One thing I’ve learned as a parent is that “idle hands are the devil’s workshop.” Keep children busy and you keep them out of trouble.
The same is true with money.
Cash sitting in your checking account is just begging you to spend it mindlessly. The longer it sits there, the more likely you are to fritter it away.
That’s one of the things I love about YNAB (You Need A Budget). This budgeting software encourages you to give every dollar a job. But once you give a dollar a job — whether it’s going to be saving or paying down debt or whatever — put it to work immediately.
Here are three ways you can do just that.
1. Make full use of direct deposit
With direct deposit, you can put your money to work without even touching it. It goes right from your employer to the place you need it to go. I fully utilize direct deposit, and there are a couple of different ways that you can use this tool.
The most obvious option is to take advantage of a 401(k). It’s terrific because your employer simply takes the amount of money you choose out of your check and puts it right into your 401(k).
You never see it, and you don’t touch it. You also never have a chance to miss it. It just goes right from your employer to your retirement account.
The other thing you can do is to set up multiple direct deposits with one or more banks. Did you know that you don’t have to have your whole paycheck deposited into your checking account? If you’re trying to save money, you can direct deposit a certain amount into a savings account, and the rest into checking.
You can even have your paycheck split between two banks. For example, you could have a portion of your check sent to your checking account at your local bank. You can then direct the rest to a savings account at an online bank, where interest rates are higher. If you don’t keep a debit card for the online bank on you, you’re less likely to spend that money on things you don’t really need.
In fact, with some employers, you can have more than two direct deposits. So your money can automatically go into a number of accounts. Try not to over-engineer this, but used properly, it can be a good way to save money.
Related: 5 Unique Alternatives to Savings Accounts to Save Money Now
2. Automate your bill paying and investing
Most of our bills — from the mortgage to utilities to cell phone bills — are paid automatically. It avoids the hassle of having to make the payments and the possibility of paying a bill late.
Automating your bills can also save you some money. Several companies now offer discounts for those who go paperless and automate their payments. Some examples include SoFi (student loan refinancing), many insurance companies, and even bank lenders.
Take advantage of an FNBO Online BillPay Account and earn 0.65% APY
You can do this same thing with investing. For example, you can have an automated transfer into your investment account at Vanguard, Fidelity, Betterment, or wherever you keep your investments each month. It happens every month as soon as you get paid.
That puts the money to work immediately, and it’s out of your checking account. That way, you don’t risk spending it.
Resource: 5 Ways To Automate Your Finances
3. Physically or electronically transfer the money yourself
I invest in real estate with a really good friend of mine. We started investing in our first two homes in 2005. So, it’s been a little more than a decade, and we’ve already earned back the money that we put into the homes.
Recently, we started paying ourselves a monthly dividend from the cash flow.
We have a business checking account that’s got money in it for repairs and vacancies. We’re earning a nice cash flow, to the point where we are automatically sending ourselves $250 a month each from the account. I get the money in the form of a check, but we’re going to work on direct deposit to automate it.
For now, it’s just an old-fashioned check that comes in the mail. I immediately deposit it into my checking account. Then, before I spend it, I transfer it — in this case — to my Vanguard account.
Will that $250 a month make a big difference? You bet! Over decades, that investment of $250 a month will have a huge impact.
My concern is that if I just let it sit in my checking account, I’ll spend it and not even remember where it went. So, I don’t waste any time. As soon as the check clears, I transfer it right over to Vanguard and put that money to work.
Bonus Tip: Spend It
That’s right, you heard me. In fact, spending your money immediately can be a great way to put it to work (depending on how you go about it).
It’s advice I recently gave our daughter. Here’s the story:
She is living on her own for the first time while she finishes college. I’ve noticed that she regularly runs out of money just before payday. That’s not unusual, and it happened to my wife and I regularly when we were younger.
One problem this creates for our daughter is transportation. She finds herself out of money and out of gas. She can’t even get to work.
So, I’ve told her that as soon as she gets paid, she needs to fill the tank. If she’s halfway to payday with half a tank of gas, fill it up.
The point is to spend the money on necessities before spending it on wants. This ensures that your needs are taken care of before the money even has a chance to run out.
Learn More About How Much to Save (and How to Do It!)
So, these are just four simple ways to put your money to work right away, and they’re simple enough that anyone can do them.
It’s certainly better than frittering it away. Plus, you could even get slightly better returns (or pay less interest on debts) if you move that money to the end goal sooner rather than later.
Topics: Money ManagementThe post 3 Easy Ways To Put Your Money to Work Right Now appeared first on The Dough Roller.
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Investing often comes down to weighing your options and finding the right fit. There are many choices available for investing your money, from stocks to bonds to real estate, and a bit part of the decision process involves deciding where you’re most likely to make money while minimizing your risk. But what if there was a way…
Social Impact Investing – What It Is and How to Get Started is a post from Money Crashers.
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When my husband and I were traveling in our camper full-time, there was one question that came up again and again from fellow campers: “How do you earn money on the road?” If you’re considering hitting the road full-time, the issue of a mobile income is pressing. After all, most people can’t afford to travel…
How to Earn Money While You Travel Full-Time is a post from Money Crashers.
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Is love “enough” for a healthy and happy relationship, especially when it comes to financial troubles?
According to CNBC, in a study done by SunTrust Bank, it was found that money is the leading cause of stress in relationships. 35% of all respondents said that money was the primary cause of friction in their relationship. And, for those aged 44-54, 44% said money was their relationship’s biggest source of stress.
According to the same survey, 34% of survey takers said they were the saver while their partner is bad with money, and 47% said they and their partner have different saving and spending habits.
And, it’s no surprise that money issues are one of the leading causes of divorce.
