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How Safe Am I from the Recession?

How Safe Am I from the Recession?

Face it: Money management is a "sink or swim" scenario.

With a recession on the horizon, and amidst questions about pending job security, bad financial decisions can lead to rough waters.

Luckily, there are things you can do to protect yourself. The quiz below will help you assess your safety level in terms of career, education, and recession preparedness.

1. I am taking online courses that apply to my current career field.

1. I know I should be focusing on my current career, but I'm sick of the pressure. I am not taking courses right now. (0 points)
2. Yes, absolutely. I am trying to stay as current as possible in my field. (3 points)
3. I'm taking a few courses. I like them. (2 points)
4. The courses I'm taking apply to my old job. It no longer exists. I'm not sure what to do now. (1 point)

Taking online courses to solidify your professional background is definitely a smart move. If push comes to shove, employers are less likely to downsize an employee who exhibits dedication and a willingness to learn more about the industry. Plus, the principles you learn will help you to do your job better. Sluggish economy or no, informed, capable people are always needed.

2. I am taking online courses in a subject that doesn't relate to my current job.

1. I love the courses I'm taking, even though they don't directly apply. They help my communication skills. (3 points)
2. I'm not taking any courses right now. (0 points)
3. I took a course a year ago. I'm thinking about taking another course soon. (1 point)
4. I'm signed up for online courses. I'm not taking any now, but will soon! (2 points)

Yes again! This isn't a trick question. Online courses in an alternate field are still a smart move. And we're not just saying that to promote ourselves; it's an occupational reality. Even if you're studying something completely apart from your current career, working towards a certificate or a degree demonstrates that you are bright, focused and determined.

If you do find yourself out of work, hiring managers will look favorably on your efforts. Online courses could also give you concrete examples to reference when discussing your organizational skills and work ethic, during an interview process.

3. My student loan debt consists of fixed rate long-term loans.

1. I have some fixed rate loans, but the interest rate is pretty high. (2 points)
2. My loans are fixed rate, and they are low interest. (3 points)
3. I got a great e-mail from a person who promised to split his great uncle's estate in Zimbabwe with me if I sent him my checking account number. He's promising me a million bucks. That will more than pay for my college education, won't it? (0 points)
4. I thought I'd pay for my college education by taking out a home equity loan. That was when my house doubled in its assessed value. Now it has lost 35% and I owe more than it's worth. Help! (1 point)

Bravo! Researching and securing funds for your education is sometimes a longer process than finding the school itself. (Need more help? Check out the "Pay for College" section on ProjectWorkingMom.com.)

Financing can get confusing — especially when lenders promote offers that sound too good to be true. Loans with variable interest rates, or that cannot be deferred in the event of hardship, are potentially quite risky. Always make sure you understand what you're signing on for, as well as all the alternative options.

4. I am paying for my education with credit cards.

1. I have been listening to a program that tells me how to avoid consumer debt. I decided to avoid credit cards — even for books and supplies. (3 points)
2. Every time I get an application for a credit card, I sign up for it. Then, I buy new computers and supplies. I also pay for my tuition. It's a great deal. I'm getting "happy points" and will be able to go to Disneyland sometime soon. Cool, huh? (0 points)
3. I pay for my tuition with student loans. I pay for books and supplies with my credit cards, which are low interest. (2 points)
4. Unfortunately, I paid for one semester with credit cards. Never again! I'm now max'd out, which is probably a good thing, since I won't be able to do that again any time soon. I'm applying for scholarships, grants, and fixed-rate loans. (1 point)

Let's put it this way: when the market is bad, carrying a lot of credit card debt is bad. It's like losing a hand of gin rummy, and getting stuck holding all the high cards. There are better ways to finance your studies. (Have you visited the Debt-Free College Guide?)

Before you charge another semester, speak with a financial aid advisor to investigate scholarships, federal and private (fixed-rate!) loans.

5. I want the degree I can complete the fastest.

1. There's a place I can go to that will take my life experience and give me a degree. They say it takes three weeks. Kind of pricey, but, well, I'll be a college graduate!!! (0 points)
2. I want a degree I can complete quickly, but it has to make sense to my life and career. I can power through the degree — but only if I take it very seriously and dedicate myself to studies. (3 points)
3. After speaking with an advisor, I found I can put together a portfolio of life experience, transfer in my previous courses, take exams, and take courses online to get a degree quickly. It's in general studies. I don't really want that degree, and am not sure what I can do with it. But, hey, it's a degree, right? (1 point)
4. I'm balancing my desire for a quick degree with the realities of what I'll need to present to a potential employer. So, I'm taking a balanced approach — an accelerated program in an area that equips me for several different careers (2 points).

First of all, it's never a good idea to make a major decision based on one, single factor. Secondly, schools that strenuously promote "fast" degrees are probably not concerned with the quality of your educational experience. In fact, they might be diploma mills.

