2018 MAKERS Conference Wrap-Up Sizzle
The beginning of the year marked a watershed moment in the women’s movement, and MAKERS was proud to lead the conversations towards real change at our 2018 MAKERS Conference.
- Gun violence is just out of control. And that's why we have to be here to stand up.
- We're here. We're making a change. We're using our voice. We're marching.
- If we're too young and immature to have a say in this, then how are we old enough and mature enough to buy a gun?
- We are the voters of the future. We are politically engaged. All we want is the adults and the government of this country to listen.
- There's so many girls here today and we're not afraid to stand up for what we believe in. And that is why girls are badass.
- We're not afraid to get called bitchy or get called bossy.
- And we are the future, so you need to listen to us.
- We want change. We want change.
- It was our generation that changed the Vietnam War.
- And we need to support young women and the empowerment that they feel now.
- Listen to me, because I know I can make a change.
- Listen to me, because I am strong.
- Listen to me because I am the future.
- Listen to me, because my voice matters.
- And I am no longer silenced.
SALLIE KRAWCHECK: Money is power. And ladies, it's time to level the playing field.
Hi, everyone. Welcome to Makers Money. I'm Sallie Krawcheck, CEO of Elevest, the investing platform for women. Grab yourself a beverage because we're going to dig into something exciting that I hope is going to change the way you think about your future.
We need to talk about building your dream career. Yes, the one that lights you up because you're doing something you love. The one that means you're living your most badass life. It's never going to happen in a vacuum. You have to pursue your dream career strategically and with intention.
Start by looking yourself in the mirror. I want you to ask yourself three questions. Number one-- what does my dream career look like? You need to schedule some thinking time for this. Close your eyes and think hard about your ideal work. What kind of impact do you see yourself making?
Are you being analytical? Are you being creative? Are you being persuasive? Are you leading a cause? Are you working on your own? Are you leading people? What makes your heart race faster?
Now once you know what's important to you, the next step is to ask yourself what you're good at. This can be tough for some of us, because after all, ladies don't brag. But sometimes we also don't give ourselves enough credit for the things we're good at because they come so naturally to us. So ask for feedback from people who know you well.
Number two-- I want you to assess what experience you need for your dream role. Chances are that dream career-- it could be a few steps from where you are today. So think about what skills you'll need for that next job. If it means getting better at marketing, ask the boss for a marking project. Spring for the coding class you've been thinking about or start the blog you've been dreaming of. Whatever it is, building out your skill set is going to make you a way stronger candidate for your next role.
Finally, ask yourself, am I in a position of strength? When you're financially stable, you just make better decisions. Example-- you've got three to six months of your salary saved in an emergency fund. You've been listening to that [BLEEP] old boss of yours pitch great ideas as if they're his own for months, then you've got the freedom to decide. You are done with that [BLEEP]. And find a better team to work with.
Joining us today is Carla Harris, Vice Chairman, Wealth Management, Managing Director and Senior Client Advisor-- you have a few titles-- at Morgan Stanley. In August 2013, she was appointed by President Obama to chair the National Women's Business Council. Carla, welcome. I'm so glad you can be here to see you again.
CARLA HARRIS: Thank you very much, Sallie.
SALLIE KRAWCHECK: It's great to have you. You have been so successful in an industry that doesn't just have guys in it, it's dominated by men. How have you managed to be so successful and navigate those environments?
CARLA HARRIS: I'll tell you, Sallie, I think it's three things. Number one, as I made mistakes, really being focused and understanding how I got there what was the mistake and what I could have done differently. The second is, frankly, having the tenacity to get back on the horse again and try it again, as opposed to saying, oh, this is now career limiting. And the third is prayer.
[LAUGHING]
SALLIE KRAWCHECK: I think we, as women, the research tells us that we're really embarrassed by our mistakes-- more than the guys are. And what do you do? Just power through it?
CARLA HARRIS: Yeah, the key is to learn from the mistake. What was the lesson here? Why did the universe bring this issue to me and what was I supposed to learn? Get that and move on. Don't create baggage because baggage is heavy, and it will create a competitive disadvantage as you lug it around.