Related content on marriage and finances:
- 15 Reasons You’re Broke And Can’t Save Money
- 30+ Ways To Save Money Each Month
- 8 Things To Sell To Make Money
- How To Ditch The Revolving Debt Cycle
I’ll be honest with you, I get a lot of questions about marriage and finances. Actually, hardly a day goes by that I don't receive an email or Facebook comment from a reader with concerns about the bad spending and saving habits of their partner.
Here are a few of the situations I’ve recently been asked about:
- My husband spends over $1,000 a month on entertainment but we have a lot of debt. How should I approach him about it?
- My wife is hiding her spending from me and I know she is. How do we work through this?
- My partner isn't trying to find a job but we desperately need the money. What should we do?
Now, if you're in a relationship with someone whose financial beliefs and practices oppose your own, does that mean you're doomed and should end it all?
Not necessarily.
Fortunately, there are ways you can work towards resolving your financial differences and improving your money and marriage behaviors. Before calling it quits due to financial stress, you should:
- Be honest, and stop keeping money secrets from your partner.
- Stop ignoring the problem.
- Make a budget and start following it.
- Make money conversations a priority, even if they have been difficult in the past.
Me and my husband have been together for over 11 years, and we are always trying to work at our financial situation as a team. We all have different spending habits, and in a marriage it’s important to come together to see how your behaviors affect your marriage.
Working together is key for a happy relationship, especially when you want to meet your financial goals.
If your relationship is struggling because of financial differences, here are some steps that you may want to take.
Tips for happy marriage and finances:
Schedule regular money check ins.
A relationship that has regular money talks and budget meetings is more likely to be financially successful and happier than a relationship that doesn’t.
To be successful with your marriage and finances, it is a MUST to regularly check in and discuss money.
Regularly communicating about money is an important step for every relationship. Being open about your money situation can help prevent any surprises, it will ensure that both people in the relationship are aware of what’s going on, and so on.
Here are some of the ways for these check ins to help you with your marriage and finances:
- You can work together and succeed. If you are both putting effort towards your financial goals, you can tackle them as a team and are much more likely to have a positive outcome.
- Knowing your financial situation will help you keep a budget. Understanding your financial situation means you can create and keep a budget that works for the both of you. You will know more about the amount of money you are spending, whether you are living paycheck to paycheck, and more.
- Being aware may prevent everything from falling on one person. Everyone should be aware of their financial situation. It's not fair for one person to manage it all, and you would be in for a rude awakening if something were to happen to that person.
- Being involved can help you with your family's goals. It would be quite difficult for a person to work towards their family's financial goals if they weren't aware of their financial situation. Being involved will keep everyone motivated and aware of what's going on.
- Regular money talks can lead to less fighting. When you are open about money in your relationship, you are less likely to have financial surprises and money fights. This is because conducting regular money talks and budget meetings means you will both be aware of what’s going on.
Recommended reading: Family Budget Meetings – Yes, You Need To Have Them
Be open about money.
Talking about money is seen as taboo, even among married couples. According to a survey done by Fidelity, 43% of respondents don’t know how much their partner earns, and 36% are unaware of the amount they have invested.
You and your partner should sit down every so often, such as once a week, once a month, or whatever timeframe works best for the two of you.
To be open about your finances, your money meetings should include:
- Your financial goals, money values, and more.
- How the two of you are doing financially.
- What changes may need to be made.
- Any financial problems, and so on.
The key here is that both of you are up-to-date on what is going on with your marriage and finances so that everyone can work together on your family’s financial goals.
Always be honest.
According to an article on Forbes, 20% of those in the U.S. keep financial secrets, and 7% between the ages of 18-49 have a secret bank account or a secret credit card they keep from their partner.
Also, according to a survey taken by the National Endowment for Financial Education, 31% of survey takers admitted lying to their spouse about their finances. These aren't just little lies either, as most of the 31% stated that if their spouse found out about their lie, then a divorce may be on the horizon.
The problem with financial infidelity is that it can lead to even bigger financial problems (like debt piling up beyond what’s imaginable), stress, unhappiness, it may start impacting other areas of a person’s life (such as work), and it may even lead to divorce.
Unfortunately, it’s possible that you may already be a victim of financial infidelity. Here's how to recognize the signs of financial infidelity:
- There are no more bills in the mail. This could be a sign that someone is hiding the bills.
- There are calls from debt collectors. These may actually be legitimate calls!
- Your credit cards are being rejected. This could be a sign that someone is overspending without your knowledge.
- Your partner no longer wants to talk about money. This could be a sign that your partner is too afraid to talk about money with you because they fear that you will uncover the truth.
Set spending limits for each other.
Some couples tell each other about every single purchase they make, whether they buy something for $1 or if they buy something for $1,000.
Others only tell their spouse if they reach a certain amount, such as $100.
Whatever you decide, it's a good idea to sit down with your spouse and determine what kind of limits you should set for your specific situation.
Doing this can help keep the communication lines open with your marriage and finances so there are fewer arguments about money.
Is your partner bad with money? What marriage and finances advice or situations would you like to share?
The post What To Do When Your Partner Is Horrible With Money appeared first on Making Sense Of Cents.
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Main Findings Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/5335/geochart-school1.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2uMBZmS;
|
Overall Rank |
State |
Total Score |
‘School-System Quality’ Rank |
‘School-System Safety’ Rank |
|---|---|---|---|---|
| 46 | Mississippi | 36.63 | 46 | 26 |
| 47 | District of Columbia | 35.10 | 50 | 24 |
| 48 | Arizona | 35.03 | 47 | 33 |
| 49 | Alaska | 34.36 | 45 | 45 |
| 50 | New Mexico | 33.30 | 51 | 27 |
| 51 | Louisiana | 30.33 | 49 | 51 |
Note: The metric “Safest schools” from the above image refers only to the percentage of public school students in grades 9–12 who reported being threatened or injured with a weapon on school property.
