Family, festivities, fun—Christmas is one of the most widely celebrated holidays. It is is traditionally a time when families reunite to celebrate the birth of Christ and give each other presents. However, many of us are college students living far from home. How can we celebrate Christmas away from our families?
1. Connect with Friends
Just because you’re not with your family doesn’t mean you have to spend Christmas alone. Find some friends and do something fun! Make hot chocolate and watch a Christmas movie, have a snowball fight, or compete to see who can make the best snow fort. In a 2015 study, Psychology professor Dr. Julianne Holt-Lunstad found that loneliness is a precursor for early death. “The risk associated with social isolation and loneliness is comparable with well-established risk factors for mortality, including those identified by the U.S. Department of Health and Human Services (physical activity, obesity, substance abuse, responsible sexual behavior, mental health, injury and violence, environmental quality, immunization, and access to health care),” she and her co-authors said. Loneliness can lead to death just as much as obesity and substance abuse can.
So don’t celebrate the holiday alone! Find some friends and make this the best Christmas ever!
2. Help a Teen Bake and Deliver Christmas Cookies
This is a fun way to get involved with the holiday, learn a new skill, and spread Christmas cheer. Christmas isn’t just about presents and Santa, it’s a celebration of Christ. You can easily honor him by serving others. In a 2017 study, School of Family Life professor Dr. Laura Padilla-Walker found that teens’ self esteem was boosted by helping strangers. “There is something unique about helping those that teens do not know that helps them to feel better about themselves, but helping family and friends does not facilitate this same outcome,” said the researcher. Not all of us are teenagers, but serving others can still give us those positive vibes.
3. Play a Good Video Game
There are good video games out there, ones that encourage prosocial behavior (like these, suggested by our 2014 Hinckley lecturer Dr. Brad Bushman), and good ways to play them, as shown by research done by Dr. Sarah Coyne and others.
4. Have a Christmas Dance Party!
Moving around—dancing—makes you happier! “Pushing yourself to go out and be with other people will automatically increase your mood because your body will be producing serotonin and endorphins, which naturally increase your happiness level,” said a Relate Institute article. If you’re feeling sad that you’re not at home, just dance! Grab some friends, hit the dance floor, and jam!
It’s not easy to spend Christmas away from your family, but these four tips can make this a Christmas to remember!
According to the Federal Reserve, the average wealth of a white household was about six times greater than that of the average African American household and five times greater than the wealth of the average Latino household in 2013. Racial disparities in wealth grew wider than they’d been in decades after the 2008 recession, and led to disinvestment in neighborhoods and unequal opportunities for individuals who were of different races. What’s the culprit for this imbalance and inequality? Limited access to “good homes in high-quality neighborhoods,” according to BYU Sociology professor Jacob Rugh, among others. And the culprit for this limited access? High cost, high risk loans. When borrowing to purchase homes in past years, African American borrowers were two times more likely to receive a subprime loan that white borrowers.
Rugh and researchers like him are honing their interest on the changes made to the federal loan system in the years leading up to the US housing crisis and how this system created higher risk loans for minorities, perpetuating racial residential segregation in urban America. In a recent article co-authored by Dr. Rugh, he and his colleagues shared their analysis of 220 accounts in recent fair lending federal court cases involving discriminatory lending practices. The largest take-away? Loan originators utilized a number of mechanisms to identify and gain the trust of African American and Latino borrowers to place them in higher-cost and higher-risk loans.
The Past vs. Today- Same Issue, Different Way
“Historically,” says Rugh, “[the racial] disparities [in wealth] have been driven by multiple forms of discrimination…including white mob violence against African-Americans trying to move into formerly all-white neighborhoods, municipal segregation ordinances prohibiting residence by blacks on predominantly white blocks, …racially restrictive covenants barring the future sale of a property to non-whites, [and] redlining, or [denying] credit to [individuals in] non-white residential areas.”
Multiple studies have already documented that African American and Latino borrowers were frequently charged more for mortgage loans than similarly-situated white borrowers. What makes Rugh et al’s study unique is that it identifies the specific institutional- and individual-level mechanisms used to perpetuate those actions.