We understand that times are tough, and you'd like to become a degree holder as quickly as possible. But rushing isn't worth the cost of a half-rate education. There are dozens of quality schools that offer convenient pacing options. You can complete your degree while you're working, and employers will recognize that it was duly earned.

6. The college I'm considering/attending is accredited.

1. The college I'm attending is not accredited. I can get my degree based on my life experience. I love it! My sister thinks I'm crazy, though… (0 points)
2. My college has applied for accreditation. The courses have been approved by the American Council for Education (ACE) and the certificate programs have been approved by the state education department. (1 point)
3. My college has national accreditation. (2 points)
4. My college has regional accreditation. (3 points)

Accredited is the magic word when it comes to higher education. It doesn't have as many syllables as "abracadabra," and it almost never generates spontaneous puffs of smoke, but you get the idea. It's very important. It means that an independent agency has thoroughly evaluated a school — how it operates, who teaches there —and determined that its students are receiving a quality education.

Be sure you understand the basics of accreditation. For extra credit, read up on the difference between national and regional accreditation.

7. I'm not sure if the college I'm considering/attending is accredited.

1. The college I'm considering sounds good and has a great Web site. I can get my degree in 6 weeks. Isn't that good? (0 points)
2. The college I'm considering has a name that sounds like a famous Ivy League college. Isn't it affiliated with the college it sounds like? I have always wanted a prestigious degree. (1 point)
3. My college has national accreditation. (2 points)
4. My college has regional accreditation. (3 points)

Not sure if it's accredited?!? Cue the spontaneous puff of smoke. Let's reiterate: accreditation is very important. Please reread the above paragraph. Now, find yourself an accredited online college.

8. I chose the college I'm considering/attending because my cousin takes classes there. I don't know that much about their programs, but my cousin gets good grades.

1. My cousin is getting a degree in general studies. I want to study allied health programs. The course doesn't seem to have many health programs, but my cousin is happy… (0 points)
2. I don't know much about the university's programs yet, but I have looked at their Web site, and have printed out information about their degrees. (1 point)
3. I'm reviewing degree programs and am looking closely at their Web site. I'm also checking out blogs and alumni discussion boards. I am interested, too, in their job placement programs. (2 points)
4. I've read their Web site, reviewed catalogues and information. Now I'm reading alumni discussions and have been in contact with admissions advisors. I have a very good feeling. (3 points)

Positive feedback from friends and family is a good starting point when selecting a school. Still, you need to do more research. Don't get us wrong, your cousin is probably terrific, and we're glad he/she found a compatible school. Meanwhile, your decision should be based on your needs.

Speak to administrators at the school (work from this handy list of must-ask questions), and find out more about your area of interest. How many courses will be required, and will they accept your transfer credits? Your education is not the same thing as deciding on a movie or a fancy restaurant; word of mouth is not enough.

9. My goal is zero student loan debt. I'm taking one class per semester. In 10 years or so I will have a degree.

1. I'm scared by the economy. Now I'm down to taking one course every other semester. I don't want to spend any extra money. (0 points)
2. I'm withdrawing money from savings to take one course per semester. (1 point)
3. If I take two courses per semester, I can make faster progress. I have taken another part-time job at a convenience store to help pay for it. But, my grades are suffering. I don't have enough time to study. (2 points)
4. I've found a low-interest loan, and have applied for scholarships. It's great! (3 points)

Zero student loan debt is an admirable goal. At the same time, 10 years is probably 20 percent of your entire career span. Can you really afford to wait that long? People pursue online education for lots of different reasons, and the 10 year plan might work for some of them. More likely, we suspect you'll be happier shouldering some amount of debt, and paying the loans off quickly with the increased earnings your degree will likely generate.

Even financial experts agree that some debt — including college loans — is good to have. When you finish your degree, and make a habit of sending your payments on time, you will help to build up your credit score.

10. I've completed some college course work since high school, but I don't think any of it will count towards an online degree.

1. I've taken courses at the local community college. I'm not sure if they count, though. I've never talked to an advisor. (0 points)
2. I took several courses at the local community college and I'm planning to contact an advisor to see if they'll apply toward a degree. (1 point)
3. I'm looking at colleges that have a very flexible transfer policy. I am optimistic that they'll take my courses. I am also checking out credit by exam (CLEP). (2 points)
4. The college I'm considering will accept my community college courses. In fact, they have an articulation agreement with the college. In addition, I've talked to an advisor and have mapped out my course plan. I'm also taking CLEP exams and will be able to earn another 9 credit hours. (3 points)

This is a common misconception. Don't assume you have to start your degree from the beginning. If you have any college course work in the bank, ask your prospect schools whether or not they'll accept the credits. Transfer credit policies vary quite a bit, so this is an important thing to determine before you make a final school decision.

