Jordan Goodman is a financial guru and his son is just starting his freshman year at Dartmouth. Jordan’s been dealing with money for years as an expert in the field, but for his son it’s a whole new territory. And arming his own son with the right financial tools is new territory for Jordan as well.
“Basically he had nothing to do with money,” says Jordan. “So when he went off to school I started teaching him how to write checks and keep his balance, how to balance his credit cards and how to invest in various ways in money markets and CDs. This was all new territory for him and for many kids.”
Because he saw the need among his son’s classmates, Jordan held an informal workshop for the fall freshmen to get the off on the right foot.
“We had them sign checks over to each other and that kind of stuff. This was all a new experience for them. Most kids are very sheltered from the financial world. Even the basics like checking and savings, let alone the more complex world of investing.
“This is the time when they’re going out on their own and need help with checking and savings accounts, selecting the right credit card – if you qualify for one and even selecting the right meal plan. All those kind of things can get you off to a much better financial start than not having any clue whatsoever about what to do.”
Jordan emphasized the challenges that college students are having dealing with their finances – especially when it comes to ‘plastic’ aka credit cards, because they’re so easy to use.
“It doesn’t feel like real money, so it’s easy to spend it on a whim. You know… you buy a keg of beer, or a stereo or some music or an iPod and the money can go very quickly. When it’s a credit card it doesn’t seem like real cash. Spending real cash has a psychological impact on people – ‘this real money I’m spending here!’”
Jordan also sees challenges when students aren’t spending their own hard-earned money.
“Money you haven’t earned yourself is even easier to spend. It may be helpful if students have earned money themselves over the summer. They’ll probably be more careful with money they’ve earned themselves than if it’s just been given to them with no strings attached.”
PEACE.
Rick
Rick Sherréll has written 17 articles on this blog.
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Sounds like a great talk that needs to hit every junior and senior in high school and freshman in college.
We’re creatures of habit and the sooner we get our children into the habit of saving, investing and realizing the importance of managing money, the better off they will be.
When my children were small, I’d sit them down when it was time to pay the bills and use it as a teaching opportunity. My goal was to make sure they understood that everything costs money and how important it was to have financial integrity and pay bills on time.
And Jordan is right about money not earned being easier to spend. We take so much for granted, and these economic times are a great opportunity to re-train ourselves and our families and this means re-prioritizing and creating a financial plan that will serve and support us in the not so certain future.
One thing for sure, creatures of habit with a financial plan are much more likely to succeed than those without a plan!