In the 1980s and 1990s, several federal legislative acts were passed to ensure that minorities were not being excluded from loan or housing opportunities. These new lending practices, however, also made loan profits come largely from fees and the gap between the prevailing interest rate index and the rate paid by the borrower. Enticing loan officers to go for quick profits, loan originators began to exploit rather than exclude minorities as they offered these individuals risky, high-cost financial services that only furthered financial and societal disparities between whites and minorities.
Tactics in Unfair Lending
Steering mortgage borrowers toward subprime loans, even if they qualified for prime loans, became common practice for many loan originators. “Put quite simply, loan originators wishing to maximize profits had to convince customers with good credit to accept higher cost, higher risk lending products,” says Rugh et al, whose analysis shows that originators explicitly targeted neighborhoods with large shares of black and Latino residents for those high-cost loans. They sought data sources that were thought to indicate a lack of financial sophistication and a desire for credit in the individuals listed, mailed “live” draft checks of $1,000 to $1,500 to people with medium to low credit scores, and if those checks were cashed, turned them into loans with interest rates as high as 29% and then targeted those individuals for home equity refinance loans.
Perhaps worse, though, or more indicative of motivation based on race, were the methods they used to gain the trust of those potential borrowers. According to Rugh, “qualitative evidence suggests that loan originators often gained the confidence of potential borrowers through the use of trusted co-ethnic intermediaries in community service organizations and churches. Solicitations for high-cost subprime loans in predominantly black communities were promoted through ‘wealth building seminars’ held in churches and community centers at which ‘alternative lending’ was discussed. No such solicitations were made in predominantly white neighbourhoods or churches (Jacobson, 2010). Some loan institutions made marketing materials that directly targeted minority individuals. In one case, a loan officer stated that his office held the attitude that minority customers “weren’t savvy enough to know they were getting a bad loan.”
Making Needed Changes
In 2010, the Dodd-Frank Act was passed, making necessary changes to the federal loan system and prohibiting loan originators from steering borrowers into higher cost loans when they qualify for better mortgages. Racial residential segregation and the “wide gap in social distance between decision-makers at mainstream financial institutions and communities of color,” however, remains an issue today, according to Rugh and others. What can policymakers, lenders, consumer protection groups, and individuals do to discourage such practices? In a 2015 study done by Rugh of the Baltimore housing market, he suggested:
implementing or advocating the implementation of increased civil rights enforcement by institutionalizing ongoing audits and other cost-effective means to monitor racial disparities and increase transparency in ways that remediate systematic patterns at the level of structure and policies rather than isolated acts of individuals.
offering only safe, fixed-rate mortgages and down payment ratios that make home ownership, wealth accumulation, and social mobility accessible for borrowers of color.
owning other assets besides a mortgage, thus reducing your risk.
We’d like to believe that the largest difficulty in a child’s life would be not finding the exact color of crayon they’d need to finish drawing a picture. But with the rise of divorce and single parent families, children are forced to live with more and more instability in their lives. “The rate of family change that we’re seeing in the first five years of life is simply overwhelming children’s ability to cope,” stated Dr. Kathryn Edin at the 2017 Hinckley Lecture.
While levels of family instability and complexity are at an all time high, these difficult situations are disproportionately found among disadvantaged families rather than the American population as a whole. The unplanned birth of children into unestablished and young relationships are both the consequence and cause of poverty.
Learn more about the trapping impact of poverty on individuals and the consequential instability in families by watching this excerpt from Dr. Edin’s lecture.
This post is one of many in a series of videos available on our BYU Social Sciences YouTube channel! The channel contains tidbits of many of our most popular lectures and useful, succinct, research-backed advice on relationship, political, religious, media, and financial issues. Follow us there to stay up-to-date on wisdom that will help you and your family live better lives.
Is abstaining from voting simply giving up? Although people may believe that abstaining from voting is wasting a chance to tell politicians what you think, BYU economistDr. Joseph McMurray found the opposite to be true. In a recent study, he found that people can express themselves with parity through both voting and abstaining.
