For seniors graduating in 2010, figuring out personal finances will be the first of many challenges, speakers said on Monday.
As a response to a high number of inquiries on finances, Boston University Career Services held its first workshop, titled, “Understanding Your Paycheck” before an audience of about 30 in its office at 19 Deerfield St.
Senior Assistant Financial Assistance Director Patricia Briggs explained how each paycheck breaks down after expenses like student loans, credit card debt and personal expenses, and covered credit scores and thrifty spending.
She also coached students in planning a monthly budget, giving each student the opportunity to fill in personal expenses, which she said should include everything from utilities to gift money in their budget plans.
“I thought it was pretty helpful to have someone break down a monthly budget for me,” said College of Arts and Sciences senior Melissa Hampson. “It’s a little daunting, but nice to hear it from someone other than my parents.”
Financial Services Director David Kelly stressed that the goal wasn’t to scare students into a life of living in their parents’ basements.
“Our interest in the Financial Assistance Office is in educating students and preparing them as they move from BU to the job market,” Kelly said. “We want them to know what they can expect in terms of what is in their paycheck, what comes out of it and all-around credit issues.”
Financial Aid Advisor Richard Truong, who is a recent college graduate, said paying off student loans early is important.
“One of my biggest issues coming out of college was my student loans,” Truong said. “I decided to get them out of the way as soon as I could.”
Truong, who volunteers at the YMCA, said choice of leisure activities can make a big difference in one’s budget.
“Volunteering means you’re spending your time not spending money,” he said. “And a lot of organizations will give you nice perks. The YMCA gives me free access to their gym, which is another expense knocked off my list.”
Students said the lecture was informative and relevant.
“The most surprising thing to was to see how much of each check goes out to taxes,” said CAS senior Susan Gillmor. “Seeing the net budget come together was much more helpful than any theoretical assumptions I was making on my own.”
Students also shared tips that they take advantage of to control their spending.
“I like to find free movie screenings around Boston,” said College of Engineering junior Luke Anderson. “I find that a lot of my spending money goes toward entertainment, so if I can bypass the $12 ticket into the theater, I feel really good about myself.”
“My parents have taken care of most of my finances,” said College of Communication senior Polina Glinets. “But I like to keep up with campus calendars and free events so I don’t get in the habit of spending money all over the place.”
Briggs encouraged students to do research and reminding them that the Financial Aid Office is at their disposal through tough economic times.
“Students have been asking about it,” she said. “I tell them, don’t beat yourself up. It’s hard, but it’s a new day.”
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