Financial Literacy Blog

Written by: Assistant Director, Karina Anderson

In the digital age, financial literacy influencers have emerged as a significant presence, particularly for college students interested in taking full control of their finances and wanting to do so effectively. Through platforms such as TikTok, Instagram, and YouTube, these influencers simplify complex, usually American, financial concepts, offering advice on budgeting, saving, and debt management. For many, this guidance serves as an accessible gateway to financial education, but the rise of such influencers also raises questions about the accuracy and inclusivity of their advice, especially for students from diverse and intersectional backgrounds, like those of the Syracuse University Campus.

Financial literacy influencers have undeniably provided valuable resources for college-aged students. First-generation students, for example, often lack helpful family guidance on navigating financial systems. Influencers, with conversational and relatable content, provide help in bridging this intergenerational gap. Similarly, international students benefit from influencers who demystify the complexities of managing money in a new country, addressing challenges such as currency exchange and unfamiliar local and commercial banking systems. For students with limited or no family support, financial influencers offer a sense of direction where traditional support systems might be absent.

However, the accessibility and conveniences of influencer content are not without limitations. Much of the advice shared by these influencers is generalized and fails to account for the unique challenges faced by students from varying socioeconomic and cultural backgrounds. Students from inner-city environments may find that advice tailored to suburban or affluent contexts—such as saving on groceries through bulk buying—does not align with their lived experiences. Moreover, students in rural areas might encounter financial tips that assume access to banking services or a robust financial infrastructure, resources that are often unavailable in their communities.

The oversimplification of complex financial topics can further exacerbate these limitations. Influencers often distill nuanced subjects into brief, digestible content, which can result in oversights. For instance, strategies for managing student loan repayment can vary significantly based on individual circumstances such as income, family obligations, and career goals. Addressing these intricacies requires more depth than a short video or post can typically provide.

Misinformation is also abounded and presents its own set of concerns. Without regulatory oversight, some influencers disseminate inaccurate or potentially harmful advice. Recommendations to invest in high-risk assets or pursue questionable “side hustles” may prove detrimental to students with limited or no financial safety nets. Ultimately, the monetization of influencer platforms through sponsored content raises ethical concerns. Promotions for financial products such as credit cards or investment apps often prioritize profit over the holistic well-being of their audience.

To navigate this landscape effectively, students must approach financial literacy influencers with a critical mindset. Verifying information through reputable sources—including university financial aid offices, nonprofit organizations, and government websites—is crucial. Students should also assess whether the advice aligns with their specific circumstances, as financial strategies that work for one demographic may not be applicable to another. Diversifying learning resources by attending workshops, enrolling in courses, or utilizing campus financial literacy programs can provide a more comprehensive education.

Universities play a pivotal role in addressing the gaps left by influencer content. By developing targeted financial literacy resources, institutions can better serve their diverse student populations. First-generation students benefit from mentorship programs that pair them with financial peer educators who understand their unique challenges. International students require resources that address issues like cross-border banking and tax compliance. For students with limited family support, emergency financial assistance and tailored workshops on budgeting can be transformative. Inner-city and rural students benefit from content that reflects the realities of their environments, often created through partnerships with community organizations.

The rise of financial literacy influencers has undoubtedly democratized access to financial education, making it more approachable for college students. However, their advice is not universally applicable. For students from diverse and intersectional backgrounds, critical engagement with influencer content, supplemented by robust institutional support, is essential. By balancing these resources, students can achieve financial empowerment and navigate their educational journeys with greater confidence.

Share with us your favorite financial influencer of the moment by setting an appointment today. Peer counseling services are available every Spring and Fall semester.

By Alexis Taliento (UG’24)

Summer internships hold tremendous value for students and recent graduates, providing valuable hands-on experience, networking opportunities, and a glimpse into potential career paths across various industries. However, the financial strain associated with internships can be a significant barrier for many aspiring interns. From travel expenses to housing costs and often inadequate compensation, navigating the financial aspects of internships requires careful planning and resourcefulness. Below, we will explore strategies for making summer internships more accessible, focusing on budgeting, seeking scholarships, maximizing available resources, and finding affordable housing solutions.

