Relationships and Money

Despite the Weak Economy, Black Hair is a Booming Business

2011-08-10T10:33:00.001-07:00

By JasmineHughes

In a time where it seems most businesses are on the decline, hair salons are on the rise. The Census Bureau recently noted their jump in an otherwise glum report about mom-and-pop businesses, stating that the number of hairdressers and barbers and the shops that employ them grew by about 8 percent from 2008 to 2009.

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Ryan Mack: 11 Tips for the Unemployed

2011-08-09T17:12:00.001-07:00

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College Students Seeking Out Sugar Daddies to Help Them Pay Tuition

2011-08-05T12:32:00.001-07:00

By JasmineHughes

In light of the economic downturn, female college students are taking matters into their own hands. Now instead of working in McDonald’s, or shops for $8.00 an hour, many are finding it quicker and easier to seek older men and provide sex in exchange for tuition money.

Getting the Wedding You Want with No Drama

2011-07-31T07:16:00.001-07:00

by George James

The summer is a time for warm weather, vacation, family reunions and weddings. Many couples plan their wedding during the summer and fall months. Planning a wedding can bring a lot of stress and drama to the couple. From deciding when and where to get married, to working on the guest list and to figuring out how you will pay for the wedding. Stress and drama can also come from what other people want for your wedding and from handling major conflicts such as faith, money or where to live after the wedding. It is possible to get the wedding you want and not have any drama, even with all the possibilities leading up to the wedding.

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Embarrassed? Dallas Cowboy Star Sues Woman to get Back His $75,000 Engagement Ring

2011-07-06T22:01:00.001-07:00

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Corporate America Now Has an Official Term for Excluding Black Businesses

2011-06-23T10:31:00.001-07:00

The code language was revealed at the Rainbow Push Convention.

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Nene and Star Go at it in the Finale for Celebrity Apprentice

2011-05-23T03:26:00.001-07:00

Tonight’s the big showdown – wonder who’s going to get the last punch?

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Technorati Tags: black celebrities,black celebrity gossip,nene leakes,star jones,celebrity apprentice

Jumping the Broom Does Very Well at the Box Office

2011-05-09T06:00:00.001-07:00

Perhaps TD Jakes knows how to make a good movie after all. But with Bob Johnson?

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Huffington Post: Black Unemployment and the Great Black Disconnect for Obama

2011-05-08T16:44:00.001-07:00

Dr. Boyce Watkins

Professor, Syracuse University

Posted: 05/ 8/11 03:51 PM ET

President Obama has a problem, a very serious one. The president's problem is what I would call "The Great Black Disconnect." This divide is the place where black America's love and appreciation for the Obamas disconnects from the intense economic suffering of the African American community. Like a festering and infected wound that remains untreated, President Obama's support within the black community is threatened by the fact that the people who love him most are suffering unlike anything our nation has seen over the last 50 years.

This week, the Bureau of Labor Statistics released its unemployment numbers for the month of April. The figures were consistent with the jobless recovery that has taken good care of Wall Street, but created homelessness on Main Street. The national unemployment rate grew from 8.8 percent to 9 percent, which will surely perpetuate President Obama's somber ratings on economic performance.

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Technorati Tags: black unemployment,black scholars

Dr. Boyce: Oprah Fires her CEO, So What’s Next?

2011-05-07T16:44:00.001-07:00

Oprah Winfrey has fired the CEO of her network. Is this a sign of desperation?

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Technorati Tags: oprah winfrey,own,black news,african american news

“Birthers” Replaced by “Deathers”: Don’t Believe Bin Laden is Really Dead

2011-05-06T05:22:00.001-07:00

by Brook Griffin, Your Black World

Last week, when President Barack Obama released his long-form birth certificate, he silenced many of the critics, birthers, who didn’t believe that he was born in the United States. Now, the birth certificate controversy has been replaced by another one: whether or not Osama Bin Laden is actually dead.

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Technorati Tags: barack obama,black politics,deathers

“Jumping the Broom”: Just a Classier Version of Madea

2011-05-06T04:26:00.001-07:00

"Jumping the Broom" is like a Tyler Perry movie with polish.

The ensemble comedy is about a wedding involving a bride from a family of wealthy African-American professionals and a groom from a family of working-class Brooklynites. It is well-cast, well-played and passably written.

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Study: Minorities Still Locked Out of Most Institutions

2011-05-05T04:18:00.001-07:00

by Dr. Boyce Watkins, YourBlackWorld.com, Scholarship in Action

I took a look at an ABC News picture of President Barack Obama sitting in a Situation Room with lead advisers watching the assassination of Obama bin Laden. Everyone had a tense look on their face, as 10 years of hard work suddenly came down to the wire. I couldn’t help but notice, as I scanned all the faces across the room, that there were only two women present (Hillary Clinton and another woman in the back), and one bi-racial black man (President Obama). Every other person in the room was a white male.

What startles me the most is that millions of other Americans can look at this picture and see absolutely nothing wrong with it. The “white guy’s club” has always been the status quo in leadership positions.

It appears that this problem doesn’t just exist in government, it exists in academia, corporate America and nearly every other institution in our nation. Most interesting is that no one seems to care or take the matter seriously. Quite a few universities and corporations love to use the word “diversity” as if it were some kind of intellectual toilet paper, but most of them don’t actually practice anything close to what they preach.

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How are Black Women Affected by Not Having a Father in the Home?

2011-05-02T14:44:00.001-07:00

In the conversation below, I interview Squeaky Moore and Ashley Shaunte, two aspiring filmmakers who’ve been able to make fatherless homes into a viral topic on the Internet. Their short public service video on the topic has drawn hundreds of thousands of viewers, primarily because the idea of being without a dad has such a profound emotional impact on us all.

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Black Unemployment More than Double Whites for Michigan Residents

2011-05-01T23:28:00.001-07:00

Your Black World reports

A recent report by the Economic Policy Institute has revealed that the economic situation for African Americans is disproportionately bad for the state of Michigan. According to the report, African Americans in Michigan have had an unemployment rate above 20 percent for every quarter since the start of 2009. Their 2010 annual unemployment rate was 23.4%. White Michigan residents currently enjoy an unemployment rate of only 9.5% for last quarter.

The conditions are so bad that the lowest black unemployment rate since 2008 (12.2%) is only slightly lower than the highest unemployment conditions experienced by whites in Michigan (12.7%). So, their terrible times are our good times and our horrible times don’t get attention from political leaders whatsoever.

Perhaps we don’t live in a post-racial America after all, since the unemployment picture is clearly different for blacks and whites.

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Regal Black Women from Around the World

2011-04-30T13:33:00.001-07:00

Click here to read about these women and others on Black Enterprise

Black Americans Not Getting Good Financial Advice

2011-04-29T08:44:00.001-07:00

by TEWire
Special to the Trice Edney News Wire from the Afro American Newspapers
Originally posted 4/27/2011

Only two out of every 10 African-Americans are on a path to achieve their retirement goals, according to a six-month-old survey of Blacks conducted by a major wealth manager.

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Oil Companies are Making Less Gas but Much Higher Profits

2011-04-28T20:50:00.001-07:00

Gasoline prices are skyrocketing — and so are oil company profits.
Exxon Mobil Corp. earned nearly $11 billion in the first three months of the year, a rollicking 69% increase over its performance for the same period last year. That's on sales of $114 billion.
It's the same story for the other big oil companies. Royal Dutch Shell turned a profit of $6.3 billion in the first quarter, and BP — despite lingering costs from the Gulf Coast oil spill— made $7.1 billion.