People use votes not as a tool for change, but as a “microphone for broadcasting their opinions,” said Dr. McMurray. For example, in last year’s presidential election, third party candidate Evan McMullin won 21.5% of Utah’s vote, according to the state’s Office of the Lieutenant Governor. Despite McMullin not winning the election, he served as an outlet for people to voice their disapproval of the major party candidates.
Even though votes for McMullin did not change the election results, Dr. McMurray illustrated their effect: “The biggest takeaway might be to push back on the assertion that votes have no impact when they fail to change the identity of the election winner: if office holders look at vote totals (which they clearly do) and adjust accordingly (which they plausibly might), every vote will have an impact.”
But what about abstention? How do people express themselves by not voting? According to Dr. McMurray, there are two reasons a person abstains:
People with hunches feel like they don’t have enough information to accurately vote.
People believe that the correct thing to do is stay in the political middle; their abstention communicates that they don’t like/support either character.
Abstention sends a different message than voting does. Dr. McMurray provided the following graph to show that the likelihood of a person voting depends on their confidence level.
The x axis represents a person’s opinion about candidates while the y axis is their knowledge about them; Negative one on either axis represents an extremely liberal perspective, 0 represents political neutrality, and positive one represents extreme conservatism. The more a person knows about a candidate, and the more liberal they are, the more likely they would be to vote for extremely liberal candidate A, but if that person had a low opinion of candidate A, they might vote for candidate B in the hopes that such a vote will influence candidate A to modify their stance. By the same token, the more a person knows about a conservative candidate, and the more conservative they are, the more likely they would be to vote for candidate D, but if they had a low opinion of that candidate, they might vote for candidate C in hopes of influencing candidate D. But, when a person abstains, they may be saying that they think the correct political stance is somewhere between the two opposites, and that, even though they might have strong beliefs, they may still abstain. Dr. McMurray shows with this graph that abstention can be utilized to communicate political beliefs.
Other Forms of Involvement
The study also showed that there are other ways for people to be involved besides voting and abstention. These “microphones,” as he referred to them, can include trying to persuade others to vote certain ways, writing letters, endorsing candidates, donating money, attending political rallies, and working campaigns. They are more likely to be utilized by those with extreme political ideologies on either side of the liberal/conservative spectrum, as this graph shows:
Regarding the hoped-for outcomes of his study, Dr. McMurray says: “I hope that [it] will convince them to also consider which electoral systems foster the most useful communication from voters to office holders.” He also hopes that looking at voter communication will provide a window into voter and candidate motivations, which in general are difficult to know, but which are hugely important for productive political analyses.
However, understanding voting is more complicated than those results would suggest. Dr. McMurray understands this and is exploring it in future papers by studying how “logical connections between issues may explain why dozens of multi-faceted issues [are] so frequently reduce[d] simply to a left-versus-right contest” and “political polarization.”
What do you think has a bigger impact: voting or abstention?
In today’s world, many parents, educators, and policymakers are asking whether video games are good or bad for children and adolescents. Indeed, it’s a topic experts have studied and talked about here on more than one occasion, agreeing, for the most part, that violent video games and media are linked to aggressive and violent behaviors in their players. But according to a new article co-written by School of Family Life professor Sarah Coyne, the question most educators and policy makers are asking—are video games good or bad for children and adolescents?—is much too simplistic. They suggest a different, more “nutrition-based” approach.
What Research Says So Far About Violent Video Games and Their Effects
Dr. Coyne and her co-authors analyzed existing meta-analyses concerning video game aggression and violence. “A large body of evidence reveals that violent media can increase aggression,” she says, citing a census study done by Common Sense Media. “Indeed, the effects of screen violence on increased aggressive behavior have been reviewed and affirmed by numerous major scientific organizations, [and] a comprehensive meta-analysis found that exposure to violent video games increases aggressive thoughts, angry feelings, physiologic arousal, hostile appraisals, and aggressive behavior and decreases prosocial behavior (eg, helping others) and empathy. These effects occur for male and female subjects of all ages studied, in both Western and Eastern countries.12
That being said, Dr. Coyne and her co-authors also noted that that are many potential cognitive and social benefits of video game play, and that well-designed video games can be great teachers, since they help players develop sensory processing and cognitive skills. Not all video games are violent, and of course, no risk factor taken alone can cause a child to behave aggressively.
