Sources: John Grable, 785-532-1486, jgrable@k-state.edu;
Virginia Moxley, 785-532-5500, moxley@k-state.edu; and
Dustin Furrey, 785-539-1492, furrey@k-state.edu
Note to editors: Dustin Furrey is a graduate of Larned High School.
News release prepared by: Andy Badeker, 785-532-6415, abadeker@k-state.edu
Tuesday, Dec. 4, 2007
PROGRAM ENCOURAGES K-STATE STUDENTS TO TAKE CHARGE OF THEIR FINANCIAL FUTURE
MANHATTAN -- Kansas State University students' personal approach to encouraging thrift seems to have a better chance of changing classmates' financial habits than more passive methods, according to the undergraduate coordinator of a pilot program on campus.
Dustin Furrey, a junior in personal financial planning, Manhattan, recently returned from Tampa, Fla., where he and two other K-State students compared notes with counterparts from Virginia Tech and Utah State, the two other universities experimenting with Students Save. It's an offshoot of America Saves, a wealth-building endeavor of the Consumer Federation of America.
"That K-State is one of three campuses nationwide to be chosen for this program is very appropriate," said Jon Wefald, K-State president. "The late Richard Morse, as head of Kansas State University's department of family economics, was deeply engaged in the work of the Consumer Federation of America, and he was responsible for the federal truth-in-savings legislation that continues to protect consumers to this day."
"Honestly, we were kind of ahead of the group when it came to getting the word out," Furrey said. Virginia Tech participants reported that they had been passing out brochures, "but I think the one-on-one approach is better," Furrey said. "And that's definitely something they're going to take from us."
The K-Staters' efforts involve a short PowerPoint presentation to undergraduate classes, the bigger the better, in this case. For example, instructors of two family-studies classes have invited Furrey's presenters to give "our 10-minute spiel." That's about 400 freshmen who will hear the Students Save message: Save a little, starting now. He hopes to expand the presentations to leadership studies classes next semester.
"If people think I'm some dorky college student, that's fine, as long as they remember the message," Furrey said. "We're not selling anything or promoting any particular business or bank," although the program has enrolled the K-State Credit Union as a partner. To qualify, an institution has to offer at least one account that has no fees for two years, and whose minimum balance requirement doesn't exceed $25.
Saving has a flip side: Paying down debt.
"Debt is definitely more a problem than in previous generations," said John Grable, associate professor in K-State's School of Family Studies and Human Services, where he directs K-State's personal financial planning program. He advises the Students Save program.
"We're finding more students who are substituting work for school, just to pay down debt," Grable said. "So they have to work more, and study less."
It's primarily credit-card debt, he said, "But we're even seeing some students getting into debt with pay-day lenders, which is really scary."
Like America Saves, Students Save urges participants to form their own plans. Furrey offers the examples of saving to pay for at least part of a vacation, or of dedicating an extra 10 dollars a month to retiring that credit-card balance.
"They get to set the goal, and we just want to help them attain the goal," he said.
"What excites me about this campaign is, if students can become even marginally better at managing their spending and saving for emergencies, they can graduate with a lower debt load," said Virginia Moxley, dean of the College of Human Ecology. "Or, hopefully, no debt. Wouldn't that be great? That really increases their financial opportunities after graduation."
In gearing up for the program's big push in the spring 2008 semester, Furrey realizes that his group's own goals don't have to be grandiose to be effective.
"We were really optimistic at first," Furrey said. "Our original goal was to sign up 5,000 students. But what matters to me is, how many of those will actually take the time to learn about a savings vehicle or a credit offer?
"If 500 students out of 5,000 change their behaviors, then that's where social change comes from. It may not happen while they're still at the university, but it will later, we hope, and it will affect the rest of their lives."