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Quick YBW Note: The Obama Family Enjoys Easter Sunday

2011-04-25T13:04:00.001-07:00

The Obamas celebrate Easter Sunday at the historic Shiloh Baptist Church in Washington, DC.

Black Family Wealth Has Virtually Disappeared

2011-04-23T06:59:00.001-07:00

by Dr. Boyce Watkins – YourBlackWorld.com

The first decade of the new millennium brought a lot of things that the world didn't expect: the ability to order a pizza on your home computer, cell phones that allow you to talk to your friends face-to-face, and our nation's first black president.

One other unexpected event of the last decade is the disappearance of a century's worth of progress in reducing the wealth gap between black and white Americans. AsRex Nutting at Market Watch so accurately notes, wealth levels of the black family in America have declined dramatically during the past decade, and they show no evidence of getting better any time soon.

According to Nutting, "In a country where access to capital is everything, most blacks have nothing."

First, Nutting mentions that African Americans have the highest unemployment rates in the country, which stand at an average of 16.5%, compared to 9% for whites. What is most daunting is that soaring black joblessness, combined with higher foreclosure rates, bankruptcies, and declining home values have seriously cut into the wealth of the black family in America. in other words, we are the first to lose our jobs, have the least wealth to protect our families when times are tough, and a greater reliance on declining home equity as a source of economic security. This economy has provided the perfect storm of black economic destruction.

According to Nutting, the median net worth for black households dropped from $9,300 in 2007 to $2,200 in 2009, much lower than the median wealth of $98,000 for white households. He also mentions that incomes dropped in black homes by 7.2% between 2007 and 2009, much greater than the 4.2% decline for white families.

Nutting's article reminds us that the United States has a long way to go when it comes to wealth distribution. Over 80% of the nation's wealth is controlled by just 20% of its citizens, and the richest 1% of Americans controls one-third of the nation's wealth. Roughly 40% of Americans have no wealth at all. African Americans are disproportionately represented in the group of Americans with zero or negative wealth, which is a problem that most of our elected officials are inclined to ignore, and something that our nation's citizens don't spend much time getting upset about.

Nutting is correct to mention that most Americans have their wealth tied up in their home values. So, when home prices dropped so dramatically during the economic downturn, this led to the wealth of many black families disappearing as quickly as it had arrived. Most of the economic disparities in the United States don't exist because whites are more responsible with their money or possess economic intelligence that black people don't have. The primary reason for the gap is that for hundreds of years, African Americans added to our nation's net worth, but were not being properly compensated for it (similar to how the NCAA operates). Being left out of the growth of America's economic engine has kept African Americans at the bottom of the ladder of institutional opportunity: Our school systems are not well-funded, we can't find jobs because we don't own the businesses that take applications, and we continue to be utilized as for-profit commodities by the prison industrial complex.

According to Nutting's research regarding the Survey of Consumer Finances, black families were three times wealthier (in real terms) in 1983 than they were in 2009. As white families saw their net worth grow from $124,000 in 2001 to $143,600 in 2007, blacks actually saw their net worth drop from $12,500 to $9,300. By 2009, white families saw their wealth levels drop to $94,600, but African Americans's levels dropped even more to $2,200. So, between 2001 and 2009, African American families went from having a disgraceful one-tenth of the wealth of white families to an even more horrific ratio of one-fiftieth.

I am not sure how to process the Obama Administration's blind, deaf and dumb response to the persistent wealth and opportunity gaps in America that pertain to race. While the president continues to be popular among African Americans, I would encourage members of his administration to remember that leading with courage is an important part of making African American history (not just holding a fancy title that adds almost nothing more than symbolic value for the black community at large). Courage means sometimes doing things that are not popular and working to make America better.
Given that I haven't heard the president or his team use the words "black man," "black woman," or "black families" in public over the last two years, I am concerned as to whether or not our first black president has been or is willing to do much to fight on issues that matter to black people who didn't go to Harvard University. For example, it's interesting that President Obama would speak up for Henry Louis Gates in a meaningless and ambiguous scuffle with a police officer, but wouldn't say a word about Kelley Williams-Bolar, a black woman who was sent to jail for trying to get her kids into a good school. The latter case was far more significant in the fight against inequality, but Kelley's housing projects were apparently not close enough to Harvard Yard.

There is the added complication that perhaps, because of being a black man, President Obama could "get in trouble" with white voters for advocating on issues that matter to African Americans. This argument has been used by supporters of Hillary Clinton, who might be far less sheepish or self-conscious about advocating for women and minorities. I'm not sure if the Clinton supporters are correct, but the last two years have made many African American families wonder if it even matters who sits in the White House.

Dr. Boyce Watkins is the founder of the Your Black World Coalition. To have Dr. Boyce commentary delivered to your email, please click here.

Technorati Tags: black wealth,african american wealth,black scholars,african american scholars

Would You Pay $50,000 to Meet Oprah Winfrey?

2011-04-21T19:31:00.001-07:00

It turns out that Oprah Winfrey is partnering with CharityBuzz to auction off her quality time. The expected running price is going to be $50,000. Would you pay that much to meet with Oprah if you had the money?

The money is being raised for human rights and Oprah is auctioning off four tickets to her show in Chicago and the chance to meet her backstage. Perhaps since it’s for charity, it all makes sense.

Technorati Tags: black celebrity gossip,oprah winfrey

Mo’Nique: Black Women Need to Learn to “Submit” to their Men

2011-04-18T19:28:00.001-07:00

Dr. Boyce Watkins, Your Black World

Mo’Nique and her guests seem to think that black women work too hard to take control in their relationships. In the video below, Mo’Nique goes into what women need to do in order to keep a man happy in a relationship. Her disposition seems to imply that black women have been taught to be too independent and this leads to the breakdown of their relationships.

Click to read.

Dr. Boyce Spotlight: Black Female Entrepreneur Teaches Math to Make Her Money

2011-03-21T19:31:00.001-07:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

What is your name, and what do you do?
My name is Stephanie Espy, and I'm the founder and president of MathSP (www.MathSP.com). MathSP is a math enrichment company that helps individuals to improve their math skills. Based in Atlanta, Georgia, MathSP provides instruction to middle school students, high school students, college students, adults who need additional math-based resources alongside their coursework, and students who need an added challenge beyond their coursework. MathSP also prepares individuals for the math section of various standardized tests such as the SAT or ACT, computer-adaptive exams such as the GMAT or GRE, and state exams such as the EOCT or GHSGT.

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Tyra Banks Heads to Harvard Business School

2011-03-20T08:50:00.001-07:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

Media superstar and modeling-model Tyra Banks recently announced that she's headed to the Harvard Business School. While it's still not clear if she's getting an official degree (I assume its a short-term executive education course; I can't imagine someone with her experience and schedule taking too much time off for school), one has to be impressed with her decision to continue educating herself. Some might think that education is simply a thing you tolerate long enough to make money to support yourself. Nothing could be further from the truth, since learning should be a lifelong process.

"I started last summer and I didn't really talk about it. It was very incognito, my name and everything, but I decided to talk about it [now]. I think it's a positive thing, especially for girls to see that you can still continue to educate yourself and you can still be fabulous and fierce and celebrate your femininity," Tyra said to MTV News.

