Money is a part of everything in a capitalist society, so learning how to handle it is the smartest thing a person can do. Seniors are becoming more independent from their parents, and whether or not college is the next step, it is important to be prepared and being money smart is the first step to that.

Everyone deals with personal finance. As one gets older, people become a bigger part of the decision making process when it comes to their money.

Pam Days- Luketich, Assistant Vice President Community Outreach Officer/CRA Coordinator at Chelsea Groton Bank, said, “Like it or not, your finances have an impact on all aspects of your life. If students get off to a good start managing their money and making wise financial decisions, it will carry forward to their adult life. It will give them more opportunities, less debt and less stress.”

Life is already full of stress for many people, and learning about how to use money responsibly can help to relieve some of that everyday stress. Additionally, college is a time where many students may find themselves falling into debt, but debt can be controlled with the help of good personal finance.

It is easy to buy things on a whim or go out to breakfast, but it is not always the smartest thing to do. A quick decision now can affect a person’s finances more than they realize.

Mr. Steady, a math teacher, who graduated from college a couple years ago warned about eating out and how the bill accumulates quickly. It might seem fun to eat out every night at college, however, that is not the smartest choice.

Every transaction made affects a person’s finances. Days- Luketich said, “The most common mistake that I see young people make is not taking time to fully understand what financial transactions they are getting involved in. They may open a checking account and not realize they have a monthly fee. They may get a student loan without knowing how much they will have to pay each month when they graduate. Taking the time to fully understand all aspects of their transactions will help them make better decisions, save money and avoid problems in the future”.

There are many tips and tricks out there to help with personal finance.  Mrs. Woznicki, who teaches personal finance said, “Students should write down their budgets and keep track of their budgets, at least for a month, so they can keep track of what their expenses are”.  

Mr. Steady also talked about budgeting: “My friends and I, when we rented a house, kept track of how much we spent on groceries so we knew how much we were spending”.

The biggest thing about personal finance is being aware. Students need to be aware, especially as they prepare for college, about the different risks and traps that they can fall into.

When asked about what students should be aware of, Mrs. Woznicki responded, “Definitely credit card scams . When you go to college, don’t sign up for a credit card right away.”

Additionally, a student needs to be aware of what types of loans they take out as well as how those loans will affect their finances.

Mr. Steady said, “It you’re taking out any loans, you have to be aware of when the interest starts. Sometimes it starts at the beginning of the year, but sometimes it starts once you take out the loan”.

Most students will take out loans to pay for college and understanding the terms of a loans will decrease and hopefully eliminate any confusion later. Financial aid packets are also important to understand and consider.

Days- Luketich said, “Take the time to study your financial aid package. Are you getting grants that you don’t have to pay back or loans that are accruing interest? If the college is giving you a scholarship, do you have to maintain a certain GPA to keep getting it every semester? Plan before selecting your college how you will pay for all four years. Many students get scholarships that are only for the first year and then have to take additional loans for the remaining three. Understanding the full cost to attend a particular college needs to be evaluated so that there are no surprises or hardships.”

There are many financial aid packets, therefore, students need to look around to make sure that one is right for them and they understand what it is about.

  The idea of handling money and finances can be overwhelming, but learning about them can help dispel some of the nerves. Read, talk, and learn about finances to best help prepare yourself for your future.