449 STUDENTS LEARN HOW TO USE RATHER THAN ABUSE A DOLLAR

STUDENTS LEARN HOW TO USE RATHER THAN ABUSE A DOLLAR

Beware of the billboard along the interstate that reads “Borrow $200 and pay back only $202!” What happens in two weeks when the young borrower doesn’t have the $202? Just borrow more …. and more … and just one more time … and the nightmare of mushrooming debt begins to pervade every waking hour, eventually growing ravenous and all consuming.
That’s just one of the lessons students learned in a University 1010 financial literacy pilot program offered this past spring semester. The purpose of the six-module course was to help college freshmen avoid the financial mistakes that could tarnish their credit history for years.
It began with a memorandum of understanding, which was signed in November 2005 by officials representing state government, MTSU and the university’s Jennings A. Jones College of Business. Jones College faculty wrote the curriculum, and University 1010 instructors taught the course—all funded from seed money provided by the Jennings and Rebecca Jones Foundation. Other supportive partners were the Tennessee Department of Financial Institutions and Better Business Bureau.
“The issue was really to see how this would fit into the lifestyle of freshmen students and if it would make a difference in their financial well being,” said Dr. Jim Burton, dean of the Jones College. “I think students were surprised by some things in terms of what costs are associated with title loans and payday loans and other things that students find themselves getting into when they are short of cash. Other information dealt with one’s bank relationship, how to invest and what expectations to have.”
Many students said this experience changed the way they view and use money, said Dr. Marva Lucas, director, Academic Enrichment and one of the 1010 instructors.
“Their comments, questions and the interchange of ideas clearly demonstrated that this information was timely and needed,” Lucas said. “Many students remarked how … they will adapt new behaviors that result in making wise financial decisions.”
The difference between the pre-test and post-test scores of students’ indicated that nearly all participants were sharper about financial matters after the course—with correct answers increasing as much as 35 percent in some areas.
Student comments reflected what they learned. “It is important to be able to delay gratification,” or “I learned how to save money by driving the family clunker.” Many were shocked to discover that the average student has four credit cards or how much interest one actually pays on a loan or how quickly debt can lead to financial ruin.
Burton noted that too many students come from homes where the only question asked is, “Can we make the payment?”
“They don’t think about what happens if I miss a paycheck,” he said. “Parents try to help their kids … and we bail them out. There comes a point in life where you have to bail yourself out.”
While the sessions proved to be extremely helpful, Burton said he would like to see a financial literacy course integrated into the general education curriculum.
“If general education is about anything, it ought to be about life skills,” the dean emphasized. “I think this course is for every student, whether a business student or not. The business majors will get this information in one form or another—it’s really the non-business majors who will still have to balance a checkbook, buy a car or house, need investments and need to know about insurance. In many instances, those folks are leaving the university with very little experience in these areas. … The rest of us pay for financial ignorance. If someone goes bankrupt and can’t his or her bills, everyone loses.”
Burton said that currently there is no plan to offer the sessions in 2006-2007, but the college is exploring additional partnership opportunities.