More than 40% of college students have less than adequate financial literacy skills according to ESBCO, a prominent research database. This April, students can make a change.
April is Financial Literacy Month. According to the Federal Student Aid (FSA), financial literacy is defined as “the understanding that includes how to earn, manage, and invest money and has a critical impact on students’ ability to make smart choices.”
“It has been my experience that traditional students, in the 18-22 age group, see financial planning as something that is in the distant future,” said Dr. Anand Krishnamoorthy, a professor of finance in the Sorrel College of Business. “They do not see it as something immediate in their life.
“Preparing a budget, planning for retirement, etc. are novel concepts to undergraduate students, and as such they may have a tough time grasping these concepts.”
Krishnamoorthy said students may struggle the most during the summer.
“Many students like to travel during the summer,” Krishnamoorthy said. “The airfare alone can be a significant drain on resources.”
Krishnamoorthy said students can begin to support themselves financially by working a job and finding other sources of income.
“The best way for students to help support themselves is with a part-time job,” Krishnamoorthy said. “Not only will it help financially, but it will also help in other ways such as fostering maturity and responsibility.”
Several students on campus spoke about their plans to support themselves this summer.
“It is important to be financially responsible as a college student because it prepares you for when you go into a job in your field and start making a salary,” said Elizabeth Odee, a sophomore interdisciplinary studies major from Pensacola, Florida. “You have to know how to budget that in order to live within your means.”
Odee currently works as a team member at Blenz Bowls and plans to have a summer job at home.
“I plan on having a summer job to help me out financially,” Odee said. “It’s a must for me, as I need to keep saving up money.
“I understand how to budget and save money, but sometimes I can go a little overboard in spending.”
One student said becoming financial literate will benefit students now and in the future.
“It’s important to be financially responsible as a college student because it prepares you for after you graduate, where you’ll really need to put your financial literacy to use,” said Trent Desue, a freshman majoring in biology from Talbotton, Georgia. “You have to know how to manage your money in order to make the best out of the college experience.
“You don’t want to feel like you’re struggling for four years.”
Desue currently works as a DoorDash driver and plans to work with the Morehouse TRIO program this summer.
Desue encouraged other students to save their money.
“You should try your hardest to never spend ALL your money,” Desue said. “Find an amount for you and never let your money go below that amount.
“I keep $20 at all times because my uncle used to tell me to always keep enough money in your pocket/account to buy deodorant, a toothbrush and toothpaste, a snack and a drink.”
To learn more about personal finance and financial literacy, Krishnamoorthy suggests taking a personal finance course or seminar.
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