Smart Money Tips for Students Entering College

Episode 15: Pocket Change Podcast

College is a time of new experiences and memories, but it also comes with many financial decisions for the first time. On this episode of Pocket Change Podcast, Dr. Dub Oliver, President of Union University, shares his advice for college students on how to manage their money wisely and avoid financial heartaches.

“Students should be good stewards of what they have, whether you have little or much thinking about it as a stewardship is so helpful. It’s easy to say, ‘I'm poor, I don't have any money.’ It's harder to say ‘I want to be a good steward of everything that has been entrusted to me.’ So I’d encourage students to think about it as a stewardship," said Dub Oliver. 

Summary

One piece of advice Dub gives is to make friends with a banker when you move to a new town for college. He says that having a local financial institution can help students learn how to manage their money and get help when they need it. Some of life’s biggest decisions are made during the college years, and you need experts who are ready and able to help you with resources and advice. Dub also cautions students about credit cards. It's important to do your research before you sign up for a credit card, and to be careful not to spend more than you can afford to pay back.

He also encourages students to think about their finances as a stewardship. Even if you don't have a lot of money, you can still be generous with what you do have. Another helpful money saving tip is to graduate on time and to utilize student discounts at restaurants or other shops. Graduating on time can save you thousands of dollars in tuition costs or student loans.

Key Takeaways

• Create a budget and stick to it.

• Think about your finances as a stewardship and be generous with the money you do have.

• Do your best to graduate from college on time to avoid extra costs in additional years of tuition.

• Try to get more scholarships even after you’re in college.

• Don't be afraid to ask for help if you do not understand a financial concept or need to make a decision.

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Full Transcript

Shea:

Hey, this is Shea.

Mary Helen:

This is Mary Helen.

Shea:

Welcome to the Pocket Change podcast.

Mary Helen:

Where you'll learn better ways to spend, save, and invest and take control of your financial journey.

Shea:

So, you know Mary Helen, college is a fun time. It's full of new memories and new experiences, but it also comes with some big decisions. And a lot of times it deals with finances. And so we're going to talk about some of the decisions that maybe college students have to make as they enter college.

And I'm wearing this bow tie for a reason. So we'll find out on this episode.

Mary Helen:

Absolutely. So if you know somebody in college, you're going to college, listen up, because this is going to be a good one.

Shea:

We've got some good tips.

Mary Helen:

We are so excited to welcome our guests, special guest, someone so special to me, Dr. "Dub" Oliver, President of Union University. Thanks for being here today.

Dr. "Dub" Oliver:

Thanks so much for having me. It's good to be with you, Mary Helen.

Mary Helen:

Of course!

Shea:

Welcome Dr. Dub. Got the bow tie!

Dr. "Dub" Oliver:

You’re looking good. You're looking good!

Mary Helen:

Start out by telling us a little bit about yourself and how you got involved in higher education.

Dr. "Dub" Oliver:

I grew up in San Antonio, Texas, went to undergraduate at Baylor. And when I was at Baylor, like you, Mary Helen:, I was real involved in things outside of class and just really fell in love with the idea of creating environments for students where they could flourish and they could sense God's purpose for their lives. Then went to graduate school - Texas A&M University for that. Worked at Baylor for a number of years in student life.

And then after 17 years at Baylor, I served as president at East Texas Baptist University before coming to Union nine years ago.

Mary Helen:

So you’re Texas through and through?

Dr. "Dub" Oliver:

Texas until we moved to Tennessee.

Shea:

And now Tennessee is the place to be.

Dr. "Dub" Oliver:

And now Tennessee is the place to be, which is awesome. All our friends from Texas, we always take them downtown because the most famous speech that every Texan knows was made in Jackson, Tennessee. Did you know that?

Mary Helen:

I did not.

Dr. "Dub" Oliver:

Yeah, it was Davy Crockett, you know, hero of the Alamo. Before the Alamo, he was representing West Tennessee. And he lost an election. And the reporter said,”Do you have a message for the people of Tennessee?” And he said, “Yes, you can tell them to go to hell. I'm going to Texas.”

Shea:

There you go.

Dr. "Dub" Oliver:

Excuse the language, everybody. But that’s what he really said.

Shea:

It’s his word, right?

