Tip:
Highlight text to annotate it
X
[Music]
Hey Grizzlies, I'm Michael with KPCN.
One of the greatest aspects of college is getting to focus on the here and now
and not having to worry about what lies ahead.
However, many of the decisions we make today can affect our future.
That's why we have to think twice about how and where we spend our money, especially our college refund.
Seeing that your refund has been deposited into your bank account
feels like you've won the lottery. But do students know that it isn't free money?
So let's go check it out. It's time to ask some UM students how they blew their refunds.
[Music]
Brian: "I usually spend it on something like going out, get dinner
with a couple of friends, or maybe fixing up my car sometimes.
I like to spend it on fun stuff generally." Michael: "Fun stuff, generally? Yeah"
Jodi: "I just got a brand new TV. Flat screen." Michael: "Brand new TV, huh?"
Tawny: "This year I took a trip to Vegas for spring break." Michael: "Wow, sounds pretty crazy!"
Josh: "Travelling." Michael: "Where do you usually travel to?"
Josh: "Last summer I went to Europe, this summer I'm going to Asia. Kind of everywhere." Michael: "Take me with you!"
Moriah: "This semester I actually spent it on a puppy." Michael: "A puppy?"
Moriah: "Yeah, his name is Rover, he's really cute."
Scott: "I put a down payment on my new Subaru." Michael" A down payment on a new Subaru, alright."
Jourdyn: "Well last year I was super broke, so I was really stoked when it came and I just kind of used it to survive."
Michael: You gotta survive.
[Music]
Brian: "Honestly, I probably should have saved it. Looking down the road
I probably could have used that couple hundred dollars.
Jodi: "Probably not. I probably should have put it away
in savings and used it towards tuition. But I really wanted a new TV."
Tawny: "I mean probably should've saved it for rent or something, would've been smarter."
Michael: "Yeah, your mom would've wanted to do that." Tawny: "Probably would have appreciated that more."
Michael: "Looking back, do you think that was the smartest way to spend your money?"
Josh: "Absolutely." Michael: "Absolutely?"
Moriah: "Probably not. I have a lot of credit card bills I could have spent it on.
But he's really cute, so I guess it works out, maybe?" Michael: "Hopefully."
Scott: "Uh, probably not. I've got some loans to pay off other places."
Jourdyn: "I mean, no, probably not. Probably should've saved it. But gotta eat!"
Michael: "Gotta eat."
Spending your refund checks on a car, TV, or vacation
may be rewarding in the moment, but in the future it may catch up to you.
For example, spending $500 of your refund
on a fun getaway weekend in Vegas sounds like a blast,
But, when you pay your refund back including the interest rate,
you are actually paying $1,200, which doesn't sound like a blast at all.
So instead of blowing your refund on a car, TV, or vacation,
snap out of the present and think towards your future
and realize it may not be worth it.
Spending your refund on tuition, books, educational
or living expenses not only helps your present, but it benefits your future.
To avoid visions of a car, TV, or vacation, only accept the aid that you need, instead of what you want.
For example, if you are offered a loan at the start of the semester,
you can accept a portion and refuse the rest.
So from us here at KPCN, think twice about where that refund goes.
Enjoy today, but be sure to think about tomorrow.
For more information, stop by Griz Central,
or visit our website at umt.edu/financialeducation
or send us an email at FinancialEducation@umontana.edu.
[Music]