WC provided its students with a free money management seminar Thursday February 22, complete with snacks and door prizes. The school hired Debra Cross, an Account Manager for the AMS Education Loan Trust, as a speaker.
Numerous groups of students were expected.Only a handful of people attended, however, half of them staff members.
Student Heather Evans was one of those present. "I thought the meeting was very helpful," she said. "It showed that I need to save money now, so that I do not get loaded down with bills my first few years out of college."
Despite the disappointing amount of student interest, the presentation itself was helpful and to the point. Among the topics covered were credit and debit card use, planning spending, learning to budget for a healthy financial life, and how consumers can access their credit reports to protect themselves.
To begin, Cross discussed the history of credit and debit cards. "Companies figured out they can charge people who want to have it now, and pay later," she explained.
Giving her opinion on credit cards, Cross called them "the monster that will eat you up before you realize it."
She suggests a practical solution to help those who overspend: "When you get a credit card, put it in a bowl of water, and put it in the freezer.
Freeze that puppy. These are not extraordinary people [who get in trouble with credit cards]."The logic behind the freezing of Visas and Mastercards is that, while it unfreezes, the owner will be forced to think again about his or her purchase.
Credit cards cannot be microwaved or they will be destroyed.Cross reported that "billions of dollars are written off every year in credit card debt and bankruptcy, and I consider that to be a sorry state of affairs for our country."
"I get very worried about debit cards," Cross went on. "Here's the worry: how are you keeping track of the debits you make?"
A student in attendance agreed with Cross, describing how he had accidentally incurred overdraft fees of thirty dollars on his account three times in the last month.
In her presentation, Cross explained that one of the basic ideas of being financially safe and responsible is balancing your spending. That can begin with a journal of expenses. "Paying expenses without planning leaves nothing left over," said Cross. "Don't just wait and see how it comes out ... My first challenge to you is to begin a weekly journal and start writing down what you spend. You'll see a pattern."
One bad habit that many college students have, according to Cross, is that they live beyond their means, not realizing that they cannot afford the purchases that their parents can.
Another pet peeve of Cross's is cell phones, which she considers to be an expense that can get out of hand. "A lot of students use a cell phone like a normal conversation. Know what your plan is, know what minutes you have," she said.
The reason that Cross travels to colleges lecturing on financial responsibility is that it is not automatically acquired at a certain age. If left unlearned, consumers will never be good at saving and spending money wisely.
"Of adults, less than 50% of the population balances their checkbooks," said Cross. "Do you want banks to get rich on your overdraft fees?"
She continued: "If you don't plan now, you're mortgaging your future.
There's a domino effect, and your life is only going to get more complicated from now on. I've worked with parents planning how to fund their children's educations who still have not paid off their own."As for what the concerned students who missed the meeting can do, Cross suggested seeking help at the bank they hold an account in. "If you need some help, get some help," she said. "Go to the bank. They're supposed to be in customer service, and willing to help you."
Cross suggested that all consumers should check their credit reports to make sure there are no incorrect issues.
Credit reports of Maryland residents can be checked free once a year with each credit agency, Trans Union (800-916-8800), Equifax (800-685-1111), and Experian (800-682-7654). More information about Cross's talk can be found in the financial aid office.
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