Many college students at the University of Wyoming have troubles with managing money, thankfully there are some resources offered on campus.
Tyler Gross, a Student Financial Services Coordinator, is one of several people on campus with experience helping college students manage their money.
“Money management is important for everyone, but it is incredibly important that college students have ample money management skills,” Gross said.
“Without money management knowledge, a student may be taking out debt that can affect them for the next 10-25 years. This can include not being able to buy your first home, purchase a car, and make you ineligible for some jobs,” Gross said.
Another resource available to students is the UW Financial Wellness program. Financial Wellness events are organized by ASUW and headed by a committee within the executive branch of the student government.
“The purpose of the committee is to hear what students want to learn about financial literacy, and help students with whatever they’re struggling with,” Nichole Reyes-Aguilar said.
Reyes-Aguilar is the Director of Finance and Student Organizations and Brittany Stadler is the Director of Financial Planning and Analysis. Reyes-Aguilar and Stadler were both appointed to their positions by the elected members of the ASUW executive branch.
The committee aims to put on 10 to 15 Financial Wellness events each academic year, with the highest concentration being in February, which is Financial Wellness Month.
“We have events throughout the year where we partner with other organizations, for example Mortgage 101 and Credit 101,” Stadler said. “In the past, we’ve had keynote speakers at the end of the year and virtual events with apps such as GooseChase.”
Both Stadler and Reyes-Aguilar stressed that “the earlier you start, the better.”
“Take the time today to start now, because people often start too late and by the time they retire, they realize they don’t have enough saved up,” Stadler said. “Even if you’re putting away $10 a month, that will help.”
Stadler also pointed out how inflation affects retirement funds such as 401(k) plans. As the average life expectancy in the United States grows, so does the cost of living in retirement, so starting as early as possible is ever more important.
Investing can seem like a daunting task, especially with all of today’s emerging markets. However, budgeting is a simple way for newcomers to financial literacy to be mindful of their money.
“Once you have created a budget, stick to it,” Gross said. “Watch your impulse purchases, and make sure to leave room in the budget for these things, random unplanned purchases can add up quickly.”
In addition to budgeting, creating short term (less than a year), medium term (one to five years), and long term (five to 25 years) term goals are a great way to maintain control of your financial life as a college student.
“While most college students think buying a house or retirement are a long way out, they might not realize how much of an affect their short term plans and goals have on their long term ones,” Stadler said.
Sometimes, the best way to manage your money is simply by not spending it.
“Try to minimize unnecessary college debt,” Gross said. “Not all students can avoid debt to get a college degree, but there are many students who take out the maximum loan they can per semester, and then use it on personal items.”
“Commonly for the first time in their life, students are presented with their first chance to accrue large amounts of debt,” Gross said. “Being able to look past the next four years and determine exactly what financial goals are needed is imperative as a college student.”
Both Stadler and Reyes-Aguilar will be graduating in May, which means they have eight years of combined experience as college students.
Reyes-Aguilar said that she started building her credit as soon as she could, and suggested several ways to start building credit, which is necessary for avoiding high interest rates or taking out loans for larger purchases, such as a house.
Banks will often allow loans as small as $500, which can help build your credit when paid back quickly. Credit cards with low limits, around $500 dollars, are another way to ease into being financially independent and stable.
“This can then be used for expenses that happen regularly and are necessary, like gas for your car,” Gross said. “This will teach healthy spending habits and will help you avoid unnecessary high interest debt.”
Stadler, Reyes-Aguilar and Gross all agree that learning how to manage one’s personal finances is one of best moves to make as a college student, even if you aren’t able to start investing.
“I understand that there are a lot of college students who aren’t financially stable,” Reyes-Aguilar said, “If you’re not able to start investing in college then even attending our financial awareness events is a good place to start.”