1. Budgeting Wisely & Living Below Your Means:

One of the most crucial aspects of preparing for a summer internship is creating a comprehensive budget. Start by estimating all potential expenses, including travel costs, housing, food, and other essentials. Then, compare this total to the income you expect to receive from the internship. If the internship is unpaid or offers minimal compensation, be particularly mindful of your spending or seek grants and scholarships (this will be discussed in the next point).

Living below your means is a key strategy for making summer internships more financially feasible. Embrace a minimalist lifestyle by prioritizing your needs over wants and avoiding unnecessary expenses. Instead of splurging on luxury items or entertainment, focus on experiences that enrich your personal and professional growth.

Consider adopting budget-friendly habits such as looking for student-discounted activities, affordable housing options, exploring public transportation or carpooling, and cooking meals at home instead of dining out frequently. Small adjustments can add up and make a significant difference in your overall budget.

2. Seeking Scholarships and Grants:

Many organizations offer scholarships for students participating in internships or other experiential learning opportunities. Take the time to research and apply for these scholarships, as they can help alleviate the financial burdens associated with internships.

Syracuse University and individual colleges within Syracuse also offer internship scholarships to students. All sophomores and juniors fully enrolled at Syracuse can apply for the Internship Funding Award, which can help cover expenses of a paid or unpaid internship based on certain requirements. This application can be filled out via Handshake and is open until June 11, 2024, allowing ample time to secure a summer internship and manage plans and budget.

In addition to the University-wide internship award, you can also apply to your respective college’s internship scholarships and grants. The Whitman School of Management, Renee Crown Honors College, College of Arts and Sciences, College of Engineering and Computer Science, and other colleges have financial resources you can apply for and further inquire about. There is also the Clements Internship Award available to Syracuse University students, which you may apply for your specific opportunity.

If you are working an unpaid internship and are unable to secure a grant or scholarship, you can also apply to receive credit for your experience that can be applied toward your degree. Speak with your respective advisor on how to proceed with this process.

3. Finding Affordable Housing Solutions:

Securing affordable housing can be one of the most daunting aspects of preparing for a summer internship, especially if the internship is located in a high-cost area or far away from home. However, with some creativity and resourcefulness, you can find housing solutions that fit your budget.

• Subletting or Short-Term Rentals: Explore options for subletting a room or apartment for the duration of your internship. Websites like Airbnb or local housing groups on social media platforms often list short-term rental opportunities at competitive prices. Be sure to thoroughly vet potential subletters and clarify rental terms to ensure a smooth and secure living arrangement.
• University Dormitories or Student Housing: Some universities offer housing options specifically designed for students participating in summer internships or research programs. These accommodations are often more affordable than traditional rentals and may include amenities such as furnished rooms, communal spaces, and access to campus facilities. Contact the housing office at nearby universities to inquire about availability and application procedures.
• Commuting from Home: If your internship is within commuting distance of your permanent residence, consider living at home for the duration of the internship. While commuting may require additional time and transportation expenses, it can significantly reduce housing costs and allow you to maintain a familiar and comfortable living environment.
• Negotiating Housing Benefits: Don’t hesitate to negotiate housing benefits with your internship company, especially if the internship is unpaid or offers minimal compensation. Some companies may be willing to provide housing stipends or assistance in finding affordable accommodations for interns. Be proactive in advocating for your needs and exploring potential housing benefits as part of your internship package.

By implementing these strategies, you can make summer internships more accessible and attainable.

Reach out to the Office of Financial Literacy or the financial aid office with any questions or to book an appointment!

By: Miani Stafford

The majority of our college students are learning how to manage money and their studies at the same time. For student-athletes, they must learn this skill quicker than others, as they are receiving the benefits and responsibilities of their athletic scholarship. Through NIL (Name, Image, and Likeness), brand sponsors, civic engagement and heightened expectations, being a student-athlete can be mentally and physically taxing. 