Investigate CLEP tests as you look at schools. CLEP stands for College Level Examination Program. The tests can measure college level knowledge you may have gained through course work, independent learning, military training, or work experience. Nearly 3,000 colleges and universities offer credit for every CLEP you pass. The tests are usually an hour and a half in length, and they cost $65 each. CLEP and/or transfer credit can potentially cut your enrollment costs and your time commitment in half!

11. I chose my major because last year, its graduates earned more than professionals in other fields. Most of the people I meet at college are in the same major. I hope there won't be an oversupply.

1. I chose my major because someone told me it would lead to high-paying job on Wall Street. I don't really like the courses, and I'm now thinking about dropping out. (0 points)
2. My cousin talked me into her same major, even though I don't really feel comfortable with the courses. In fact, I'm failing one of them. I just can't stand studying it. (1 point)
3. I love nursing, although it can be very rigorous. I know that there may be an oversupply, but I will be able to build on my education. (2 points)
4. I really like my major, and I am doing really well in my courses. I'm doing an internship and am working with the career counselor. I hope to have a job lined up upon graduation. (3 points)

In this case, there's good news for everyone. Keeping your potential salary in mind when choosing a major is smart planning. You may not find your ideal job straight after finishing your degree, but you'll have reasonable goals and a path to follow. Alternatively, there's something to be said for following you heart. Choosing to study what you love may yield the highest returns, even if the starting salary and job availability isn't exactly through the roof.

12. The major I chose fits my personal interests and ties in well with my learning styles and preferences. I love what I'm studying.

1. I chose this major because my family has been in this profession for many years. I really don't like the career. I'm not doing well. I am afraid to change. (0 points)
2. I'm taking courses because I hope my degree will impress my family and friends. (1 point)
3. My major is something of a compromise between practicality and passion, and sometimes I have to work quite hard to motivate myself. But, with the right kind of motivation strategies, I'm okay. (2 points)
4. I feel enthusiastic and motivated every day to study my courses. I'm intrinsically motivated by the topic, and I enjoy the discussion boards and interaction/collaboration in the courses. It is wonderful. (3 points)

Here again, natural interest and ability are strong determinants of success. If your major and your mojo are gelling, then you're in great shape. You are more likely to do well in your classes, and more likely to complete your degree program. But practicality doesn't need to go out the window. Opting for your second or third choice, which you know will lead to employment, is also a wise move.

13. I'm planning on going back to school online, but I haven't discussed it with my family.

1. I know that my courses will require time, money, and other resources. But, I don't feel comfortable about telling anyone. If I tell them, there's too much pressure. (0 points)
2. My husband is in grad school. It's not fair that he's getting an education and I'm not. I'm going to beat him at his own game. I'm keeping my course work a secret. I'll invite him to my graduation. (1 point)
3. We've talked about my courses and the overall impact on the family. It will take a lot of sacrifice and hard work, but we'll be okay… I guess. (2 points)
4. My family and I have discussed what it will take for us to get this degree together. It is a team effort, and we'll all benefit. I love the team spirit. (3 points)

Going back to school is a major undertaking. Besides the financial investment, classes will require large amounts of time and energy. Just like money, these things are resources you share with your family. You may need your spouse or your children to help out with chores you usually complete.

You'll definitely need to allocate study hours — periods of time when you cannot be disturbed. It's important that everyone in your home respects the conditions upfront. Letting family members in on the discussion also helps to convey the idea that your education will be a household asset. Here are important talking points to cover before you enroll.

14. My spouse and I have developed a financial plan and a budget we agree on.

1. My spouse and I can't agree on anything. So, we never talk about finances. Ever. We keep everything separate. (0 points)
2. I know that having a financial plan is important, but my spouse and I do not see eye to eye on finances. In fact, we have arguments about impulse buys and credit card debt. (1 point)
3. My spouse is a good financial planner. I like planning, too. Our priorities are not exactly the same, but we both believe in the value of education. (2 points)
4. It's great to have a spouse that shares such a fantastic attitude about finances. We love sitting down and planning. We discuss the pro's and con's, and we make decisions on all points. Having our budget conversations has brought us together as a couple. We feel very close, and we have a strong sense of mutual trust. (3 points)

Everybody knows that money can lead to arguments. Couples fight about money more than any other single issue. The result? Many people stop talking about their savings and their financial plans. A "yes" answer here means that you aren't sticking your head in the sand, or deciding that your priorities are the only ones that count. That's great. Keep the focus on your mutual end game, and trust that your compromises will pay off.