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Dr. Boyce: Oprah and Iyanla Finally Settle the Beef

2011-02-16T16:41:00.001-08:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

I watched with extreme curiosity as the great Iyanla Vanzant emerged again on the Oprah Winfrey show after being gone for a full 11 years. I wasn't entirely connected to the feud between Winfrey and Vanzant, primarily because we don't think much about people that we haven't seen in over a decade. Of course Oprah is on everyone's mind, and even those who don't follow her seem to know everything she has been up to.

As the guest came to the stage, even a man from Mars could tell that there was latent mega-beef between Oprah and Iyanla. Both women seemed to overcompensate when it came to doing all they could to prove that the past was the past and that everything was OK. But the tension was so thick that it seemed to suck the oxygen out of the room.

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Should Black People Reject Valentine’s Day?

2011-02-14T08:08:00.001-08:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

Most men know how expensive Valentine's Day can get. Someone decided that spending money is somehow a translation to showing love, which is an interesting misguided relationship philosophy. Valentine's Day is one of the most over-hyped holidays known to man, with advertising starting right after Christmas. Any man in a serious relationship is well-aware of the pending doom of his social life if he doesn't flex his wallet at least a little bit on that special day.
According to the National Federation's 2010 Valentine's Day Consumer Intentions and Actions Survey, over $14 billion is spent on Valentine's Day related purchases. This is roughly $103 for every single man, woman and child in America. Yes, the hype has real economic consequences.

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S. Tia Brown: Supporting Your Man as an Entrepreneur

2011-02-10T21:36:00.001-08:00

by S. Tia Brown, Essence.com

First let me say this: I am single. However, just like you don't have to smoke crack to tell "rockheads" don't do it... well, you get the rest.
Second, I'm an avid, calendar-clearing, repeat-watching fan of the "Real Housewives of Atlanta." You know the type. I text my girls during the commercials. I feel like I know the "ins and outs" of the cast intimately. And, occasionally I pass judgment on their decisions.
With those two details out the way, it's time for my third assertion: When it comes to marriage, particularly to an entrepreneur, it can't always be tit for tat. Over the last few weeks I've watched Cynthia Bailey's now husband, Peter Thomas, try to pull out the dagger ripping his heart apart as his business -- their family's bread and butter-- revenue dropped lower than NeNe Leakes' cleavage line. Thomas shared his woes about picking up the pieces. Bailey worried about financing their wedding. Thomas grew angrier about not getting investors. Bailey balled about being owed her investment in his business. Thomas was forced to close his restaurant and rebuild. Bailey cried about not going on a honeymoon. All I kept thinking is, "where dey do dat at?"

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Sil lai Abrams: How to Deal with Financial Insecurity

2011-02-04T18:51:00.001-08:00

by Sil lai Abrams – Sepiaprocess.com

When times are difficult for us financially, we can become paralyzed by fear. As the fear grows in our mind we often get stuck focusing on the problem and not actively searching for a solution. Our attention becomes fixated on our creditors and as we look at our mountain of debt we can become weighed down in despair and shame. “I’m never going to get through this” or “This is more than I can handle” begins to play on a constant loop in our brain. Some of us respond to our problem with denial. Instead of facing our lack of money, we spend as if we have unlimited resources, compounding our original financial instability. Or, we may isolate from others and numb ourselves with food, alcohol or television. Sometimes we avoid dealing with our situation by throwing ourselves into a relationship that takes up all of our time. None of these counterproductive behaviors do anything to bring us closer to a solution. They only keep us stuck in our problem by postponing or delaying our eventual day of financial reckoning.

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Dr. Boyce on NPR: Is College Still a Good Investment?

2011-01-14T12:55:00.001-08:00

Click here to listen to Dr. Boyce Watkins discuss whether or not college is a good investment during a recession.

How Mass Incarceration Affects the Marriage Market for Black Women

2011-01-13T08:53:00.001-08:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

In a very compelling article, The Economist Magazine stepped away from its standard delivery of international political updates to dig deeply into the experience of the African American woman. In the article, economists analyze dating for black women as a market, where men and women enter the market to search for a suitable mate.
The author starts off with a simple example to help make his point. He says "IMAGINE that the world consists of 20 men and 20 women, all of them heterosexual and in search of a mate. Since the numbers are even, everyone can find a partner. But what happens if you take away one man?"
Then, citing the work of Tim Harford, an economist in England, the author says that because one out of the 20 women faces the possibility of never finding a husband, she tries harder to get a man, perhaps by dressing more seductively or doing things the other women might not do. She may even steal a man from someone else. This then affects what other women do to find and keep their own men, and also the behavior of the men themselves.

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Oldest Black Church in Georgia Now Facing Foreclosure

2010-12-31T19:03:00.001-08:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

The oldest black church in DeKalb County had to recently shut its doors after facing foreclosure proceedings on its building. Flat Rock Community Church is 150 years old. According to Binita Miles, a senior pastor, the church is now having to deal with significant financial problems as a result of declining membership.
The church's mortgage is $6,500 and parishioners are now meeting in a local elementary school.

The challenges being faced by Flat Rock are being felt nation-wide. Quite a few black churches have found themselves to be victims of the recent foreclosure crisis and are working to find a way to pay the bills. African Americans at large were disproportionately impacted by the economic downturn and many of us are on the brink of homelessness. Not only do African Americans have the highest unemployment rates in America, we have less wealth to fall back on in the event of economic problems.

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Gap Between the Rich and Middle Class Keeps Growing

2010-12-27T06:59:00.001-08:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

It turns out that the gap between the rich and the middle class is larger than it's been in recorded American history. Much of the growth in the gap is due to the recent housing crisis taking place over the past three years.
According to the Economic Policy Institute, the wealthiest 1% had an average net worth that was 225 greater than the average American. That's higher than the previous record, which was 190 times in 2004.
An intriguing aspect of the divide is that it occurred while the wealth of all Americans declined on average. The richest households lost 27% of their wealth between 2007 and 2009, while middle class Americans lost 47% of their wealth during the same time period. So, the growth in the gap was mainly due to the fact that the middle class and poor suffered more during the recent recession than the wealthy.

Click to read.

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From AOL - Should You Be able to Sue Someone for Dumping You At the Alter?

2010-12-18T09:37:00.001-08:00

What would you do if the love of your life up and left you days before your wedding? Well, you couldsue his butt off.
Dominique Buttitta, a lawyer in Chicago, is taking her ice-footed former fiancé to court for bailing on their big dayjust four days before the ceremony was supposed to go down. The jilted bride claims that by calling it quits, the groom "intentionally inflicted emotional distress" on her. She's reportedly seeking more than $95,000 from her ex -- money, she says, that she'd already spent on the wedding.
I think she may have a case, and not just because people sue for less than this every day. I've had neighbors sue other neighbors when their dog crapped on the lawn. Buttitta's fiance crapped on her life. Not only is she now being portrayed as a bitter, spurned woman, she's in the hole for a whole lot of zeros.
Planning a wedding is a big, long, intricate process. I know; I'm in the middle of planning mine. Pick up any issue of "The Knot" and they'll tell you: planning a wedding takes about nine months to a year. And those are a packed nine to 12 months of making lists, touring venues, tasting cakes and spending thousands of dollars in nonrefundable deposits. There's the dress, the rings, flowers -- Buttitta says she spent over $12,500 on those -- invitations, escort cards and a ton of other things that take up a whole lot of time and even more of your money. It's ridiculous.