Studies suggest that athletes with more financial knowledge are more confident with money management and decision-making. Still, Rubin tells us that they tend to have less knowledge than non-athlete students due to the lack of resources within their department that build upon their working knowledge. Like refunds or tax returns, receiving any kind of large, lump sum of money can be overwhelming and requires responsibility, knowledge of budgeting, and discipline for future financial stability. Many times, these athletes are seeing more cash flow than ever before and given little resources to understand the best ways to manage it. Financial literacy is a major topic within this area of students and must be given more light.  

I spoke with Kyra Wood, a Division 1 athlete on the Syracuse University Women’s Basketball Team, and Anwar Sparrow, a Division 1 athlete on the Syracuse University Men’s Football Team, to discuss their take on financial literacy as a student-athlete.  

By: Emily Castillo-Langley

In a post-2020 historic rate of inflation, we have all experienced moments of “I think this used to cost less!”. This has become especially true for travelers: where tourist prices used to be steep, now, the cost to travel has become a tad outrageous. How can a college student drop $1000 or more on a spring break or summer trip, for that amount to only cover the price of a flight and hotel room?

Let’s organize some tips to make traveling more realistic and affordable to prepare for the upcoming spring and summer vacation season.

• Do research to see when the most convenient off-season time to travel to your location would be. There are really helpful seasonal price trackers on GoogleFlights and Hopper!
• If you’re looking on AirBnb, sometimes you can negotiate prices based on length of stay
• Try to look for booking deals; If you purchase a flight from Expedia or on an airline credit card, sometimes you can get bonus points for future travel or a discount for also booking a hotel through that same source.
• Make sure that you know the age that you can check into your hotel/AirBnb! Sometimes 18, sometimes 21 or older
• Check out StudentUniverse! It is a platform that provides student discounts on all different travel and lifestyle needs.

Flights Link

• Hopper
• Google Flights
• Cheapoair.com
• Southwest (for domestic travel)
• If you are booking on a discount airline, make sure you know what you need for your trip! Might charge you extra for carry-on luggage, etc.

Hotels Link

• Hostels (Depending on where you’re going, this could be a safe and affordable option! Also good to consider if you are traveling with other people)
• Expedia, Kayak, Trivago
• Booking.com
• Student prices on hotels (Student Universe)
• Save70.com

Other strategies that are helpful is creating a spreadsheet, PowerPoint, or organized document to budget and plan your financial itinerary!

You can do this by using Excel, Google Sheets, or one of your preferred platforms. This will be helpful because you can easily track your fixed expenses versus your budget that you have available to spend on variable expenses (e.i. amenities, activities, entertainment).

Making an appointment with a peer counselor can also be a great resource to help make the expenses that come with travel more approachable, predictable, and less scary. As an out-of-state student with three jobs and a full course-load, I understand how difficult it can be to afford flights and hotels, let alone all the travel costs that incur after just getting there! I have found the key is being honest about your budget, as well as prioritizing balance between working hard and also having fun in college. Also, if you are traveling with friends, communicate this with them as well! A fun trip is a trip that everyone can enjoy without fear of overspending and dealing with its consequences.

Happy traveling and please contact the Office of Financial Literacy with any questions or needs!

By: Alexis Taliento

Artificial intelligence (AI) has become an integral part of our daily lives and is only going to become more influential as time goes on. Although this concept may seem scary, knowing how to utilize AI to its fullest potential can help contribute to an optimized lifestyle – especially as a college student!

Imagine having a free personalized nutritionist 25/8 who suggests delicious recipes based on the ingredients available in your fridge and consistently helps you achieve your wellness goals. Well… you don’t have to imagine because the resource is right at your fingertips!

AI tools such as ChatGPT can analyze the contents of your refrigerator when prompted and provide you with recipe ideas no matter what your dietary restrictions may be. This not only reduces impulsive purchases but also makes grocery shopping less stressful. I personally struggle with knowing what to buy when going to the grocery store so knowing I have a reliable tool that can assist me through the process makes the task a lot less daunting.