SALLIE KRAWCHECK: And I tell you, also, admit the mistake.
CARLA HARRIS: Absolutely.
SALLIE KRAWCHECK: What always makes me not trust someone in a business setting is when they pretend like the mistake didn't happen or wasn't their fault.
CARLA HARRIS: I can't agree with you more. Not only admit the mistake, own that thing, but also own the narrative. Never let anybody else tell your story.
SALLIE KRAWCHECK: Outstanding point. OK, so if you could go back in time and see yourself at 25, what are the three pieces of advice you'd give yourself?
CARLA HARRIS: First thing I would tell my 25-year old self is own your power. We have a lot of power, and we so easily and unconsciously give it away. The second thing I would tell myself is take risks and play it big. If you're going to bother to play it all, play it big. You know what no looks like, so why not play for yes?
SALLIE KRAWCHECK: If I go back to 25, I'd say, divorce that man. Divorce that man-- I mean, where do you get your confidence from?
CARLA HARRIS: Well, I will say that my confidence has come through my experience, it's also come through my faith, and it also comes from having really strong women around me as I grew up.
SALLIE KRAWCHECK: Right. What are you telling women in their 20s about how to position themselves for the next big opportunity?
CARLA HARRIS: Too often we focus on the performance because we think that performance is the objective thing. You can't debate the performance. But we have to invest in the relationships, because as you know, as you get more senior, it's not the performance that makes a difference-- it's whether or not somebody knows you well enough to speak up for you behind closed doors for that critical assignment, that big bonus, running a department.
SALLIE KRAWCHECK: Even when you work in a big company?
CARLA HARRIS: Absolutely.
SALLIE KRAWCHECK: Right? What are the big mistakes you've made in your career?
CARLA HARRIS: (Laughing) Where shall we start?
SALLIE KRAWCHECK: Well, we don't have that much time, Carla.
CARLA HARRIS: I know, right? There are lots of them. But here's the one that I really want to leave you with-- is when you're trying to decide on that next thing to do, make sure that you understand, again, that it is your responsibility to figure that out. Big mistake that I made-- I was ready to move on to something else. I went to someone who was very powerful who could make it happen. And I said, so-and-so, I'm ready to move. It's time to do something different.
And he said, so what would you like to do, Carla? And I said, I-- I-- I--
SALLIE KRAWCHECK: You weren't expecting that question.
CARLA HARRIS: Yes, right in that moment, I realized that I had lost an opportunity. His job was to make it happen, not to help me figure it out.
SALLIE KRAWCHECK: What's the stupidest thing you've ever done with your money? What's the smartest thing you've ever done with your money?
CARLA HARRIS: Stupidest thing I've ever done with my money was invested with somebody, who was a friend, who I thought would take good counsel. And if I had looked at this situation objectively and done my due diligence, the answer would have been no. So that was the stupidest thing I ever did.
SALLIE KRAWCHECK: Smartest thing you did with your money?
CARLA HARRIS: Smartest thing I did was invest in startups.
SALLIE KRAWCHECK: Are you getting a return on those?
CARLA HARRIS: Absolutely.
SALLIE KRAWCHECK: Or is it just for the fun? Really?
CARLA HARRIS: Absolutely.
SALLIE KRAWCHECK: Well, you are so great to be here with us.
CARLA HARRIS: Well, thank you for having me.
SALLIE KRAWCHECK: To this evening. What great advice. Thank you.
CARLA HARRIS: Thank you very much.
SALLIE KRAWCHECK: OK, now it's time to answer some of the questions that you've sent in. The first question-- I'm a year and a half into what I thought was my dream job during college. Now I dread going into the office every morning. What do I do?
I get it. I totally get it-- totally get it because my 20s-- disaster. I hated every job I held, one more than next. What I did, though, is I was careful to note what I did like and what I was good at along the way. And then when I was facing old age, 29 years and 11 months, it hit me one day-- an insight that I like to say so many young women have at that age-- I should be an equity research analyst.