More research is needed to truly explore the negative–and positive–effects of video games on those who play them, they say: large-scale studies of at least 50 000 participants that take into account all known major risk and resilience factors for the development of aggressive and violent behavior tendencies. The study should follow the same large sample of children from an early age through early adulthood, they recommend. They also recommend a similar large-scale, multi-site, multi-year study to further develop and test media exposure interventions to determine what works best, for policy makers and consumers to implement.
A Better Way to Think of Media Exposure?
The authors suggested thinking of media exposure as a diet. It’s important to consume media in moderation, and consumers should make sure to take in more helpful than harmful content. And, the consumer’s age has to be taken into account. In the absence of those large-scale studies, but with the evidence that has been gathered so far, they and other researchers suggest that parents can most effectively help their children and adolescents consume a healthy “diet” of video games and media by actively monitoring their use, and engaging in and conversing about media with their children, rather than strictly restricting media use. Families can also monitor media exposure by implementing simple rules and setting limits to screen time.
Have you ever wondered which historical figure you are? Take our quiz and find out!
What is your favorite class?
What would you do if someone disrespected you?
Turn the other cheek
Tell them to eat cake
Think: “I’ve been called a ‘tyrant’ and an ‘uninhibited egoist,’ so I guess it’s no big deal
Tweet about it
Repeatedly get revenge
What is your favorite book?
How to be Parisian Wherever You Are by Anne Derest and Audrey Dewan
Experiments and Observations on Electricity by Benjamin Franklin and Leonardo da Vinci: The Complete Works by Leonardo da Vinci
Anything I tweet
The Art of War by Sun Tzu
What do you like to do most?
Following God’s will
Conquering my enemies
What is your favorite film/TV show?
The Prince of Egypt
Anything but The Prestige
Anything on Fox and Friends
The Count of Monte Cristo
What is your relationship status?
Married, but it’s not great
Married, widowed, and remarried
Married with children
Widowed, and I’m not getting remarried
If you got mostly 1’s
Congratulations! You are Joan of Arc, fearless French leader in the Hundred Years’ War. Under her command, the nation successfully repulsed the English at Orleans. Eventually, she was captured and executed for heresy. Joan claimed that she was sent by God to help put Charles VII on the throne of France; her faith in God led her to do great things.
You are a deeply religious person who is not afraid to do what’s right, even when it seems impossible. People look up to you as someone who is strong and courageous. Don’t ever change!
Congratulations! You are Marie Antoinette, doomed queen during the French Revolution. Known for her extravagant clothing and love of parties, this monarch was eventually executed. However, her legacy as one of the most fashionable women of her time has lasted centuries.
You are a style-savvy individual who knows how to command a room and is the life of the party. People look to you for social approval and you are always on the guest list for the most posh events.
You can learn more about Marie Antoinette by taking HIST 294 The Age of the French Revolution and/or HIST 324 France.
If you got mostly 3’s
Congratulations! You are Thomas Edison, inventor of the “commercial electric light and power system,” the phonograph, and the microphone. The scientist owned 1,093 patents. Edison took advantage of the total solar eclipse of 1878 to test his new invention, the tasimeter, to detect changes of heat during the eclipse. He viewed the eclipse as his chance to prove that he was not only an inventor but a serious scientist as well.
Like him, you are an extremely intelligent person who sees things differently than others and knows how innovate. People admire your ingenuity and rely on you to make their lives better.
If you got mostly 4’s
Congratulations, you are President Donald Trump! (He’s not a historical figure yet, but he will be.) You have a passion for leading and aren’t afraid to defend your beliefs. You fight for what you want and always bounce back from adversity. Furthermore, your Twitter skills are legendary.