Note: Spendings Ranking refers to “Total Current Expenditures for Public Elementary and Secondary Day Schools per Student” (Highest Amount = Rank 1)
Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/5335/geochart-school2.html" width="700" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:700px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2uMBZmS;Ask the Experts < >
William Coplin Professor of Public Affairs and Director of the Public Affairs Program in the Maxwell School of Citizenship and Public Affairs at Syracuse University
Lawrence O. Picus Associate Dean for Faculty Affairs and Professor of Education Finance and Policy, University of Southern California
Lara Perez-Felkner Assistant Professor of Higher Education and Sociology, and Senior Research Associate in The Center for Postsecondary Success at Florida State University
Walter Feinberg Professor Emeritus of Education Policy, Organization and Leadership at the University of Illinois Urbana-Champaign
David J. Menefee-Libey Professor of Politics at Pomona College
Timothy Dohrer Assistant Professor and Director of the Master of Science in Education Program at Northwestern University School of Education & Social Policy
Vicki Bartolini Professor and Chair of the Education Department at Wheaton College in Norton, Massachusetts
Michael Goetz Director of Research at Allovue
Shomon Shamsuddin Assistant Professor of Social Policy and Community Development at Tufts University School of Arts and Sciences
Scott Ashmann Associate Professor of Science Education at University of Wisconsin-Green Bay
Khuram Hussain Associate Professor of Education at Hobart and William Smith Colleges
Chris Wood Associate Professor of Educational and Clinical Studies at University of Nevada, Las Vegas, College of Education
Joseph G. Serico Instructor of Public Policy and Administration in the Department of Public Policy and Administration at Rutgers University - Camden
Does variation in per pupil spending explain most of the variation in school quality? The most important source of variation in school quality is the socio-economic and marital status of the students’ parents. This factor correlates with school spending and many other so-called independent measures. What can state and local policymakers do to improve their school systems without raising taxes? Make decisions for the majority of their students instead of the high achieving students. This means tracking and it means presenting career options other than going to college and becoming a doctor, lawyer, or consultant. Students who like to work with their hands and have achievements they can understand are discriminated against by School Boards and Administrators who worship college going rates and the number of students taking (not necessary earning credit from) Advanced Placements Tests. In setting a child up for success, how important is the quality of the school relative to other factors (family, neighborhood, etc.)? My measure is preparing all students for all types of career. As long as that is not the primary measure of quality, quality is irrelevant. In evaluating the best and worst school systems, what are the top 5 indicators?
- Attendance and lateness rates that are measured accurately rather than lied about;
- Percentage of students who have a viable career path after high school graduation;
- Schools heavy on project learning and basic computer skills;
- Students who graduate on time from whatever post-secondary education they choose;
- Survey of alums where they are asked if they are prepared for life after college.
Does variation in per pupil spending explain most of the variation in school quality? Probably not. Spending varies across states and within states. Variation in school quality similarly varies across and within states. There is no obvious or clear correlation between spending and school quality. School quality is a function of providing adequate resources (personnel, instructional materials, etc.) to students and then offering strong instruction programs that challenge children and help those who are struggling so they can master the material. That said, districts and schools with higher spending are able to provide more and higher quality resources for student learning which would improve school quality. So overall more spending should lead to higher school quality if used by strong leaders and high quality teachers. What can state and local policymakers do to improve their school systems without raising taxes? They should encourage schools to allocate and use resources in ways that research suggests will lead to improved student performance. This includes relatively small classes, strategies to help students struggling to learn the material and support for teachers to ensure they are able to teach all students. In some states, providing enough resources to do this well will require additional funds — which may well require additional tax revenues. Higher spending states have more options for reallocation of resources to strategies that are likely to work and more funds to provide professional development to teachers and to school leaders so they can better manage the learning and instruction of their students. In setting a child up for success, how important is the quality of the school relative to other factors (family, neighborhood, etc.)? Schools are a critical part of setting up a child for success and high quality schools should be a right for every child in the United States. Some students arrive at school facing more challenges than others, and while schools cannot change those characteristics in the short run, in the long run, access to quality schools will help children improve their incomes and neighborhoods. What that means is we need to provide additional resources to help children with greater needs, not assume that their characteristics or condition makes them less able to learn. All children need to be given the opportunity to learn at high levels, and that likely will require greater efforts for low income and non-English speaking children, but we have a commitment to all of them. Schools can’t control the circumstances of the children they serve, but they need to do all they can to help overcome them in helping them learn. Lara Perez-Felkner Assistant Professor of Higher Education and Sociology, and Senior Research Associate in The Center for Postsecondary Success at Florida State University 
Does variation in per pupil spending explain most of the variation in school quality? School quality can be measured by assessing the characteristics of three components influencing student learning and achievement: teachers, classrooms, and the schools’ social context. Even today, we still see incredible variation in U.S. schools’ quality, across the nation but also within states and districts. Per pupil spending does have direct and indirect effects on school quality, but no, it does not explain most of the variation. Decades of research indicates the direct effect of spending on school quality is quite weak. Schools with large budgets are often those with positive outcomes, but the relationship is not causal. Public schools remain highly segregated by family income (the primary school spending budget resource) and race/ethnicity, even more so than in the 1960s. Educational stratification is a term commonly used by sociologists to describe the systematic variation in the students’ access to and attainment of a quality education. In summary then, no, per pupil spending does not have a strong effect on school quality when controlling for important factors such as median family income. How schools and districts choose to invest their tax dollars in schools can make a difference however. What can state and local policymakers do to improve their school systems without raising taxes? Recent research has emphasized educational effectiveness, a term related to school quality but emphasizing educational gains, for students as well as their schools on the whole. Your question asks about school “systems.” Both within and across schools, evidence shows increasing equity of opportunity is inherently important to the issue of school improvement on the whole. Investing primarily in the quality of the strongest schools and students does not intrinsically improve school quality. Rather, it is important for state and local policymakers to invest in its less advantaged schools and students, where the return in investment tends to be greater. In setting a child up for success, how important is the quality of the school relative to other factors (family, neighborhood, etc.)