The Freshman $15,000

Recently, I became stuck in the middle of an ongoing altercation between my father and my brother concerning his Visa debit card statement.

My father was upset because my brother, who enjoys the perks of a five-day-per-week fraternity meal plan, had managed to spend three times the amount of money on weekend fast-food runs than I had spent all year buying groceries and an array of toiletries.

At first, I was awestruck at the size of my brother’s monthly monetary expenditures. Seeing multiple $20 transactions at fast food joints such as McDonald’s and Taco Bell had truly shocked my frugal little self, not to mention my inner fitness guru.

However, upon further consideration, I realized perhaps I do not represent the norm within the college-aged population, but rather the exception.

Unfortunately, this frivolous student spending cannot only be limited to the sphere of fast food, but also spills over into almost every consumer avenue.

It seems as if the dreaded freshman 15 now faces a brand new competitor: the freshman $15,000.

Take for example the story of Sally Robinson, a student at the University of Massachusetts at Amherst who had unknowingly accumulated more than $20,000 of credit card debt upon graduation.

In reality, most students do not find themselves in such an extreme situation as Robinson, but unnecessary spending still plays a vital role in many students’ lives.
On average, college seniors are graduating with not only a diploma, but also about $4,000 of credit card debt, the Huffington Post reported.

If student spending continues to increase at this rate, we could begin witnessing credit card statements as horrifying as America’s federal debt. Well, perhaps not that terrifying, but you get the point.

It is time to take action. It is time for students to grow up and realize that while life should be enjoyed, money cannot buy everything.

Now, I’m not suggesting we all become extreme couponers or eliminate all monetary splurges from our lives, but rather that we, students, become aware of our spending.
So, let me offer a few tips that may help students avoid the freshman $15,000 and become smarter spenders.

First, create a monthly budget. You are much less likely to spend money on unneeded purchases when you have a written out game plan, outlining how much money you are willing to and, perhaps more importantly, able to spend.

Second, seek out and take advantage of student-oriented promotions. Instead of throwing down an inordinate amount of money for irresistible theater snacks and a movie ticket, catch a free movie at the Indiana Memorial Union.

And if you absolutely have to satisfy your pizza craving afterwards, opt for a deal — my favorite is Domino’s $6 large pizza Late Night Special.

Third, clip a couple coupons. When you need to buy groceries every month, the savings really add up. Don’t worry. If you do not want to take the time to search for coupons, sign up for a store membership card, and save money passively as you shop!

Lastly, remember to include a bit of discretionary spending. No, you do not need to purchase every new Apple product that is developed on a nearly monthly basis, but every once and a while, go ahead and treat yourself.

­— kfasone@indiana.edu