Economic Development and Quality of Life for Families and Communities
Credit Management for College Students
Issue
According to the July, 2002 Nellie Mae study, Undergraduate Students
and Credit Cards: An Analysis of Usage Rates and Trends, 83 percent
of undergraduates attending four- year institutions possess at least
one credit card. Credit card companies frequently market their products
to students and credit is readily available to students at the University
of Arizona, resulting in a rise in personal debt. Little is done to
provide students with personal financial education to ensure that the
students have the basic money management skills necessary to manage
credit wisely. Undergraduates in the 2000 Nellie Mae analysis carried
an average credit card balance of $2,748, up from an average of $1,879
in the 1998 study.
What has been done?
It is obvious that credit problems for college students are a serious
problem that will only get worse. To provide assistance to those already
in trouble and to prevent others from following in the same path, Credit-Wise
Cats (named after the University of Arizona Wildcats) was created as
a student-run organization providing financial education to University
of Arizona students and faculty. This project was started through the
SIFE Team and with funding from Credit Counselors of America has grown
to include workshops, one-on-one counseling, scholarships, a case study
competition and the development of a 300-level personal finance class
at the university. Three main components include:
Credit-Wise Cats Educational Workshops
In the 2001/2002 school year, the Credit-Wise Cats program was developed
with the intention of educating as much of the university population
as possible on the wise use of credit as well as overall good budgeting
and money management skills. This task was accomplished by providing
faculty and students the opportunity to attend informational workshops
on money management and credit cards as well as create a "financial
fitness" competition that allowed individuals to work one-on-one
with the counselors and receive a more detailed education on the previously
mentioned topics. Through the course of the school year Credit-Wise
Cats met with more than 800 students through workshops and one-on-one
counseling sessions
Financial Fitness Competition
Students participating in the personal finance workshops were invited
to participate in a financial fitness competition. The students established
measurable financial goals and over the course of the academic semester
attempted to achieve those goals. At a predetermined date the students'
financial position was evaluated by the judging team based on how successfully
they achieved their goals. Scholarships of $2000, $1000 and $500 were
awarded to the first, second and third place students for the 2001-02
academic year.
Consumer Issues
In the spring 2002 semester, a "Consumer Issues" course was
introduced and offered to all students on campus; 60 students enrolled.
This course was designed around the Take Charge America program and
was supplemented with guest speakers and experts in the field (Credit-Wise
Cats even gave an informational workshop to the class).
Impact
Students participating in Credit Wise Cats activities reported a 33
percent increase in knowledge of credit and debt management; 82 percent
plan to control spending and 88 percent intend to reduce their debt.
Credit-Wise Cats was able to influence a large audience and provide
a great deal of information to a very vulnerable group: 790 students
were directly reached in 2002 through informational workshops, one-on-one
conferences, the "Visa Wise Use of Credit Week" Speaker Series,
and a Consumer Issues course emphasized on Take Charge America. Credit-Wise
Cats was also very successful through the media. The program was featured
in more than 10 articles in major local and statewide newspapers in
2002 with a population reach of over 400,000. Fifteen students enrolled
in the Financial Fitness Competition. Testimonials from participants:
"This program has helped me better understand the choices I have
with my spending."
"I never realized the importance of a credit report before I attended
one of these sessions. I am going to order my report as soon as I get
home!"
"I have been one of the counselors for two years and I have learned
so much about my own habits. It has been very valuable."
Funding
Credit Counselors of America
Contact
Melinda Burke, assistant director, Southwest Retail Center
Division of Retailing and Consumer Sciences
School of Family and Consumer Sciences
The University of Arizona
PO Box 210033
Tucson, AZ 85721-0033
Tel: (520) 621-1295 FAX 3209
Email: mburke@ag.arizona.edu
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