Page 317 - Keys to College Success

As you contemplate math and problem solving in your life, remember that humans
have invented mathematical language to describe and use mathematical principles that
have always existed as properties of the universe. There is math behind the weather
patterns that shape your days and involved in how what you eat affects your health.
Math drives how effectively your car uses gas and determines the likelihood of getting
a good turnout at an event. Understanding how numbers work increases your under-
standing of—and your ability to manage—your world.

Money Is Math
Speaking of management, having basic math skills makes money manageable, because
money is real-life math. Every time you pay for a meal, check your bank balance online,
apply for a student loan, think about whether you can afford a big purchase, contemplate
what you want to earn in the workplace, or in any way use or think about money, your
brain is working with numbers. Of all of the ways that you interact with numbers, money
is the most unavoidable. Make the unavoidable more comfortable with basic math skills
as well as savvy management strategies.

HOW CAN YOU
manage your money?

According to the American Psychological Association, nearly three out of four
people in the United States cite money as the number one stressor in their lives. The
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cost of college tuition continues to rise more quickly than the rate of inflation, and
books and other college expenses take a toll on bank accounts. Self-supporting students
pay for living and family expenses. Students who take over four years to complete a
bachelor’s degree usually pay more for the additional time. Add the recession that the
U.S. is currently experiencing, and it adds up to challenging financial situations for the
vast majority of college students.

Who You Are as a Money Manager
11 Thinking analytically, creatively, and practically about money management can help you
CHAPTER take calculated risks that reward you with increased control over your finances. First,

analyze who you are as a money manager. How you interact with money is unique. Are
you more of a spender or a saver? Of the rewards you seek, which are measured in dol-
lar amounts and which in nonmaterial terms? Your spending and saving behaviors tend
to reflect your values and goals. Consider these influences in Key 11.1.
Improving how you handle money requires that you analyze your attitudes and
behaviors. Says money coach Connie Kilmark, “If managing money was just about
math and the numbers, everyone would know how to manage their finances sometime
around the fifth grade.” Students on their own for the first time may have not yet had
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a reason to define their money management style. If this describes you, now is the time
to investigate, as you begin your life as a money-managing adult. Start by looking at
needs versus wants.

Needs versus Wants
People often confuse what they need with what they want. True needs are absolutely
essential for your survival: food, water, air, shelter, and some mode of transportation.
Everything else is technically a want—something you would like but could live with-
out. When people spend too much on wants, they may not have enough cash for needs.
You might want to buy a $1,000 flat-screen TV, but might regret the purchase if your
car broke down and needed a $1,000 repair.

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