OK, that might not be your personal passion, but it-- believe it or not-- was mine. And once I knew that, my career took off. And I was at the top of my industry in a few years. The lesson here is this-- it's OK not to love your first job or your second or your third, as long as you keep pushing yourself to figure out where your passion convergences with your talent and ability.
Question number two-- all right. I'm thinking about making a career change but it looks like I'll have to step back into a more junior role. Should I stay where I am or take a lower salary to do what I want to do? Let me ask you a question-- is it a job you think you'll love? Then go.
And instead of thinking about just that near-term salary, look at the earnings of the highest achievers in that field have, and girl, plan to be right there with them. So here's the deal-- figure out what makes your heart race at work, and align that with what you're good at. That's how you'll build a career that brings you satisfaction, and importantly, makes a meaningful impact on the world.
Huge thanks to the hugely talented Carla Harris for joining us. And ladies, we want to hear from you. So tweet at us at @MakersWomen and use the hashtag #Makersmoney. Or send us questions at Makers.com/makersmoney. Until next time, remember-- more money, more power.
LIMOR FRIED: is just saying I've got a problem, and I've got all these techniques and tools in my head, we're going to solve this problem together. Engineering is making solutions for people.
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I grew up in Brookline, Massachusetts, which is right outside of Boston. When I was a young girl, actually one of my favorite memories is I would watch "Mr. Wizard's World" with my dad. And it was awesome. There was building your own record player.
- There's the needle on the amplifier.
- Oh, wow.
LIMOR FRIED: At the time, it was totally OK to set up explosives, as long as you called the fire department ahead of time.
- Whoa.
LIMOR FRIED: I just loved being creative, and I loved science. I loved building things, like taking things apart, understanding how they worked.
[MUSIC PLAYING]
I was actually having just a lot of, fun because I'd been gaining all these skills in building, and in microcontrollers, and LEDs, and art, and technology. And I'd post these projects online and send them to people, and say, hey, here's a cool project I built. In Boston, Cambridge at MIT, there's a strong open source culture. It was just soaking in this idea of if you are creating new technology, new capabilities, you have to give it away. Otherwise, you're kind of being selfish.
So I took that approach, which is called open source software, and applied it to the projects I was building to make open source hardware. I'd post up these projects and I'd get a lot of emails that said, hey, you know, this project is really cool, I want to learn how to build this too. But I have to buy all these parts, can you just sell me a kit, something that's an all-in-one box, and when I open it, all the parts are in it, and then I'll be able to follow along.
[MUSIC PLAYING]
I was living in a condemned apartment. But eventually, that actually got torn down, and then we ran out of space. And so we got another apartment in the same building. And we would shuffle storage back and forth. I was taught engineering, but you don't really know how to run a business, how to manage people, how to create a community. I think having started it when I was 25, I just had to prove everyone wrong. And I was just like I know I can do better than everyone, and I'll show you.
[MUSIC PLAYING]
Hey everybody, it's me, Lady Ada, and this is our Internet of Things box. Electronics engineering for me is my art form. What I'm trying to do is inspire people to become curious and practice using technology, learn electronics so that I can build that thing that is in my heart and make it real. At AdaFruit we share everything. I share all the plans, the schematics, the design, the files, the code, it's all online.
And every week, we do show and tell. It's a live video, like hang out. Anyone with a webcam can show off what they're building. So we have people who are doing cosplay. We have people who are sewing. We have people who are mixing like clay, and metal, and glass with electronics to build sculptures.
When somebody who glass blows shows, hey, I embedded the electronics in the glass sculpture so it lights up, I'm inspired. I'm like, hmm, that's a good idea. What kind of technology would help you achieve your goal. And then we publish that online for free. And that can inspire the next engineer in waiting.
[MUSIC PLAYING]
The traditional image of engineer is being changed. Right, now the people who are building electronics in my community, they're not what people would traditionally look at as an engineer. And that's good. That means that we're getting more brains, more experience, more people that have new exciting problems to solve.
The most heartfelt moment I've had running AdaFruit is we got an email from a parent, and he'd been watching the show and tell with his young daughter. The daughter turned to him and said, wow, this is so cool, can boys be engineers too? And it was really inspiring, because it's like, one down.
