The Money Godmother's Blog

This is an excerpt from an article by Alexis Mattera, which appeared at www.scholarships.com, August 12…

…According to survey conducted by the U.S. Public Interest Research Group, seven out of 10 undergraduate students reported not buying one or more textbooks because the cost was too high. How high? The Government Accountability Office estimated textbooks cost a quarter of the average state college tuition (three-fourths at community colleges) and the U.S. PIRG revealed textbook prices have risen faster than overall inflation with a 22-percent uptick in the past four years.

For students, this means some serious money management is in order. “Generally what we get from students is ‘Yeah, it’s only a few dollars, but it could be my dinner,’” said Jessica Bruning, a student at Iowa State University. “It adds up pretty quickly.” The survey also revealed four out of five students said new editions prevented them from purchasing cheaper used books and half cited bundles or custom editions as the culprits for increased costs.

The good news – yes, there is some! – is that groups like Textbook Rebellion, Campus Progress and even individual professors are doing their part to keep textbook costs from negatively impacting students’ college experiences. “Better options are out there,” said Nicole Allen, textbooks advocate for the Student PIRGs. “Between used books, rental programs and long-term alternatives like open textbooks, we have the tools we need to make textbooks affordable for more students.”

Do you know college students who aren’t buying their textbooks?

Entrepreneurs are an optimistic bunch.

A recent study by the Kauffman Foundation reveals that about 3 million jobs are created annually by start-up businesses. They might be part-time and they might not be located in a fancy building, but nevertheless, these jobs count.

I’ve heard some say that more businesses begin during a recession when people lose their jobs. Yet research shows the self employment rate is fairly steady through economic ups and downs.

According to the Center for Rural Entrepreneurship, the rate of growth for entrepreneurship has been slightly higher in rural areas than urban areas. Who’s adding workers where you live?

Iowa’s citizens might outperform those in other states when it comes to financial literacy, but a majority still live paycheck to paycheck, don’t comparison shop for credit cards, and lack savings for emergencies.

A study conducted last year by the FINRA Investor Education Foundation shows that in Iowa:
* 53% live paycheck to paycheck, compared to 55% nationally,
* 61% do not have a rainy day fund, compared to 60% nationally,
* 25% have sought high-cost, non-bank borrowing (payday loan, advance on tax refund), compared to 24% nationally,
64% did not comparison shop for credit cards, compared to 62 % nationally.

“This study highlights how important improving financial education is for Americans, especially during times of financial insecurity,” said FINRA Foundation Chairman Richard Ketchum. “While the current economic conditions can exacerbate the consequences of poor financial decisions, some states are still well ahead of others.”

To see findings from other states, check here .