Empty College Student Pockets Could Be Full If We Changed Priorities and Habits

Finances are a tough thing to deal with in college.  The basics alone are a new expense in a student’s (and sometimes the parents’) life.   When I talk about basics I am speaking of tuition, room and board.  Then we get to the extras such as books, computers, clothes and room enhancements.  After that you have the frills such as fraternity/sorority, social activities, video games, alcohol, junk food and so on.   Adding it all up the sum can many times be more than what a student can afford.  The debt can become a pretty big burden and take away from the intended results of going to college.

So how do we make sure the student doesn’t end his/her college experience with empty pockets?  Here are a few ideas that can be used very easily to help avoid incurring debt a student can’t handle.

1. Prioritize your expenses.  What are the must haves?  What are the “I could live with outs”?   Establishing a list like this on a monthly basis can assist in your spending habits.  Train yourself to pay for the must haves first.  If you have extra left over then decide if you spend the rest on other things or better yet save your money for a future rainy day.

2. Do not get a credit card!  Credit cards were never intended to be issued to people that do not have steady sources of income…like a full time job.  A great line from an old TV show reflects how many students view their credit cards, “Free Money!”  Basically someone has just given the student money to spend that the student doesn’t have.  The problem is that it is not “Free” and introductory interest rates don’t matter because within a few months you will likely default and watch the rates sky rocket.  Credit card debt can haunt students for decades.

3. Budget cash flow for 6 months of emergency savings.  Start saving money until you have enough cash to cover the next 6 months of your basic expenses.  While this could be difficult to accomplish once you have done so you now have a safety net in case financial aid doesn’t come through, a scholarship dries up or parents have employment issues.

4. Separate your cash by priority.  Many banks allow you to set up sub-accounts under your primary checking.  Set aside your rent money from your general spending money.  Again make sure you have enough in it to cover a few months so you don’t have to worry about falling behind.

5. Don’t live beyond your means.  You are a “poor” college student not a fortune 500 CEO.  A new (or for that matter any) car can wait until you have a full-time job.  You don’t need every new video game that comes out…especially since you should be studying and hanging out with others (we call this social development).  Going clubbing every weekend is very difficult to afford even for people with jobs.  Make smart buys when clothes shopping…$150 jeans may make your butt look great but probably so do $30 jeans.  Also consider staying in the less expensive apartment with lesser amenities.  You don’t need a workout room there because your University offers access to the gym for free.  An outdoor pool at the apartment is only good for the half of the year you are not in school (when it is warm out).  Sharing a bathroom with your roommates could save you big money!

6. Get a job!  Especially during breaks or over the summer.  Save the money you earn.  Don’t travel and don’t spend it as soon as you get it.  It will come in handy during the school year when you can’t work as much.

The poorest students can finish college and walk into the world with no debt and a promising future.  The wealthiest students can finish college with massive debt and no short term future.  It all depends on how you choose to use your resources while you are in school and what you prioritize.

Respecting the roles and responsibilties that are given

I started off this morning with what I thought was a great Blog talking about hazing, fraternity, love and connections between each.  I realized that some of the stuff I was putting in it was sensitive in nature.  Naturally before I posted it online I got a few perspectives from people with responsibilities in my organization.

The result was a difference of opinion with one of them about some of the content.  My friend (who holds a position in my organization) suggested that I didn’t have to follow his advice despite the fact he and I disagreed.  Respectfully though why ask someone’s advice if you don’t intend to follow it?  Or why give people roles and responsibilities if you simply plan to usurp them?  It devalues their purpose and the structure you have agreed to.  So I will not post the debated blog.

Now at the end of the day I still believe I am right on the matter.  That is partly my alpha personality peeking through.  The responsible leader in me though says respect my friend’s advice and his role.  If I really think I am right and he is “wrong” I need to work to change his mind first.