If you got mostly 5’s
Congratulations! You are Olga, princess of Kievan Rus. After her husband was murdered by a nearby tribe, she took revenge multiple times, eventually subjugating the people of that tribe. Later in her life, Olga converted to Christianity and, after her death, was canonized.
You feel things deeply and are fiercely loyal to those you care about. When somebody hurts them, you are personally offended. Cunning and resilient, you are someone that everyone wants on their side.
You can learn more about Princess Olga by taking History 300: The Early Middle Ages.
The athletes’ muscles tense as their ears ring, waiting to hear the starting buzzer. In the instant the buzzer sounds, the athletes rush from the blocks and the fans let out a roar of cheering. Sitting in the stands, you may think that you’re at an Olympics qualifying event…until you realize that the athletes are all over the age of 50. The Huntsman World Senior Games, held annually in St. George, hosts about 11,000 athletes in events similar to those of the Rio Olympics. Our own Gerontology Department helps sponsor this event because it helps students gain significant, high-quality training and learning experience while representing BYU. At this past October’s games, there were 67 students from various majors across the BYU campus volunteering at the event, producing around 3,000 volunteer hours, and of these 67 students, 16 were studying something within the College of Family, Home and Social Sciences, and seven of those were Gerontology minors.
One of them, Oleg Mironchenko, shared that at the Senior Games he learned alot about the joy that good health can bring to an individual as they age. He said: “It has changed my perception about getting old and has served as a motivator to take care of my body while I am young.” His fellow volunteer and Gerontology minor Tyler Brown added that “this was an incredible experience to open your eyes to another side of getting older. You see the people who care about taking care of their bodies and you gain hope in having an independent and fulfilling life throughout your lifetime.”
As Gerontology students have learned, aging is a lot more than getting wrinkles and discounts at restaurants. It’s about taking care of your health and embracing every opportunity and especially every sporting event at the Senior Games. As said by Gerontology student Sarah Rogers, “seeing older adults play at such a competitive level reminded me how important it was to stay healthy and physically active throughout my life.”
Service and Education
Volunteering at the Games is a true combination of service and education. Students provide health screenings three full days during each of the two weeks of the Games. This year, an estimated 3,000 unique athletes went through at least several aspects of the health screenings. “In some cases these health screenings have had life-saving implications for the participants,” said Hager. “Every year we are…able to identify a few of the games participants who have no idea regarding life-threatening health risks they are experiencing…. We even have participants return the next year telling students that this station saved their life based on their previous years screening results and their follow-up with their regular doctors. That is pretty gratifying for me and even more so for the students.”
Regarding the educational value of the service for students, BYU Exercise Science professor Ron Hager, who has helped to ensure the quality of care, services, and screenings that volunteers provide for athletes since 1990 along side UVU nursing professor Gary Measom, says that part of his dedication for the Games is connected to the quality educational experience they provide for students. “For me, there are many facets to an education,” he said. “There is traditional in-class learning and instruction, but there is also the practical application of what is being learned, and even research opportunities,” shared Hager. “I feel like the students get great hands-on opportunities when they attend the games and many are involved in data collection for research projects at the undergraduate and graduate levels. For many students it is a complete paradigm shift in terms of what it means to get older as they interact with senior athletes who are committed to an active and healthy lifestyle into their later years.”
Impacting Athlete (and Student) Lives
The Games tend to become more than just excellent service and educational experience, though. Hager reports: “Nearly every student I talk to has said that the Games volunteer experience has been one of the best experiences they have had while at BYU… Students not only make lasting friendships with other BYU students and students from other universities, but also with the athletes.”
Competitions aren’t all about winning, but as Professor Hager has shared, conducting health screenings at the Huntsman World Senior Games is “a win-win-win-win for the students, the Games, the Games participants, and myself [as an educator].”
How do disasters affect communities? If you’ve followed the impacts of the recent Hurricane Harvey, Hurricane Irma, or Central Mexico earthquake disasters, or if you’ve ever experienced one yourself, you’ll know that the devastation varies from place to place and from disaster to disaster. It can often take years to assess the damage and to reach a new normal. Even harder to assess, though, but in some ways more important, are the effects of various disasters on the people, over time. In a recently published study, sociology professor Michael Cope found that Louisiana communities affected by the 2010 BP oil spill traversed the road to recovery in widely different ways, depending on their core industries, and that community sentiment, in general, served as a protective factor that ameliorated lifestyle disruptions.
