Thrifty Thinking: CreditWise Financial Literacy

As more than a million students graduate from college each year, many face new adult responsibilities in addition to juggling their first-time job and managing their money. Among these is money management, which hasn’t been a strong point for Gen Yers, particularly as data shows that more than two in five don’t pay their bills on time.

Meghan Stevens and Aris Williams, MasterCard Worldwide’s Are You Credit Wise? interns and college students, offer several tips to graduating students for starting their real-world budgets off on the right foot.

• Create (and stick to a budget): Ask yourself, “Am I leaving within my means?”  Set short- and long-term goals for your money, and really challenge your daily spending habits.  That $3.00 cup of coffee you get every day before class adds up to about $780 in a year.
• Manage your plastic: Think about the number of credit cards that you have, and make sure that you are opening credit card accounts wisely. Applying for too many credit cards in a short time period will suggest to future employers that you are trying to patch up a bad credit history.
• Think about your loans: Many student loan payment plans don’t kick in for several months. Make sure you realize this as you create your budget. Also, consider scheduling an exit interview with a financial aid advisor to figure out a repayment plan. They can help you determine the best repayment plan for your needs.

MasterCard Worldwide developed Are You Credit Wise?, a campus-based, peer-to-peer education program that provides money management information to college students.  The program is designed to train students to help their peers understand key financial concepts – including budgeting, bill payment, responsible use of payment cards and building a credit history.  No sales or marketing messages are involved. Now in its 13^th year, MasterCard’s Are You Credit Wise? program has reached more than 520,000 students at nearly 80 colleges and universities in the U.S. and Canada.

 
In 2011, MasterCard’s Are You Credit Wise? program expanded to community colleges in an effort to broaden the number and type of students educated about financial literacy. With the Obama Administration’s proposal to add an additional five million community college graduates to the roster of those who earn degrees and certificates over the next decade, we want to be sure we’re going to where the young adults are – and where more financial literacy is needed.
 
Since college students are much more likely to receive and act upon vital money management information if it comes from one of their peers rather than a parent, professor or administrator, this program focuses on peer-to-peer communications.  Using a peer-to-peer model has proven to be a successful strategy to reach college students with important money management and budgeting tips. The Are You Credit Wise? program recruits and trains student interns to lead campus-wide education campaigns focused on the fundamentals of good credit habits. Activities in which MasterCard interns have launched on college campuses across the country include:
o   Hosting school-wide intern-led presentations on money management;
o   Organizing and officially designating an Are You Credit Wise? week during the semester;
o   Sponsoring workshops in residence halls or as part of orientation programs; and
o   Providing consumer education materials to the student body.