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SALLIE KRAWCHECK: Money is power. And ladies, it's time to level the playing field.
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[CASH REGISTER SOUND]
SALLIE KRAWCHECK: Hi, everyone. Welcome back to MAKERS Money. I'm Sallie Krawcheck, CEO of Ellevest, the digital investing platform for women. So you've had a new business idea brewing for a while, but you're not quite sure if it's time to make the leap to becoming an entrepreneur.
But Sallie, my career crystal ball says I'm not going to start my own business.
Listen up! Developing an entrepreneurial mindset will benefit you no matter where your career takes you. Now, I get both sides of this equation because I worked at big companies for more years than I'm going to share with you before starting Ellevest from dirt. And I hear from people all the time who want to start their own businesses, which I love because it can be so energizing, and interesting, and exciting. But it can also be really challenging. Timing matters, team matters, luck matters. So don't take the leap unless you have an idea you're passionate, and I mean passionate with a capital P, about.
Two things. Number one, start a side hustle. It's smart to start exploring a passion this way because first, you're going to learn about whether your idea's any good. And if you can actually make any money from it. Second, every new business idea needs some trial and error. Believe you me, you wouldn't believe what we went through at Ellevest. So don't give your notice until you know your idea's ready, by giving it a test drive.
The second thing I want you to do: network, network, network. Network, network. And I know what you're thinking, network is fumbling for business cards, and forced conversations, and 18 holes of golf. And it's what the old white guys do. But it's truly the number one unwritten rule of success in business. So make it a habit to reach out to one person, every day. No big deal. It can be casual. And get together with one person outside of your company every week. Or join a professional network. Make networking part of your success equation.
[WINE POURING SOUND]
And joining us today is Luvvie Ajayi, the entrepreneur and author of the New York Times best seller, "I'm Judging You." What a title!
[LAUGHTER]
LUVVIE AJAYI: You love it.
SALLIE KRAWCHECK: Luvvie, I love it. Thank you for being here. Cheers!
LUVVIE AJAYI: Thank you for having me.
SALLIE KRAWCHECK: You know, we've got something in common.
LUVVIE AJAYI: What's that?
SALLIE KRAWCHECK: It is the fact that we were both, I think you say you were laid off, I was fired, before we became entrepreneurs.
LUVVIE AJAYI: Right.
SALLIE KRAWCHECK: Did you have what you thought was a writing hobby, then turned it into a career? How do you advise people who want to do that? To make that transition.
LUVVIE AJAYI: At that point, I'd been blogging for seven years. And I was like, well OK, I need to find a new job. But while I look for a new job, I'll keep doing marketing consulting, and keep blogging. But I never got a chance to get a new job.
SALLIE KRAWCHECK: That's great. But did it really bring you down to get laid off?
LUVVIE AJAYI: You know, I actually found a piece that I wrote on the blog the day that I got laid off that said, it feels like the universe is pushing me to take the leap of faith I wasn't going to take myself.
SALLIE KRAWCHECK: You know, it's funny you say that. Because after I got fired, even the next day when I was drinking alone by myself in my home,
[LAUGHTER]
There was still part of me that said, this is going to be the best thing that ever happened to me, I just don't know how yet.
LUVVIE AJAYI: Yeah I think I knew that too. I fought it tooth and nails. Because for me writing wasn't a career that felt tangible, because you know, there's a J.K. Rowlings who are writers. There's a Toni Morrison.
[LAUGHTER]
And I was like, I'm neither one of them. But I think after a couple of years I was like, OK you're finding yourself in rooms where outlets like the BBC, and CNN are in. And here you are, as Awesomely Luvvie in these same rooms, you're a writer.
SALLIE KRAWCHECK: And you've had some amazing experiences. You interviewed Oprah.
LUVVIE AJAYI: Yes.
SALLIE KRAWCHECK: Shonda Rhimes blurb-ed your frigging book.
LUVVIE AJAYI: You know, the OWN team called me and said, hey, we'd love for you to come and interview Oprah, while holding an OWN mic, on our lot. And I was like, what? How do you say no to that?
And when Shonda Rhimes knew my book was coming out, she was like, I need you to send it to me.
