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Hey Grizzlies. I'm Michael with KPCN.
One of the greatest aspects of college is focusing on the here and now.
And not having to worry about what lies ahead.
Whoever, many decisions we make today 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 back account feels like you 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 UM students how they blew their refund.
Brian: "Um, I usually spend it on, like, I'll go out and eat dinner with a couple friends.
Maybe, um, spending it on fixing my car sometimes.
Ahhh, but, yeah, I spend it on fun stuff generally. "
Jodi "I just got a brand new tv, flatscreen." Michael "BRAND NEW TV huh?"
Tawny "This year I took a trip to Vegas for Spring Break." Michael "Sounds pretty crazy."
Josh "Aww, traveling." Michael "Traveling? Alright, where do you travel too?" Josh "Last summer I was in Europe. This summer I'm going to Asia. Kinda everywhere."
Michael "Take me with you"
Moriah "This semester I actually spent it on a puppy." Michael " A puppy huh?" Moriah "Yeah, his name is Rover."
Scott "put a down payment on my new Subaru." Michael " Down payment on a new subaru? Alright."
Jourdyn "well last year I was super broke so I was super stoked when it came and just kinda used it to survive."
Michael "Yeah. You gotta survive."
"um, probably not. I should have saved it. Honestly. Looking down the road I could have used that whole bunch of dollars."
"Probably not. I probably could have put it away in savings or towards tuition but...I wanted a new tv."
"I mean probably should have saved it for rent or something. Would have been smarter." Michael "Yeah Mom would've wanted you to do that." "She probably would have appreciated that more."
Michael "Looking back do you think that's probably the best choice where you should've been spending your money?" Student "Absolutely."
"Probably not. I have a lot of credit card pills that I probably should have spent it on but he's really cute. So, I guess it's worth it? Hopefully?" Michael "Hopefully."
" Awww, probably not. I got some loans to pay off at other places."
"I mean. NO. Probably not. Probably should have saved it. But, 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 and living expenses not only helps your future and present but it benefits your future.
To avoid visions of a car, tv or vacation only accept the aid 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 visit Griz Central. Check out umt.edu/finlit or email the the financial literacy team at umfinlit@umontana.edu