Fiscal fitness program prevents debt
According to the USA TODAY the average college student has almost $3,000 in credit card debt.
Multicultural Student Services hosted a fiscal fitness program last week to help educate students about money management.
Malika Carter, MSS assistant director, found the idea when traveling to a university in Ohio.
“There are quite a few institutions that have been doing this already,” Carter said. “They have whole departments who are dedicated to fiscal fitness for students because they see how many students are graduating with huge amounts of debt.”
Vanessa Waserman, graduate assistant at MSS, said the program was originally set up for underprivileged students who haven’t had the opportunity to be educated about fiscal management issues.
The event was opened up to other students, faculty and staff as well.
“Most students in general don’t have a grasp on what to look for in money management,” Waserman said. “Having a credit when your looking at getting your first car loan or mortgaging a home is something students need to be thinking about now before graduation.”
The two-day session had several local banks come and speak to students about basic banking, savings and checking accounts, earning interest and how to gain good credit.
Carter said each presenter had around 30 minutes to give their presentation and choose what topics they wanted to speak about.
“Something as simple as getting a credit card and learning how to manage it is very important,” Waserman said. “Students who come from a disadvantaged background, may not always have parents with dual-income as role models.”
Waserman also said not all underprivileged students don’t have an understanding of fiscal management, but looking at past research shows there is a disparity.
“It’s not that students of color have not had the money,” Carter said. “It’s just that we have traditionally not be taught how to invest and how to use that money and let it grow for us.”
Waserman said First International Bank and Trust taught students about making a habit of investing in their future by beginning to save early.
“Most people think you need to have $500 or $1000 to start, but really it only takes about $10 a month,” Waserman said.
One main problem Waserman said most banks talked about was how college students are known for having a tendency to abuse credit cards.
“I think people are really weary about getting a credit card,” Waserman said. “So when they leave with their four year degree they don’t have any credit established.”
Paying for student loans are a great way to establish credit, Waserman said, but it doesn’t start until after you graduate and students already need to have credit established.
Waserman said it’s about finding a balance between having a credit card to help develop credit and not having so many credit cards that students miss payments and destroy their credit.
“I almost want to say that having no credit is better than having bad credit but it’s about finding a medium ground between the two,” Waserman said.
Carter said even though the program is done, students are welcome to come to Multicultural Student Services for information.
“We have tons of leftovers from the event, most of the banks brought packets that they made with all the information they went over during the sessions,” Waserman said. “Any students who are interested can come to our office and find the information they need.”
For more information about the fiscal management or to receive a packet of information from the fiscal fitness program, call Multicultural Student Services at 231-0129.