SALLIE KRAWCHECK: And then your TED Women talk went supernova, almost immediately. It was "Get Comfortable Being Uncomfortable."
LUVVIE AJAYI: Yes
SALLIE KRAWCHECK: I think there you talked about the first domino. What does it mean to be the first domino?
LUVVIE AJAYI: I think it comes down to doing the things that are uncomfortable and difficult, in the moment that's difficult. So when we're in rooms where somebody who's less powerful than us is been disrespected for example, it is our job to actually speak up and say, that's not OK. So we need to disrupt power systems, and conversations, and rooms, just to make sure that we are standing up for people who might not have the power to.
SALLIE KRAWCHECK: Hear, here! I call them the courageous conversations.
LUVVIE AJAYI: Like, come on!
[GLASSES CLINKING]
SALLIE KRAWCHECK: Here, here.
LUVVIE AJAYI: We need more of it.
SALLIE KRAWCHECK: We need a lot more of those.
LUVVIE AJAYI: Yeah.
SALLIE KRAWCHECK: OK, we ask everybody this question, what's the stupidest thing you've ever done with your money? What's the smartest thing you've ever done with your money?
LUVVIE AJAYI: The stupidest thing I've ever done with my money is like, kept in a savings account. That was the stupidest thing.
SALLIE KRAWCHECK: And so, you lose money everyday, essentially. Right?
LUVVIE AJAYI: I'm essentially losing money. Yeah, yeah.
SALLIE KRAWCHECK: Is it still in a savings account?
LUVVIE AJAYI: No!
SALLIE KRAWCHECK: Oh, good.
LUVVIE AJAYI: God, no. I can't come in front of you and be like, yes Sallie, I still have all my stuff sitting in a savings account. I'd be so ashamed. I'd be like, no. I don't deserve I don't deserve to be here.
SALLIE KRAWCHECK: So what's the smartest thing you've done with your money? Take it out of a savings account?
LUVVIE AJAYI: Buying my first place, in a growing area in Chicago.
SALLIE KRAWCHECK: And you live in it, and you love it, and you enjoy it.
Thank you for being here with us, such a pleasure.
[GLASSES CLINKING]
LUVVIE AJAYI: You are amazing, I can't say no to Sallie.
[LAUGHTER]
You got to be here.
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SALLIE KRAWCHECK: OK, now let's get to some questions from all of you. Our first question asked, I keep reading the news about how little venture capital funding women get. Why the F is that? And do you think it will change?
I mean, tell me about it. The bad news first, we women have gotten so little funding, just 2 or 2 and 1/2 percent of the total, because of systemic bias. The venture capital firms are made up primarily of white men, whose networks tend to be made up of white men, who thus listen to pitches from white men. Nothing against white men, I just hate that they get most of the money.
Now let's be clear, it's not because men are better entrepreneurs than women. A study from First Round Capital showed that businesses with at least one woman co-founder, performed 63%, 63% better than male-only. The good news is, an increasing number of VCs get that investing in women entrepreneurs is a great opportunity.
OK, here's our second question. Do you have any tips for funding my business without raising money from venture capitalists? The truth, guys, is only 1% of businesses are venture-capital funded. Most businesses are funded with personal savings, loans from family, friends, and increasingly, and excitingly, crowdfunding. And here's the really interesting news, we women are consistently outperforming the men on crowdfunding platforms like Kickstarter, because we're better storytellers. Even better, not only can you raise money this way, but it can also be a really good way to test your product's appeal and pick up early customers. In case you can't tell, I'm a huge fan.
All right, third question. Should I get a co-founder? And if so, what qualities should I look for? Yes! Yes, you should get a co-founder. Because the research shows that start-ups with more than one founder, are more likely, quite a bit more likely, to succeed. And my advice here, is to find someone who is as different from you as you possibly can. And here's why, you're not perfect. Newsflash: you're not perfect. And so you're going to have blind spots. Having someone who thinks differently than you, means you have a much better chance of avoiding a fatal flaw, and seeing around corners.