Dr. "Dub" Oliver:

That's right. Yeah. It's recorded right there on the courthouse lawn.

Mary Helen:

Tell me one thing that you love about higher education that you don't think you can find anywhere else. Like what is something so special to higher education that keeps you coming back?

Dr. "Dub" Oliver:

I love the students. The students are amazing to get to see them. You know, one of the things that's really exciting about college is that students are really becoming adults and technically, you know, being 18, they're adults legally, but they're really apprenticing as adults and to see them make their way and sense they're calling and establish themselves and be rooted as they are in college, it's just a really phenomenal experience.

Mary Helen:

Yeah, I agree. I think Higher Ed is such a special place where students, apprenticing adults, if you will. Like you said. I think that's cool the way you said that. Have a chance to try new things to step outside of their comfort zone, get to know people that are totally different than them, that think differently, that are from different places, maybe from Texas, maybe from Tennessee, whatever it may be.

I think that is an experience that you really can't find anywhere else except for in college. It's unique.

Dr. "Dub" Oliver:

It is. It's a unique experience. It's a very formative experience and ultimately can be really powerful in people's lives. I think, you know, you and Shea both are examples of that. I'm an example of that - and so many others.

Shea:

And one big part of adulting, if you will, is finances. So that's a huge thing that probably is being formed as students are entering college and, you know, have to make different financial decisions. So, you know, we wanted to discuss some of that for college students today. But what's one piece of advice or one money tip that you have for students entering college?

Dr. "Dub" Oliver:

Well, I think, you know, I appreciate you inviting me on and Leaders for having the Pocket Change podcast, because I think even when you think about this idea of apprentice adults, you know, students are really learning how to how to manage money for the first time, you know, when a parent's not right there with them. And initial advice I'd give is to make friends with a banker - to get a local financial institution.

One of the things that my dad gave me as advice when I was a young man, he said, “Son, when you move to a new town, make friends with a banker and a mechanic because you're going to need both of them.”

Shea:

Yes, I needed both when I was in college.

Dr. "Dub" Oliver:

Yeah, it's really true. You know. You think about it and and I think, you know, again, even a place like Union that attracts students from all over the country and all over the globe, but also a lot of local Jackson students, you know, when the students from out of town have something like that, they say, hey, who can I call about this?

Dr. "Dub" Oliver:

And a lot of our students will connect people with with people they know. But it's a really important idea. And I think one of the things that maybe we've lost more recently is we think that, oh, because we do Internet banking, we don't need to know our banker. And I think actually the opposite is true, because when you have a challenge, when you have a problem, or when you need you need some help, you want someone that you know you can trust.

And so anyway, I encourage people to - young people - to find a banker in their new town and make a friend.

Shea:

We're talking about big, big decisions about finances, about a car or repairs - costly things. So having someone on your side and someone you can trust is so important. So getting to know someone that you trust in those areas I think is super important.

Mary Helen:

Oftentimes college students are solicited to credit cards. What would you tell them? What is some advice that you have? How would you guide them in that way?

Dr. "Dub" Oliver:

Yeah, you know, big caution. I think, one, they're going to get a ton of solicitations. And, you know, again, just learning from my own mistakes. You know, some sends you a credit card. Hey, you've got, you know, $2,000 limit. It’s like, awesome, you know, free money...not really free money.

Shea:

You do have to pay it back.

Dr. "Dub" Oliver:

You have to pay it back. Yeah. The whole idea is they believe you're going to pay it back. That's why they sent it to you in the first place. And I think the challenge for that is not that credit cards are bad. But again, you need to do your homework about, hey, what's a good interest rate?

You know, are there any rewards that go with this card? Cashback, points, those kind of things, as opposed to just sort of taking the first thing that somebody says, hey, I'll give this to you or, you know, because of your status as a student, those companies know that students are going to do well.

You know, college students tend to do better economically than those who don't go to college. And so they're hoping that they get a customer. And it's not that I don't want them to have a customer, but, you know, again, just be careful. In my own situation, you know, I'm ending up charging a bunch of like dinners that I should have been paying cash for as opposed to a credit card.

Shea:

Don't spend it all on the bookstore or at Taco Bell.

