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5 Financial Lessons I Learned In College

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Fort Collins, Colorado State University Oval

This past weekend I traveled to my alma mater, Colorado State University. My old stomping grounds changed, as new buildings and flashy designs populated the sprawling campus. But despite the changing landscape, it felt familiar.

There are countless memories — exceptional and horrific — that span my 5 years of life in Fort Collins, Colorado. One of the most poignant and relevant were the many financial mistakes made during my tenure. It was here that I started a crazy financial roller coaster that led me to nearly $40,000 in student loans and debt. It was here that I first noticed a panicky daydream where I would be sucked into the ground and have no way out of this horrific financial hell.

After reflecting on my visit and time in Fort Collins, I realized that I’ve changed — like the campus landscape. I’ve learned a lot about myself and some financial lessons along the way. Today, I wanted to focus on 5 key aspects that college helped me understand about personal finance. What I would’ve given back then to know this information now!

1. Friends influence frugality
Unsurprisingly, the people you surround yourself with greatly influence how you spend your money. If you’re trying to be a more frugal person, it’ll be vital to find friends that support and approve your way of life. It can be radically different from the party, work-hard-play-hard mentality at some campuses. Additionally, if you attend a private college/university, you may be around people with larger bank accounts. It’s important to reflect on who you are and what your inner compass is telling you about finances.

2. College is expensive, put extra funds in a savings account
While I was fortunate to have parents that paid for college, I didn’t budget well — if at all. My parents gave me a little spending money and I did exactly that, spent it! It wasn’t “saving money.” I burned through the money. From expensive dinners to luxury road bikes, I was a faux-millionaire with an unquenchable need to spend. Much of this could’ve been solved or stifled with a good budget. And it’s never too early to make a budget! College is the ideal time to figure out these important “adult” issues, as you should have money coming in and out. If you ever have extra funds — whether you’re the campus pot dealer or have generous parents — stock your funds away for rainy days.

3. Question your student loan “award” unmercilessly
Student loans are often called “awards” after you apply for and fill out the FAFSA. Unfortunately, these are not anything of the sort. Student loans are powerful debt instruments that are issued by the federal government, with changing terms and interest obligations. These are complex, dangerous, and can spiral out of control rapidly. With any decision to take out student loans you need to be unmercilessly skeptical and defensive.

4. Avoid car-friendly/needed campuses
I sold my car over the summer. It’s been a difficult adjustment, as the current university — Iowa — isn’t particularly bike-friendly. Wherever you intend to go to school, consider public transportation and (wide) bike lanes. You should be able to receive free transportation on buses with a student ID. Look out for bike racks, too! Ideally, you’d be able to sell or avoid buying a car altogether.

5. Find “easy” jobs and double-up on work
College campuses have tons of jobs for students. If you’re an exceptionally busy, motivated student — and I hope you are with what college costs — it’s important to find a job that allows you to double-up on work. For instance, you could get a job as a server that pays very well, but that could make it difficult to take full semester course loads. Thus, you sacrifice one part of your life for another. An alternate option — especially if under a time crunch to graduate — is to find a desk job at a residence hall or an office assistant position. Oftentimes, these jobs have downtime and allow you to sneak in some study time. Now, you can be efficient and make some money in the process. What could be better?!

How To Fundraise $25000 In 12 Months

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Sam Lustgarten Always Remember Speech

In search of hope amidst great pain

To save money on housing and food, I decided to become a resident assistant as an undergraduate student. That decision put me on a collision course with residents dealing with serious mental health concerns. The transition to college was always different — some people eased right into it and others struggled.

I loved my residents, and thought we had an incredible academic year. It was April when everything changed. A resident died by suicide. As one of the first responders to the scene, the visuals caused an aching, grinding weight over my chest. Over the course of the next six months, two more people in my life would die by suicide.

It shattered me. There were many days in which getting up was a trial. I’d leave classes early to go into a bathroom and cry. I remember feeling lonely and isolated in my pain. It took that heartache and tragedy to find hope for something better.

Always Remember Fundraise Plan
Part of my proposal to administrators.

Finding, honing an inspiration

I was desperate for action. Then, a flash of energy hit me in one sleepless night nearly a year after the first suicide. I wanted to start a scholarship to fund undergraduate students who wanted to pursue suicide prevention and/or work with those suffering from severe mental health concerns.

Over the course of the next month, I created a proposal for the university and told them how I would fund an endowment (a self-supporting — through interest — scholarship). I explained that I had been talking to friends and family. Altogether, we could scrounge up about $2,000 to start.

They told me I could try, but I’d need to fundraise $25,000 within 5 years.

I said, “Deal.”

Make the first donation

When I started the scholarship I had about $500 in my bank account. I had few assets. Still, I sold everything I could and donated a couple hundred dollars to start the scholarship. It was less than 1% of what I’d need to raise, and it hurt to give that much (especially since I’d need to take out student loans soon after that). No financial advisor would say it was wise.

