Industry: THE
Age: 24
Location: California
Salary: $190,000
Assets: HYSA: $67,000; 401(k): $16,321; investments: $27,830; RSUs: $15,000
Debt: $40,000 (federal student loans)
Salary amount (2x/month): $3,900
Pronouns: She/her
Monthly expenses
Monthly housing costs: $1,750 (This is for my share of the rent. I live in a comfortable 1BHK with my partner and we split the rent 50/50.)
Monthly loan payments: $500 (federal student loans)
All other monthly expenses:
Utilities: $100 (my half)
Internet: $30 (my half)
Mobile phone bill: $28 (my share)
Netflix: $7 (my share)
Medical insurance: $88
ASPP (Associate Stock Purchase Program): $140
Dental insurance: $16
Vision: $5
401(k) Contribution: $331 (My company matches my contribution 1:1.)
Loan payment to parents: $600 (My parents gave me $40,000 to help me with my first semester tuition during graduate school, so I started paying them in December of last year.)
Annual expenses:
HBO: $75
Peacock: $25
Was there an expectation to attend higher education? Did you participate in any form of higher education? If so, how did you pay for it?
One hundred percent, there was no doubt about it. I grew up in India in a very academically competitive environment. My parents encouraged me to take my studies seriously and through school, I was at the top of my class. My parents also attended higher education and are successful in their respective fields. When I decided to pursue engineering in India, my parents were extremely supportive and funded my undergraduate expenses (around $25,000). We agreed that when I pursued a master’s degree, I would pay every penny of the fee myself. My parents have now set up a repayment plan and I am so grateful for their support.
Growing up, what kind of money conversations did you have? Did your parents/guardians educate you about finances?
We didn’t talk much about money growing up. My parents made sure we were very comfortable and never let us see what they were going through. As I started high school, I began to observe more and have honest conversations with my parents. I realized that because my brother and I were academically inclined, they wanted to make sure we didn’t compromise on choosing a university. We had a very transparent discussion about how much it would cost and it opened my eyes. My parents always taught me to save money carefully and enjoy my life at the same time, and they always said that the best way to do that is to work hard. This is the principle I live by.
What was your first job and why did you get it?
During my graduate studies at Columbia I worked as a housing assistant and teaching assistant for two courses to cover some of my living expenses. Living in Manhattan as a student buried under loans and overwhelming academic pressure was difficult. I made sure to work these jobs on campus so I would never have to ask my parents for further help. After my first semester (which they paid for), I secured a summer internship — with that money, plus federal aid and part-time jobs, I managed the rest of my tuition and living expenses.
Were you worried about money growing up?
We grew up very comfortably. My parents were careful spenders, but they never had to be frugal. They worked extremely hard to ensure me and brother’s education expenses were covered and we never felt pressured for money. However, as I got older, I realized the sacrifice it took on behalf of my parents — my father worked abroad and lived alone for two years, and my mom stayed with us to earn more money to cover our school fees. As an adult, I understand how difficult this must have been for them. They never told us what they went through.
Are you worried about money now?
Occasionally, yes. I know I’m comfortable now and my partner is making a pretty good living, but when we look at housing prices in the Bay Area, it’s stressing us out. Our parents don’t live in the United States and we know we want to take care of them when they grow up, so we need a big enough house. Talks like this make me extremely anxious, so I tell myself to work on saving as much as I can now.
At what age did you become financially responsible for yourself and have a financial safety net?
I became financially responsible at 21. I started my master’s straight from undergrad (which I completed in India), so my parents helped me initially. The shift from my hometown in India to Manhattan was crazy. In the first year, I was constantly converting everything from US dollars to Indian rupees and thought so much about spending every dollar. This has changed recently and I have become more confident since starting my job and now I am earning a steady income. My partner earns more than me and we support each other in every way to help when needed. It’s my safety net in the US. I know I can always turn to my parents, but I hope that doesn’t happen — I don’t want to burden them financially at this age.
Do you have or have you ever received passive or inherited income? If so, please explain.
My parents paid my entire undergrad fee ($25,000), for which I am so grateful. They also helped with $40,000 for my first semester at Columbia, and I’m currently paying them that amount in installments.