Dr. "Dub" Oliver:

Taco Bell! Yeah, I mean, tons of, you know...and then when you have interest, you're paying, you know, like $30 for a Taco Bell meal.

Shea:

Yeah, exactly.

Dr. "Dub" Oliver:

No one wants that.

Mary Helen:

Yeah. And I don't think anyone should ever enter into a decision without being fully informed and without knowing really what you're walking into. And that's why when you move somewhere, you need to know your banker and get to know your mechanic.

Dr. "Dub" Oliver:

Yeah, I mean, just imagine if, you know, if you had someone be like, hey, is this a good deal? And somebody would be like, well, that's actually is a good deal, or it's not really a very good deal for you.

Mary Helen:

And that's why asking questions is so good too.

Shea:

So even though college students oftentimes are strapped for cash, you know, I know I was a lot of times had to work during college and probably spent money on things maybe I didn't necessarily need.

Mary Helen:

As we all do!

Shea:

As we all do in college. But there are ways that students can still make an impact with their finances or with their choices in college. What are some ways that students can do that?

Dr. "Dub" Oliver:

I think, you know, even thinking about this podcast, you know, being a good steward of what you have, whether you have little or much thinking about it as a stewardship as opposed to like, “I'm poor”, you know. It's easy to say “I'm poor, I don't have any money”. It's harder to say “I want to be a good steward of of everything that has been entrusted to me” and so I’d encourage them to think about it as a stewardship.

I think about things like generosity. A lot of times people think of generosity as that only wealthy people can be generous. And the reality is everybody can be generous. And I found that people who are generous, who have little, when they get much are also generous, and that people can be kind of stingy whether they have little or much.

And so being generous. Just kind of having a generous mindset, you have a ton of time, you have a ton of ton of energy, you have a ton of, you know, strength as a young person. And all of those things can be contributed. I think you can also be thankful, you know, just the idea of gratitude. I was having lunch with an alumn - guy who just graduated. And, you know, he was telling me about his own [experience].

And I said, you know, “hey, tell me how you paid for college?” And he's like, “my parents, totally supported me.” I was like, “That's amazing”. He's like, “Yeah, I'm so blessed”. And, you know, just having the idea of, hey, thanking people who have made a way. People who provide scholarships, you know, just having an attitude of gratitude is another way that you can steward whatever you have.

Shea:

Yeah, I think even with a small amount, I mean, it could take a couple of dollars to buy a thank you card or whatever the case is, where you're talking about expressing gratitude and just being thankful for what we do have and how we can share that with others. I think it is a great idea.

Mary Helen:

It's funny that you said thank you card because I was going to bring that up. Thank you notes go a really long way. People may keep that for a super long time. They may throw it away. What they do once it's given to them is their decision. But just the effort in writing a note. And I know that you- I graduated from Union University and Dr. Dub signed my diploma, and he hand-signed every single one of them.

And that goes a long way like that’s so meaningful to me. And I'll have that forever. And you took the time to do that. And anyways, all that I'm saying is that you don't have to be a good steward of just your money, but also your time, also your resources. And, if you're not going to be happy with 90%, you're probably not going to be happy with 100% either.

Whatever you do decide to give and however much you alot, that is completely your decision. But there's not much difference between 90 and 100, and that 10% can go far - wherever it goes.

Dr. "Dub" Oliver:

And I think, you know, again, learning these things, apprentice adults, college students, it's not that we stopped learning after college, but you can experience some of these things like gratitude, you know, really sort of first time that like your mom's not sitting over you saying “write the thank you note”, you know.

You’re just like, I just really want them to know how much I appreciate them. How different that is. You know, living a life that has that kind of gratitude is.

Mary Helen:

Talking about being good stewards and stewards of our time. And maybe we can flow that into college students working. What would you advise them to do on that?

Dr. "Dub" Oliver:

Yeah, I would encourage college students to work. The research shows that students who work between 10 and 20 hours a week really do better, persist to graduate, graduation, make better grades, are really happier. Of course, they also have some money, which is, you know, kind of nice if they want to go to a movie or want to go to a concert or, you know, do something.

They have the money to do it and don't feel like, you know, they shouldn't be doing that. So I definitely encourage that. That's a great way, again, to build disciplines in your life. There's lots of jobs on campus. You know that that also helps. One of the challenges can be like if if you're at a place that doesn't understand sort of the academic culture and I've got tests and I need some time off.

