Whether you’re a student starting your journey at Liberty University this fall, or a senior preparing to graduate this spring, there is one thing we will all be forced to confront: our finances.
After many of us have relied on our parent’s financial support for most of our lives so far, it can be challenging to consider how to handle the world of financial planning on our own. However, this transition is exactly why financial literacy skills should be a part of a student’s education.
In fact, a research study published by Cambridge University in 2012 showed that many habits surrounding money are developed by the age of 7, and these habits are even more clearly seen at the age of 11.
You might be thinking — I’m way older than 7. And you likely have more money now to manage than you did at 11. That is exactly why now is the perfect time to educate yourself and take back control of your financial situation.
Since I am a mere 20-year-old who wishes she had more financial training in her youth, I sought out an expert in the topic to provide guidance. Stacie Rhodes, executive director of the Center for Financial Literacy (CFL), pioneered the center seven years ago, guiding students and staff in best practices regarding their finances. She is a certified public accountant, certified financial planner and certified kingdom advisor.
Rhodes believes that because money is one of life’s only guarantees, we should prioritize our awareness of it.
“Money is the only constant. … We run on currency,” Rhodes said. “We run on exchange. You will always have to deal with money.”
No matter what phase of life you are in, money will always be a factor in your decisions.
“If you ever plan on having money, you need to learn how to manage it,” Rhodes said. “… It doesn’t matter your vocation or career — you have to manage money.”
Since money is so pertinent to our lives, recognizing the dangers of money mismanagement and the idolatry of money is vital to financial success.
When dealing with the issue of money from a biblical perspective, Rhodes highlighted Matthew 6:24: “You cannot serve both God and money.”
“Money is the chief contender for our affection,” Rhodes said. “Why? It is such a quick idol for us to build.”
To learn best practices for handling money, fostering your financial literacy skills through a course or training leads to positive behaviors surrounding money, according to a study by U.S. Department of Labor. The study showed that positive habits included regularly saving and budgeting funds as well as investing at a younger age.
Liberty’s Center of Financial Literacy (CFL) offers ample resources to allow students to foster their financial knowledge, including peer financial coaching, a free online course on financial literacy and more.
Through these resources, Rhodes said students will be guided in fine-tuning their financial goals.
“We set goals for almost every part of our life except money,” Rhodes said. “Money needs to be told what to do. … The safest place is when your money works for you; it doesn’t own you.”
So when you approach your finances, and even financial literacy trainings, think through what your personal goals are for your money. If you want to buy a house, make that a goal. If you want to pay off your student loans quicker, make that a goal. Even if you just want to save enough money to take someone on a date, make that a goal.
No matter what phase of life you’re in, there is ample time to learn the necessary skills to take control of your finances, and ultimately your life. When your money is out of control, your life will be too. So don’t wait; start prioritizing your finances now, before it’s too late.
For an exhaustive list of resources offered by Liberty’s CFL, visit www.liberty.edu/business/center-for-financial-literacy.
Garman is a copy editor for the Liberty Champion.