Photo courtesy of Kerry King, Wake Forest Magazine.
Calculus may be the academic math pre-requisite of choice by selective universities and honors programs, but the downside of that path is that many students head to college textbook-smart but with little to no everyday financial sense. In a nationwide survey of high school seniors regarding personal finance and economics, students answered only about half of questions correctly. South Carolina lags behind other states in requiring personal finance education. A January 2016 Survey of the States report issued by the Council of Economic Education and funded by Wells Fargo showed that 17 states now require personal finance education at the high school level. South Carolina does not.
The Wall Street Journal recently reported that 2016 graduates hit a new record with $37,172 in average debt. In South Carolina, over 209,000 students have federal student loan debt approaching $30,000 according to data from the Department of Education. Furthermore, according to Money U, 84% of college students have credit cards and 50% have more than four credit cards!
If you have a young adult heading to college this year, make sure he or she knows how to follow a solid financial plan. Here are some College Sage Tips to cover with your students before they leave for the school year:
Make a budget for the school year.
Agree on an allowance.
Teach the difference between “need” and “want” items.
Suggest no-spending days to stay on budget if necessary.
Teach responsibility by refusing to pay for parking tickets, late fines etc.
Consider sharing any savings below budget with your child.
Create a financial plan now for potential emergency situations.
Avoid spending on credit cards.
Eat in the campus cafeteria.
Seek out the cheaper entertainment – college campus life is rich with free options.
Seek an on or off-campus part-time job.
Photo credit: King, Kerry M. 2014. Wake Forest Magazine, Winston Salem, NC. Wake Forest Magazine. Web. <http://magazine.wfu.edu/2014/08/21/a-magical-day/>.