That might be a little more challenging. And it does. You know, the research shows that it breaks about 20 hours. So working more than 20 hours tends to be more negative for academic success. But 10 to 20 hours is really positive for student success.

Shea:

And puts a little extra cash in your pocket too.

Dr. "Dub" Oliver:

Little extra cash.

Shea:

And experience.

Mary Helen:

And you can go to the concert!

Shea:

Gives you experience for, you know, after college what might come from that. So that's helpful too. Are there other opportunities for financial assistance for students. I mean I know we talk about scholarships and things, but even after the first year, are there other options?

Dr. "Dub" Oliver:

Yeah, you know, I always encourage students to continue to look for scholarships because there are some scholarships that are offered for sophomores or juniors or seniors or who have achieved a certain - either level of excellence or a position.

Shea:

That's good to know.

Dr. "Dub" Oliver:

So, you know, continue to pursue scholarships is something really valuable. And the reality is that, you know, you can earn your way out of scholarships...lose your scholarship is another way to say that. So don't do that. Yeah, that's a...

Shea:

That's a good piece of financial advice.

Dr. "Dub" Oliver:

Yeah, that's a good piece of advice. Yeah. But you can also earn your way into scholarships. So looking at that. A second thing I'd say is just that, you know, graduate on time. Just thinking about, you know, an extra year of school. That's not just the extra expense of that. It's also the lost wages of, you know, of a full time salary.

And when you add those two together, that's a huge financial swing. So just be committed to graduating on time. Again, my parents said, “Hey, we're going to support you for eight semesters, and after that you're on your own”. And so, you know, it came to my senior year. I need to take 18 hours the fall semester of my senior year, I was like, I'm taking it because I got one more semester after this to get finished.

And so, you know, just having that commitment that was a little externally motivating, but having the internal motivation to finish on time is a great thing to do.

Shea:

And then even some of the work study positions could maybe go toward tuition, so that's helpful too.

Dr. "Dub" Oliver:

Yeah. And I think the other thing too, just about about money is one of the one of the great things about college is you begin to realize how much fun you can have without money and like how you can design inexpensive dates or, you know, taking advantage of all of the free things that the college offers or that the town offers.

Shea:

Student discounts.

Dr. "Dub" Oliver:

Student discounts is a huge, huge thing. And, you know, it's like, why would you not save 10% just because you're too proud to show your I.D.?

Shea:

Yeah, get that I.D. card out. I did it every time.

Dr. "Dub" Oliver:

I'm always saying, “do you have a Union discount”? And if they say no? Big deal. You know, I've just increased our brand identity by saying Union.

Shea:

They even have faculty and staff [discounts]?

Dr. "Dub" Oliver:

Oh yeah! That's another good way to make your money go farther and just be a good steward of what you've got.

Mary Helen:

Okay Dr. Dub, we have a final question for you, and it's a fun one. If you had extra change in your pocket, what would you spend it on?

Dr. "Dub" Oliver:

I'd probably buy a book.

Mary Helen:

Okay!

Dr. "Dub" Oliver:

I love to read.

Mary Helen:

Any on the top of your head?

Dr. "Dub" Oliver:

Well, I just bought one. It's called “The Life According to Charlie”. It's about a guy who was 109 years old.

Mary Helen:

Wow.

Dr. "Dub" Oliver:

And I can't wait to read it. I just got it. So I'm looking forward to reading it.

Mary Helen:

There's so many stories within those 109 years.

Dr. "Dub" Oliver:

Yeah, no doubt.

Shea:

Can you get a bow tie with pocket change or is that kind of you need a little bit more for that.

Dr. "Dub" Oliver:

You know, you could probably get it with your pocket change Shea.

Shea:

Or I want to buy a bobblehead. That's what I want to buy.

Dr. "Dub" Oliver:

You know, those are collector's items. That might cost a little more pocket change.

Shea:

We might have to keep doing these podcasts for a while.

Dr. "Dub" Oliver:

You’ll have to break the piggy bank for that.

Shea:

Well, thanks for being on the podcast we enjoyed it!

Dr. "Dub" Oliver:

It's great to be with y’all.