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Black News: Woman Sues Tobacco Company and Wins $152M Verdict

2010-12-17T23:39:00.001-08:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

Marie Evans grew up in a housing project in Boston. In those projects, the children in the neighborhood were given free samples of Newport cigarettes, which Marie first received at the age of 9. By the time she was 13, she was a regular smoker, and in 2002, she died of lung cancer.
Marie's family decided to confront the maker of Newport cigarettes for their negligent behavior and won a stunning $152 million lawsuit against the company. The judgement consisted of $81 million in damages and another $71 million that had been awarded earlier this week. It took quite a few years to get there, but justice has been served. This is the largest judgement in history against anyone in the tobacco industry.
"It was her wish to sort of bring this suit, and I've honored that wish. It's been my mission to see this to completion. I'm sure she feels vindicated. I'm sure she feels thankful for the 14 members of the jury that they ruled that they committed these offenses," said William Evan's, Marie's son.

Click to read.

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Wesley Snipes Should Not Be Going to Prison

2010-12-09T14:16:00.001-08:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

I've been sitting on the sidelines during the tax trial of actor Wesley Snipes, primarily because I didn't quite know what was going on. I wasn't sure if Snipes was guilty or innocent, since I've seen a lot of wealthy folks who've lived as if they were above the law. Part of me wants to believe that the justice system works if you're rich, so I figured that nature would simply take its course.
I took the time to watch Wesley appear on CNN to plead his case to the public. I was honestly skeptical, since I've rarely met a man on his way to prison who didn't try to convince me that he was innocent. In fact, I've received countless letters from prison inmates, many of whom want me to believe that they didn't do it. In most cases, I choose not to judge, but I know the game quite well.

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The Importance of Owning Your Own Business – Dr. Boyce Video

2010-10-29T11:03:00.001-07:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

In case you didn't know this, one of the things that most people think about every single day is how they are going to make enough money to get by. Life is tough and finding enough money to live can be even tougher. What's worse is that the black community's struggle to build economic institutions and obtain financial security are things that keep us from being truly liberated in a fundamentally and historically racist society. The link between civil rights and economic prosperity was the seminal reason for my book, "Black American Money."
The commitment I made to the black leadership and the audience at the "Measuring the Movement" forum this year (hosted by Al Sharpton and the National Action Network) was to promote the idea of black entrepreneurship. Entrepreneurship is not just a matter of having your own business. It can also be as simple as finding some extra streams of income in order to obtain critical financial security. In this economy, you have no job security if you've only got one job. You have to find (what I would call) "a side hustle."

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The Invested Life – 10/29/10

2010-10-29T08:36:00.001-07:00

Chicago:

(video) Tom Forde talks about whether a Roth IRA is right for him, and what he’s learned as he’s researched it:

http://bit.ly/aGO9uC

(text) while Matt Sapaula says that financial security is important, but insuring yourself is every bit as vital:

http://bit.ly/bhh8eC

Portland:

(video) Kathleen Lansing explains why her road to retirement is scary, but it makes the small business owner proud to hear about the value of her life’s work:

http://bit.ly/9XdF7n

(text) While Jenn Meacham looks back on the most important financial lesson she learned, at age fourteen:

http://bit.ly/cY3cUS

Los Angeles:

(video) Lisa and Brandon Schindelheim explain how switching roles taught her about finance, and him about he difficulties in being Mr. Mom:

http://bit.ly/bkM7w5

(text) While Candace says that’s it important to educate not only yourself about finances, but your kids as well:

http://bit.ly/aDm6yX

New York:

(text) Jennifer Sherwood explains why shopping in fancy stores might be a rush, but so is saving money:

http://bit.ly/cAQsyV

(text) While Dr. Boyce Watkins says that you don’t need to have big money to build a portfolio:

http://bit.ly/a4e8YR

Colorado:

(text) Michael Jake is glad to hear that his business has grown enough to start hiring, but has his concerns:

http://bit.ly/ajLbzk

Dallas:

(text) On our show, we’ve seen former NFL star Winfred Tubbs thinking about buying a house. In this new blog, he reveals that he’s had to scrap those plans and live in his condo instead until the real estate market improves:

http://bit.ly/bZNNn6

(text) While Ed Butowsky talks up the value of utility stocks:

http://bit.ly/cQiuZW

Miami:

(text) Suzan McDowell reveals her list of the 10 must-by priorities she can’t live without, and what she learned about herself while compiling it:

http://bit.ly/bWYiX7

(text) While Ben Tobias explains that if you don’t know what’s important to you, you’ll never effectively maximize your happiness:

http://bit.ly/9e6k3c

Dr. Boyce Gives More Coaching on MSN’s “The Invested Life”

2010-10-11T17:12:00.001-07:00

A new episode of our MSNBC special is out. You can watch it by clicking here.

Lack of Funding is a Huge Hurdle for Black Entrepreneurs

2010-10-06T15:57:00.001-07:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

Danielle Douglas, an entrepreneurship expert and CEO of Inspire Enterprises, conducted a survey of African Americans interested in owning their own businesses. The survey,which can be found here, was qualitative in nature, asking questions about the pitfalls that people run into when trying to become either full-time or part-time entrepreneurs.
Douglas made it clear that the greatest obstacle that African Americans face when trying to start their own business is a lack of access to capital. In an interview with AOL Black Voices, Douglas said this:
"Overwhelmingly, respondents number one frustration is lack of financial resources as it relates to start up capital , access to capital in general, and identifying viable resources to help them attain capital."

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Why are Corporations Not Hiring the way we need them to?

2010-10-05T15:20:00.001-07:00

Click here to watch Dr. Boyce Watkins on CNBC

Dr. Boyce Watkins joins MSN’s “The Invested Life”

2010-09-29T11:00:00.001-07:00

Click to watch Dr. Watkins’ episodes.

Did Eddie Bernice Johnson Take Scholarships from Deserving Black Youth?

2010-09-28T15:40:00.001-07:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

I watched 'Anderson Cooper 360' last night, and saw a black woman's face on the screen. Like most other African Americans, this was my cue to turn the volume up to find out what might be going on. As I watched Anderson stare at the screen with his piercing, cold, concerned eyes, I could see that he and his guests had made the Congressional Black Caucus their target for the night. The arrows hit the bull's-eye, and Anderson seemed to keep throwing them.

The subjects of their disdain were Eddie Bernice Johnson (D-Texas) and Sanford Bishop (D- GA). Both of the legislators are being accused of using CBC Scholarship funds as their personal family gift bag. Johnson was made into the worst of the culprits, giving $31,000 in scholarship money to her relatives. She also signed two letters written to the CBC Foundation specifically requesting that the funds be sent directly to her two grandsons and grand nephews, instead of their universities. Rep. Bishop is accused of giving three scholarships to his stepdaughter and wife's neice in 2003 and 2005.

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Your Black News: HBCU TV Network to Launch This Fall

2010-09-19T23:51:00.001-07:00

by Dr. Boyce Watkins, Syracuse University – Scholarship in Action

NewsOne.com is reporting that there are plans to launch a 24-hour network dedicated to HBCUs. The network is set to be focused on "edutainment" and lifestyle for Historically Black Colleges and Universities. The company behind the platform, C3 Media LLC says that the network is set to fill a niche within the cable industry that has barely been reached in the past.

