American College Students Get An "F" In Personal Finance
Quicken® Survey Finds Most Students' Checks are Made out of Rubber
MOUNTAIN VIEW, Calif. -
May
13,
1998 -
As students pack up for graduation and summer vacation, the subjects that most of them failed this semester were personal finance and how to balance their checkbooks. Almost half of students have bounced a check during college, according to a recent survey conducted by Quicken, America's #1 personal finance software.
The Quicken survey found that less than half of college students balance their checkbook on a monthly basis, and almost three out of four students have called home and asked their parents for money. Yet, twenty-seven percent of students make a valiant effort of keeping track of their money by trying to record at least some of the checks they have written. Additionally, 10% of students leave their finances up to their parents and 9% leave balancing their checkbook up to fate.
One item which college students seem to be fated for is post-graduate debt. Most students estimate they will have an average debt of more than $15,000 upon graduation. Interestingly, incoming freshmen who are probably less familiar with the cost of college expect to have approximately $8,300 in debt upon graduation, while their senior counterparts expect to have accumulated more than $16,000 in post-graduate debt.
"Gaining control of your finances is the last step to total independence for most college students," says sisters Leah and Elina Furman, recent college graduates and authors of The Everything After College Book. "The key to successfully managing your money and paying off debt is to stay on a budget, track where your money goes, and use financial tools, like Quicken and Quicken.com, that allow you to do it all yourself."
Quicken allows students to manage expenses and document each credit card expenditure. Students can learn more about their finances, including debt, budgets, taxes and investing through sister web site, Quicken.com (www.quicken.com) for free. Here are some additional personal finance tips for college students from the Furmans:
Budget. Create a monthly budget and stick to it. Set aside ten minutes a day, just before you turn in for the night, to calculate all the day's expenses. Quicken and Quicken.com can help you stay on budget and make going through your wallet with a fine-toothed comb an easy task. Don't forget to tally even the smallest purchases.
Live as You Save. Be realistic about your needs and don't deprive yourself of allowances that you know you will spend money on like movies, books or eating out. Keep your lifestyle in mind and budget accordingly. This way, one weekend movie marathon won't break your monthly budget.
Bargain-Hunt. Clip coupons, buy generic or items on sale at the grocery story and avoid ordering take-out every night of the week. With retro being all the rage, shop in thrift stores and resale shops for clothes. Check the Internet for travel bargains and enjoy low-cost offerings in you local neighborhood like museums, zoos and the park.
The Quicken survey, conducted by Bruskin Goldring Research, is based on in-person campus interviews with 543 college and graduate students across the country conducted between April 13-17, 1998.
ALMOST HALF OF STUDENTS (48%) HAVE BOUNCED A CHECK DURING COLLEGE
Male: 49%
Female: 47%
ALMOST THREE OUT OF FOUR STUDENTS (72%) HAVE CALLED HOME FOR MONEY DURING COLLEGE
Male: 70%
Female: 73%
ABOUT TWO OUT OF FIVE OF STUDENTS REPORT BALANCING THEIR CHECKBOOK EVERY MONTH
Balance checkbook every month: 42%
Record some checks during the month: 27%
Parents handle finances: 10%
Use personal finance software: 10%
Leave it up to fate: 9%
MORE THAN HALF OF STUDENTS SPEND THE BULK OF THEIR MONEY ON FOOD
Food: 59%
Housing: 57%
Entertainment: 53%
Books: 49%
Tuition: 49%
Clothing: 45%
Music: 28%
Beer: 25%
Travel: 22%
TWO OUT OF THREE STUDENTS HAVE A CREDIT CARD
Have credit cards: 67%
Carry balance (among those with a credit card): 71%
MOST STUDENTS EARN THEIR MONEY FROM A SUMMER JOB
Earn money from a summer job: 62%
Get allowance from parents: 55%
Work a part-time job during the school year: 53%
Use student loan money as a source of income: 38%
Use stipend or scholarship as a source of income: 30%
Work-study job: 16%
COLLEGE STUDENTS EXPECT THE AVERAGE DEBT TO BE $15,215 UPON GRADUATION
Average debt expected by a Freshman: $ 8,343
Average debt expected by a Sophomore: $16,385
Average debt expected by a Junior: $16,420
Average debt expected by a Senior: $16,420
Average debt expected by a Graduate: $21,403
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