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When Is The Best Time To Negotiate Your Salary?

An employer ask you to take a seat and you start talking about the job as he looks over your resume. You are thinking really hard about all your qualifications that will get you this job. The employer then ask what sort of salary are you looking for. Is this the right time to tell him what you want to be paid? The answer is no, not just yet.

First, think of when you go to the store and you are looking at clothing.  Think about when you first see something you want! You are very interested and you have to buy it. What stops you? For most people, it is the price tag.  What happens when the retailer asks you to try it on before you see the price? Most people that see the merchandise on them before they see the price tag are more than likely to buy it. This is the same thing with employers: you want them to commit to liking you before you talk about how much you are worth. Don’t let them screen you out because you are over their budget.

The employer asked early on in the conversation how much you are wanting to get paid, so what do you say?  To postpone the salary talk until you have been offered the job reply, “I’m sure we can come to a good salary agreement if I am the right person for the job, so let’s first agree on whether I am.” Or: “Salary? Well, so far the job seems to have the right amount of responsibility for me, and I am sure you pay a fair salary, don’t you?” (What can they say here?) “So let’s hold off on the salary talk until you know you want me. What other areas should we discuss now?”

You may think this seems bad that you are trying to avoid the employer’s question, but think of it from the glass half full side instead of half empty. The employer may be impressed that you’re wanting to make sure you are a good fit before you talk about how much you want to be paid. The more qualifications the employer knows you have, the more he is willing to pay you. So by postponing the salary talk until you have been told you are the right person, you will not get screened out and their salary offer may go up.

Resource:  Negotiating Your Salary: How to Make $1000 a Minute

Tyler Larson
Peer Counselor II
Powercat Financial Counseling
www.k-state.edu/pfc

Impact of the Affordable Care Act (Obamacare) on College Students

In addition to figuring out how to pay for tuition, books, and housing, college students need to be aware of the impact of the Affordable Care Act (ACA), otherwise known as Obamacare, on their finances.

You’ve probably heard lots about this program, but there is still quite a bit of confusion and misunderstanding out there. The best way to approach this issue is to become informed about it. One reality is that the program will have a definite impact on health care insurance for students. One of the impacts is you will have more options to compare and contrast. You’ll need to figure out which option makes the most sense for you. One thing to know is that effective January 1, 2014 most people will need to have health insurance coverage that meets the requirement of the ACA, or pay a tax penalty.

If you are under 26 and your parents have health insurance that covers family members, the law allows you to stay on their plan in most cases. This is one very positive aspect of the ACA for young adults. We recommend that you check with your parents to see if this provision applies to you. If it does, staying on your parents’ plan might be the lowest cost option available to you. This coverage is available even if you are considered financially independent, and is available regardless if you are single or married. Costs for this coverage might go up, however, because many plans charge higher premiums when you add additional family members.

Check the provisions of your parents’ plan carefully if you are considering being covered by their plan. Some plans limit the physicians and other health care providers to those in their network. This is particularly true in the case of Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). If you attend school outside the community where your parents live, you might have to go to an out of network provider. This can result in less coverage or more expenses.

Another option to consider is the student health plan offered for students at KSU. In the past these plans had limits on their coverage. Limits on coverage is something that the ACA is addressing. According to Professor Roberta Riportella, Professor of Community Health at KSU, the KSU Student Health plan meets the requirement for coverage under the ACA. This could be a lower cost option for students that qualify for coverage. Check out the following website for info on this plan: https://www.uhcsr.com/SelfServiceSupport/Students/CollegeHome.aspx

A new feature of the ACA just now being rolled out is the online health insurance exchange. In this exchange you’ll be able to see the health insurance companies providing policies in your state. You’ll also be able to choose benefit packages ranging from basic coverage in the bronze plan to higher-level coverage in silver, gold, and platinum plans. You’ll pay more in premiums for the higher levels of coverage. You can access the health insurance exchange at the following link: https://www.healthcare.gov/

Professor Riportella has been very active in posting information to a blog that clears up a lot of the misinformation regarding the ACA. Her blog can be accessed here: https://blogs.ksre.ksu.edu/issuesinhealthreform/

Finally, Professor Riportella discusses the ACA and its impact on college students in the following archived recording from a session presented to students on November 5, 2013. If you missed her workshop you can check it out online. It would be worth your time to watch this informative session. The video at the beginning of her presentation covers a lot of the important info you need to know. Here is the link: http://www.k-state.edu/grad/students/workshops/aca.html

Rob Jones, M.A.Ed.
Peer Financial Counselor II
Powercat Financial Counseling
www.k-state.edu/pfc

Top 5 Hidden Costs of Your First Job

1. Clothing

Your favorite jeans and college t-shirt work great when you’re heading to class, but once you enter the workforce you may have to beef up your wardrobe. Depending on the industry you go into you may be required to wear business professional or business casual attire every day. Purchasing these types of clothing doesn’t always come cheap.  About.com estimates that men will spend $125 a month on their professional work wardrobe. That totals up to $1500 annually.

2. Transportation

Depending on what city you work and reside in, other costs of your commute may arise. After you graduate you may need to upgrade your vehicle which will increase costs of auto insurance, loan payments, etc. Transportation costs may also include stress and time away from family or other activities depending on the distance or traffic of your daily commute.

3. Eating out

Even though you may plan on bringing lunch to work most days, you may be obligated to go out to lunch. Many employees treat lunch as a time to network with clients or discuss business. Spending a minimum of $20 a week on business lunches or dinners can end up costing you $1,040 a year. This being a low estimate increasing lunch outings can really add up over time and end up decreasing the amount of money you have to spend on other discretionary items.

4. Travel

With some jobs you may be required to travel. Whether this means traveling locally to meet clients, or traveling across the country, these costs can reduce your discretionary income.  Many firms will reimburse you for travel expenses, but you may have to pay the upfront cost. There are also expenses associated with traveling that your firm may not compensate you for such as time away from your family, meals, and traveling essentials.

5. Taxes

Most people don’t consider taxes when they enter their first job but it is something to be aware of. When you earn more money you may be pushed into a higher tax bracket. This is especially true for students entering their first job who have formerly filed as dependents of their parents. In 2012 those filing as Single on their tax return earning $8,700 to $35,350 were taxed at a rate of 15%. If you earned $30,000 last year you would have been taxed roughly $4,500. As your income increases your tax bracket increases, which means you may end up forking a good chunk of your income over to Uncle Sam.

 

Although that new job offer may sound great, it is always good to look into the hidden costs. Comparing these costs and your compensation is a great way to find out if you need to further negotiate your salary. When looking at an offered salary it is important to analyze the extra costs that take away from your discretionary income in order to accurately evaluate the offer. Budgeting for these extra expenses can help you in not being caught off guard when they arise.

 

Sydney A. Henderson
Peer Counselor I
Powercat Financial Counseling
www.k-state.edu/pfc
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