? While there has been extensive policy and research focus on increasing particular aspects of teacher quality, this approach seems too limited, in part because schools are complex social organizations and school quality is therefore not a simple measure. Teachers matter, but high-stakes teacher accountability policies have not been the universal solution some hoped it would be, according to recent research including a special issue last year in the major education journal Educational Researcher. Teachers are an important component of the school teaching and learning environment, but only one dimension. School contexts and the relationships within them may be even more important, according to decades of research on the social context of schooling. A now classic study by Tony Bryk and Barbara Schneider indicates it is important to have social trust among teachers, parents, school leaders, and students, especially in less well-resourced schools. Also important for achieving quality without raising taxes, particularly in diverse schools and those serving high proportions of students from backgrounds underrepresented in higher education: fostering socio-emotional supports. Research out of the National Center on Scaling Up Effective Schools has found these supports are more commonly found in highly effective schools, and can enhance students’ achievement. My research has found a similar pattern: economically disadvantaged students encounter various and often intersecting social, personal, and academic obstacles which can hinder their success; however, those students who perceive their peers’ and teachers’ regard for their educational potential are more likely to transition to four-year and selective colleges. Finally, equitable access to challenging academic courses – and cumulative preparation over time to succeed in these courses – is highly associated with student achievement and educational attainment. In evaluating the best and worst school systems, what are the top 5 indicators? This is a question that has been debated for decades. At the aggregate level, family socioeconomic status seems to be the most important factor explaining children’s chances for educational and career success, in particular, parents’ educational attainment and family income. That said, and as explained above, for students from less advantaged families, quality schools and the resources they bring can certainly facilitate students’ opportunities for upward mobility. Selecting out of one’s assigned public school to another school — through residential moves, private schools, or public school choice — is a frequently cited mechanism for students in low-income schools to achieve greater opportunity. Because of academic tracking and various initiatives (e.g., IB programs, math and science centers) to retain talented students in district public schools however, there is often considerable within-school variation in educational opportunity among non-rural schools. For these reasons, school quality indicators are independent of but closely associated with non-school factors like neighborhood and family background. Dr. Perez-Felkner's reference material was not included in the article but is available here. Walter Feinberg Professor Emeritus of Education Policy, Organization and Leadership at the University of Illinois Urbana-Champaign 
Does variation in per pupil spending explain most of the variation in school quality? It is important but as much as a symptom as a cause. Much more significant are the poverty levels, income inequality and family coherence. What can state and local policymakers do to improve their school systems without raising taxes? Why do you assume that taxes should not be raised? In any event, states can lower class size, provide incentives for seasoned well trained teachers to work with poorer children, assure that families are provided with easy access to health care. Train teachers to understand children and the community they live in. In setting a child up for success, how important is the quality of the school relative to other factors (family, neighborhood, etc.)? They are all part of the same complex system, but the most important is a safe neighborhood with good facilities and well-paying jobs. In evaluating the best and worst school systems, what are the top 5 indicators?
- Available health and dental services;
- Well trained, respected teachers;
- Small comfortable classes;
- Strong after school community programs;
- A policy of inclusion.
In evaluating the best and worst school systems, what are the top 5 indicators? Mostly, I’ve found that “school quality” indicators are proxies for what proportion of a school’s/district’s/state’s students are white, non-poor, and/or come from English-speaking households. This is pretty much what the Coleman report found in 1966, and we mostly don’t like to think about that. If we want our children to do better in school, the solution is not to be found in helping home-buying parents buy houses close to “good” schools. The solution is to make poor children less poor. Also, if we want schools to “produce better outcomes,” we should desegregate them on the basis of race, income, and language to the greatest extent possible. Schools can, of course, be improved even without poverty reduction or desegregation, and they should. All children deserve the best education we can manage. When I teach about school quality, I rely heavily on the work of the Consortium for Chicago School Research, which I have to note I have been affiliated with in the past. Timothy Dohrer Assistant Professor and Director of the Master of Science in Education Program at Northwestern University School of Education & Social Policy 
Does variation in per pupil spending explain most of the variation in school quality? When it comes to education, money absolutely makes a difference. Per pupil spending is a good measure of school quality but it is important to dig into that spending to see where the money goes. Most school budgets spend the majority of their money on teacher and staff salaries, but how much is going towards classroom teachers, support specialists, nurses, and social workers? Are teacher salaries competitive, which helps administrators hire excellent teachers? Is the school spending too much or too little on administrators? Of course, the most significant impact on student learning is family income. Poverty has a much bigger impact on kids than anything else. What can state and local policymakers do to improve their school systems without raising taxes? More and more people want schools to take a larger role in supporting kids and families. Yet those schools can be limited in terms of spending. If we accept that “it takes a village to raise a child”, then we need to find ways of getting schools together with other local agencies that work with kids and families. If a school can’t afford a school nurse or social worker on site every day, then can the local hospital or regional mental health care organization send volunteers into the school? How can the school partner with organizations like the YMCA or park districts on before or after school care and activities? Family engagement efforts can be a great way of not only connecting parents to schools but also having them help out as tutors or playground supervisors or crossing guards. Schools can be improved with careful attention to the development or great teachers and principals. State policymakers need to invest time and money in deploying the best professional development they can find to continually improve teaching and learning. In setting a child up for success, how important is the quality of the school relative to other factors (family, neighborhood, etc.)? We continue to see schools as the major social institution for helping kids succeed in college and a career. We have even built our learning standards around “college and career readiness.” So quality education and school experiences are essential for long-term success. However, we also know that poverty has an equal if not greater impact on student success. And doesn’t that make sense? Food, clothing, shelter, health care, loving family support are all essential to a happy life. Kids need that before they can engage in learning how to read, calculate, or think like a historian. We also know that social and emotional learning skills have a major impact on learning and living. We need to make sure that our students have a balanced life outside school and a balanced curriculum within school. In evaluating the best and worst school systems, what are the top 5 indicators?
