By Toma Lynn Smith
More schools lose students to credit card debt than they do to bad grades, said Ken Rollins, Customer Care Supervisor of Kentucky Higher Education Assistance Authority.
Borrowing money now in the form of credit cards and loans can take away from future earnings.
Rollins lectured about Financial Literacy at a recent U of L seminar. Other lectures students may take advantage of are Time Management and Test-Taking Strategies. They are recited by experts with experience. Students may forget the value and option of this expert advice. The lectures give lessons on things that affect a students daily life and concerns. Last year REACH and The Student Financial Aid Office hosted financial literacy events each semester, such as the Financial Fiesta held in September. According to Leist, “National research, state research, and discussions with students here at U of L have indicated this topic is a major concern for college students today.”
In reference to financial literacy, many students like freshman Claira McGough, whose major is undecided said, “I’m not concerned, I still live at home with my parents, my parents help me out.” Conversely, justice administration graduate student Erica Adkins said, “Start saving early because the real world catches up [with you] really fast.”
Setting aside money can help with monetary goals, which can be immediate like “just making it through the week” said Rollins, or long term such as 401(k) or mutual funds, which Adkins said she recently asked her parents about. Saving money should be part of your budget stated the booklet, “It ís Money Baby: How to make it, use it, and save it” by KHEAA and The Student Loan People.
The challenge of a college student will be just that. Golden said the one of the major obstacles for students is their upbringing and what they are taught about money. Take efforts to improve your know-how of handling your money, she said. Financing a college education can be done, “Where there is a will there is a way,” she said encouragingly.KHEAA’s booklet stated, “Your best source of financial aid information will be the financial aid office of your school.” There are possible opportunities of grants and scholarships and student loans are also an option. Rollins said, “Just take what you need.” He cautions to understand the terms of your loan, Don’t be afraid to ask questions and spread out money from disbursements throughout the semester to cover college related expenses.
Discipline and prioritizing are necessary when it comes to successful student life; money management is a part of that life. Education goes beyond the college classroom because it also applies to financial know-how. Get educated about personal finances to learn how to borrow wisely and make the most of your money. Classes may be time consuming, but taking time to learn about financial issues should be a priority. Literacy does not only apply to reading textbooks about class, but about financial issues as well.
REACH does not have any more seminars this semester, but will resume in spring 2007.
