Most of us aren’t born with silver spoons in our mouths. But we need to be financially vigilant to improve our lives. And there’s no better time than the present to kick-start it, especially if you’re a student. Today, many people have little to no understanding of finances. This is one of the reasons why most Americans struggle with saving and investing.
After a few years, the Financial Industry Regulatory Authority (FINRA) issues a financial literacy test as part of its National Financial Capability Study. It showcases people’s knowledge about compounding inflation, diversification, and interest. These elements matter a lot for a student, especially considering they have student loans to pay off. Senator Warren this year in 2022, stated something interesting at a news conference that was held for President Biden to use the Higher Education Act to cancel a share of student loan debt for students with federal loans. Warren said ‘student loan borrowers only sin was to be born into a family who couldn’t write a check for them’
Unfortunately, that’s not how the world works. One has to acknowledge that even if parents don’t have enough money, they can help their children still get a quality college education. At least that’s what Charles Chadwick, the author of Chadwick’s College Checklist & Chadwick’s Cultivated Circumstances, suggests.
Before College is the Prime Time to Acquire Financial Literacy
Charles Chadwick has been a known influencer for helping college students be financially dependent right after high school. Senator Warren’s bold statement has sparked a debate claiming that only the privileged can achieve something big in the country. But that’s not the case. Charles Chadwick shares that his parents didn’t have enough money to send him to college, but it wasn’t a sin. He said his father refused to co-sign his loan, because he wanted Charles to figure out things for himself.
He struggled during his peak, because he didn’t have the financial knowledge to start with it. Charles claims that knowledge about making credit work, investing, or working while studying wasn’t embedded in him. As a licensed plumber, Charles’s father taught him the importance of learning how to work in the trade industry and helped him understand how a business operates. Please see picture below of Charles’s father below working on a hot water heater in the trade field of plumbing.
In hindsight, it’s not just Charles who claims financial knowledge is important during any student college days. The National Financial Educators Council suggests immense benefits for college students to have financial knowledge. Research shows that students can retain what they learn in classes better if they have real-life experiences. For instance, if they understand how student loans work, they will be able to better understand their finances and possibly cut college costs/expenses that are not needed.
Real Life Experiences Matters
Over the years, we have been training for real-life experiences, but the question remains, are we ready for them? Charles Chadwick shares that he was told over and over again to go to college so much he felt like he was at a boot camp, and his teachers were like drill sergeants. So many times, Charles remember his teachers saying hypothetically “you need college for everything”. He remembers other students and himself trying to be creative to think of scenarios to challenge the idea that everyone must attend college to find success. They asked about professional basketball players who dropped out of college and went pro signed a million-dollar contract. The teachers would always bring up the same scenarios. They would respond by saying “What if the athlete gets hurt, he needs to fall back on an education.”
Charles was young then and did not know how to think for hisself. With what he has learned now after many years of high school/college and real-life experiences he knows now how to respond. So many times, in high school teachers can sometimes go overboard with the pitch of college as the popular pathway to success. We now live in a world where financial information is available at the click of the mouse.
Charles wants students to know that all you need is a little faith and some financial knowledge and you will be okay. Had he known what he has learned now he would have definitely been able to challenge his teachers when he was in high school. For all students and parents reading this blog, Charles wants you to do something for him. The next time a teacher talks about a scenario like “what if a professional athlete gets hurt what will they fall back on?” “Charles, wants you to say a person can fall right back on their insurance policy!” There is insurance for everything these days. Here are some crazy types of insurance policies that actually exists. Checkout an on-line article from policyadvice.com titled “Weird Types of Insurance”
Body Parts, Wedding, Divorce, Multiple Birth, Lottery, Falling Coconut, Fantasy Football, Death By Laughter Insurance Policies. The body part insurance ensures an athlete body parts.
“The former NFL player Troy Polamalu insured his curly hair for $1 million. Rihanna has her legs insured for $1 million. Mariah Carey is a brilliant performer, and instead of ensuring her voice, her legs are breaking the records of a whopping $1 billion. If we were Mariah, we would fall more often. Many more singers have followed this trend. Moreover, many musicians spend fortunes on insuring their other body parts.”
SOURCE: Weird types of insurance
As you can see if an athlete or music performer gets hurt, they can fall back on insurance not just a college degree! Charles is happy that he attended college, but he is happier about something that his father did for him! Believe it or not Charles’s father did not write him a check to go to school, but he did teach him the importance of working hard and how to earn an income. All these things are small, but big in value why? Because these lessons incorporated Charles to learning and gaining more financial knowledge! It’s easy to understand that some students are struggling with their loan’s payments. In Charles own personal opinion, it’s not so much about money or having a parent to pay/write a check for a student to go to college. If there was a sin (hypothetically) far as dealing with student loans it would come down to one thing to start with first! A person has to understand finances first, so they can avoid or limit being financially hurt!
Many students are in debt, because they were told to go to college to be successful etc. Earlier in this blog we have shared Charles high school experiences about teachers pushing the idea of college to be successful. There is a deep question to ask now. What is better for a student to learn and understand, first some financial knowledge or get into debt while pursuing college? This is the point of this whole blog message! To have or not have money is not a sin, but the real issue is how much more financial knowledge is needed before a college student begins!
Students please don’t wait learn everything you can about finances it’s never too late! Many students as we see today, are eating their slice of payments from the big student loan debt balance cake! Charles advice for students is easy. Try to learn as much information as you can about finances first, so when you make any decisions about college you will not be financially hurt! When Charles attended college, He was not stressed out and lost, because he knew how to cut his college costs.
Student Loans aren’t the Only Option
Student loans are hardly a benefit for young aspirants. They have their whole life ahead of them, yet they face the daunting task of controlling their finances to pay off their student loans. How is that fair? Students spend their whole life just to repay their student loans. Further, with the rise of inflation and the value of money decreasing virtually every minute, there will continue to be challenges.
Charles has a different take on this. Many students are in debt, because they were told college could help them succeed. Students are excited and motivated to get started with a college education, but as Senator Warren suggested, not having enough money is a sin. However, without financial knowledge first, they are rendered powerless. Charles suggested that he didn’t stress out about college due to his financial knowledge. All he had to do was cut back on his expenses by 40%, and he was able to catch up.
Charles Chadwick’s response in this blog to Senator Warren statement is perfectly placed, given that the lack of financial knowledge is a problem. However, that doesn’t mean that the Goddess of Victory only shines on those born with a silver spoon. Those not as privileged only need more financial knowledge to achieve their goals and dreams.
If you’re one of the students looking to step foot in the real world, don’t fret. Life is a rollercoaster ride with lots of ups and downs. The key thing here is to understand is that having or not having money is NOT a sin, but a student must have financial knowledge before the college journey begins. Charles’ was featured on the Student Loan Podcast on Episode 69 which is all about the importance of financial knowledge. It covers:
- How exactly Charles paid off his student loans without receiving any help from his family;
- How Charles turned skills he developed before and during college to turn a profit;
- Putting your pride aside can help you save thousands;
- And much, much, more…
For more information, please visit his website. To listen to the podcast just click the images below to go to the links.