- Geographic location;
- Per pupil spending;
- Student-Teacher ratio;
- School climate;
- Family engagement.
Does variation in per pupil spending explain most of the variation in school quality? Certainly resources pumped into a school system make a significant difference. However, there are other critical factors at play when it comes to school achievement/ quality. So much happens before a child enters school that impacts a child's chance of academic success. Research supports the following:
- A stable home life with at least one consistent caring and nurturing adult;
- A safe neighborhood where stressors associated with poverty are diminished;
- Access to prenatal and early childhood healthcare;
- Proper nutrition;
- Regular exposure to rich language and vocabulary from birth;
- Regular exposure to books and being read to from birth;
- Access to high quality and affordable child with college educated professionals prior to starting school;
- Access to high quality and affordable before / after school programs with college educated professionals;
- Parent education and support programs, such as home visiting programs;
- Opportunities for regular, creative play with others;
- Frequent and intensive early intervention for those children identified as having special needs.
- Regular ongoing high quality professional development for teachers and school staff;
- High quality early and intense intervention programs for students struggling with reading, math, etc.;
- Social competency programs for children to develop respect for themselves and others;
- Regular / early support for English Language Learners by trained personnel;
- Leadership that has “walked the walk”, respects and trusts their staff, knowledgeable of curriculum and partnering with other community agencies and families;
- Opportunities for children to play during school with regular recesses (which are disappearing);
- A developmentally appropriate and challenging rich curriculum is essential - one that encourages inquiry, investigation, problem solving and creativity;
- Support personnel including school nurse, social worker, adjustment counselor, behavior specialists, psychologist, ESL teachers, etc.
Does variation in per pupil spending explain most of the variation in school quality? Variation in school spending is expected and oftentimes warranted. Differences in student needs (e.g., special needs students, grade level) as well as the costs of education that occur outside the control of a school or district (e.g., cost of living) explain a great deal of the variation in school spending. The general principles of adequacy and equity are the first determinants of school quality and can be answered with two questions: Are there enough dollars in the system? and Are those dollars distributed equitably according to student needs? Note that this latter concept of equity means that students do not receive equal dollars, but instead unequal dollars based on need but those dollars would be equal independent of the school they attend. Once these fundamental aspects of dollars are satisfied, a determination of school quality is relative to an individual’s desire for schooling, in that if they are looking for a school that focuses on increasing academic prowess, if dollars are used for this purpose, they have a quality school. If those dollars are used for another purpose, they have not found a quality school. What can state and local policymakers do to improve their school systems without raising taxes? State and local policymakers have a great deal of influence on how school systems allocate funds. By supporting strategic management of resources through training and prioritization, schools can reallocate their existing resources towards more effective use of the dollars they have. Every school can use their education dollars more effectively. In setting a child up for success, how important is the quality of the school relative to other factors (family, neighborhood, etc.)? Given the quantity of time children spend it in school, it is not surprising that the quality of a school has an effect on a child’s success. At the same time, family and neighborhood have a tremendous effect on a child, especially in the early years. School and neighborhood factors are often aligned, good or bad. That said, schools sway positively or negatively outside of family and neighborhood factors, so it behooves parents to search out schools that have goals aligned to the ones they have for their children. In evaluating the best and worst school systems, what are the top 5 indicators?
- Difference in academic outcomes by race, class, gender and other subgroups;
- Overall proficiency rates at 3rd, 8th, and 10th grades;
- High school graduation rates of freshman class;
- Per-pupil spending compared to state/national average (adjusted by region);
- Climate survey results (school/district level)/vision for education (state).
