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The final week of my Money and Banking class was about economic factors and the interest rate target. Not unlike our current predicament, the example mentioned a slumping economy, high unemployment, and the threat of inflation on the horizon. We were to decipher this information and decide whether the target interest rate should be lowered or raised. Here is my response:

This reminds me of a level. We move it a little up and then a little down trying to get the bubble to be in just the right spot, to be level. When the economy slumps the central bank steps in and makes its adjustments in an attempt to inch up the economy. The problem with making an economic adjustment is that the effect of today’s adjustment will not be fully felt for up to twelve months. This [is discussed on page 448 and] is called the transmission lag. So, unlike our level where we see an immediate fix, any change inflicted by the central bank will take some time and will need to consider its future effect.

Inflation is generally thought of as a dirty word, but inflation on a smaller scale can be a good thing. The central bank should look at lowering the nominal interest rate to foster economic growth, stimulate employment, and be mindful of this as the threat of inflation looms on the horizon. The goal is that leveling effect with minor adjustments to correct the balance.

While this was not completely foreign to me, it does clarify a lot. As much as we would like for everything to be all better with a little bailout here and a lot of bailout there it does not seem to work quite that simply. Furthermore, if we make too sharp of an adjustment we will be forever trying to find balance, but actually become more and more unbalanced.

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I love getting these emails telling me the top paying degrees. As if that will really matter to me if it is not something of interest to me. I know they are just trying to be helpful, but be helpful to whom? and at what cost?


1. Chemical Engineering ($59,218)
2. Electrical Engineering ($55,333)
3. Mechanical Engineering ($54,057)
4. Computer Science ($53,051)
5. Civil Engineering ($48,998)
6. Economics ($47,782)
7. Management Information Systems ($47,407)
8. Finance ($46,442)
9. Accounting ($46,292)
10. Business Administration/Management ($43,256)


Now what? Am I supposed to change my major or decide to major in something just because it is considered a top paying degree? Loyal reader Luna commented last week on just this very thing. Well, not this very thing, but in response to my quandary on my choice of major. Luna started out as a Computer Science major. [Notice Computer Science is number 4 on the list above.] After spending some time actually working in that field, Luna decided it was not for her. Luna is now a Business Management major and happier for it. [Business is number 10.] There is a good $10,000 difference in those two yearly incomes. Does this mean Luna made the wrong choice? Absolutely not.


I am an Accounting major [number 9]. I will be receiving my degree in January 2010 and can look forward to making a whopping $46,292 (on average) per year. I was making $39,000 + benefits without the degree. This is not making me think I made a good decision in returning to school. And, to top it all off, there are NO JOBS where I reside. None. Zip. Nada. And those few random positions listed by temp-to-hire companies want you to have a Masters degree. For no more money! You have got to be kidding me.

Oh, and that is not even the worst part. Really, there is more. I do not want to be an accountant. I know, why did I choose to study accounting if I do not want to be an accountant? Well, my thinking was it is what I know. I have an Associates degree in accounting and have worked in the bookkeeping, office management, accounting field for the past 15 some odd years. And there was the slight possibility I would be moving back to my old stomping grounds in South Florida and I did not want to start at the bottom, AGAIN. Therefore, the continuation only made sense. I never moved. In fact, so much changed where I was working that I ended up losing my job when new management came in and I was deemed incompatible - read: had a mind of my own and did not mind using it.

What does this mean to you? Did you choose your major based on salary? And do you think it is the money or the love of what you do that makes you successful?


image courtesy of swamysk.

College is expensive. Nothing like stating the obvious, huh? Good thing there are TONS of scholarships available to help offset some or all of those costs. So what are we waiting for, let's get this show on the road!

Thanks to FastWeb.com for providing information on these and other great scholarships. Want to be in the know on the newest scholarships and internships available? Why not join FastWeb today. It is free and it is easy. Join FastWeb today.

Thanks to SallieMae for providing information available for those noted below.  Sign up for SallieMae's scholarship finder today and find scholarships that match your profile.


Scholarships Ending Soon

$1,500 SuperCollege Scholarship (courtesy of SallieMae)
Deadline: September 30, 2009
Amount: $1,500
Website: http://www.supercollege.com/scholarship/

$1,500 Scholarship Detective Launch Scholarship (courtesy of SallieMae)
Deadline: September 30, 2009
Amount: $1,500
Website: http://www.scholarshipdetective.com/scholarship/index.cfm

Benjamin A. Gilman International Scholarship
Deadline: October 6, 2009
Amount: Up to $10,000
Website: https://gilmanapplication.iie.org/IIE/public/Default.aspx

Writers of the Future (courtesy of SallieMae)
Deadline: September 30/December 31/March 31/June 30
Amount: $500 - $4,000
Website: http://www.writersofthefuture.com/

FastWeb's Third Leg of their Scholarship Triathlon

Deadline: October 7, 2009
Amount: $1,500
Website: http://www.fastweb.com/college-scholarships/articles/1559-scholarship-triathlon-leg-three-win-1500?utm_source=nlet&utm_content=fw_R1_20090916&g=1


New Scholarships

Amy Lowell Poetry Travelling Scholarships (courtesy of Zinch)
Deadline: October 15, 2009
Amount: $50,000
Website: http://www.zinch.com/Scholarships/ScholarshipView.aspx?url=http%3a%2f%2fwww.amylowell.org%2findex.html&s=6814

Writers Digest Pop Fiction Awards (courtesy of Zinch)
Deadline: November 2, 2009
Amount: $2,500
Website: http://www.zinch.com/

Prize in Ethics Essay Contest (courtesy of SallieMae)
Deadline: December 7, 2009
Amount:$500 - $5,000
Website: http://www.eliewieselfoundation.org/

CrossLites Scholarship Contest (courtesy of SallieMae)
Deadline: December 15, 2009
Amount:$2,000
Website: http://www.crosslites.com/

National Urban Fellows Leadership Development Program (courtesy of Zinch)
Deadline: January 22, 2010
Amount: Varies
Website: http://www.zinch.com/Scholarships/ScholarshipView.aspx?url=http%3a%2f%2fwww.nuf.org%2fHome%2findex.asp&s=9600


Sweepstakes

Sallie Mae Monthly Drawing
Ends: ongoing
Amount: $1,000
Website: https://www.collegeanswer.com/global/about/about_disclaimers.jsp#rules

GoCollege Lucky Draw Scholarship (courtesy of SallieMae)
Deadline: Monthly
Amount: $250
Website: http://www.gocollege.com/lucky-draw-scholarship.html