15. My spouse thinks my education is a waste of money.

1. I know that my degree program does not seem very practical, but I love it. My spouse is angry and refuses to support me in any way. I do not feel the need to defend myself. I am my own person. My spouse will just have to live with it. (0 points)
2. My spouse thinks my degree is impractical and the school is too expensive. I feel the same way about my spouse's degree program and college. Right now, I'd characterize our relationship as mutually assured destruction. It's not good. (1 point)
3. My spouse does not respect my major. But, he is starting to see that it can bring good things to both of us. After all, it is a program that equips me for the future by giving me problem-solving abilities and analytical skills. (2 points)
4. My spouse is starting to be very supportive about my education. He realizes that it is important to love what you're doing and to be so enthusiastic that you'll spend a lot of time, and you'll strive for excellence. (3 points)

This is a big concern, but hardly insurmountable. He or she might feel differently after knowing all the facts. Plan a good time to sit down with your spouse. Make sure it's not a stressful occasion (e.g. as soon as he gets home from work, or right in the middle of paying the bills.)

Talking in abstract terms can get frustrating, so try to outline as many certainties as you can. For example, what is the program you're interested in? How much will it cost? What kind of financial aid do you qualify for? How long will the degree take? If his or her primary concern is the monetary aspect, maybe you could also list some of the job options this degree would make possible. Increased earning potential is a topic you'll both agree on.

16. My boss has noticed that I'm taking courses and she's impressed.

1. My boss is impressed. My coworkers are not. They think I'm trying to out-do them. I am not sharing any information with them. Sometimes I think I should encourage them to take courses, too, but I am uncomfortable. (0 points)
2. My coworkers feel I'm trying to look good at their expense. I'm giving them information and showing them how they, too, can earn their degrees. They are starting to be more friendly to me. (1 point)
3. Not only is my boss impressed, my team members are, too. They're taking online courses, too. We're supporting each other. Unfortunately, higher management is not so supportive. They do not allow us to take time off during key times. (2 points)
4. My company is very supportive of higher education. They also allow us to take time off when we need to study for exams and prepare term papers. (3 points)

Good for you! Gaining recognition is not the same thing as grandstanding or brown-nosing. Lots of people are too humble about their efforts and accomplishments, and you won't get anywhere by hiding from praise. If you haven't already, now is a good time to inquire about company policy on tuition reimbursement. (Keep in mind: you many not want to advertise your degree plans to everyone in the office — especially if they involve a career move.)

17. In order to get a promotion where I work, I need to have a degree.

1. I need a degree, but I'm not in a college program. I can't seem to be able to make a decision. (0 points)
2. I need a degree. I'm not sure what to study. I'm looking at catalogues and degree programs, and I'm talking to my boss and coworkers and finding out what they're studying. (1 point)
3. I'm enrolled in courses, but am only taking one course per semester. I realize it will take a long time, but at least I'm making progress. (2 points)
4. I've signed up for an accelerated program in order to obtain my degree within 18 months. It will be difficult, but the program is specially designed for working adults. I'm excited about it. (3 points)

Terrific! Another 3 points for thinking and planning ahead. Some people deal with adversity by ignoring the problem, or seeking out sources of instant gratification. Acknowledging that you need more education means you've made an important first step towards long-term stability. Now keep up that momentum!

Your Results:

So how did you do? Tally your points for an approximate rating. Remember: there are plenty of variables within these questions. Simple "yes" or "no" answers don't always address the details of your personal situation. For a more in depth discussion on any of the topics above, visit our Guide to Online Education.

40 or Above =
Lifeguard Status

Congratulations, it looks like you've done your homework! You have a plan and you're not afraid to use it. Our advice? Stay on course. Your diligence and sense of responsibility will see you through any setbacks that may arise. You are an example to us all! Now share this quiz with a friend!

15 - 39 =
Intermediate

In some respects you're on track. You know what's important and how to protect yourself. In others, you might want to push yourself harder. The fact that you're doing a lot of things right shows you have the ability to strategize. Exercise that ability in all your endeavors — at school, at work and at home. You'll find that proactive planning is an investment in your future.

0 - 14 =
Man (or Woman!) Overboard

You may be setting yourself up for big financial risks. But all is not lost! So the bad news is that you've made a few missteps. The good news is that you're trying to improve the situation, or else you wouldn't have found this quiz. Sit down with your family and address the situation. Ask yourself some of the tough hypothetical questions (what would I do if I lost my job?) Then draft a course of action. In terms of your online education, dedicate some time to review our many resources. We've helped thousands of students, and we're always ready to help one more!

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Dr. Susan Smith Nash, Ph.D. and Elizabeth Demeo contributed to this quiz. Dr. Nash has been involved in the development and administration of online courses and programs since the early 1990s. Her latest book, Excellence in College Teaching and Learning: Classroom and Online Instruction 2007, was co-authored with George Henderson. Her first book Leadership and the e-Learning Organization was published in 2006.

Elizabeth Demeo is earning an MFA in Creative Writing. She is a contributing writer at eLearners.com and GradSchools.com.

We welcome all comments directed to: recession [at] elearners [dot] com.