Does variation in per pupil spending explain most of the variation in school quality? The answer to this question depends, in part, on your definition of school quality. There are many possible measures of school quality, including student performance on standardized tests, graduation rates, student-teacher ratios, and teacher qualifications. Differences in per pupil spending may be associated with differences in average class sizes and teacher salaries. Family income and socioeconomic status have a strong relationship with children’s test scores, independent of school factors. Keep in mind that school districts with high income families often have high levels of per pupil spending. The high income families living in these districts often have high performing children. However, many local governments have sought to equalize spending or ensure adequate spending across districts by increasing per pupil expenditures in low income schools that have low average test scores. In other words, the relationship between per pupil spending and student performance is not straightforward. What can state and local policymakers do to improve their school systems without raising taxes? It is important to note that simply raising taxes will not necessarily lead to school improvements, as measured by student performance. The evidence on the relationship between school spending and individual outcomes is mixed. Recent studies find that increases in school spending may have positive effects on test scores and long-term outcomes like adult wages. However, a long line of research indicates there is not a consistent relationship between school spending and student achievement. In addition to how much money is spent on schools, state and local policymakers need to consider how the money is spent. Allocating funds to hire effective teachers, reduce class sizes, and increase instructional time is more likely to have a positive effect on student outcomes than spending money on budget items that are less related to learning improvements. To the extent that large concentrations of disadvantaged students multiply the challenges for schools, policymakers may consider ways to reduce school and residential segregation. Neighborhood mobility programs, bussing, school district mergers, and the provision of affordable housing in higher income districts would fall in this category but more research is needed. In setting a child up for success, how important is the quality of the school relative to other factors (family, neighborhood, etc.)? Evidence suggests that school quality, family characteristics, and neighborhood conditions are all important for educational achievement and employment outcomes. For children growing up in low-income families, sustained exposure at an early age to higher quality schools and improved neighborhood conditions may have a bigger impact on individual outcomes than for children from high-income families. In evaluating the best and worst school systems, what are the top 5 indicators? It is very difficult to compare school system performance in an accurate, reliable, and consistent manner. A major reason for this difficulty is that school systems vary in their starting points, the types of children they serve, available resources, and many other factors. Scott Ashmann Associate Professor of Science Education at University of Wisconsin-Green Bay 
Does variation in per pupil spending explain most of the variation in school quality? It explains some variation, but maybe not the most. There are many factors that play a role in school quality. But even before measuring those factors, one must first define "school quality." In some cases, it means the academic achievement of students. In other cases, fiscal prudence of administration, the academic preparation of the instructors, the condition of the physical facilities, student access to resources for learning, etc., are also considered. I think the bottom line is that there are many components to consider when measuring school quality, however it is defined. What can state and local policymakers do to improve their school systems without raising taxes? For years, much time, money, and attention has been given to standardized tests. While these assessments play a role in the education system, they are not the whole story. Some funding for assessment needs to be re-directed to improvements in curriculum and teaching methods. High quality instruction, curriculum, and teaching materials are needed to improve student learning of important concepts and ideas. To accomplish this, many teachers are in need of some professional development. In setting a child up for success, how important is the quality of the school relative to other factors (family, neighborhood, etc.)? First, how is "quality of the school" being defined. Second, no matter the definition, there are many factors that play a role in student success, with the school setting being one of them. However, support from the home, making sure the student's basic needs are being met, the intrinsic factors of the student (e.g., motivation, personal goals), the student's peer group, and others also play a role. Khuram Hussain Associate Professor of Education at Hobart and William Smith Colleges 
Does variation in per pupil spending explain most of the variation in school quality? Per-pupil spending explains much of the variation in school quality, but not all of it. School structure also matters. Schools with collaborative educators, community-driven policies, authentic assessments, and small learning cohorts also enhance students’ learning environments. What can state and local policymakers do to improve their school systems without raising taxes? U.S. policymakers can improve school systems by creating inter-district options for all pupils or by redistricting schools with the specific aim of integrating suburban and urban districts. The Civil Rights Project at UCLA has documented the tremendous educational and social gains made by integrating such school districts. In evaluating the best and worst school systems, what are the top 5 indicators? Here are five questions, everyone should ask when evaluating a school system:
- Are teachers collaborative? Teachers that work in teams to plan and problem-solve, and use master teachers as mentors are better equipped to address a wide array of learning needs.
- Are educators institutionally supported? School systems with institutionally supported professional associations, unions, tenure and promotion opportunities as well as highly competitive salaries yield better outcomes than schools without such supports.
- Does the school support learning communities? From class size, to student cohorts, creating a small community that learns together is measurably effective at improving student learning in ways that isolated or overcrowded classrooms do not.
- Is there authentic, school-wide leadership? Authentic leadership entails school-wide participation in issues of school governance and policy making by students, parents and staff. The absence of school-wide leadership is indicative of top-down school structures with limited capacity for community-engaged learning.
- Is there deep commitment to multiculturalism? Schools that recognize and honor students’ home cultures in the curriculum promote inclusive and engaged learning. Furthermore, school systems that empower students to address social inequalities related to cultural differences help to build inclusive and just learning communities.
Look beyond just test scores as the sole source of data about ‘school quality.’ Looking only at commercial rating systems or just the academic achievement history of a school via the state department of education ‘report cards’ can overlook a specific outstanding academic program or the tremendous benefits of a diverse school population. Just looking at the average scores on standardized tests or the percentage of students that pass the state achievement exams may fail to identify schools that might be truly exemplary in STEM education or the arts, for examples. Moreover, a school with outstanding test scores but a lack of diversity in the students and educational staff could ultimately deny your child the multiple benefits of diversity – including learning to collaborate with students/educators from other cultures and/or differing backgrounds. Joseph G. Serico Instructor of Public Policy and Administration in the Department of Public Policy and Administration at Rutgers University - Camden 
What can state and local policymakers do to improve their school systems without raising taxes? After nearly forty years as a school teacher, administrator and observer, the clearest takeaway that I can share is that school improvement does not occur without exceptional leadership. School districts should invest heavily in identifying the most capable principal candidates, cultivating effective teacher leadership programs and building a pipeline that leads to placement of the most capable, most qualified and most caring candidates. Every exceptional principal's tenure comes to an end, so sustaining the culture, the climate and the expectations are all pivotal if you want to maintain and grow your success. In evaluating the best and worst school systems, what are the top 5 indicators? Personally, I would look for answers to the following questions: What does student performance look like in comparison to similar schools and against some external standard such as the best schools in the state or region? What do after-graduation surveys tell you about student's perception of their preparedness for post-secondary life? To what extent is such data used to continuously improve school performance? What does curriculum, instruction and assessment look like in the school? Is it generally student centered? Is it rigorous? Are students highly engaged in their work? Are they asked in assessments to perform with knowledge? Are teachers continuously supported and encouraged to grow and develop as professionals? How are special needs students supported in the school? Is the district committed to appropriate expectations and high levels of support to help those students achieve their individual goals? Are special needs students effectively integrated into the life of the school? To what extent has the school crafted a caring, child-centered culture that ensures that all decisions are made with the interests of children as the top priority? Are respectful relationships modeled by all administrators, and teachers and expected in turn from students? To what extent does the school ensure that all stakeholders (teachers, parents, students, community) voices are heard in important decision-making? To what extent does the community adequately support the schools and to what extent do the schools invite in the community to be their partners?