Now whether you decide to be your own boss or not, learning to think like an entrepreneur will pay dividends in the long run. Learning how to take calculated risks, stand in your own worth, and hone what you're good at, are key building blocks for long-term success. And if you do decide to start your own business, do it with some money in the bank, and go get 'em!
We want to hear from you. Tweet to us at @makerswomen and use the hashtag #makersmoney. Or send your questions in to makers.com/makersmoney.
Thanks to Luvvie Ajayi for joining us. She was amazing. And until next time, remember: more money, more power.
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[CASH REGISTER]
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SALLIE KRAWCHECK: Money is power. And ladies, it's time to level the playing field.
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Hi, everyone. Welcome to Makers Money. I'm Sallie Krawcheck, CEO of Ellevest, the top-rated investing platform for women. Today we're back at happy hour in New York City, and we're talking about student loan debt.
OK, I know, I know. You are not allowed to turn off this video. Because I know it's not a topic that thrills, but it's so important. In case you missed it, graduates in the United States oh an effing fortune in student loan debt, more than $1.3 trillion. And we women, we women hold nearly 2/3 of it, averaging more than $20,000 each for a bachelor's degree. And that's $30,000 if you're a woman of color. Ugh.
And here's a double ugh, yuck. The research tells us that paying back student loan debt is slower going for us women than it is for the guys, due in large part to that frustrating gender pay gap. And so you know I'm bringing some tips. And I've got four tips to help you pay down your student loans faster and without pain.
Number one, put your student loan payments on Auto Pay. Now this will typically save you 0.25% in interest expenses, and it's going to ensure you're never going to pay a late fee, not to mention taking one more thing off your to do list.
Number two, not all student loan debt is created equal. If you've got multiple loans, they're likely to have different interest rates. So you want to pay off the loans with the highest interest rate first. If you can pay more than the minimum, which is terrific, always make sure you specify which loans you want the additional payment to go towards.
We're on to number three, and number three is, pick up the phone. Have you been paying on time? If so, then make a call to your lender, and ask for a lower interest rate. This is where a boring task and the speaker phone are your friends. It doesn't always work, but no one's going to penalize you for calling every quarter and asking, so ask.
And finally, number four, don't let student loan debt make you put everything else on hold. I've heard from some of you that it can be tempting to pour all of your extra money into chipping away at the debt. And if it's keeping you up at night, I totally get it. But your student loans should not keep you from contributing to your 401(k), or starting an emergency fund, or living your life.
For more on this, I'm delighted to be joined by Tiffany Aliche, the Budgetnista. I love that name.
TIFFANY ALICHE: Thank you.
SALLIE KRAWCHECK: Tiffany has been called America's favorite financial educator, and her Budgetnista blog is one of the top personal finance blogs in the nation. Welcome, Tiffany, and cheers.
TIFFANY ALICHE: Thank you, Sallie.
SALLIE KRAWCHECK: So happy to have you here.
TIFFANY ALICHE: Thank you.
SALLIE KRAWCHECK: So Tiffany, a lot of women tell me they want to make progress on their student loan debt, but they just don't know how to go to it. What are you advising them?
TIFFANY ALICHE: Well, I say don't avoid it. Call your loan provider. There are two specific programs you're going to ask about. There's a Forgiveness program. And there's something called the IBR program, and that is the Income Based Repayment program. And so, if you don't make much, you might qualify for the IBR program. And what that means is that, based upon what you do make, that's what your payment's going to be.
SALLIE KRAWCHECK: Forgiveness and IBR programs, important to remember. But what do you think about college these days. I mean, it's awfully expensive. Is it right for everyone?
TIFFANY ALICHE: Well, I say this: knowledge for all, college for some. So college should be an investment, so you want to have a return on your investment. And so you might find that you want to be a plumber, or you want to be an actor.
SALLIE KRAWCHECK: My son, my son, an actor. Should he go to college?
TIFFANY ALICHE: So you want to invest in training and trade school versus college, because it might not be a fit.
SALLIE KRAWCHECK: Right, too late. Now, this situation comes up again and again. You are so in love, and you are ready to be married. And he or she is swimming in student loan debt. What do you do?
