Making dollars and sense of money management
How to talk to your college student about financial stewardship
By Rebecca Buckham ’05

When Lyle Blackketter ’84 graduated from Messiah College with degrees in physical education and recreation, he knew he wanted to combine his love for the outdoors and farming with his desire to help children. With the vision of establishing a ranch for at-risk youth, Blackketter and his wife purchased a farm and cattle in Leedey, Okla., and entered the ranching business. Between credit card debt, land and cattle debt, vehicle loans, and ranch operating costs, the Blackketters soon found themselves in financial disaster. “I didn’t know anything about finances,” recalls Blackketter. Overwhelmed by debt, he sought the help of a financial advisor.

“At the rate at which you’re currently spending money,” said the advisor, “you’re going to be 105 years old before your debts are paid off.” With their advisor’s aid, however, the Blackketters developed a nine-year plan to minimize spending and eliminate their debt. Motivated to share the money management lessons he learned, Blackketter now combines ranching with financial advising and meets with families to help them develop strategies for getting and staying out of debt.

Had he learned better money management as a young adult, Blackketter recognizes that his financial struggle in later years could have been avoided. As students prepare to enter or return to college this fall, Blackketter’s story reminds parents that learning to navigate personal finances is an important part of a child’s transition away from home.

Managing money, budgeting, navigating financial aid, dealing with debt, and learning to use credit cards responsibly can be very overwhelming for college students.“Most poor spending and credit card habits start at this age,” says James Krimmel, associate professor of accounting at Messiah College. “As parents, we are kidding ourselves if we think that our children can learn this on their own.”

According to The Bank of America Campus Financial Fitness Study, which surveyed eight New York City area colleges and universities in 2005, 41 percent of college students feel “stressed and overwhelmed” by personal finances, 31 percent of college students would ask parents for money before trying to budget, and only one in six students track spending and can tell their parents where their money goes.

A national survey of over 900 college parents, conducted by College Parents of America (www.collegeparents.org), revealed that, for parents, their students’ finances ranked second in areas of greatest concern, behind academics.

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In this issue... From the President Randy Ness: Figuring out what I want to be when I grow up Messiah selects "The Kite Runner" for common reading program     Meet Director of Housing: Rhonda Good Parents Council establishes fund for students facing crisis Prayer & Praise items