What happened in the BP oil spill?
The Deepwater Horizon oil drilling rig, contracted by British Petroleum (BP) exploded in April 2010, about 50 miles off the coast of Louisiana. The wreck killed 11 people, and the rig spewed millions of gallons of oil for months before scientists finally stopped the flow. At the time of the oil spill, Louisiana produced 25 percent of the nation’s seafood. The state was also the nation’s second largest producer of natural gas and third largest producer of petroleum. The U.S. government placed strict short-term restrictions on fishing and drilling in areas affected by the oil spill, and the fishing industry suffered for years as a result of the oil spill’s impact on the environment.
How did the oil spill affect the community?
Research on people’s general reactions to disasters shows that those disasters have to be viewed not as “single-point-in-time events, but as processes of social disruption that play out over time.” Dr. Cope’s research relied on a telephone survey administered to people living in communities affected by the oil spill. The survey was conducted in five waves, with the first wave administered while the oil spill was active and the last wave administered in April 2013.
The results suggest that the oil spill disrupted people’s routine behaviors (including sleeping and working). The extent of disruption lessened over time, as people’s behaviors normalized again, but people who worked in (or had relatives working in) the fishing industry experienced the most disruption. This makes sense, given the devastating short-term and long-term impact of the oil spill on their livelihood. Too, residents of affected communities reported disrupted lives three years after the spill.
The good news? People who demonstrated positive sentiment toward their communities (in other words, people who liked the places where they lived) experienced less disruption than others did. Their positive community sentiment buffered the effect of the oil spill on their routine behaviors.
Dr. Cope, an FHSS professor who co-authored this article with a team from Louisiana State University, wrote that issues like disaster recovery warrant continued attention and research. “This study,” they said, “adds to the chorus of researchers who have long contended that planners need to recognize disasters as social processes linked to long-term antecedents and long-term consequences.”
How do you get 100 history and astronomy students in the same room on a Thursday afternoon? You give them a lecture by awarded journalist David Baron on “Edison and the Eclipse that Enlightened America.” Baron, a science and environmental journalist and recent Charles Redd Center guest lecturer, saw an eclipse in Aruba in 1998 and has since dedicated his time and research to exploring and experiencing these astronomical phenomena and telling the stories behind them.
Eclipse Chasing Now
While there was lots of commotion about the recent 2017 total solar eclipse, a total solar eclipse passes over earth’s surface every 18 months. The path of totality, when the sun is completely covered by the moon, is only 100 miles wide, making the viewing of a total eclipse a once-in-a-lifetime experience for many individuals. In the day and age of cars and airplanes, eclipse chasing is relatively easy with the internet, a pair of glasses from Amazon, and a car ride. In the late 1800’s, however, eclipse chasing was quite the ordeal, and it was primarily this that Baron discussed at the lecture.
Eclipse Chasing 1878
The year was 1878. Manifest Destiny was the United States’ call to action, the transcontinental railroad was moving people across the plains, and America was striving to carve out a unique spot in the landscape of worldwide scientific discovery. Solar eclipses were critical to physical and astronomical discoveries at the time, and Europeans were monopolizing these scientific experiences and discoveries. That is, until a total solar eclipse was forecast to cross the American West in 1878.
This was an opportunity for Americans to show that they could compete intellectually with the rest of the world. The government recruited scientists, astronomers, and everyday citizens alike to “crowd source” information on the sun and its corona. Everyone in the western United States would have less than three minutes to make the most important astronomical observations of their lifetime.
Three individuals in particular stood out among the group of government-recruited scholars:
James Craig Watson of the University of Michigan’s Detroit Observatory was one of the most recognized “planet hunters” of his age. He discovered a number of asteroids and sought to discover a new asteroid planet during the eclipse.