Additionally, with inflation increasing to 3.1% as of January 2024, everyone can use a little help from AI to ensure that meals are not only easy and delicious but also easy on the pockets. AI can suggest recipes that align with your financial goals while still helping you achieve a healthier and more balanced diet. It considers the prices of ingredients and helps you prioritize cost-effective options that you maybe didn’t even know existed before.

For example, if I have a budget of $80 this week to spend at the grocery store, want to increase my protein, and won’t have time to cook every day, I can generate a phrase like this in ChatGPT:

“Please make me a grocery list for meal prep this week (5 days) that is high in protein, can be refrigerated for up to 5 days, and will cost under $80”

Following the response to the prompt, you can respond in real time and make any adjustments if there’s something you would like to change.

Cost-effective meal planning is a great strategy and habit to get into when learning how to manage a budget and can influence future behaviors and money-spending habits.

This resourceful approach to meal planning is great for not only your budget but also your planet. College students are reportedly responsible for generating 142 pounds of food waste per year with that number increasing annually. Especially as a generation with growing attention toward sustainability and environmentally friendly habits, this is a great one to implement that can contribute to making a big difference.

By harnessing the power of AI, we not only make smarter, cost-effective choices but also contribute to a healthier planet, fostering a future where technology aligns seamlessly with our well-being and environmental consciousness.

Sources:

1. Colleges have high rates of food insecurity and food waste. Students are helping address both
2. January 2024 CPI report: Inflation ticks up in unwelcome surprise

Senior Counselor, Astrid Gedeon, answers a few questions on her experience as a Smart Money Peer Counselor, how it has been beneficial to her, and her experience as a young black professional in finance.

Financial Literacy and Race  Link

Young people are already disadvantaged by a lack of knowledge when it comes to making financially literate decisions. Although financial literacy is critical to setting yourself up for success in the future, personal finance is not present in the curriculums of many U.S. schools. According to Next Gen’s Personal Finance 2022 Report, 1 in 4 high school students will take a personal finance course before graduation. Although this number is on the rise, it still leaves 75% of students to rely on their parents and relatives to learn the ropes in the financial sphere (and that doesn’t consider the larger number of recent high school graduates who were never offered a course in personal finance).  

The glaring problem with young people learning personal finance from their social circles is misinformation. How does one rely on adults to properly educate them on personal finance if the adults themselves also struggle to make financially sound decisions? Many people get caught in the same cycles of debt as their parents because no one has taught them otherwise. It doesn’t help that many loan servicers and credit card companies prey on their customer’s lack of knowledge with incredibly high-interest rates and fees.  

Although these problems affect many Americans, they are magnified for marginalized groups for whom systems have worked against for decades. Levels of financial literacy among Black and Hispanic Americans are lower than White and Asian Americans. This is at the forefront of an ongoing problem in the United States referred to as the racial gap in financial literacy. 

According to a 2018 national study conducted by FINRA (Financial Industry Regulatory Authority), Asian and White Americans answered an average of 3.2 out of six questions correctly in an assessment of basic of financial literacy. Hispanic Americans correctly answered 2.6, and Black Americans correctly answered 2.3.   

The same survey suggests that household income and education are the two primary indicators of financial literacy, and there is a significant racial wealth gap within the United States. A 2015 Pew Charitable Trusts report concluded that “that the racial wealth gap has more to do with a lack of assets for Black and Latino families than racial variation in debt or an abundance of debt… evidence suggests that inheritance and other intergenerational wealth transfers benefit Whites to a much larger extent.” The same report found that income among White Americans is higher than Black Americans, regardless of education level. It stated: “Black families whose head earned a college degree is only about two-thirds of the median wealth of White families whose head dropped out of high school.” With household income being a primary factor in determining a person’s level of financial literacy, Black Americans are bound to fall behind due to the social and political barriers that perpetually disvalue  

Although saying that financial literacy is a problem for all Americans is true, it is a statement that overshadows the unique challenges of the many groups who fall under the category “American”. Acknowledging the different barriers that Black Americans face in becoming financially literate is a crucial step in remedying the problem.  

