Young Money is featured in the article “15 Web Sites for Managing (and Saving) Money” on PCMag.com in the Generation X & Y section.

Here’s the full list:

1. Mint.com
2. ClearCheckbook.com
3. Wesabe
4. Generation X Finance
5. Young Money Magazine
6. Buxfer
7. Morningstar.com
8. Duedee
9. The Motley Fool
10. Walletpop
11. Get Rich Slowly
12. The Simple Dollar
13. Billeo
14. FiscalZen
15. MightyBargainHunter

Q: I’m a recent grad who just started working professionally. I have some student loan debt ($12,000) but I expect to pay that off within a few years. I don’t earn a lot of money but I’d like to start investing. Unfortunately, my employer doesn’t offer a 401k plan. Should I invest in stocks, CDs, mutual funds, IRAs or something else entirely? Any advice would be appreciated.Response:

A: You are really smart to be on top of these issues now.  Good for you!  If you start saving and investing in your 20’s, you have the opportunity to accumulate substantial wealth over the course of your life. 

Since you are not covered by a 401k program, I would suggest getting started with a Roth IRA.  Your contributions to a Roth IRA are not tax deductible, but the earnings over time are tax free.  Thus, since you are young, you have the opportunity to accumulate substantial tax-free earnings over your lifetime.  You can contribute up to $5,000 per year in a Roth IRA. 

You can choose a number of different investment alternatives for your Roth IRA.   Your investment choices really depend on your risk and return preferences and your time horizon.  With an IRA you cannot deduct the money until you are 59 ½, so it is a long term investment.  You, as an investor, need to evaluate your own risk and return preferences to determine if you want to invest in something very safe like CDs, Treasuries, or money market accounts, or in something that has more risk such as stocks, bonds, mutual funds, or annuities. 

A general rule of thumb is that older people weight their portfolios toward safer types of investments so they will not lose money needed for retirement.  Conversely, younger people may be more likely to weight their portfolios toward investments that have higher volatility but also provide a higher return over time.  You need to figure out what you are comfortable with.

To get started, I would suggest that you educate yourself on some of the basics of savings, kinds of investments and tips on preparing for retirement.  A great resource is The Hartford’s Playbook for Life, an easy-to-understand guidebook also available for free online that can help you navigate some of these topics. 

In addition to details on the basics of saving and investing, the Web site provides links to additional resources you may also want to visit.  Do your homework before you start investing, but by all means, start investing now while you are young.

Answer provided by Dr. Susan Coleman, Professor of Finance at the University of Hartford and Educational Advisor to The Hartford’s Playbook for Life program. To download or request a Playbook for Life and get more tips on everything from taxes to insurance to evaluating job offers, visit www.playbook.thehartford.com.

I hear the same old story every year. A few school officials and politicians complain about credit card companies taking advantage of students on campus who open accounts only to fall into debt and get hit with high interest rate charges. I would stand up and applaud those concerned officials but the truth is that most of their complaints are simply hot air.

We already know that many schools profit handsomely from their partnerships with credit card companies. The creditors pay the colleges millions of dollars in exchange for access to the students. The consumer protection groups exposed this conflict of interest a long time ago. They’ve even gotten a few schools to ban credit card vendors from setting up tables on campus.

Sounds like progress, right? Not really. The card vendors simply find other ways to market to students including direct mail, emails, sporting event kiosks or a hundred other ways. The credit card companies are very powerful and well funded so I think battling them is pointless. In fact, I don’t have any problem with a student having a credit card. I just want the card companies to offer more free education programs to their cardholders.

I’d much rather spend my energy trying to teach the students how to use the cards wisely rather than waste my time trying to keep them out of their hands. Most people agree that personal finance education is the key to ensuring that young adults stay out of credit card debt. But here’s where I get frustrated. Everybody talks about financial education but few schools actually promote it.

Sure, there are a few states that have added a personal finance class to their high school curriculum. But what the heck are the other states waiting for? They seem to think that it’s up to the parents to teach them that stuff. Well, guess what? Most parents do a lousy job of teaching their teens about money! Just look at the results from Jump$tart Coalition’s annual survey of high school students for proof of how little they know about money management.

The colleges are even worse when it comes to personal finance education. They have faculty professors who are financial experts but yet they usually leave it up to the students themselves to figure things out. These are the same students who didn’t know about money when they were in high school except now they have easier access to credit cards. No wonder they get into debt!

So next time you hear your local college administrator or politician whining about how the evil credit card companies are victimizing students with their sneaky marketing tricks just ask them one question: “What are you doing to help young adults learn about personal finance education?”

Have you ever noticed how being around negative people can affect your own attitude? That’s why I avoid them. I’ve always considered myself more of a realist than an optimist but I never wanted to be labeled as a pessimist. In fact, I don’t think I would have ever achieved a successful career if I was a true pessimist.

Sure, it’s easy to get stuck in a negative mode when you read the daily headlines. The news doesn’t get any better when it comes to young adults and their finances. For example, Demos, a public policy research group, recently reported that 66% of 18-to 24-year-olds with credit cards carried a balance as of 2004.