Much of the programming will also feature various sports teams sponsored by black colleges all across America. "The idea and vision behind the creation of the HBCU Network is to preserve and celebrate the African American colleges and universities, while also providing opportunities for their growth and further prosperity," CEO Curtis Symonds told NewsOne. "At the same time, we are passionate and excited about building a strong media brand and network from the ground up."

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Black Scholars Watkins and Metzler on CNBC – 9/15/10

2010-09-15T10:20:00.001-07:00

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Black Scholars Dr. Boyce Watkins and Dr. Christopher Metzler Discuss "Keeping The Bush Tax Cuts" on CNBC

When You Die, Who’s Responsible For Your Debts?

2010-09-01T09:30:00.001-07:00

by Dr. Boyce Watkins, Syracuse University

You are going to live forever. Death is beneath you. Those who depend on you financially will always be able to rely on your immortality as a guaranteed source of financial security. I hope you don’t think I’m lying, being sarcastic or sounding flat out silly. Perhaps you do.

Ok yes, I was being silly. But the reality is that most of us are equally ridiculous when it comes to our perception of death and how our sudden passing could financially ruin those who care about us. Death doesn’t care how many appointments you have, how many projects you’re working on, or how many plans you have for the future. It just takes you, and it’s always at the least convenient time. That’s the nature of the Grim Reaper, who might not be nearly as malicious as the bill collectors seeking to get their money back after you’re gone.
While comprehensive financial planning is beyond the scope of this article, I can share a few tips on dealing with debt in the event of your death. This information could help you when dealing with a deceased relative, and it should also be shared with your relatives in case you pass on unexpectedly.

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Dr. Boyce Watkins: How to Teach Your Kids About Money

2010-09-01T08:07:00.001-07:00

by Dr. Boyce Watkins, Syracuse University

Given that our children are likely our greatest expense and greatest love, perhaps it might be helpful to discuss how we teach them about money. If you raise your kids to be financially responsible, they can be assets to you during retirement. If they are taught about money in the wrong way, they become horrible economic liabilities that leave you riddled with guilt. So, although I don’t claim to know everything about child rearing, I thought I’d share some guidelines you might want to consider when it comes to teaching your kids about money.

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Diddy's Son Gets a $350,000 Car - Is that too much?

2010-06-13T17:37:00.001-07:00

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Some think it's too much that Diddy's son got a $350,000 car for his 16th birthday - do you agree?

Did Gary Coleman's Wife Kill Him?

2010-06-07T07:38:00.001-07:00

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Did Gary Coleman get murdered by his wife? ;

Do Tiny and Toya Promote Prison Love?

2010-05-27T12:03:00.001-07:00

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Is it right for the BET Show, Tiny and Toya to overromanticize prison life? ;

LeBron James' Mother and Her Son's Teammate: Overkill?

2010-05-24T12:15:00.001-07:00

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Is it right for LeBron James to be so distracted by the rumor that his mother is sleeping with his teammate?

Love and Money Questions to Ask Your Partner

2010-04-24T05:20:00.001-07:00

by Dr. Boyce Watkins, Finance Professor - Syracuse University

As a Finance Professor, I find it incredibly ironic that many people get married without talking about money. They talk about every kind of compatibility from emotional, to spiritual, sexual, and professional, but they seldom take the time necessary to ensure that they can tolerate the idea of sharing their financial life with a person who may not be on the same page. This problem is compounded in black relationships, where many women describe economic hurdles as one of the reasons that black women have trouble finding the right mate.

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Dr. Boyce on ABC News: Asking the right questions of your partner

2010-04-19T08:25:00.001-07:00

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What questions should you ask your partner before you marry them?

Dr. Boyce Watkins Talks About Financial Effects of Divorce on ABC

2010-04-19T07:25:00.001-07:00

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Dr. Boyce Watkins Talks About Financial Effects of Divorce on ABC

Dr. Boyce Watkins on ABC News: Love, Money and Divorce

2010-04-18T20:21:00.001-07:00

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Watch Dr Boyce Watkins, Finance Professor at Syracuse University on ABC News discussing money and divorce - how to do it the right way.

Doing The Tiger-Tiki: Black Athletes Who Cheat

2010-04-09T19:27:00.001-07:00

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Doing The Tiger-Tiki: Black Athletes Who Cheat

Dr. Boyce Watkins on Black Optimism and Money

2010-03-11T14:22:00.001-08:00

by Dr. Boyce Watkins

According to a recent survey by Experian, African-American consumption grew by over 50 percent from the year 2000 to 2008 ($590 billion to $913 billion), and it is expected to grow to over $1.2 trillion dollars by the year 2013. The study also shows that blacks are more economically optimistic than whites, with 36 percent of us stating that we expect our financial future to improve, as opposed to 31 percent for all adults.

The Experian study says a couple of things: First, it says that black people love to consume and that we are getting better at it. In fact, black people have historically been very good at buying things and working hard to get them, but we are not very good at production, investment and saving our money. We grab our tax refunds and run to the mall. We become highly paid corporate lawyers in order to purchase the house and car we really can't afford. We are chubby kids in the economic candy store, accelerating our collective addiction to the monetary engines controlled by corporate greed.

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Dr. Boyce Watkins on MSNBC: The State of the US Economy

2010-02-05T13:18:00.001-08:00

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Dr. Boyce Watkins on MSNBC: The State of the US Economy

Black News: Homeowners Walking Away from Mortgages

2010-02-03T14:47:00.001-08:00

updated 12:25 a.m. ET, Wed., Feb. 3, 2010

In 2006, Benjamin Koellmann bought a condominium in Miami Beach. By his calculation, it will be about the year 2025 before he can sell his modest home for what he paid. Or maybe 2040.

“People like me are beginning to feel like suckers,” Mr. Koellmann said. “Why not let it go in default and rent a better place for less?”

After three years of plunging real estate values, after the bailouts of the bankers and the revival of their million-dollar bonuses, after the Obama administration’s loan modification plan raised the expectations of many but satisfied only a few, a large group of distressed homeowners is wondering the same thing.

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Woman Puts Cheater's Face on Billboards

2010-01-29T09:00:00.001-08:00

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Dr. Boyce and S. Tia Brown discuss the woman who puts cheater's face on billboards

Does Marriage Make You Better Off Financially?

2010-01-20T06:30:00.001-08:00

Historically, marriage was the surest route to financial security for women. Nowadays it's men who are increasingly getting the biggest economic boost from tying the knot, according to a new analysis of census data.

The changes, summarized in a Pew Research Center report being released Tuesday, reflect the proliferation of working wives over the past 40 years — a period in which American women outpaced men in both education and earningsgrowth. A larger share of today's men, compared with their 1970 counterparts, are married to women whose education and income exceed their own, and a larger share of women are married to men with less education and income.

"From an economic perspective, these trends have contributed to a gender role reversal in the gains from marriage," wrote the report's authors, Richard Fry and D'Vera Cohn.

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Why Black Women Are Not Getting Married

2010-01-08T20:05:00.001-08:00

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Dr. Boyce Watkins and S. Tia Brown discuss some of the reasons that Black women are deciding not to get married.

Why Black Women Are Not Getting Married

2010-01-08T13:50:00.001-08:00

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Dr. Boyce Watkins and S. Tia Brown discuss some of the reasons that Black women are deciding not to get married.