The race gap in financial literacy is a topic that cannot be properly covered in a short blog post. If you would like to learn more about the race gap and how to challenge it, I am linking a few articles that can further your research and understanding.  

In honor of Black History Month, we are focusing on topics related to Black Americans and personal finance. Throughout the month of February, we will be publishing blog articles weekly covering financial literacy and the Black experience in America.  

More Articles: 

Tackling Disparities in Finance for Black and African Americans 

The Racial Gap in Financial Literacy 

Financial Literacy in the Black Community 

Sources: 

https://d3f7q2msm2165u.cloudfront.net/aaa-content/user/files/Files/NGPFAnnualReport_2022.pdf 

https://www.investopedia.com/the-racial-gap-in-financial-literacy-5119258 

https://socialequity.duke.edu/portfolio-item/the-political-economy-of-education-financial-literacy-and-the-racial-wealth-gap/ 

Financial abuse is a very deceitful form of domestic violence within relationships. Because of this, it often goes undetected by the victim, especially in its earliest stages. However, identifying financial abuse in romantic relationships is imperative as it can be one of the first signs of dating violence.

For those of you who do not know, financial abuse, also known as economic abuse, occurs when “one intimate partner has control over the other partner’s ability to access, acquire, use, or maintain economic resources, which diminishes the victim’s capacity to support themselves and forces intentioned dependence.”

The perpetrators of financial abuse seek to trap their victims in the relationship. They may take complete control of the victim’s income or forbid them from working. They may ruin the victim’s credit score by taking cards out in their name and acquiring loads of debt. The longer a victim stays in a financially abusive relationship, the more financially dependent they may come on their abuser.

Many victims of financial abuse feel that they cannot leave their partner because they will not be able to financially support themselves or their families alone. If they leave their abusive relationships, they may face difficulty finding affordable housing, food, or transportation. Victims with children face even larger financial obstacles. After years of abuse, those who do leave these relationships are highly likely to return to their abuser because establishing financial independence after years of financial abuse can be extremely difficult and may feel impossible.

According to Forbes Magazine, there are four common types of financial abuse that can occur within romantic relationships:

1. Abuser “Takes Care” of Finances

It may be normal to have one person in charge of managing the finances in a relationship. However, when only one person is in complete control and refuses to allow the other to access information or money in joint accounts, this turns into financial abuse. Victims will not have access to money for basic resources or spending unless their abuser specifically lets them.

2. Employment Sabotage

When the abuser does not want their victim to have access to their own income, they will intentionally sabotage their job so the victim either quits or is fired. Examples of this include harassing the victim at their workplace or intentionally distracting or abusing victims before important work events to interfere with their work performance. Additionally, abusers will not permit the victim to find a new job to ensure the victim remains dependent.

3. Economic Exploitation

As mentioned before, some abusers will intentionally ruin victims’ credit scores to trap them in abusive relationships. This is a form of economic exploitation that can often occur without the victim even knowing. Refusing to pay bills under the victim’s name can affect them years down the line because victims may be unable to take out loans or mortgages due to bad credit history.

4. Coerced Debt

Coerced debt is similar to economic exploitation. However, the difference is that the abuser threatens or manipulates the victim into taking on debt themselves. This is a more complicated form of abuse because victims will have a hard time proving that they did not consent to the debt they’ve found themselves in since they made the transactions themselves.

If you feel that you are facing one or more of the forms of financial abuse above, there are methods and resources available to safely remove yourself from the situation. Please contact either the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or the local Vera House Foundation in Syracuse, NY at 315-468-3260.

By: Julianna Rae Porrier

References

https://www.forbes.com/advisor/personal-finance/signs-of-financial-abuse-domestic-violence-awareness/

https://www.verywellmind.com/financial-abuse-4155224