Meanwhile, a new Mintel study claims that 69% of young workers don’t participate in a 401(k) plan even when they have the option. The same survey reveals that 66% of that group only has one month worth of expenses in savings.

Considering those facts it’s easy to start thinking negative thoughts such as:

I can’t pay off my debt.
I can’t start a business.
I can’t save money to buy a home.
I can’t start investing now.
I can’t find a good job.

If you think you can’t achieve a certain goal, then you’ve practically guaranteed that you won’t achieve it. I don’t mean to sound like pastor/author Joel Osteen but I agree with his advice that people must focus on their future possibilities instead of their past failures.

Self-doubters must make a conscious effort to change their way of thinking. The first step should be to stop hanging around friends who have a gloom-and-doom mentality. Find people who can give you encouragement instead.

Want to start a business? Spend time with other young entrepreneurs. I think most entrepreneurs are born optimists. I figure you have to be an optimist to start a business knowing that less than half of new businesses last at least four years. Entrepreneurs may be scared of failure but they take the plunge anyway.

Want to start investing? Join an investment club where you can learn alongside other young investors. You’ll probably meet some really smart people who can help you learn how to achieve your investment goals.

Want to find a job? Start networking with groups of people who have contacts within the industry that interests you. Networking brings you new contacts which in turn lead to employment opportunities.

I think you get my point. Block out the bad news and focus on the opportunities before you. You’ve got to believe in yourself first before others can start believing in you.

I hate to sound like a whiner but there are some common customer service issues that really bug me as a consumer. I’ve listed three here but I’m sure you probably have a few complaints of your own.

1. Tough to get live customer service reps on the phone. This problem goes hand in hand with long waiting times and annoying automated phone systems. For example, the three big credit scoring companies can shut off my access to credit at any time yet I must contact them in writing if I find a mistake on my credit report.

I should be able to speak directly to someone if my credit is in jeopardy. Companies with long hold times should either hire more customer service agents or extend their phone hours.

2. Not respecting scheduled appointments. Doctor offices are probably the worst offenders in this area. What’s the point of setting an appointment time if you’re still going to be sitting in a waiting room for an hour or more anyway?

I understand that doctors are busy people and that their days can be unpredictable. But that doesn’t make it okay to waste my time. I’m a busy person too just like everybody else. If you can’t see me within 30 minutes of my scheduled appointment, regardless of your profession, then at least call me as early as possible to explain the situation.

3. Investor education materials go to waste. I am referring mainly about the massive prospectus reports that get shipped annually to individual investors. For example, I recently received a 300 page prospectus from my annuity provider. Does anybody actually read these things?

I know companies are required by law to send them to investors but there’s got to be a better way to spend the millions of dollars that go into printing and shipping costs. Could investment firms provide prospectuses upon request instead? Any other suggestions?

You’ve probably heard the horror stories about people having their identity stolen along with their money. Fixing the damage can also be a long and costly battle so don’t become an ID theft victim. Here is a list of tips to help protect your identity:

• Protect personal information. Opt out of mailing lists to keep your mailbox free of identity theft temptations.

• Avoid sharing unnecessary credit card information. Resist providing your social security number.

• Shred documents with personal information before throwing them away. It is very common that important account numbers and statements are simply tossed in the trash where they can be easily retrieved.

• Keep documents with personal data secure.

• Choose PINs and passwords that cannot be easily guessed, and do not reveal them to anyone. Be sure to change these codes frequently.

• Never write down PINs and passwords, especially on the outside of envelopes or checks.

• Regularly check your credit report for fraudulent information.

• Exclude personal information from company and family websites.

• Be sure your information is not available via online directories and searchable databases.

• Subscribe to an identity scoring and monitoring system.

*Courtesy of AlliedBarton Security Services

I woke up in a great mood this morning. The sky looks a little bluer and the palm trees seem a little taller on this beautiful Florida day. The reason for my sunny disposition can be attributed directly to my rediscovering the joy of entrepreneurship due to recent changes here at Young Money.

In May, Young Money Media was purchased by a startup business based in Maryland. The sale meant that I went from working at a mid-sized, non-profit organization with about 500 employees to doing the same job for a private company with a much smaller staff. Some people would look upon this ownership change as a humbling step down but instead it turns out the experience has re-energized my career.

For years, I interviewed and wrote about the best student entrepreneurs in the country. I admired these young business owners for their passion and willingness to take risks. But yet I could never truly relate to them because I had never been an entrepreneur myself. Joining a startup gave me the chance to help re-launch Young Money as if it was a hot new brand in the college marketplace. Lifting the restrictions imposed by our former parent company also makes it possible for us to go after new sponsor and partnership opportunities that were never an option before.

I may not actually own Young Money but I am now more personally invested in the future success of the company than ever before. If the business prospers, then I will profit equally along with the rest of our team. If our venture fails, then we will all be looking for new jobs soon. Knowing how much is on the line gives me a rush of excitement and a strong sense of urgency. This fresh start made me recall what I felt like right after graduating college when my spirits were sky high and the possibilities seemed endless.