Dr. Boyce Watkins: Tiger Woods’ Women Will Cost Him $100 Million Dollars

2009-12-08T05:31:00.001-08:00

by Dr. Boyce Watkins, AOL Black Voices

The last thing I expected to be thinking about after getting off an airplane are Tiger Woods' women and his indiscretions. I've seen married men misbehave before, and I honestly thought we were at the "no big deal, he'll get over it" stage when it came to Tiger Woods and his corporate brand. The problem is that the list of Tiger Woods women has gotten so long that it's making him look like a PGA version of Wilt Chamberlain or Charlie Sheen.
Tiger Woods does not have a brand that will be able to withstand long lists of cocktail waitresses and "sex addicted cougars" (according to the New York Post), even if the media is exaggerating in their descriptions. The truth is that as great of a golfer as Tiger Woods might be, it could be the women of Tiger Woods who cost him a substantial piece of his fortune.
I spoke recently about how Saturday Night Live went over the line by making light of the alleged domestic violence between Tiger and his wife, Elin Nordegren. While I stand by that perspective (we would never excuse Tiger for trying to whack his wife in the head with a golf club), the truth is that there are broader implications for the fact that the list of Tiger Woods women just happens to be longer than the Dead Sea Scrolls. Whether Tiger likes it or not, the truth is that there are thousands of women across America who are cheering for Elin's decision to chase her husband with a deadly weapon. This has huge implications for Tiger's ability to sell products to American families, where women are the primary decision-makers in household consumption.

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Tiger Woods Divorce might cost him a lot of Money

2009-12-03T20:44:00.001-08:00

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Tiger Woods and his financially costly divorce - what's he going to have to pay?

Why Are Black People Not Getting Married?

2009-11-29T19:35:00.001-08:00

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Are the men or the women to blame for the reason that black people are not getting married?

Dr. Boyce talks money on ABC News

2009-11-25T07:43:00.001-08:00

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Dr. Boyce Watkins: How Rihanna Is Profiting from Her Tragedy

2009-11-11T21:21:00.001-08:00

by Dr. Boyce Watkins, Syracuse University, Your Black World

I hated what Chris Brown did to Rihanna. I was angered, disappointed and irritated by the fact that many are quick to forgive egregious behavior on the part of celebrities, and a hit song can forgive all sins. At the same time, celebs are just like the rest of us, full of complexities that the world may never come to understand. Rihanna has walked away from Chris and she is now telling the entire world how bad of a man he is, and we're all taking her side.

The problem for Rihanna, however, is that her actions aren't making much sense.

Rihanna's recent whirlwind media tour has included the likes of ABC News, MTV and other major media outlets. Throughout this tour, she has allowed the world to enter into her dark reflection on the relationship she had with Chris Brown, with that reflection seeming to have almost no productive purpose. I am not sure why the he-say/she-say between two 19-year old kids should be the concern of the nation. But then again, I am sitting here writing about it, so I am as guilty as everyone else.

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How Your Family Can Manage the High Cost of Health Care

2009-11-06T17:14:00.001-08:00

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Get health care tips from Dr. Elaina George - how is your family going to afford it?

Mother, Wife and Businesswomen: How do you Balance?

2009-10-27T15:11:00.001-07:00

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In this episode of Financial Lovemaking, Dr. Boyce and Tia talk with Towanna Freeman, an author, speaker, wife and mother on how to balance love, life, and success.

The Triple Threat: Wife, Mother and Business Woman

2009-10-22T19:22:00.001-07:00

by Dr. Boyce Watkins, AOL Black Voices, Your Black World

An entrepreneur doesn't think like everyone else. She is willing to take chances, disciplined enough to focus on a dream and passionate enough to pursue that dream. Towanna Freeman is in that category. AOL Black Voices had the chance to catch up with Towanna, to get some advice on striking out on your own, as well as managing a marriage, children and career, all at the same time.

1) What is your name and what do you do?

Have you noticed how so many people seem to be living an unbalanced life or living beneath their full potential? Well, I assist people, particularly women, who are ready to take life changing action to get that sense of balance back along with that greater feeling of fulfillment and happiness. I am also the principal consultant of Towanna Freeman & Associates, a management consulting firm with the primary emphasis on leadership coaching and employee performance improvement; the founder of the Young Women's Empowerment Network a nonprofit organization that produces empowerment workshops, conferences, and other special events for teen girls; and the author of "Purposeful Action, 7 Steps to Fulfillment."

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Financial Lovemaking: Man Shoots Boy for Sleeping with His Daughter?

2009-10-21T15:13:00.001-07:00

by Dr. Boyce Watkins, Syracuse University, AOL Black Voices

I have daughters and I love them all. They are all at "that age," between 16 and 20, where they tend to love the boys that you want to beat down the most. Every time I hear them express their undying love for Lil Wayne, I can only think about him having 3 women pregnant at the same time. When I see a Chris Brown poster in their room, I remind them that Chris was accused of having boxing practice on Rihanna's face.

But as a father, you can't protect your daughters from themselves. Some things they have to learn on their own. And if sleeping with a pants-saggin, "purple stuff dranking," gold grill wearing, 10,000 tattoo having buffoon is the way they need to learn their lessons, you just kinda have to deal with it.I empathize with Wade Edwards, the man accused of shooting a boy for sleeping with his step daughter. Wade shot the boy four times, aiming for the "relevant zone" with each bullet. But while I can understand Wade's anger, I do not, for one second, condone his actions.

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Financial Lovemaking: Shooting Your Daughter's boyfriend

2009-10-21T10:52:00.001-07:00

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We all want to protect our kids, but does it make sense that Wade Edwards shot his daughter's boyfriend?

Dr Boyce Watkins: Nas and His Tax Problems – What We Can All Learn

2009-10-19T19:48:00.001-07:00

by Dr. Boyce Watkins, AOL Black Voices, Syracuse University

Hip Hop Wired is reporting that the rapper Nas is having some serious financial problems. In addition to owing his wife Kelis $44,000 per month in child support, it turns out that the artist also owes the federal government another $2.5 million in taxes. Here are quick thoughts about Nas, love and money:

1) Nas has a complicated life. His decision to marry the "love of his life" is going to cost him for the rest of his life. The rapper's tax situation could be due to irresponsibility (as appears to be the case with Method Man and Nicolas Cage), or it could simply be a matter of using write-offs that were not allowed by the IRS. We can't assume that Nas' tax trouble automatically makes him into a horrible citizen.

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American Express CEO Says Disaster was Averted in Money Crisis

2009-10-15T19:03:00.001-07:00

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American Express CEO Ken Chenault says disaster was averted in the financial crisis - do you agree?

Managing Multiple Baby's Mamas: What Does that mean?

2009-10-02T16:35:00.001-07:00

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How do you deal with the challenge of having multiple children in multiple households?

Dr Boyce on CNN Radio - Love and Money Conversation

2009-09-30T08:24:00.001-07:00

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Dr Boyce Watkins discusses the rules of Financial Lovemaking on CNN Radio.

Dave Ramsey Talks about Term Life Insurance

2009-09-28T05:59:00.001-07:00

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The Cheapest Car in the World

2009-09-27T20:58:00.001-07:00

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Do you have to give an engagement ring back?

2009-09-27T17:55:00.001-07:00

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Financial Alert: No Property Insurance Can Leave You Bankrupt

2009-09-24T10:23:00.001-07:00

Your Black World, AOL Black Voices

Most of us know very little about the ins and outs of property insurance. Christopher Chestnut is not in that category. As a prominent attorney out of Florida, Mr. Chestnut has taken on multi-million dollar cases and handled some of the most complex lawsuits imaginable. As one of the leading young black attorneys in America, Chestnut has been recognized by President Obama for his outstanding accomplishments.