I had to give everything I could. My head and heart were sucked into this powerful idea — hope through tragedy. I don’t regret giving as much as I did then or over the years. It fueled my passion to seek donors and encourage others to join me.

Realize your connection to community

With almost every cause, there’s a community of support behind it. I realized I wasn’t alone in my distress and desire to make an impact. In fact, the community around my alma mater was incredibly supportive. They were eager to make a difference, as well. They had been affected by this issue.

I heard stories about lost loved ones — brothers, sisters, fathers, mothers, children. It hurt to hear the stories, but I only grew more connected to those around me. Eventually, students at a local high school started fundraising for the scholarship. It brings tears to just think about how meaningful that felt. A cynical part of me died when others began to donate. I didn’t know if anyone would support the cause.

Inspire yourself and others

Suicide Prevention Fundraiser
Group of supporters spent a day in the plaza providing information about the scholarship and suicide prevention.

The $2,000 wasn’t enough, and I felt a pressure to make this happen. I told everyone about the scholarship. Donations began to trickle into the scholarship account.

I shared on Facebook and Twitter — all over social media. Each time led to others sharing. The positive feedback was unmatched in my life. It felt amazing to be channeling such a dark period in my life.

Others were inspiring, pushing me to continue. Likewise, I seemed to inspire others. This shared, symbiotic relationship appeared to benefit everyone. My energy, which had long been depressed and negative, shifted.

That first summer, a massive, $5,000 donation was made. The idea of a scholarship to prevent suicide and provide awareness to this issue struck a chord with many who were affected in the community.

Throw away modesty, seek media attention

This is the trickiest part for some people. Seeking attention is something that society generally says is inappropriate. Unfortunately, far too many people think media will just come to you when they’re ready. I threw that lesson away as fast as I could.

Seek out media outlets! Talk to local papers, zines, and websites about your story and propose times for interviews. This has a tremendous snowball effect to getting donations and finding supporters. Media can be your best friend. You never know, you might just get the biggest paper in your state covering the scholarship and linking to it.

Endowed status!

After about 12 months — the fastest a scholarship has ever been fully endowed in the college — over $25,000 was raised. Whatever you’re looking to fundraise for, know that you can. Follow your passion, link others, connect with a community, give until it hurts, and seek some old fashioned media attention. You can do this.

If you would like to donate to the Always Remember Never Surrender suicide prevention scholarship I founded, head on over to: https://advancing.colostate.edu/arns

Personal Finance Gurus Fail With First Generation Savers

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Does anybody know how to study?

The struggles of a first generation college student

Join me on a small aside — I promise it relates. An organization called the College Board is responsible for creating the Scholastic Reasoning Test (SAT). This exam is one of two major college entrance tests (the other is the ACT). Score high enough on the SAT, and you could attend almost any university. Likewise, entrance scores can often influence the level of aid given to entering freshmen students.

One variable can influence your SAT score, admission chances, aid opportunities, and much more; it’s called, first generation status. These college students are the first person in direct, immediate family to pursue a secondary education. Essentially, parents of first generation college students must not have attended college themselves. Born and raised in a family without ties to college can directly affect your success in higher levels of academia.

In nearly every category, with decades of data, they’ve found clear differences between first generation and non-first generation college students. College Board researchers have found that first generation college student are less likely to take preparatory courses for the standardized exam, take fewer advanced placement courses (AP) prior to college, and are less likely to take accelerated math courses. These are just a few of the hurdles for these disadvantaged students.

Family role models for academic success can be scarce. Study habits may not have been learned. Monetary support may be nonexistent. First generation students may struggle to connect with peers on campus. All of these factors raise the risk for dissatisfaction in school, higher dropout rates, and mental health concerns. Frankly, it pays to have family ties to education.

Similar status as a first generation saver

Maybe you’re wondering, “What does all this college student talk have to do with personal finance and money, Sam?”

I’m glad you asked.

Similar to college, first generation savers face serious tests — analogous problems exist. Lessons are passed down from generation to generation. Inheritances can be shared and kept within families. Strong principles and techniques for smartly minimizing individual tax responsibilities are taught. (Heck, how do you think Romney only paid about 14.1%?). First generation savers frequently have friends in comparable financial predicaments.

Starting, customizing, and following a monthly budget are learned. It helps if your parents teach you. Additionally, when you can see how they save and manage their money in action, a good cycle can be learned. The first generation saver doesn’t have the opportunity to learn from parents. As the first savers in a family, they’re bucking a pattern of money mismanagement — the waters can be murky, challenging, and lonely.

Jim Cramer Tulane University Photo
Photo: Jim Cramer at Tulane University (Credit: Tulane Public Relations)

Is willpower the key ingredient to saving?

