Friday | February 10, 2012
Wise Up: It’s YOUR Money
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By
James Roszkowski
28 May 2010
In our materialistic society today, young adults are more than ever obsessed with high fashioned clothing, designer accessories and glorified musical interests. From sporting events, to bar hoping, to food binges, to concerts; our younger generation is spending money they don’t have. Whether it is their parents money they are using, or credit cards they are swiping, aimlessly throwing cash around as if they have a never-ending source is the mindset. We’ve all been there; that’s undeniable. It is time we get today’s youth to smarten up about money!
The careless spending begins during the teenage years. Parents who provide their children with an unlimited bank supply think it is an acceptable habit. Giving our children anything and everything they want might seem like an easy way out, but in the long run, it’s WRONG! Learning the value of money, their money, is imperative. These careless spending rituals result in our youth growing up to be financially irresponsible adults who are struggling to dig themselves out of student loans and credit card debt. Little tricks and methods can ease the spending situation and make for some positive changes going forth; having fun does not have to be costly.
Adapting to college is not easy but learning to budget and save will make for a less painful transition. Enrolling and then proceeding through four years of college is the jumping-off point to a life full of hard work and success, but it is the knowledge and maturity that completes the package. The price of college is rapidly growing each year. A recent study by Sallie Mae shows that Graduates will amass almost $20,000 in student loan debt. That number is increasingly rising with tuition; and college students today are taking out loans for spending money and housing costs, which in turn raises their debt significantly. 91% of college undergraduates have at least one credit card and upon graduation will carry a minimum of $4,100 in credit card debt according to Sallie Mae’s National Study of Usage Rates and Trends. Students are acquiring massive amounts of financial debts in an already unstable and difficult to enter career market. This is why educating our youth on the benefits of being financially savvy is crucial.
Although the problem commences during the undergraduate years, it is the after math, the returning of caps and gowns on graduation day, which acts as the sudden wakeup call. In a matter of a few short hours (or however long the graduation ceremony lasts), our college graduates are forced to realize their spending must go elsewhere. Graduation is the defying moment when you are released into the world as an adult whether you are financially stable or not. Coming out on top is attainable for those who take the extra time to learn good saving and spending habits.
Once in the working world, recent grads must learn to channel their spending elsewhere. Rent for an apartment, water and electric bills, medical and car insurance and phone and car payments are just a few of the many expenses us ‘real people’ pay. Is there any money left for going out to eat, the latest fashion trends or catching the latest Blockbuster? Probably not! However, if you become smart with your money, learning how to save and budget, then there is a good chance you will have some extra dough for those desired social outings.
Life is all about sacrifices, time and energy. Whether you are successful in finding a full-time, salaried job after completing your under grad, or are forced to find hourly until our dreadful market picks up, there is still money to be saved and actions to be taken. Our advice is this: save, save, save; wherever you can, whenever you can! It isn’t all that difficult. Check out our site – www.recentgraduates.com.
There you will find immense savings on those new purchases you are going to be forced to make, like household items to furniture to real life stuff! It’s hard at first. Nothing in life is easy, but if you make the conscious effort to save money on the big things, the little things won’t seem so hard!
A Few Pointers to Reference as Your New Journey Begins:
Educate yourself on interest rates with student loans and credit cards
You will be surprised to know the amount of money you will have to pay back in interest rates
Self Control is Key – buy only what you NEED, not WANT
Create a budget – and STICK to it!
Know where your money is going
Start an Emergency Fund
Real life has unexpected expenses
Pay in full on credit cards every month if possible!
Set an automatic savings account for a small percentage of your pay to go into weekly.
James J. Roszkowski
President and Chief Executive Officer
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