2008 Woodie Awards
College students learn to be money-savvy
Kim Beson, Collegian Correspondent
Issue date: 5/8/08 Section: News
Want to know how to become a millionaire? If at the age of 25, you begin depositing 286 dollars every month into a Roth Individual Retirement Account at the average rate of nine percent, by the age of 65 you will have accumulated one million dollars, ready for your retirement enjoyment.
This may be old news for some college-aged students who are in accounting or finance fields, or who have financially savvy parents. But the majority of college students have little financial education or experience. That is why interns at the Massachusetts Bankers Association are hosting financial presentations around the UMass Amherst campus.
Grade schools offer health education and home economics, but financial education programs are slim to none. The Mass Bankers interns want to educate students on campus about managing and saving their money, starting a budget and using credit cards to avoid debt.
"Alcohol can get people into trouble, but misuse of money and inappropriate ignorance on financial matters can also," said David Floreen, Senior Vice President of Government Affairs and Trust Services at Mass Bankers.
The presentation warns students about frivolous spending because it adds up. They recommend resisting that Dunkin' Donuts coffee each morning and learning how to cook instead of eating out each weekend.
"Weekday coffees can add up to $400 a year," notes "Your 5-Minute Guide to Money in Your 20s," an MSN money article.
Additionally, it is estimated that college students nationwide spend about five and a half billion dollars each year on alcohol, said the Mass Bankers interns.
Arash Hashemi, a UMass junior involved in the workshop said, "I always see students wasting money, and I figured if I didn't put it aside I'd spend it on some random stuff."
So instead, he put his money to good use. Hashemi began a Roth Individual Retirement Account when he was 18, financed by what he saved from returning beer bottles and collecting pocket change. In one year, he saved $270 toward his future.
This may be old news for some college-aged students who are in accounting or finance fields, or who have financially savvy parents. But the majority of college students have little financial education or experience. That is why interns at the Massachusetts Bankers Association are hosting financial presentations around the UMass Amherst campus.
Grade schools offer health education and home economics, but financial education programs are slim to none. The Mass Bankers interns want to educate students on campus about managing and saving their money, starting a budget and using credit cards to avoid debt.
"Alcohol can get people into trouble, but misuse of money and inappropriate ignorance on financial matters can also," said David Floreen, Senior Vice President of Government Affairs and Trust Services at Mass Bankers.
The presentation warns students about frivolous spending because it adds up. They recommend resisting that Dunkin' Donuts coffee each morning and learning how to cook instead of eating out each weekend.
"Weekday coffees can add up to $400 a year," notes "Your 5-Minute Guide to Money in Your 20s," an MSN money article.
Additionally, it is estimated that college students nationwide spend about five and a half billion dollars each year on alcohol, said the Mass Bankers interns.
Arash Hashemi, a UMass junior involved in the workshop said, "I always see students wasting money, and I figured if I didn't put it aside I'd spend it on some random stuff."
So instead, he put his money to good use. Hashemi began a Roth Individual Retirement Account when he was 18, financed by what he saved from returning beer bottles and collecting pocket change. In one year, he saved $270 toward his future.
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