Many College Students desperately need to learn money skills. This issue not only causes them to start their adult lives in a huge financial hole, but it also results in huge problems for their parents.
The list below represents typical quotes from college students on the topic of money matters. A basic understanding of money management is a critical part of the daily responsibilities of college and adult life. Although many of the statements seem comical to experienced adults, they illustrate why so many young people get into financial trouble. We suggest parents spend time teaching their students money skills, or provide them with a quick money management course as the one recommended below:
Money issues are probably the top reason students drop out of college. We have created a crash course in money management skills at MoneyManagement101.org – this self study course clearly explains essential money skills that college students need to understand.
Quote examples of College Students:
-Spending $1,000 using my new credit card is way cheaper than writing a $1,000 check, because I only have to pay back $20 per month.
-The bank must be wrong, my account can’t be overdrawn, I still have 10 checks left in my checkbook
-I think someone’s ripping me off on my first paycheck, who are these people FICA and FUTA, and why are they getting part of my paycheck
-I just got my first credit card, I love it, when this one’s full, I am going to apply for a couple more.
-I am already getting credit card applications in the mail, but my mom is too uptight to let me have one. Once I move out, I’m going to get a bunch of cards, and finally get some cool stuff.
-I am going to work 25 hours a week this summer and will make $8 an hour. I’ll be able to afford that new SUV, and still save tons of cash for college tuition.
-I make $80 a week at my part time job and buy lots of awesome stuff. My parents both work full time, but they’re so cheap, they never buy anything.
-Having a ton of student loans doesn’t really matter; by the time I have to pay them back, I’ll be making the big bucks.
-I don’t worry about filling out my income taxes, my dad always ends up doing it for me, I guess he likes doing it. He’s kind of weird that way.
– I heard that collection agencies can’t bother you until you’re out of college.
– If you never leave college, you never have to pay back your student loans.
Below are ten important benefits college students and other young adults will gain if they create a personal monthly budget worksheet. By the way, if you need assistance creating a monthly budget, we have created an easy to follow budget template as part of our Money Skills DVD.
1. … creates a useful historical record of your spending habits from which you can identify favorable and unfavorable trends.
2. … can help confirm whether or not you will be able to pay your bills on time or be forced to miss a payment.
3. … can be a useful tool for maintaining a solid credit rating (see bill paying above).
4. … can clearly illustrate your inflows and outflows of funds.
5. … provides a useful tool to help control day-to-day expenses.
6. … helps you save for big ticket items.
7. … will help you develop spending discipline and avoid wasteful spending.
8. … helps you establish a cushion for unexpected or emergency expenses.
9. … helps you prioritize what you’re choosing to spend your money on and can highlight expenses that you should attempt to reduce.
10. … helps identify if you need to adjust your income level (i.e. work more hours) to adequately cover your expenses.
As mentioned above, if you need assistance creating a personal budget, or just need someone to clearly explain basic money skills, please consider getting our Money Skills DVD. It is specifically designed for college students and other young adults.
More prospective employers are doing credit checks on job applicants. Many employers believe if someone can’t manage their bills, they probably won’t be well organized on the job either.
You may feel that this is an unfair practice, however that fact remains that many employers will pass you over if you have a poor credit history.
Its tough enough to get hired in this difficult job market. It’s hard to stay on top of your bills if you’re between jobs, but try your best to stay current to keep your credit clean.
MoneyManagement101.org has released its Money Management Skills DVD. This 1 hour DVD is designed to quickly teach college age young adults essential money skills.
Samples of Topics Covered in the DVD:
How to avoid credit card problems
Peer pressure and avoiding excessive spending
Common money traps that young adults fall into
Living within your means and budgeting
How not to get buried in debt
Managing your bills and personal cash flow
How to stay focused and financially on track at college
How to Protect yourself from ID theft, fraud and rip-offs
Plus many tips to avoid problems
The DVD is available at MoneyManagement101.com
A recent feature article in the USA Today talked about how many young professional athletes end up in personal bankruptcy. Many times while they are still in their playing days and make millions. Typically, despite large incomes these players ended up spending more than they should have or took out excessive loans.
One NFL player, who made over $10 million but ended up in bankruptcy said that no one ever teaches them personal finance or money skills in college (or anywhere else).
Whether you make millions or limited income, it is crucial to learn personal money management skills.