Money and the College Student: Avoiding Money Missteps
Financial Wellness and Education
UK 101 Lesson Plan
“If you buy the things you do not need, soon you will have to sell the things you need.”
– Warren Buffet
“The ultimate objective of Financial Literacy is financial wellbeing.”
– Annamaria Lusardi
Rationale:
Managing money as a college student can be challenging. With newfound financial independence, the responsibility of paying for living expenses, and the rising costs of college attendance, it is important that college students learn about common money missteps and how to best manage their money. The stress associated with money management can be overwhelming. However, recognizing that every student has the ability to develop a strategic plan aimed at avoiding and correcting money missteps and spending money wisely are keys to becoming a successful financial consumer.
Lesson Goal:
To identify and learn how to avoid the common money missteps made by college students.
Lesson Objectives:
- To identify common money missteps.
- To identify strategies to either avoid or correct money missteps (identify, budget, set goals).
- To assist college students in understanding basic money management and connect them to campus resources available.
Introduction:
Instructor:As a college student, your priority is your education. There are ways that you can ensure that financial problems do not interfere with your studies by fitting financial education and management strategies into your daily routine. You are responsible for making sure you have a sufficient amount of money to cover your bills, tuition, books, and other miscellaneous expenses over the next several years. Even if you are receiving outside support, it is important that you learn how to manage your money best today, for a successful future.
Introduction Activity:
Instructor:Many college students are left feeling overwhelmed when they realize the financial responsibilities that they are now faced with. It is easy to allow these feelings to cloud their financial judgement, leading them to make poor financial decisions (i.e., signing up for a credit card to get a free t-shirt). However, by taking a critical look at your past and current money management practices, you can learn to make better financial decisions and avoid feeling overwhelmed.
Ask class the following questions:
- Has anyone ever counseled you on financial management?
- Do you think that you are currently making or have made any money missteps?
- Have you created a budget and stuck to it? Why or why not?
- Have you tried to identify your spending “needs” vs. “wants”?
Instructor– Write “Needs” and “Wants” on the board; ask class to brainstorm examples of needs and wants in their own spending habits. (Write their responses under appropriate category on the board.) An example may be, if the student drinks coffee, whether Starbucks coffee is a need or a want. Could making coffee in his or her room and pouring it into a travel mug be an alternative?
Group Activity #1:
Divide the class into groups of 5-7 students (for larger classes, you may divide the groups into an appropriate number of students).
(a)In two minutes, create a list of money missteps that you think college students make.
(b)Share your list with the class.
(c)Instructors – Distribute and review the missteps listed on the following “Avoiding Money Missteps” handout.
**Avoiding Money Missteps Handout INSERT HERE**
Group Activity #2:
In your same groups, you have 6-8 minutes to develop a financial plan for incoming college students. The plan should consider the money missteps we discussed and include at least 5 financial tips. The tips should be based on the following considerations:
- The things that you wish you had known prior to entering college.
- The best pieces of financial advice that you received prior to or upon entering college.
- Anything that you have learned from today’s lesson that you think is particularly useful or important.
When your 8 minutes are up, a spokesperson from each group will briefly share your group’s financial plan.
Summary and Resources:
There are many offices and resources on campus to help you with your financial situations and in your financial education journey. *Show Financial Aid Video* found at
- The Office of Student Financial Aid has also created a worksheet for you to better explain some of the key rules, regulations and tips to knowing more about the financial aid process. (Instructor: Distribute Financial Aid worksheet attachment).
- MoneyCATS is the Financial Wellness Center on campus, specifically designed to help students learn more about their personal financial literacy and encourage conversation with peer financial coaches on topics that students may want to learn more about or get assistance working through. email: ; located in room 1523 Patterson Office Tower.
- Download helpful “campus financial updates” calendar – Give directions on how to subscribe to the google calendar that will send reminders to students’ smart phones on important dates that may impact them financially. (calendar found at
- iGrad – Found on the MoneyCATS website, iGrad will give students the option of creating a profile to receive helpful information, news and videos on financial wellness topics. Navigate the iGrad profile creation page with your class and pass out the iGrad “Helpful Module Timeline for UK Students” handout.
Summary Activity:
Remind the students of the importance of keeping an end goal in mind. Ask participants to quickly reflect on what they identified as money missteps that they may have taken. Examples may include not having a budget (or knowing how to stick to one), signing up for multiple, high-fee credit cards, etc. Then challenge the students to remember what they identified as money missteps as well as the ways in which they can either correct or avoid these missteps as they move forward as money consumers.
Optional Follow-Up Assignment:
Track ALL of your expenses in a spending diary or weekly money journal (template is attached). You must prorate all monthly expenses including your rent, utilities, cell phone bill, gym membership, etc. At the end of the week, categorize your expenses as well as identify each expense as a need vs. want. Develop a pie chart in a program like Excel, which will divide the percentage of your total expenses by categories – as well as create a chart showing your money spent as needs or wants.
After completing your spending diary and pie chart(s), write a one-page reflection paper regarding your expenses. Your paper should address the following questions: (1) Didanything surprise you? (2) Do you overspend in any category? (3) Will your spending diary change the way that you spend your money in the future?
Turn in your spending diary, pie chart(s), and reflection paper.
Content Created and Compiled By:
Jennifer L. Hunter, Ph.D.
Extension Specialist for Family Finance
Kristyn Jackson, MS, LMFT
Department of Family Sciences, Doctoral Candidate