Professors, faculty offer money handling advice for students

By Josh Ayala

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When entering college, many students are unprepared for the financial burdens that await them. This is leading UK staff members to advise students to start implementing better money management strategies.

“For a lot of freshmen, this is their first time alone and they are not sure of the constraints of money and the need to be watchful,” said Jennifer Hunter, a professor in the family studies department.

Students should develop a spending plan and set aside certain amounts for necessities like food and goods versus entertainment, Hunter said. When students do not consider their budget before going out with friends, lifelong habits of overspending can follow.

“It’s important to know when to say no to spending and suggest an alternative,” Hunter said. “It’s important to use cash and debit cards instead of credit because the sense of loss is not the same.”

A budget should cover expenses like course fees, tuition and housing, as well as books, food, transportation and personal items, said JoeLynn Noe, planning and financial operations director for enrollment management.

“There are many online tools and mobile apps that make budgeting and tracking your spending much easier and more accessible,” said Carol Carr, a financial education specialist in UKFCU in the Student Center. “Often you hear students say they don’t know where their money went. By having a budget and tracking your spending, it helps to eliminate those kinds of issues.”

Carr said the most common mistake she sees in college students’ spending is living beyond their means.

“Often college students can have a ‘keeping up with the Joneses’ mentality when it comes to their peers and can overspend on credit cards in order to maintain a certain lifestyle,” Carr said.

Lack of understanding can also play into financial difficulties, Carr said.

“Students do not always fully understand credit cards and how interest works,” Carr said.

Many credit cards only require a minimum payment of $25 per month, Carr said, but students may fall into the trap of overspending with the belief they only need to pay $25.

Interest on the money that is not paid off will continue to accrue, Carr said, so over time the money owed will steadily increase.

“A credit card with a $1,000 balance can take years to fully pay off,” Carr said.