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Subjects in Traci Mann’s experiment chose things like mac and cheese, brownies, cookies, and cake as their comfort foods. (Photo: Tavallai/Flickr)
Why do people eat comfort food? To make ourselves feel better, of course. So when NASA was looking for ways to reduce the stress of space flight for the astronauts (and for ways to get them to eat more), they turned to an expert on comfort foods. Traci Mann (of the University of Minnesota’s Mann Lab) and her team tested the effectiveness of comfort foods on earth.
The researchers showed their subjects clips from movies like The Hurt Locker and My Girl to induce negative moods. They then gave the subjects either their self-reported comfort food or gave them a food that they liked, but that wasn’t their comfort food. In other experiments, they gave some subjects granola bars, or no food at all. They compared each person’s mood after eating (or not eating, for the control group).
What they found: comfort food doesn’t provide any more comfort than other foods, granola bars, or even no food at all. Everybody’s mood improved the same amount.
Put down the brownie batter and relax with a Tell Me Something I Don’t Know episode filled with facts on quiet rooms, pillows, comfort food, and …Spam?
Krista Tippett (host of On Being) is our special guest co-host, with Maggie Ryan Sandford (science writer, researcher and producer) as real-time fact-checker.
The post Creature Comforts: TMSIDK Episode 25 appeared first on Freakonomics.
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For the past five years, my goal has been to earn a conservative 4% – 6% yearly return on my overall net worth given I reached my target number. It felt so amazing to escape the rat race in 2012, I was comfortable with what I had. Now, however, thanks to hedonic adaption, I’ve become used to the freedom and have turned greedier with my desired returns.
Today I’m shooting for a 10% yearly return based on my following new money investment allocation for 1H2017: 57.4% Real Estate Crowdfunding (10% target return), 11.27% Bonds (4% target return), 9.41% Stocks (10% target return), Venture Debt 3.3% (12% target return), 8.27% Mortgage (4.25% return), and Home Improvement 10% (20% return).
Let’s dig deeper into the numbers!
Financial Samurai Mid-Year 2017 Investment Review
April Investments
Stocks: Unlike in 1Q2017, where I just increased my exposure to the S&P 500 through an index ETF, I purchased $10,000 of Netflix at $141/share after 1Q results. At the time it felt a little painful to purchase since my original position was at $92/share. But I loved their portfolio of original content despite their massive cash hemorrhaging. Their business is sticky and inelastic. They can easily raise prices by 20% a month and lose less than 20% of their customer base to increase revenue. Reed Hastings, the founder, spoke at my 2006 Berkeley-Haas MBA commencement. Wish I had put my life savings in the name at the time!
Mortgage: Paid down $3,000 of my 4.25% Lake Tahoe vacation property mortgage. My goal is to pay random small amounts each month so that I feel no pain paying down my worst investment ever. If I see a Bank of America branch on my way back from lunch, I may swing by and pay down whatever is in my wallet. The goal is to pay the $346,000 mortgage off by June 15, 2022.
Real Estate Crowdfunding: I invested $250,000 in the RealtyShares fund in January 2017. Instead of inputting the entire $250,000 in January, I spread it out over a six month period. It’s really just accounting as I didn’t know exactly how quickly they’d be able to invest in the 10+ deals they have in their mandate.
In April, the fund made a $600,000 investment in the acquisition and renovation of College Town Tucson, an 88-unit, 247-bed student housing apartment complex several blocks from the main campus of the University of Arizona in Tucson, AZ. Constructed in 1972 and partially renovated in 2006 and 2013, the Property consists of a mix of two, three and four-bedroom units and includes amenities such as a clubhouse, fitness center, swimming pool and property-wide Wi-Fi.
I’ve always wanted to gain exposure to an apartment complex in a college town due to the consistent high demand. I just never wanted to physically own and manage such a property due to the frequent turnover. Can you imagine what a PITA is to be a landlord of a student housing complex?
I can imagine all the parties in the hot tub now. IRR target: 16.5%. 5-year hold. $20K minimum investment. Reminds me of a scene from Breaking Bad.
Home Improvement: After my landscaper finished my backyard, I asked him to landscape my side yards and front yard. I was extremely pleased with his workmanship and his price. As a result, I referred him to a friend who hired him to do ~$25,000 of work. I’m now 100% done with my home remodeling/expansion projects for the fixer which I bought in early 2014. It was a long journey due to the complexities of the inspection system and the idiosyncrasies of each contractor.
May Investments
Bonds: Invested $26,600 in two, 20-year maturity, California municipal bonds with a yield to worst of 3.8%. Based on my estimated 32% effective tax rate (federal and state), the gross yield is therefore 5.5%. Instead of putting more into bond funds, like I did between November 2016 – January 2017, I decided to focus more on individual bonds so that I know I’ll get par value ($100/share) back upon maturity plus the coupon payments for all those years.
Many bond funds have rallied back to pre-election levels, so I felt hesitant allocating more money. If you add 1.5% for the 6-month yield to the principal appreciation so far, we’re talking a pretty healthy ~6% total rate of return.
