College Can Thrust Students Into New World
Aug 13, 2008 
Daily Herald-Tribune | By Darrell Winwood
Larissa Walkiw is like most 19-year-old girls. She likes pop art, hates litter, says Muppets creator Jim Henson is her hero and likes to spend time with her friends. Until recently, Walkiw also knew very little about how to manage her money and was too nervous to even ask about it.
"I'm not ashamed to say I was taught very little. I think there are very few young people comfortable with their financial habits," she says.
Her experience is hardly unique. Growing up, youth are taught how to add, subtract, even do advanced algebra – but balancing their bank account remains one of those experiences many are left to figure out on their own. As school is set to resume in a few weeks, college students in their first week back can face a gauntlet of credit card companies seeking to sign them up, not to mention student loans to process and tuition to pay. For some, they will be living on their own for the first time. The experts say leaving students to figure it out on their own can be a risky thing.
Alison Braaten, director of Money Mentors, a branch of Credit Counselling Services of Alberta, advocates teaching youth and adults alike more about how to be financially healthy.
"A lot of them (students) haven’t had solid training in financial matters. I do see young people ... who say I wish I had known before I went to school."
With student loans, young people can get a large infusion of cash at the start of the year and don’t always grasp it has to last for months or the entire school year.
"Some just don't think that far ahead," said Braaten.
Walkiw, fortunately, now knows better. The St. Albert resident has spent the summer working as the spokesperson for the Common Wealth Credit Union’s Young & Free program, a initiative to reach out to younger customers. She has toured Alberta talking to youth, blogs on financial issues and helps other people her age get the right answers on money questions. It's been an eye-opening experience, she says.
"I didn't feel comfortable (before) asking basic questions because I felt I would seem stupid," she said.
But there is help available for students and parents to get a better financial education. In Grande Prairie, one of the first places college students can go is the GPRC Students' Association.
Jessica Bull, vice-president internal, is an accounting major studying for a bachelor of commerce degree and agrees most students don’t always grasp money matters.
"Some do and some don’t. I’ve known some people who have gone to college and can't handle money and some people who haven't gone to college and can,” she said. "I think (help) is offered but ... people maybe think they know about it."
Bull said college students are constantly marketed to and pushed new products to buy but there’s little that can be done to stop that.
"I think (marketing) is overdone, but it’s not something that can be helped. Eventually you're going to be exposed to it."
Some tips for students include learning how to budget by making a list of all their expenses and income and trying to draw up a basic spending plan. Plan ahead by flagging dates where major payments are due such as rent and tuition. Perhaps most important, don't be afraid to ask questions or take the time do some research. There are plenty of good resources for learning how to invest money or learning basic budgeting, said Braaten of Money Mentors, who recommends using cash whenever possible to reinforce costs.
Walkiw now budgets her money and feels more secure knowing she understands financial issues.
"There's a lot young could be doing but aren't," she said.
For more information visit www.youngfreealberta.com and www.creditcounselling.com.
