Royal Purple

Issue date: 10/1/08 Section: Lifestyle

Media Credit: Alison Wisneski

Students with financial concerns are not alone. According to a survey in the Boston Business Journal, "One in four college students graduate with five-thousand dollar credit card debt." This is a scary realization for new students and a pricey lesson for graduates.

Finance Lecturer Dr. Gene M. Toboyek currently teaches the financial planning course at UW-Whitewater and is familiar with these types of statistics.

"Many college students are graduating with credit card debt in front of student loans," Toboyek said. "It's just one more thing they have to address outside of college."

Students may want to take precaution to prevent financial problems that can come along with opening new bank accounts and using credit cards for the first time.

Many college students come face to face with credit and debt problems on a daily basis due to lack of financial knowledge.

According to www.yacenter.org, "Only one in three students know how to read a bank statement, balance a checkbook and pay bills. Barely one in five have any idea how to invest." This is a typical problem that many students find themselves facing by the time they hit their freshman year of college.

Denise Kaminski, Branch Manager of the UW Credit Union in Whitewater is very familiar with these troubles.

"The most typical problems consumers encounter is not having a spending plan, budget or tracking method for their money," Kaminski said. "A solid method for tracking expenses can help consumers avoid overspending and accumulating debt."

Junior Jessica Lythjohan considers this extremely useful advice.

"Credit problems are a constant fear in my mind," Lythjohan said. "Knowing that I am not alone is comforting. I know if I am careful with how much I spend on a daily basis I will not necessarily be headed in a bad direction."

Many students find comfort in learning about personal finances as it provides them with the confidence that they can successfully manage their own money.

Senior Brian Oberhart said the best advice he has ever been given was to keep track of all his spending. "I try to spend as little money as possible by visualizing my future expenses," Oberhart said.

Kaminski said uncontrollable spending can affect your future. "If students don't control their spending by sticking with a budget, living within their means and paying their bills on time, the long term affect is typically a negative credit report," Kaminski said.

Finding ways to get out of debt may be a stressful process for many college students currently in a financial slump.

However, tools are available to help college students climb out of debt.

"First contact your credit union or bank to see what resources they have available to help you create a spending plan or budget based on your debt," Kaminski said. "There are also consumer credit counseling services available that provide debt counseling."

Personal finance issues are a common setback for many college students. Staying well informed may be the best way to prevent future credit crisis.

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