Maria Mitchell was the most famous female scientist and astronomer of the 1800’s and was a teacher at Vassar College in New York when news of the eclipse rang out. Mitchell organized a group of women to go west to study the eclipse and show society that women can be smart, educated, healthy, and feminine to boot.
Thomas Edison had just been dubbed the “Wizard of Menlo Park” for his invention of the phonograph and was anxious to test his new invention, the tasimeter, to detect changes of heat during the eclipse. This was Edison’s chance to prove that he was not only an inventor but a serious scientist as well.
Not to be Left in the Shadows
At the end of the three minutes of darkness and scientific enlightenment, according to Baron, Edison was inspired to look into light and power (a possible influence on his future invention of the light bulb), the tasimeter was claimed as a success, Mitchell successfully advocated female higher education, Watson claimed to find the asteroid planet Vulcan (which was later proved unreal, but would give Watson something to defend for the rest of his life), and the American public came together to make what newspapers called the “most important observations ever made.”
“Eclipses inevitably reveal much about ourselves,” said Baron in American Eclipse, a book he wrote about the 1878 eclipse. “What we see in them reflects our own longings and fears.” Baron’s descriptions of America’s reaction to the 1878 eclipse, in his book and his lecture here on campus, capture a nation longing for success. The book was published earlier this year with the support of the Charles Redd Center. During his research for the book, Baron was able to visit many of the sites connected to the 1878 eclipse and see the collections of drawings and observations of the eclipse that were collected from American citizens and are now housed in the Library of Congress.
Follow the Redd Center for more events concerning the history of the American West.
How have your eclipse experiences impacted your own life?
Many college students dream of becoming multimillionaires who split their time between philanthropic efforts and exotic travel. But the trouble is that we’re not always adept at making or saving money. Few of us will end up as multimillionaires, but learning how to make smart investments will help us live comfortably and provide for our families’ needs. In fact, according to School of Family Life professor Jeff Hill, any student can invest, no matter what how tight a budget he or she keeps.
Investing Tips for Students
Take Advantage of Compound Interest
Professor Hill is an expert on saving and budgeting money. In fact, one of his undergraduate courses — SFL 260, Family Finance — teaches BYU students those important skills, and Dr. Hill even co-authored the textbook that the students use (Fundamentals of Family Finance: Living Joyfully within your Means). In a June 2015 BYU devotional, Dr. Hill told a story about four hypothetical students, who each had $10,000 and who each planned on retiring 50 years down the line.
The first student put his money in a strongbox, meaning he would still have $10,000 in 50 years. The second student put her money in a savings account, where compound interest would double its value every 25 years. She’d have $40,000 at the end of the 50-year period. The third student put his money in a government bond mutual fund, where it would double every 15 years to become almost $100,000 in a 50-year span. The fourth student put her money in a broad diversified stock market fund, where it would double every seven and a half years. In 50 years, the student would have more than $1,000,000.
“That is the miracle of compound interest,” Dr. Hill said. “When you consistently invest like the fourth student, you have the peace of mind that comes from knowing you will be able to retire in the future and that if an emergency happens now, you have a reserve.”
Dr. Hill said that any student can invest, no matter what how tight a budget he or she keeps. Some mutual funds even cater to small investors who can only afford to put a little bit of money into the stock market. “I invite my students, and I invite you, to begin to invest now,” he concluded.
Take a Little Risk, and Diversify
To Dr. Hill’s tips, Economics professor Scott Condie, who has published papers describing the effects of ambiguity aversion (the preference of known risk over unknown risk) on investment. It’s common among many investors, driving them to have less diversified portfolios and to participate in the market less often. “Ambiguity averse investors will almost surely have their wealth converge to zero if there is a rational expected utility maximizing investor in the market,” Dr. Condie wrote. In other words, investors who remain sufficiently ambiguity averse will not survive.
So make sure that you have a diversified portfolio, that you participate actively in the stock market, and that you don’t entirely avoid risk. After all, what’s life without a little risk?
How do you save, budget, and spend your own money?
Take a minute to think about your own finances. If you’ve got any questions about personal finance or investing, let us know in the comments, and we’ll get a research-based response to you!