CINCINNATI — Building up your savings is sometimes easier said than done. We’re learning it’s a challenge for many — especially in Gen-Z.
According to a recent study by Bank of America, only 15% of Gen-Z put a certain amount into their savings account each month. That’s why the University of Cincinnati is working with students to help them better manage their money.
Jack Miner, vice provost for enrollment management, said UC starts talking with students about finances before they even start classes.
"First and foremost, we start talking to students about how they can budget their resources, so how to create a budget, what that looks like," Miner said.
Miner said they go back to the basics and make sure students understand the fundamentals.
"It’s things like how does credit work? What does your credit score do? And how does it impact your opportunities?" he said. "But also, how do things like interest rates work?"
He said those conversations come at a critical time for first-year students.
"Because as they're coming into college, they're arguably making the decisions about how much to borrow or how much to go in debt," he said. "That is not only going to impact them for the rest of their lives but in some cases will be as much or more than they would spend on their first home."
Miner said they also teach students how to start building savings.
"This may be the one space where the student has the opportunity to really learn about that, and it really is critical," Miner said. "We truly see that changing behaviors for the students who are going through the training program and those who haven't, because we definitely see different rates of borrowing, different rates of loan default."
Why isn’t Gen-Z saving? Miner said he believes it’s a combination of things. He said they may be spending more of their income on basic living expenses than older generations did when they were starting.
Another possibility is the chance of loan forgiveness.
"One of the things that I always worry about, for example, is we have a generation now of students that has really lived with the idea that my student loans may be forgiven," he said. "And while that's a great opportunity for the folks whose loan was forgiven, that opportunity may not always be available."
That’s why he encourages students to borrow what they’re comfortable with and know the impact it could have on their finances down the line.
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