My situation is not so different than what many chapter leaders face.  Many times chapter leaders assign roles and responsibilities to others in the group with hopes those other members will do something exactly the way the leaders wanted.  When the person does it differently or disagrees with the leaders it can tempting to simply overrule them and do it the way the leaders want.  Doing so is not healthy for the organization.  The positions are assigned for a reason.  The responsibility is given for a reason.

If  leaders don’t believe in their members they shouldn’t entrust them with roles and responsibilities to begin with. If they do believe in their members they need to be willing to allow the members to own the roles and responsibilities.  Leaders also need to remember that those roles and responsibilities given to others are training opportunities for future chapter leaders.  If the other members serve as faces only and the leaders do everything you will have a group of people that take over with no experience.  You will also see many members in the chapter bitter about how it is operating.

Some might argue that in the end responsibility falls on chapter leaders and I think that is accurate.  If a chapter fails to recruit the leaders get the blame.  If a chapter has financial issues the leaders get the blame.  At the end of the day a leader does need to step in when something is not being accomplished.  The difference in such situations is that there is a failure in completion, not simply a difference in how completion happens.

A good friend of mine wrote a book called Motivating the Middle (T.J. Sullivan).  It is a great read regarding how to get the members of your chapter that seem apathetic  more involved.  One of the ways  is to give those members roles and responsibilities and let them act.  Chapter leaders will be amazed at what can be accomplished.  You will also be amazed about how well the organization will continue to run.

Now on to convincing my friend and fellow role player in the Fraternity that I am right….

Take two breaths, fail to respond then revisit in the morning

In the world we currently live in everything is instantaneous.  The minute something happens we know and sometimes we feel the need to respond instantly.  A good friend of mine years ago gave me a piece of advice, “Slow Down”.  Your first reaction might not be the right reaction.  The information you have might not be complete.  What surprises me is how many of us professionals don’t do this.

My piece of advice to whomever decides to read this blog is the following: Take two breaths, do not respond and revisit the situation in the morning.  You will be surprised about how a good nights sleep and some continued thought on a matter can greatly change your opinion.  Once you have done so, then respond.  There is a possibility your first response was going to be the same but then there is also a possibility that you may have changed your mind.

I will use three examples from situations that have made National news recently.  First we can revisit the Syracuse Asst Basketball Coach situation.  Here is a man that lost his job and his reputation over night due to allegations made by individuals that are still unproven.  The press and public has painted him as evil.  I personally am disgusted by the alleged behavior.  The sad thing is that now it seems that accusers in the case are starting to have credibility issues.  One has specifically recanted all of his allegations.  Did we judge too soon?  I don’t know but I sure feel a little guilty now and regretful.

The second example is all the hoopla around the Colts Quarterback Peyton Manning.  The press seems adamant to keep writing stories and spreading rumors and gossip.  Only two men know the truth about his current status, Peyton and the Colts owner.  The bigger issue is that because of the constant push by the press the situation is blowing up.  Relationships could get damaged and different decisions could be made simply due to the need for instant answers.  Sometimes you can’t rush things and when you do you do the wrong thing.

The final example is the big story of the week which is the issue between Planned Parenthood and the Komen Breast Cancer charity.  People are up in arms because the charity has pulled its funding of Planned Parenthood activities stating it is because Planned Parenthood is under Federal investigation.  Many feel this is a lie and they are doing it for pro-life reasons.  This may be the case but do we really know that yet?  What if Planned Parenthood is found guilty of breaking laws (whether you agree with the laws or not)?  Charities have to walk a fine line of making sure their donors trust their activities, that they are not violating any government rules and that they meet their mission.  Providing money to another organization that is being investigated for possible illegal activity could jeopardize the charity plain and simple.  Now, if it can be proven they are only doing this for pro-life reasons, or that they are funding other agencies under investigation I think there is a right to call them “wrong” for how they handled this.  But does anyone really know yet?

If you take away nothing else from this please do one thing, show patience and wisdom and know your emotions.  The difference can be amazing.