Students learn importance of credit, budgeting

10/21/05 - Students from professor Joan Gray Anderson's personal finance class were given the opportunity to sit down and talk with Dan Iannicola Jr., deputy assistant secretary of the U.S. Department of the Treasury, yesterday for "Get Smart About Credit Day." Jim Hedemark, executive director of the Rhode Island branch of Jump Start, was present for the discussion of credit awareness. Jump Start: Financial Smarts for Students is part of a coalition that helps inspire students to be more aware of their finances.

Robert Twomey, president of the Rhode Island Bankers' Association joined Iannicola to help teach students how to budget their finances and be more aware of their credit standing. Twomey has worked for Fleet Bank for 31 years and has worked in the Commercial Loan Division of Rhode Island and Southwest Massachusetts for 15 years.

Iannicola and Twomey introduced themselves to the students over coffee in the Rams Den, discussing their own personal credit problems or "horror stories" that they've heard. Ashley Corsie, a URI senior, mentioned how some of her friends had gotten themselves into trouble, but their parents had always bailed them out.

"I'm sure some of them learned, but I know most just went back to their old behavior," she said.

Iannicola said credit could almost be an invisible problem for college students without good awareness of personal finance. "It's almost like furniture in a dark room, it's easy to stumble over," Iannicola said.

"However, even when the light is on, the problems will still be there."

William McKinney, dean of the College of Human Science and Services, who happened to be observing the discussion, added his own personal horror story.

"I checked into a New York City hotel only to be told that they had to confiscate my card, due to my bad credit behavior," he said. McKinney resolved his problem at the time and added with a grin, "I've changed my behavior remarkably since then."

Another senior attending the meeting, Danielle Monast, offered her opinion. "I know for me, having a credit card was important at a younger age because it helped me learn to deal with it in real life situations," she said. Monast said she now had a good grasp of how to use credit as an adult.

As the group began to depart for photo opportunities, Twomey said "personal finance ought to be a required course." He said it is important, not only for the present, but for the future. "Everyone needs to know about personal finance," he said.