Mission Statement
"We aim to assist young adults by helping them financially stabilize themselves as they undergo the economically harsh transition from college to adulthood. This goal will be reached by providing access to affordable and efficient housing, an objective we intend to achieve through a forced budgeting system, student tax breaks and exemptions"
Introduction
Our group explored and studied the transition from college to adulthood and the harsh financial situation students must face as they eagerly begin to start their own independent life. However, with the increase of college debt and college tuition it has become increasingly difficult for students to start their own life. One of the biggest obstacles college graduates face today is trying to find affordable and efficient housings. This is due to the fact that many are not qualified to sign up for a mortgage due to their college debt and many of them do not have the resources to pay of their college debt. Furthermore, college graduates who are able to attain a job immediately after college are usually payed entry level salaries which is never enough to obtain financial stability and many of them are reduced to living in small cramp apartments or moving back to their parents. This lack of financial stability creates stagnation in the lives of many college graduates.
Data
During our research we came across data that supported our argument, which stated that college graduates lack opportunities in terms of affordable and efficient housing. The graphs we used depict the amount of 18-24 and 18-34 college graduates living with their families in the year 2001 and 2011.
In this graph we can see 18-24 year old college graduates living with their parents in the year 2001 and the year 2011. In 2001 only 31% of college graduates lived with their parents. In 2011 there was a 14% increase in the amount of college graduates living with their parents. This graph illustrates how many college graduates are facing difficulties in the housing market and have to move back with their parents which pushes back their lives.
This graph depicts the percentage of 18-34 year old college graduates still living with their parents. Here we can see that college graduates have to wait many years before they the start their own lives. In 2011 there are 21% of college graduates from the age of 18 to 34 still living with their parents which vividly draws the conclusion that many college graduates are finding it more difficult to start their own lives and obtain housing, which is critical in the road to self-sufficiency.
Proposal
Our proposal to help college graduates obtain financial stability and affordable housing we decided to construct a 401K plan for college students. Modeled after a 401k plan, we proposed to create a savings account for students working on campus jobs. For example, when college students received their pay stub the college will deduct a certain amount of money from that pay check and place it in a saving account that will grow through interest and dividends. The savings account will not be able to be accessed by student until after they graduate. After college students graduate they will be given this savings account and they will have a financial safety net in order to start their lives. This money that they saved over their academic college career will be able to go a down payment for a house or can be used to pay of their college debt.
Conclusion
With this proposed plan we aim to give college graduates a financial safety net in their transition from college to adulthood.. We also aim to educate students how to manage their money through saving accounts,bonds and stocks.
References
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