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    Topic: Morning Jane ‹ Back Next ›

    The CJP Meltdown Survival Guide, with Anya Kamenetz

    By Nisha | December 11, 2008

    Gals, this week we interviewed Anya Kamenetz (at left), Yahoo’s financial columnist and author of “Generation Debt,” about what Janes need to do to weather the economic meltdown.  

    Even though we’ve all been distracted by Rod Blagojevich’s shenanigans this week, the Am-Ex bill is still waiting for you to pay up, so we asked Anya about the recession, growing student loan debt, and how to be the most financially-savvy Jane around…

    CJP: How is the current economic situation affecting women in particular? Are there unique challenges that women are facing?

    Anya: There has been some evidence that women are more likely to be pushed out of the workforce in  recessions, and women saw their worst-ever unemployment spike this fall. The key tipping point for women in particular is whether they can find a job that pays more than their child care costs. If not it makes more sense to stay home, even if that keeps their family in poverty.


    CJP: What do you see as the biggest financial/economic challenges facing young women in this time?
    Anya: Paying off student loans and credit card debt, while negotiating those early career transitions in a down market. Young women are more likely to be worried about their health insurance too because we’re supposed to go to the doctor twice a year. I just got off the phone with a friend who is worried about losing her’s.


    CJP: In your experience, are young women prepared to manage their finances in this period? What steps can they take to be better informed and protect their finances?
    Anya: First, go to annualcreditreport.com and read your credit reports. Figure out what you need to do to pay down debt. Try a service like Mint.com to help you manage spending and target categories for paring back. And start saving, even a tiny amount . It’s important to get in the habit.


    CJP: What do you think all the bailouts mean for the next generation of taxpayers?
    Anya: Nothing good. The deficit is going to top a trillion dollars!


    CJP: With state and philanthropic funding down, tuition costs are  going up. How much in student loans is too much? When should you choose a cheaper school?
    Anya: A useful rule of thumb for student loans is if your total is greater than the starting salary in your field, that’s too much. For the average BA that’s about $35,000. I predict we’ll see far more families trading down to public schools, community colleges, distance learning, overseas colleges, and other alternatives. And that might be a good thing. Tuition increases like we’ve been seeing for the past 20 years are clearly unsustainable.
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