Related: The Case For Buying Bonds
Municipal bond returns YTD are not bad once you include the coupon payment
Mortgage: Paid down another $5,000 of my 4.25% Lake Tahoe vacation property mortgage. I decided to rationally no longer pay down my 2.375% rental home mortgage and my 2.5% primary home mortgage until the Lake Tahoe vacation property mortgage is paid off.
Real Estate Crowdfunding: The RealtyShares fund made a $700,000 common equity investment in the Virginia Crossing Hotel and Conference Center, a full-service hotel located in Glen Allen, Virginia.
Opened in 2001, the Hotel comprises three colonial-style buildings with guest amenities, including 2 full-service restaurants, an outdoor swimming pool, fitness center, 24 conference rooms and a 4,700 SF ballroom. The Hotel is located adjacent to The Crossings Golf Club, one of the greater Richmond area’s premier semi-private courses, and is strategically located at the convergence of Interstates 95 and 295.
I’m very excited about this acquisition and repositioning because there’s a special place in my heart for southern Virginia since I went to school 40 minutes south of this hotel at The College of William & Mary. I love colonial style buildings and would happily retire in Williamsburg for three months of the year if I wasn’t living on the west coast.
Home improvement: I decided to fulfill my dream of getting a hot tub for $15,825 now that the back yard is done. The whole process took nine months since I first visited the show room. Since installation, I’ve averaged about five hours a week in the hot tub. The maintenance is easier than expected. What is kind of scary is how much home improvement costs add up. I can see how a homeowner can spend an endless amount of money upgrading their home if they don’t set a limit. I’ll be putting together a home remodeling guide in the future.
June Investments
Venture Debt: I received a capital call of $3,001 for my second venture debt fund investment. For these types of funds, you commit a certain amount of money, and the fund will call a percentage of your commitment over a certain period of time, usually within two years. The first venture debt fund I invested in almost three years ago is looking like it will return 13% a year net of fees because they’ve almost returned all the capital. As a result, I’m considering investing more capital into the second fund now that the guys have even more experience and a larger fund to spread out the expenses.
Mortgage: I was paralyzed with what to do in June since bonds and stocks did well, so I decided to pay down $22,000 more of 4.25% mortgage debt. When in doubt, pay down debt.
Related: Debt Optimization Framework For Financial Independence
Real Estate Crowdfunding: The RealtyShares fund approved a $775,000 JV equity investment in the Sheraton Dallas Forth Worth Airport Hotel, a 302-key full-service hotel located in Irving, Texas. DFW International Airport is ranked the 4th busiest airport in the US, and the DFW region is booming. The Hotel is approximately 15 miles northwest of downtown Dallas, one the region’s largest employment centers.
I’m bullish on the heartland of America. The fund had already made an Austin, Texas multi-family residential property investment in December 2016, and I was hoping they’d continue to invest more in Texas. The Dallas area has one of the most robust income growth trends in the nation.
Capital Commitment Review
$272,426 of new capital was put to work in 2Q, which equates to $90,808 a month on average. This figure surpasses my goal of $30,000 – $50,000 a month, but it’s due to arbitrarily spreading out my original $250,000 RealtyShares investment across six months.
If I take out the entire $250,000 real estate crowdfunding investment, I ended up investing $32,333 a month on average. With a baby on the way, I knew I wouldn’t have as much time to focus on my investments this quarter. Hence, I knew that if I invested in nothing else, I would average $41,667 a month for six months ($250,000 / 6 months).
When income generation is good, it’s important to stay disciplined and maximize your investments in order to prevent lifestyle inflation. Pay yourself AND your investments first! When difficult times inevitably come, your investments will hopefully carry you through until the next bull run.
Pro Forma Performance Analysis
I’ve allocated capital to achieve a potential 10% objective return based on my risk tolerance (green). Of the $435,571 in 1H invested capital, I’m looking to return roughly $42,744 based on my base case objective.
I’ve also included my current estimated returns, which comes out to about 15% (blue). The only thing that looks aggressive is a 50% return on Home Improvement. But the 50% return could be conservative because competing landscaping bids were 100% – 150% higher since my guy did the job as a side hustle for cash. For example, one competing landscaper quoted me $50,000 to do my front yard, and my guy did it for $17,000, including materials. Further, it’s a bull market on the west side of SF. Remodeled houses are going for tremendous premiums.
Although the RealtyShares fund has a 15% target IRR over five years, and all three investments in 2Q2017 have target IRRs greater than 15%, I’m keeping the current estimated return at 10%. All the deals are equity deals, so it’s good to stay conservative until there are exits.
Bonds have done very well as you saw in the chart above, and my stock returns have been solid due to investments in Amazon in 1Q and Netflix in early 2Q. Due to valuations, I still can’t get excited about putting a large allocation into stocks, so I’ll just wait for a pull back if one ever comes to invest a more meaningful amount of capital. At least I didn’t short the market!
Going forward, my Home Improvement weighting will decline, but my Real Estate Crowdfunding, Bonds, and Venture Debt weightings will increase. The total return target will still be 10% a year.
My biggest financial fear is not a bear market, but a precipitous decline in income. I feel like a young man again because contributions are currently far surpassing returns. I also want to have enough fire power to invest during a downturn. Therefore, despite the constant sleep deprivation of being a new father, I promise to keep slicing away. After all, a 50% increase in family size warrants a 50% higher wealth target right? Let’s rock.
Related: Ranking The Best Passive Income Investments
Readers, what type of investments did you make in 2Q2017? How are you feeling about the current investing environment? Any risks you see from my 2Q2017 asset allocation? Where can everything go wrong? I will might put together a mid-year passive income report as well.
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