Personal finance gurus stress individual power, will, and grit. They propagate unscientific expertise that suggests they have the tools to balance your budget, reduce debt, create emergency funds, and retire with a sizable nest egg. For the most part, their help and advice can really help. Unfortunately, their one-size-fits-all advice isn’t often tailored for first generation savers.

Willpower-based economic education is far too common. It’s the ill-conceived bumper sticker of American personal finance policy: one must have the will and energy to save — that’s all it takes. Otherwise, you’re a lazy failure because you cannot commit to these steps.

I’m afraid that does an injustice to more multicultural groups who don’t necessarily have the same role models and social support for financial success. Frankly, most personal finance advice is distilled and created for a certain population; one that has the means to believe in free will and individual power.

We need more diversity among financial gurus — socioeconomic statuses, races, genders, persons with disabilities, and more. Voices need to come to the table and share their individual experiences. While some advice and feedback may not fit, there’s hope in knowing that more people are out there sharing openly and acknowledging the team effort that’s necessary to come back from tens of thousands in debt.

5 Ways Public Universities Are Swindling Students And Turning Into Private Businesses

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Public University of Iowa Institution Taxpayer Funded
Sunset over the University of Iowa campus.

From public to private: The budgetary gap in American education

Public universities are generally funded by taxpayer dollars and the federal government. Contributions ultimately lessen the cost education for an individual, and help make a college education attainable for a greater whole. Tax revenues at the state and federal levels fell in recent years, and the share of tuition owed by students significantly increased — all while student loan interest rates skyrocketed.

This recipe has decimated our youth. We afford children the right to a free, public education from kindergarten to 12th grade, but when they graduate high school, the benefits evaporate. The voting public and politicians have argued that college is no longer a right; rather, an earned privilege to a select few (who can afford it).

Public institutions were supposed to be accessible and affordable to the people in state. Heck, there are land-grant institutions that were given vast acreages to educate future educations. Unfortunately, hawkish debt reduction tactics, private-interest groups, and misinformation campaigns created a climate that hated taxes — the consequence was the disintegration of our public universities.

A subtle shift happened over the last few decades, and it’s led to a massive, business-like privatization and profit-motivated aire amidst public universities. Suddenly, administrators are aiming at your wallet, rather than their intended goal: educating the finest group of students for many generations to come. The painful revenue gaps have led to a rise in tricky tactics.

5 business tactics that public universities use to supplement revenue gaps

1. International and out-of-state students are preferred

State schools accept more out-of-state and international students for full-price tuition and limited scholarship availability. This move effectively subsidizes the education of in-state students. Although, by accepting more students outside the state, fewer in-state students are accepted.

If you’re on the cusp of going to an out-of-state school, think about the price differential. Is it really worth the added tuition burden?

2. Degrees are created that offer no career paths

For instance, my alma mater had an oft-ridiculed bachelor’s degree entitled, “Liberal Arts.” This degree is useful as a temporary placeholder for students, while they make final degree decisions, but should not be a formal track. Graduate with a degree in Liberal Arts and you might as well use it for toilet paper.

Similarly, watch out for degrees in “General Studies.” Degrees like this simply milk monies from students and send them on their way without a lifeline. Avoid these at all costs!

3. Watch out for excessive, new construction projects

While these new architectural sights provide a heightened level of excitement to prospective students, they are only afforded through higher student fees and redirected public funds. Brilliantly upholstered and designed residence halls may attract new students, but everything has a price; last time I checked, enrollment and interest in college isn’t the problem, anyway.

If you don’t want to come to a university because hotel-like residence halls are absent, you are likely going to college for the wrong reasons. Much like the cliche regarding books, don’t judge a university by its buildings.

4. Massive interest in distance education programs

At a fraction of the cost to educating students on-campus, many public institutions have a growing body of administrators pushing for online education offerings. Stigma-be-damned, plenty of people are taking up the offer to be educated online. These institutions are frequently charging handsomely for the privilege of being educated online, and offer students little support when compared to their on-campus peers.

Steer clear of most online master’s degrees that purport to give you credentials — all while you are pantsless in a bathrobe at home. While you may be able to say, “Your Name, M.S.,” you’ll be missing out on various networking opportunities and paying some of the most expensive tuition rates available. Most online programs offer little funding, and public universities use these programs to further subsidize in-state students’ educations.

5. Financial aid offices don’t warn you about student loans

This is the scary one for me. It’s quite personal and disheartening that when I requested to get student loans, nobody ever explained to me how they worked. When I met to approve the federal aid a few years ago, I never had a human sit down with me and create a budget, set expectations, and explain how interest would quickly add up. While it’s my fault for not being more critical, I didn’t know what I didn’t know — the questions were not yet clear.

Pay attention to financial aid officers at universities. They usually have no interest in curtailing or slowing your interest in finishing a degree. There goal is to get you federal or private funding and keep you coming back to school — period. If you’re looking for student loan advice, start researching the perils and pitfalls before signing on the dotted line.

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