I spoke to Chris this week about Property Insurance and what it can do to make your life a little simpler. Here is what he had to say:

1) If you rent, make sure you have renter's insurance. Also, make sure your landlord has homeowner's insurance, since renter's insurance only includes the contents that are INSIDE the house

2) Check your landlord's insurance regarding injuries on your rented property. Most people are unaware of the fact that the homeowner is liable in the event that someone is injured on their property. Even if the children across the street climb the fence to get into your yard, you are liable if one of them gets hurt. Find out how your landlord's homeowner's insurance would cover you if someone has an accident.

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Love or Money? Divorcing Just to Stay Alive

2009-09-16T19:11:00.001-07:00

from The Huffington Post

For Mary McCurnin and husband Ron Bednar, money trouble has followed health trouble. In 2003, the couple declared bankruptcy after their insurance covered only 10 percent of treatment costs for her breast cancer and his intestinal bleeding. In 2004, McCurnin’s breast cancer returned, and Bednar underwent open heart surgery.

Now, after repeatedly refinancing their house to pay medical bills and living expenses, they’re broke. To improve their chances of growing old together, they’ve filed for divorce.

"It occurred to me that I could get my first husband’s Social Security," said McCurnin. Her first husband, to whom she’d been married 20 years, died in 1989. When she turns 60 in November, McCurnin said she will be eligible for $1,200 in monthly survivor’s benefits from the previous marriage. As the Social Security Administration told her, she can’t have the survivor benefit if she’s married to someone else.

September 17, 2009 Posted by Staff | african american health, black healthcare | healthcare reform | No Comments Yet

Dr Boyce Watkins Talks Couples, Money on ABC News

2009-09-03T10:07:00.001-07:00

by Dr. Boyce Watkins, Syracuse University

I recently appeared on ABC News to talk about Financial Lovemaking, and the link between sex and money. I've discussed relationships and money several times on AOL in the past, but I think that I should quickly lay out some very interesting similarities that may not have crossed your mind. As I teach my Personal Finance Class at Syracuse University this semester, I am reminded that managing our money is linked to managing our love, which is critical to the ultimate goal of effectively managing our lives.

1) Many people think about both sex and money every single day. Don't lie, you know you enjoy thinking about sex, even if you aren't getting any. But chances are, you also think about money, whether it's figuring out how to get what you need or how to keep what you've got. Even most rappers spend all their time talking about either sex, money or how they use their money to get more sex. It's actually a universal concept.

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Sex Can Be Healthy

2009-08-04T08:23:00.001-07:00

If you thought that making love was just a gesture of love or for pleasure, think again. Sex has much more to it than most of us think and know. Did you know that sex is a form of physical exercise? Sex three times a week burns lots of calories, and if maintained throughout the year, is equivalent to jogging 75 miles. To make it simpler, a vigorous bout burns around 200 calories, about the same as running 15 minutes on a treadmill.

Regular sex is regular exercise and has similar benefits, including improved cholesterol levels and increased circulation Apart from giving you a good work out, sex once or twice a week improves the immune system as well.
Research has shown that an active sex life helps us live longer. Organs and systems in the body perform better and remain healthy because sex increases the supply of oxygen to the cells and stimulates the activity of various organs and systems within the body. People with complaints of cholesterol, take heart! You have a good medicine, which you would not refuse. Where sex balances out the good cholesterol to bad cholesterol ratio, it also simultaneously reduces the overall cholesterol count in the body. So there you go, you can now control your bad cholesterol with pleasure. By having sex three or more times a week, men reduce their risk of heart attack or stroke by half.

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Economic Downturn A Good Thing, Maybe?

2009-02-01T12:36:00.000-08:00

By Dr. Boyce Watkins

www.BoyceWatkins.com

I hate being the doctor who has to tell the patient he has cancer, but the truth usually sets you free (or so my mother told me): We are in the midst of an economic bloodbath. It’s tough to argue that an economy which shrinks by an annualized rate of 5% is still healthy. It’s hard to tell someone that 7.2% unemployment, with the most job losses since 1945, is a good thing. A 4,000 point drop in the Dow is nothing to sneeze at, even if you have plenty of tissue. Times are tough, we know that.

But if we focus hard enough, we might be able to find a few bright sides to all this. With hopes that no one chooses to kill the messenger, I am going to give it a shot.

1) It could always be much worse.

The United States has, according to some, the strongest economy in the world. Our economy could shrink like Rush Limbaugh’s body on drugs and still be disgustingly rich compared to the rest of the world. Don’t believe me? Consider the “fast-growing” Chinese economy, the one that everyone thinks is going to outpace the United States in the next few years. Our annual tax revenues are nearly 4 times greater than China’s ($2.5 Trillion vs. $670 Billion) and they have over 4 times more people than we do (300 million vs. 1.3 Billion). In other words, our per capita tax receipts are over 16 times greater than China’s. So, we’re far better off than most of the world, even when we’re broke.

2) If there were ever an argument for getting out of Iraq, this might be it.

It’s hard to declare war on random countries if you don’t have the money to do it. War is big business and attacking other countries is a huge financial investment. If you don’t think war is about money, then you may want to take a couple of Political Science and History classes. Perhaps these troubles at home will keep us from creating trouble abroad, since Americans have lost patience with irresponsible, arrogant war-mongering. The Obama stimulus plan is asking for over $800 Billion dollars to boost our economy. We’ve already spent nearly $600 Billion in Iraq. Rather than declaring War on Terror, President Obama has declared War on the Recession, which seems to be a far better investment.

3) If you want to buy cheap stocks or real estate, this is the time to do it.

When the market rises, everyone wants to buy stocks. People forget that you shouldn’t buy stocks when prices are high, you buy when the prices are low. Companies with plenty of cash are grabbing investment and real estate bargains that were hardly available a year ago. You should be doing the same if you can afford to do it. Investors who purchase stocks after major market declines tend to do much better than those who buy during booms. You hear me Warren Buffet?

4) Struggle makes us FOCUSED.

Although I tend to be a hardcore capitalist, a part of me misses the activism of the 1960s, when people cared about more than making a dollar. OK, I wasn’t around in the 1960s, but I’ve watched enough old movies. Going through tough times not only teaches one to pursue a higher purpose in life, it also leads individuals to more carefully scrutinize the state of affairs in our government. In fact, I dare to argue that the financial crisis was just what Barack Obama needed to secure his election over John McCain. Economic prosperity allows us the luxury of choosing our politicians based on silly issues, like gay marriage (as we did in 2004). When we are worried about putting food on the table, we look beyond the silliness and choose the most qualified and most intelligent person for the job (after ensuring that he knows Africa really is a continent). Finally, tough economic times make you more responsible in your own money management, as the threat of financial insecurity keeps us all on high alert.

Those are my points, so again, please don’t kill the messenger. I certainly do not celebrate a weak economy, but I am a firm believer that focusing too much on the door that shuts keeps us from appreciating the ones that just opened. There’s always light at the end of the tunnel, a pot of gold at the end of every rainbow, and….well, you get the point. It’s the toughness of tough times that make the good times good. Keep hanging in there, it’ll be ok.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in ways that Feel Good.” For more information, please visit www.BoyceWatkins.com.

