Many high school and college students and graduates seek internships throughout the year and during summer or holiday breaks. Kudos for these young men and women for being go-getters and showing interest in entering the workforce at their stage in life. Internships are invaluable experiences where these young people will gain knowledge and skills they could never learn by reading books, researching online, or while in the classroom.
As per Monster, "Employers overwhelmingly point to internship experience as the most important factor they consider in hiring new college graduates for full-time positions." So not only will an intern get hands-on training, but they are giving themselves an edge above those seeking the same jobs in the future. Along with workplace background and know-how, these interns will also have an opportunity to make connections for networking, as well as develop a sense of self-confidence in the workplace environment which is much different than what they're used to in the classroom.
Interns aren't the only ones who benefit from the experience. Employers do too. According to Inc., "Student interns inject energy into an office setting, bringing creativity and enthusiasm that tenured employees may lack, and (another) benefit of interns is the opportunity for current employees to test their management abilities." Additionally, an intern who does a great job can be a valuable new full-time employee once they graduate. They already know the ins and outs and have a stepping stone upon which to advance from.
If you are a parent, supporting your child's choice to seek out an internship or convincing them to do so seems like a smart idea. That said, if you are a business owner, should you allow your own child to intern with your company? Or, if the company you work for is seeking interns, is it a good idea for your child to apply?
As long as you don't give your child special privileges or treat them any differently than the other interns, and they meet the criteria required for the role, your child will benefit from interning at your company as much as, if not more than interning for another company in a similar or related field. Your child will gain new insight about you outside of what they are used to seeing when you are in the "parent" role. Additional respect will come forth and this new dynamic will teach you a great deal about one another.
In a more conventional sense, "An intern provides an extra set of hands that can often help accomplish goals or finish projects," as per The Balance. And who couldn't use some assistance around the office? Plus, you will have the chance to help your child succeed in the future. The Balance adds, "When employees have to carefully teach a crop of young people how to do tasks and accomplish goals, it can often motivate them to personally act as stronger leaders." As a parent, you've been doing this on a personal level for years, but now you can add another layer to what you instill in your child.
If your child is interested in working in the field you're in and an internship position is open, give your child a shot. If you won't find the interaction distracting and the other employees are on board as well, this could be a parent-child experience that neither of you will soon forget. And if your child excels, he or she may just become part of the team!
For more benefits of interning for both the intern and the provider, see Brigham Young University's list of "pros." Good luck!
When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.