Financial literacy centers, classes, and workshops are popping up across universities and for good reason. Setting and managing personal budgets is foundational to being able to invest in your future. In this new, column, advice relating to money will be shared – one piece of advice at a time. In addition, check out what your university has to offer on financial literacy! The first piece of advice is to pay attention to how you spend money. Most people spend too much money: a latte per day, a dress or brand-name sneakers, and unnecessary restaurant meals are really not needed. Life without these may seem meager, but it doesn’t compare to being old and poor, which is where you’re headed if you can’t save.
Pew researchers report that among college graduates with any outstanding debt for their education, first-generation college graduates tend to owe more and make less than second-generation peers. About two-thirds (65%) of first-generation college graduates owe at least $25,000 compared with 57% of second-generation college graduates. First-generation college students are twice as likely to report they are behind in making student loan payments. First-generation college students are 2.7 times more likely to default on college debt than students whose parents have achieved higher education. For adults who do complete a bachelor’s degree, the median household income for households headed by a first-generation college graduate ($99,600) is substantially lower than the income for households headed by a second-generation graduate ($135,800).