Dr. Boyce Watkins Shares Consumer Confidence Secrets

2008-11-26T20:28:00.001-08:00

Dr. Boyce Watkins
www.Boycewatkins.com

If you wish to see a video explaining consumer confidence, which is one of the driving issues behind the recent moves in the stock market, please click here.

This has been an interesting week, with auto execs showing up on private jets to request a bailout from the government and the Dow moving to below 8,000 points for the first time in 5 years. I still hold to the fact that this is a great time to get into the stock market if one has never done so before, especially if you are under the age of 50. By the way - please visit our sponsor, GreatBlackSpeakers.com if you are interested in hiring a top notch African American speaker or seeking to become one.

Take care!
Boyce Watkins
http://www.blogger.com/www.boycewatkins.com
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If you listen carefully to the words of Treasury Secretary Henry “Hank” Paulson and Ben “Big Ben” Bernanke (chairman of the Federal Reserve) you might notice a trend in their language. The word “confidence” is used a lot when they speak. Many of their monetary proposals are not necessarily valuable for their financial power, but also for their psychological power.

Some of you may wonder what confidence has to do with anything. After all, if you’re broke, confidence doesn’t exactly put money in your pocket. If you’re 100 pounds overweight, confidence won’t help you win the Olympic 100 meter dash. When you are flying on a crashing plane, confidence doesn’t keep the plane from slamming into the ground. But confidence is important to an economy, and one of the most significant drivers of economic growth. In fact, over confidence has driven US economic growth for the past 10 years. Here are some reasons that confidence matters in the minds of Hank and Big Ben:

1) Confident consumers spend money

If you think you might lose your job next year, are you going to max out your credit cards? I certainly hope not. If you are worried about being able to make ends meet, are you going to buy that big screen TV? Not unless you want your wife to leave you. So, even if it doesn’t hold any truth, the mere forecast of a weak economy is enough to make many Americans hold off on consumer spending, one of the great driving forces of the American financial system.

2) Confident companies invest money and hire workers

Investments involve risk. Your hunch may work out, and it may not. If you don’t believe the economy is getting better, you are not going to consider taking that risk. No one plans to go to the beach if the weather man says that it’s going to rain. When economic rain is in the forecast, companies pull out their umbrellas and hold off on new projects. This reduces the number of jobs in the economy, because nearly every job created in America is the result of someone making an investment.

3) Confident Americans do not take their money out of banks

In case you didn’t know, your bank does not have your money. Your money is part of a large base of financial capital that is loaned out to individuals and consumers seeking to get a good return on their investment. So, without investing, your bank would have no interest in paying you any interest at all. So if, say, 30% of all customers of the same bank decide to get their money out at the same time, the bank would have serious financial problems. It is a lack of confidence that could cause customers to “run” on their bank and take out their money.

4) Confident investors keep their money in the stock market

The stock market is a place where fortunes are made and lost. Some part of that fortune is psychological, given that no asset can have a value which exceeds that which someone is willing to pay for it. When investors lose confidence, they take their money out of the stock market, and reductions in demand for stocks lead to massive paper losses in the market. Additionally, most Americans are “momentum traders”, meaning that when the market goes up, they tend to buy more, and when it goes down, they tend to sell. History shows that it is actually the opposite approach that tends to work best.

5) Confident banks make loans

Banks have to keep a certain portion of their funds on hand at all times to meet federal requirements. If they are fearful that their customers might come and demand their cash, they hold onto their capital to ensure that it is available. If they are afraid that their borrowing customers will not be able to repay loans due to a weak economy, they also hold back on issuing new loans. The truth is that when economic forecasts are grim, conservative bankers become even more fearful than the rest of us.

The bottom line of this article is that confidence matters. So, the next time you hear Ben Bernanke give a speech, you can be confident that he is going to use language that makes you feel more secure. Whether you choose to believe those words is up to you.

Dr. Boyce Watkins is a Finance Professor at Syracuse University. He does regular commentary in national media, including CNN, BET, ESPN and CBS. For more information, please visit http://www.blogger.com/www.boycewatkins.com. To join our money list, please click here.

Dr. Boyce Watkins Advice on Consumer Confidence

2008-11-20T20:43:00.005-08:00

Trust the Government? Yes or No, Black Professors Thoughts

2008-11-19T20:51:00.000-08:00

Remaining Confident While Country Facing Financial Meltdown

2008-11-18T22:56:00.000-08:00

by Dr. Boyce Watkins
http://www.boycewatkins.com/

If you listen carefully to the words of Treasury Secretary Henry “Hank” Paulson and Ben “Big Ben” Bernanke (chairman of the Federal Reserve) you might notice a trend in their language. The word “confidence” is used a lot when they speak. Many of their monetary proposals are not necessarily valuable for their financial power, but also for their psychological power.

Some of you may wonder what confidence has to do with anything. After all, if you’re broke, confidence doesn’t exactly put money in your pocket. If you’re 100 pounds overweight, confidence won’t help you win the Olympic 100 meter dash. When you are flying on a crashing plane, confidence doesn’t keep the plane from slamming into the ground. But confidence is important to an economy, and one of the most significant drivers of economic growth. In fact, over confidence has driven US economic growth for the past 10 years. Here are some reasons that confidence matters in the minds of Hank and Big Ben:

1) Confident consumers spend money
If you think you might lose your job next year, are you going to max out your credit cards? I certainly hope not. If you are worried about being able to make ends meet, are you going to buy that big screen TV? Not unless you want your wife to leave you. So, even if it doesn’t hold any truth, the mere forecast of a weak economy is enough to make many Americans hold off on consumer spending, one of the great driving forces of the American financial system.

2) Confident companies invest money and hire workers
Investments involve risk. Your hunch may work out, and it may not. If you don’t believe the economy is getting better, you are not going to consider taking that risk. No one plans to go to the beach if the weather man says that it’s going to rain. When economic rain is in the forecast, companies pull out their umbrellas and hold off on new projects. This reduces the number of jobs in the economy, because nearly every job created in America is the result of someone making an investment.

3) Confident Americans do not take their money out of banks
In case you didn’t know, your bank does not have your money. Your money is part of a large base of financial capital that is loaned out to individuals and consumers seeking to get a good return on their investment. So, without investing, your bank would have no interest in paying you any interest at all. So if, say, 30% of all customers of the same bank decide to get their money out at the same time, the bank would have serious financial problems. It is a lack of confidence that could cause customers to “run” on their bank and take out their money.

4) Confident investors keep their money in the stock market
The stock market is a place where fortunes are made and lost. Some part of that fortune is psychological, given that no asset can have a value which exceeds that which someone is willing to pay for it. When investors lose confidence, they take their money out of the stock market, and reductions in demand for stocks lead to massive paper losses in the market. Additionally, most Americans are “momentum traders”, meaning that when the market goes up, they tend to buy more, and when it goes down, they tend to sell. History shows that it is actually the opposite approach that tends to work best.

5) Confident banks make loans
Banks have to keep a certain portion of their funds on hand at all times to meet federal requirements. If they are fearful that their customers might come and demand their cash, they hold onto their capital to ensure that it is available. If they are afraid that their borrowing customers will not be able to repay loans due to a weak economy, they also hold back on issuing new loans. The truth is that when economic forecasts are grim, conservative bankers become even more fearful than the rest of us.

The bottom line of this article is that confidence matters. So, the next time you hear Ben Bernanke give a speech, you can be confident that he is going to use language that makes you feel more secure. Whether you choose to believe those words is up to you.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good”. For more information, please visit http://boycewatikns.com/