When my brother was writing his first book, Thru in 2, The Ultimate College Guide, I was finishing my thesis, and we would often trade drafts for editing. While I was reading his work, I noticed some very scary statistics concerning college students and money. One that stood out was from a 2001 Nellie Mae study which found “Students are graduating college with an average of $20,402 in debt.” I was floored considering that amount is more than I made as a first year teacher! This made me think of my own financial literacy and what I wish I had known…….

1. Budget is NOT a bad word: Growing up, my dad tried to get me to budget my allowance money and save for bigger purchases, but I didn’t listen. I thought budgets were stuffy and limiting. Quite the contrary, budgets can be freeing and provide a sense of security.




2. If you can’t pay in cash, you don’t need it: Again, I ignored wise advice from my dad. There is something about having to fork over a 100 dollar bill that makes those shoes seem a little less cute.




3. Think, Think, Think: This advice comes from our favorite cartoon character, Winnie the Pooh. When purchasing a bigger ticket item, take 24 hours to really evaluate if it is the best decision for your situation.




4. Talk about money: I still have trouble with this one. Ask someone you trust when making financial decisions, even if you are confident it is the right one.




5. Know your money: 64% of consumers don’t even know their credit card balances or interest rates according to My Vesta Organization. Being knowledgeable not only helps you avoid further debt, it also helps protect you from identity theft and collection scams.

Now that I am a mom, I am less than optimistic towards what the economy will be like when my son enters the “adult world.” Hopefully he will listen to the advice we give him.

Photo by Unhindred

Janet is a mom, wife, and teacher. She and her husband are on a quest to “happen to their money” rather than “let their money happen to them.” She can be found blogging about hot issues at educate, empower, enjoy or keeping up with her crazy family at ZieglerZoo.