TIFFANY ALICHE: Well here's the thing, I'd be more concerned if they had a really bad money mindset. Because debt is something that you can work toward. You can call that loan provider. You can even really adjust where you work and say, you know what, I'm actually going to work for the state or for the federal government so I can get that loan forgiven. But if this is someone who's consistently making bad and poor financial choices, that's what you want to be worried about.
SALLIE KRAWCHECK: And so what do you do, sit down with them and have the money talk?
TIFFANY ALICHE: Yes, certainly. I mean, I asked my husband date three, what's your credit score.
SALLIE KRAWCHECK: And you got to date four?
TIFFANY ALICHE: Yes.
SALLIE KRAWCHECK: Yeah, but it's all about being mindful, right?
TIFFANY ALICHE: Yes.
SALLIE KRAWCHECK: OK. All right. We love to ask this question of everybody who joins us. What's the stupidest thing you've ever done with your money?
TIFFANY ALICHE: I can top anybody's stupidest thing with, I invested with an-- air quotes-- friend of mine. And I said that I wanted to learn how to invest, so he said to open up two credit cards. And I did.
SALLIE KRAWCHECK: What, I'm sorry. You took money out on your credit cards to invest?
TIFFANY ALICHE: Yes.
SALLIE KRAWCHECK: OK, we are headed towards the stupidest move ever, right now. And it turned out super well, right?
TIFFANY ALICHE: No. It ended up, I took out $20,000, and, based upon what he said I'd be making, I spent another $15,000. Ended up with $35,000 in credit card debt, and he was gone.
SALLIE KRAWCHECK: OK. I also love to ask, what's the smartest thing you've done with your money?
TIFFANY ALICHE: So, smartest thing for sure, I learned the lesson. And I said I'm going to invest in education. So, just taking courses and lessons and reading books. And just investing in knowing better so I could do better.
SALLIE KRAWCHECK: Well, you rock. Thank you so much for being here with us today.
TIFFANY ALICHE: Thank you for having me. [GLASSES CLINKING]
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SALLIE KRAWCHECK: And now it's time for my favorite part of the show, which is questions from all of you. And we received a lot of great questions from you on student loans. So clearly this is a challenge that hits home for many of you. So let's go ahead and tackle them question.
Question number one, I have to choose between paying down my student loan debt and starting to save for my own kids to go to college. What should I prioritize? This one hurts me a little bit, because as a parent, we all want to give our kids everything. And we want to do as much for them as we can. But in most cases, you should pay off your own debt first. Because if you prioritize your child's finances at the expenses of your own, what you're really doing is creating a position in which they may need to take care of you financially down the road. As a rule of thumb, as they say on airplanes, put on your own oxygen mask before assisting others. It'll be better for both of you in the long run.
The next one, question number two, asked, I'm making big monthly payments on my student loans, but it doesn't feel like I'm making a dent in my balances. Should I refinance? If it's going to take down your interest rate, you certainly should. Now to do so, you're generally going to need a credit score of 700 or higher. And from there, it's best to take that and take the application and shop a few different vendors, whether it's your traditional bank or one of the online student loan lenders like CommonBond or Earnest. Scope out several, and compare the options.
Question number three, I'm a senior in college and plan to attend graduate school this fall. I'm worried because I already have student loans from college and likely will take on more during grad school. Any advice? Depending on your intended grad program, you might consider working for a year or two before going back to school. Here's why. It's going to give you some time to get some financial stability, and you'll also get valuable work experience that may make what you learned during your studies even more valuable. I know it did for me when I went back to grad school. Another thought, if you find a job you love, someone employers will provide assistance by paying for part-time graduate school programs as long as they're related to your work.
OK, look. I know it may sometimes feel like your student loan debt is going to leave future you eating the same Ramen noodles you did in college. But I'm telling you now, if you take it one step at a time and you are dogged in your pursuit, you can be on your way to slaying that debt once and for all.
Ladies, we want to hear from you. So tweet at @MAKERSWOMEN and use #MAKERSMONEY. Or send in your questions to me at makers.com. Thanks to Tiffany Aliche for joining us. And until next time, remember, more money, more power.
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