Financial Literacy for America's Students by Ashley

Financial Literacy for America's Students by Ashley - August 2018 Scholarship Essay

If I had a popular education podcast, the educational topic my podcast would be about financial literacy targeted towards high school and college age students. Being a financially literate adult is a necessary skill in today's society, but unfortunately it is not taught in schools. In addition, one of the earliest financial decisions a young adult will make in their lifetime is regarding paying for college. As early as their senior year of high school multitudes of students face the difficult task of paying for college and signing up for loans with interest rates as high as five percent. Due to this, the goal of my podcast would be to educate students entering college or currently enrolled in college about loans in the U.S. and how to manage their money.

To begin with, typically students in search of loans have two options a direct subsidized loan or a direct unsubsidized loan. The subsidized loans are few and far between, but are the best option for students, because the interest will not start accruing until they graduate. In comparison the unsubsidized loan is not subsidized by the US government, so it will accrue interest the moment you sign for the loan. If given the options the direct subsidized loan will always be students best choice if they use loans to pay for their college. However, loans are not always needed and not the only option to pay for college. It is integral that students also fill out the FAFSA because they may qualify for grants or other scholarships only offered through the FAFSA. In addition, students also should apply for various scholarships, websites such as fastweb.com, myscholly.com, and scholarshipowl.com help match students with scholarships that best match their achievements and background. Finally, students also have the option of working to assist with paying for textbooks, various school supplies, and living expenses to minimize how much money they borrow in loans. Some schools also have work-study options, where students will work on campus and part of their paycheck would go towards paying down their tuition. However, work-study is not offered to all students, but all students can apply for various jobs on their college campus.

Finally, a key component of being financially literate is being able to manage money. For the average student to best manage their money I have found it is necessary to have a budget and track where I am spending my money. Where you track your spending does not have to be anything fancy, you could keep track of your spending habits in a notebook or on an excel spreadsheet. You will notice where your money is going and any changes that need to be made to better save your money. A great tool I suggest all listeners of my podcast should invest in is the book "5 Mistakes You Can't Afford to Make in College", by Anthony Oneal with Rachel Cruze. In this book they detail common mistakes college students make such as taking out too many credit cards and how to fix their mistakes. One other tool I recommend to all of my listeners is Dave Ramsey's book "The Total Money Makeover", in which he breaks down into steps how to better manage one's money and how to get out of debt. Having a budget may not seem like the cool thing to do and some of your friends may even laugh at you for keeping a budget, but as you progress through life and take on larger purchases such as cars and homes you will be glad you learned these skills early on.

To conclude, hopefully I have helped make the maze of paying for college clearer for all students and guide you to the tools necessary to increase your financial literacy in college and after graduation.