Of course, being part of a startup does mean that you also wind up having a large workload. Does that challenge discourage me at all? No way! That’s because our new owners are just as passionate as I am about Young Money’s core mission of changing the way young adults earn, manage, invest and spend money.

I really believe we are building something special here and I’m eager to see how quickly we can grow in the near future. I also think that I’ll be able to understand entrepreneurship from a completely different perspective as a result of this experience. I’ve finally joined the entrepreneurs’ club and it feels pretty good to me.

Q:   I’ve been working at a large company since graduating from college four years ago. I’m frustrated that my career is not progressing as quickly as I’d like. I’ve considered starting my own business, but I hardly have any money saved. My family can’t afford to help me financially. Do I have to wait until I have more money saved to own my own business? 

A:  Don’t let your bank account dictate or limit your business decisions. For those that need financial assistance to start a business, choosing to own a franchise could be a wise decision because it is easier to get financed when opening an existing business. There are several financing options available when you pursue franchise ownership. Some franchisors have partnerships with lenders and offer in-house financing programs. There are also home equity lines of credit, traditional financing plans through banks and loans that are backed by the Small Business Administration (SBA). Angel investors, wealthy groups or individuals that are looking for solid investments may also be interested in lending you money to start your business and some franchises are savvy enough to help you connect with these people. Smaller, private lenders offer non-traditional financing plans, some of which can be found online. With a variety of financing options available, you’ll surely find a plan that fits your goals and your lifestyle.

There are franchises in every industry imaginable. So whether you’re interested in owning a business services company, home decorating business, fitness center, salon, specialty restaurant or a store of your own, you’re sure to find a business that interests you. There are even low-investment opportunities available that will allow you to get into business for yourself for as low as $10,000. Many franchises can be operated from your home, which reduces your overhead and gives you lifestyle flexibility and freedom. Franchises are also an excellent choice because they are established businesses, with proven concepts and built-in brand awareness.

Owning a franchise is easier than starting a company from scratch because you benefit from an established business model and you get extensive training and support. In addition most franchise opportunities don’t require you to have prior experience in a particular industry. Franchises are typically looking for a savvy, motivated business person with the desire to grow a company. So whether you decide to enter a new field, or build on the industry experience you have, there are several opportunities for owning a franchise- and receiving the financing you need.

Answer provided by Jocelyn Chavez. Ms. Chavez is a business advisor for Franchise Solutions, Inc.

Q: I read stories suggesting that twentysomethings put a portion of their earnings into a high-interest CD savings account. The best rate offered by my bank is 2.70% APY. But the most recent inflation forecast says that the inflation rate will be over 3%. So it seems to me that investing in a CD means I am losing money, not making it. Is there a better place to put my savings?

A: You raise an important issue. Unfortunately, inflation erodes the value of our savings and investments. Right now, “core” inflation which excludes food and energy is about 2 to 2 1/2%. Obviously, if we add in food and energy, the inflation rate is considerably higher. Therefore, if all your investments are in CDs that pay 2 1/2 to 3%, you are losing money.

Typically, however, we do not put all our investment eggs in one basket. You “diversify” your investments. Your total “portfolio” of investments might include some very safe investments like CDs, but it might also include investments like stocks or mutual funds that will provide you with a higher return over time but not necessarily within the next month or year.

In selecting your mix of investments there are several factors to consider. First, when do you need the money? If you need it within the next 6 months to pay tuition or the down payment on a house, you probably don’t want it in a risky type of investment. Second, what is your tolerance for risk? CDs don’t pay a very high interest rate, but, if they are insured, they are perfectly safe. Alternatively, you have no guarantees with things like stocks or real estate, so you would be taking more risk.

The Playbook for Life Website discusses different types of investments and key issues such as liquidity, risk, and return. Go to http://www.playbook.thehartford.com. When you get to the site, click on “Tools” and then click on “Kinds of Investments.”

Answer provided by Dr. Susan Coleman, Professor of Finance at the University of Hartford and Educational Advisor to The Hartford’s Playbook for Life program. To download or request a Playbook for Life and get more tips on everything from taxes to insurance to evaluating job offers, visit www.playbook.thehartford.com.

Do you have what it takes to be a millionaire by age 30? The authors of the book “Millionaire By Thirty: The Quickest Path to Early Financial Independence” claim they can “put young people on the path to financial independence through investing in real estate, budgeting effectively, avoiding unnecessary taxes, and using life insurance to create tax-free income…everything they need to know to become young millionaires.”

I haven’t seen the book yet but they’ve created a brief Millionaire By Thirty quiz to see how well today’s twentysomethings (and older!) know their money. The quiz features multiple choice questions such as “Which of these are mistakes that many people in their twenties make?” and “According to the U.S. Census Bureau as of 2006 how many people under 25 owned their own home?” I actually learned some things from taking the free quiz so it’s worth checking out. Hopefully you’ll score better than me (8 out of 12 right).