Cutting Back on the (Credit) Card
Students graduate college with an average of $2,700 in debt
Courtney Bruner/Verge Reporter
Issue date: 4/25/08 Section: The Verge
Brittany Elders' mother taught her how to budget money when she was in high school.
And since then, the senior childhood education major learned how to separate her wants from her needs. She keeps her receipts and pays attention to how much she spends, and on what.
"I think it is hard for students (to budget) at the beginning because they are used to mom and dad paying for everything, but later find it is easier because they figure out their wants versus necessities," she said.
Unlike Elders, many students have trouble budgeting money and using credit cards.
The average student will have accumulated $2,700 in credit card debt before they graduate, said Barbara Cooper, Eastern's financial health education coordinator.
Credit cards can be a problem if they are not used correctly, yet having one is a good way to gain credit for large purchases in the future, such as a house or car.
Large amounts of debt could hinder students from finding the job of their dreams because they are forced to find a lower-paying job after school to pay off their balance, Cooper said.
Many students increase their debt by using credit cards incorrectly by investing because of free gifts or not researching the annual percentage rate.
Students with more than one credit card are prone to higher debt, said Tim Mason, an economics professor.
Some students put more on their credit cards without paying it off. If they only spent what they could pay, it would reduce their debt greatly, he said.
Rachel Szykowny said she saves money by walking to class instead of driving.
"It's such an easy campus to walk that you don't need to drive," said the junior family services and psychology major.
Many students do not realize how much money they spend when they go out on the weekends, especially if peers are spending money too.
Separate spending from peers because not everyone has the same amount of money to spend, Cooper said.
For instance, if a group of friends decided to go to a restaurant, pay attention to the prices of the food and what you can afford.
Saving toward a goal can give motivation for continuing to put the money back, Cooper said.
Working toward buying a specific item can increase the amount of money saved.
For example, when trying to save up money for an expensive item such as a computer, take a little money out of each paycheck to get closer to the goal, she said.
Cooper advises to pay the full amount on the credit card statement instead of the minimum.
The minimum payment is only about 2 to 3 percent of the total amount of money owed, Cooper said.
"Even paying $10 more than the minimum can cut the time it takes to pay off a $1,000 debt in half," she said.
And since then, the senior childhood education major learned how to separate her wants from her needs. She keeps her receipts and pays attention to how much she spends, and on what.
"I think it is hard for students (to budget) at the beginning because they are used to mom and dad paying for everything, but later find it is easier because they figure out their wants versus necessities," she said.
Unlike Elders, many students have trouble budgeting money and using credit cards.
The average student will have accumulated $2,700 in credit card debt before they graduate, said Barbara Cooper, Eastern's financial health education coordinator.
Credit cards can be a problem if they are not used correctly, yet having one is a good way to gain credit for large purchases in the future, such as a house or car.
Large amounts of debt could hinder students from finding the job of their dreams because they are forced to find a lower-paying job after school to pay off their balance, Cooper said.
Many students increase their debt by using credit cards incorrectly by investing because of free gifts or not researching the annual percentage rate.
Students with more than one credit card are prone to higher debt, said Tim Mason, an economics professor.
Some students put more on their credit cards without paying it off. If they only spent what they could pay, it would reduce their debt greatly, he said.
Rachel Szykowny said she saves money by walking to class instead of driving.
"It's such an easy campus to walk that you don't need to drive," said the junior family services and psychology major.
Many students do not realize how much money they spend when they go out on the weekends, especially if peers are spending money too.
Separate spending from peers because not everyone has the same amount of money to spend, Cooper said.
For instance, if a group of friends decided to go to a restaurant, pay attention to the prices of the food and what you can afford.
Saving toward a goal can give motivation for continuing to put the money back, Cooper said.
Working toward buying a specific item can increase the amount of money saved.
For example, when trying to save up money for an expensive item such as a computer, take a little money out of each paycheck to get closer to the goal, she said.
Cooper advises to pay the full amount on the credit card statement instead of the minimum.
The minimum payment is only about 2 to 3 percent of the total amount of money owed, Cooper said.
"Even paying $10 more than the minimum can cut the time it takes to pay off a $1,000 debt in half," she said.
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