The Daily O’Collegian

This weekend may be all about X’s and O’s for most students, but it’s the dollars and cents that should really be on their minds.

Personal finance is a subject that many students simply don’t make the grade in when it comes to the real world. This is why professor Nancy Titus-Piersma is translating her fourteen years of banking experience into a classroom format for students to take advantage of.

Starting Sept. 8, Titus-Piersma will be teaching an online class, titled “Personal Finance”, that will cover topics ranging from getting rich to starting retirement planning. Registration for the class is still open and can be done in person in 108 Gunderson Building.

Titus-Piersma took time to give some basic tips about personal finance for college students that can’t fit the class into their schedule.

Daily O’Collegian: What is the No. 1 thing college students make a mistake with financially?

Titus-Piersma: I think the No. 1 thing would be not tracking their expenses.

DC: What is the best book for college students to read about money?

TP: The best book for students to read is the textbook for my class, “Personal Finance: Turning Money into Wealth”. If they have the opportunity to take the course and get credit for it, I feel they are better off for it.

DC: How do you start a budget?

TP: The best way to start a budget is to be aware of fixed expenses monthly, such as rent. Make sure you have the fixed expenses paid.

DC: Paper or Plastic?

TP: I would say always use cash. Never use plastic to pay for anything. The only time I would say use plastic is when it is a debit card.

DC: What is the purpose of personal finance at this time in someone’s life? Why not just let mom and dad take care of it?

TP: At some point you are going to have to stand on your two feet. There are some personal finance habits you can set in place starting with the first check out of school that will benefit you. It is really important to start out as young as you can [caring about finance].

DC: First step to digging out of a hole?

TP: If you feel like you are already in a great amount of debt. It is important to understand good and bad debt. Good debt is student loans. Bad debt is like car debt.

If you have car debt I recommend taking a look at selling the car and scaling down to where you have little or no debt. The worst thing you can do is nothing. It tends to snowball and get worse.

DC: What is the best way to separate a want and a need?

TP: I would say if you think you really need it, put it on a list, especially if it is $50 or more, and wait two weeks, then really see if you “need” it.

In most cases you’ll find you won’t. It’s okay to be in school and live below your parents income. Don’t expect to have the same wardrobe, car, apartment or living environment you did growing up. Don’t sacrifice your education to work to pay those bills.

DC: What do you pay first?

TP: You pay yourself first.

You put aside a small amount of money to pay yourself for savings, once you get to the point you have three to six months of living expenses you can start putting money elsewhere.