It’s a financial jungle out there, especially for college students.
With tuition rising, the economy in shambles and credit card applications littering everything from shopping bags to daily newspapers Ruth Johnston saw the writing on the wall. 91探花students, she realized, need support.
So Johnston, the assistant controller for Student Fiscal Services, came up with the idea for Money 101 鈥� a seminar designed to help students develop a firm grasp of money management.
鈥淲e started offering credit card payments as a tuition payment option recently,鈥� she said. 鈥淭here’s a lot of demand for credit card payment, but at the same time we don’t want students to incur any more debt then they have to.”
She pointed out that 91探花students already leave campus with an average of more than $2,100 in credit card debt on top of $15,000 in student loan debt.
The SFS Outreach Unit has been conducting the Money 101 sessions since before the fall quarter began. The list of their clients includes 91探花sororities, the Graduate Opportunities and Minority Achievement Program, Dentistry, Chemistry, the Office of Minority Affairs, and even some local high schools.
鈥淭he most common reaction we get is that this is very much needed,鈥� said Diane Cooley, manager of the SFS Outreach Unit and one of the employees who regularly makes the pitch for responsible money management. 鈥淥ne person asked if the seminar could be a requirement for all students. It’s not, but we鈥檒l give it to whoever will listen.鈥�
The presentation focuses on six aspects of responsible money management: budget, earnings, investments, loans, credit cards and credit reports.
鈥淥ur goal is to give them skills, or when that鈥檚 not possible, to point them in a direction where they can learn more on their own,鈥� Cooley said. 鈥淎 firm grasp of money management is increasingly important for survival. That鈥檚 basically what we’re trying to give them 鈥� those survival skills.鈥�
In one scenario discussed during the seminar, the Money 101 crew actually helps the student figure out a workable budget based on typical student expenses. But the scope of the sessions can reach far beyond what would be beneficial to the average college student.
For example, they also cover the topic of investing in the stock market. That’s because Johnston wanted the sessions to promote the idea of long term fiscal responsibility.
鈥淲e wanted them to have skills that would be useful while they are here and when they leave,鈥� she said.
If it weren鈥檛 so well intentioned, one might call the group鈥檚 investing game a cruel joke. Students are given $10,000 to invest in a select group of stocks. The investment date, for the purposes of the game, is Jan. 1, 2000.
After watching their investments generally skyrocket for the year they are asked to reinvest the play money on Jan. 1, 2001. By the end of that year, of course, the earnings the students enjoyed in 2000 are completely gone. The game was borrowed from the 91探花Treasury Office in order to make a point about market volatility.
鈥淲e鈥檙e not going to give them investment advice,鈥� said Kyra Worrell, another SFS employee and Money 101 presenter. 鈥淏ut it does make the points that the stock market goes up and it goes down, that diversification is a good thing, and that investments should be made over the long haul.鈥�
The work the group does in area high schools is intended to prepare future students for the kind of money management challenges they will face as undergraduates. And in the case of their seminar at Forest Ridge 鈥� an all-girls high school 鈥� they presented the material with a feminist twist.
鈥淚t was given in conjunction with Women鈥檚 Empowerment Day as a way to encourage women to manage their own finances,鈥� Cooley said.
But in fact, the Money 101 presentation is good for almost any audience. Cooley herself said she鈥檚 learned a thing or two about money management while planning the sessions.
鈥淭here鈥檚 good information in there for just about everyone.鈥�
To schedule a Money 101 presentation or to sign up for one that鈥檚 already planned, contact the Student Fiscal Services Outreach Unit at sfscust@u.washington.edu.