellent (with pictures).

       Donna Freedman presents Why you need a nap. posted at Surviving and Thriving. She makes some good points as to why rest is important for frugality.

       Christine Talley presents The Folly of Buying Things Twice posted at Chicago: cheap!. Christine reminds us that quality is very often more important than price.

Making Money

       My article for this week’s Festival of Frugality is Frugal Tips from The Complete Tightwad Gazette: Calculating Your True Hourly Wage. How much do you really make from your job after you account for all the expenses it takes to get to work, prepare for work, and relax from work? Your true hourly wage may shock you.

       Unfortunately, there weren’t more articles in this category. I know it’s the Festival of Frugality, but let’s remember that there are two sides to the “spend less than you earn” equation. Let’s see more articles in this category next time!

Saving Money

       Mike Collins presents How to Save Money on Groceries posted at Saving Money Today and says “Learn some easy tips for saving money at the supermarket.”

       FMF presents A Great, New Way to Save at the Library posted at Free Money Finance and says “A simple but very effective way to use your library memebership to save on something you might not expect it to cover.”

       Mrs. Money presents Homemade Soft Scrub Recipe posted at The Ultimate Money Blog.

       Jason presents 10 Tips to Help Parents Stay Out of Debt posted at Live Real, Now.

       Karen McLaughlin presents How I Got a Gorgeous Perennial Garden for FREE! posted at Abundance on a Dime and says “How I went from “nothing” to a completely filled in, great looking garden bed without spending a cent!”

       Wise Bread presents Ultimate Credit Card Perks Checklist – Benefits You Don’t Know About posted at Wisebread.

       Tim Chen presents Getting The Most Out Of Your Thank You Points posted at NerdWallet Blog – Credit Card Watch and says “If you’ve got a Citi card, you may not be getting the most bang for your buck. You not only have to know how to earn points, but you have to know how to redeem them to make sure you can at least get your 1% back.”

       Silicon Valley Blogger presents How Nintendo Wii Sports & Wii Fit Cut Down on Gym Membership Costs posted at The Digerati Life and says “Here’s one way to cut down on exercising costs. Choose the cheaper and entertaining alternative.”

       Bucksome presents Bringing Entertainment Closer to Home posted at Buck$ome Boomer’s Journey to Retirement.

       Squirrelers presents The Frugal Athlete posted at Squirrelers and says “We can apply principles from athletic training to our money management skills.”

       LeanLifeCoach presents Frugal Printing, Is It Possible? posted at Eliminate The Muda! and asks “How frugally can we print?”

       freefrombroke presents Comparing TV Services With BillShrink posted at Free From Broke and says “BillShrink developed a system to help you see if you can save money on TV providers in your area. I gave the site a shot to see how well it worked.”

       Tom @ Canadian Finance Blog presents Saving Money With An iPhone posted at Canadian Finance Blog and asks “Ever wondered if buying an expensive cell phone can actually save you money? Here’s some ways it just might.”

       Mr Credit Card presents Marriott Discounts posted at Ask Mr Credit Card.

Managing Money

       Neal Frankle presents How To Shelter Retirement Account In Divorce posted at Wealth Pilgrim and says “There are some new ideas to shelter your retirement account in a divorce. It’s not difficult to do but you have to be proactive.”

       Craig Ford presents How To Pay Off A Mortgage Early posted at Money Help For Christians and says “Paying off your mortgage is a great way to save some money in the long term. This post shares some tips for paying off the mortgage.”

       Jeff Rose presents How To Get The Best Rates For Term Life Insurance posted at Jeff Rose and says “Follow these steps to save yourself a pretty penny on your life insurance premiums.”

       Adam presents Should I Invest Using Pre-Tax or Post-Tax Money? posted at Magical Penny and says “It’s not frugal to avoid paying taxes by saving as much as you can pre-tax -sometimes you need to find a balance between paying taxes now and later. I outline the pros and cons of saving using Pre-tax and Post-tax money.”

       PT presents Stop the Money Leak or Divert the Flow? posted at PT Money and says “There are two ways to save more. Why not do both?”

And the Rest…

       Madeleine Begun Kane presents Charge! posted at Mad Kane’s Humor Blog.

       Jim presents International Restaurant Tipping Guide posted at Wanderlust Journey.

       Cheapskate Sandy presents The Best Frugal People to Follow on Twitter posted at Yes, I Am Cheap and says “Social networks can be used to just make connections, but to save you some serious money. These are the best people on Twitter to help you save.”

       MoneyNing presents How to Downsize Your Lifestyle posted at MoneyNing.

       Miss Thrifty presents Introducing Erica’s Garden Pantry – and her pond-bath posted at Miss Thrifty.


       Thanks for visiting this edition of the Festival of Frugality! Be sure to tune in next week at Learn Save Invest for the next edition.

Related Articles at Provident Planning:

1. Weekend Reading – 04/16/2010
2. Weekend Reading – 10/23/09
3. Weekend Reading – 09/11/09
4. Weekend Reading – 08/28/09
5. Weekend Reading – 09/25/09