Personal finance class addresses fiscal topics tied to college life as well as what lies ahead

When Amanda Grammar was growing up, her father always was there to help her set up her bank accounts or do her taxes. Now, as a freshman at the University of Kansas, Grammar is taking control of her own finances with the aid of a new class offered by the School of Business.

The Personal Finance course addresses fiscal topics traditionally tied to college life — budgeting, paying bills, renting an apartment — but also helps students prepare for tasks that lie ahead — saving for retirement, investing in the stock market, buying a home.

Grammar already is applying what she’s learned in the class to her everyday life.

“The first thing we focused on was credit and debit accounts,” said Grammar, a pre-business major from St. Louis, Mo. “Our professor made it very clear that debit cards are not a great idea. Now I’m using my credit card instead of a debit card, and I am paying off my credit card at the end of every month.”

Grammar says she learned that use of debit cards can lead to financial pitfalls if not managed carefully. A $1 overdraft can lead to $98 in fees. On the other hand, credit cards cannot be overdrawn and can build a person’s credit history when used carefully and paid in full at the end of each billing cycle. This is just one practical lesson she’s learned.

Stories like that encourage William E. Lewis, distinguished lecturer in finance at KU, who came out of retirement to teach the Personal Finance class.

“I enjoy seeing the students understand some of the concepts and how it might apply to them,” he said.

Personal Finance first was taught in fall 2007 at the urging of both parents and business school faculty. This semester, 100 students from an array of majors and in all levels are enrolled. The only challenge in teaching Personal Finance, said Lewis, is the sheer mass of information students need to learn in a 16-week semester — and teaching it in a way that doesn’t put them to sleep.

“Finance is my background,” explained Lewis. “I’ve worked at Exxon. I’ve worked with banks throughout the U.S. I’m able to come at a problem and see it from different angles rather than from just a textbook approach.”

Lewis also invades the personal lives of his students (just a little bit). He asks direct questions about their spending and their savings. He uses examples in class that they can relate to. The most frequently recited involves a hypothetical set of stereo speakers — A student could purchase a set of speakers for $500 now (and enjoy them for just a few years) or invest the money and end up with a hefty sum after a few years. Using a physical item allows Lewis’ students to grasp concepts better than they would if they simply were thrown a series of numbers to comprehend.

“I really feel like that everything that I have learned in the class so far has been valuable,” said Kelly Dahl, a junior in English and social welfare from Shawnee. “I have some classes where I’ll learn something, and I’m like, where am I ever going to use this? But everything I’ve learned in this class has been useful.”

Students take Personal Finance for various reasons. Some want to learn more about investing (the junior- and senior-level students actually do create a mock investment portfolio) and others, like Laura Webb, want to be able to take on more responsibility.

Click to zoom

“As a woman, it’s important to be learning all these things,” said Webb, a senior majoring in political science from Prairie Village. “It’s empowering to know how to do all of these things. I’ve been relying on my dad all these years to do my taxes. Now I feel like, yes, I can do this myself.”

Lewis said the current economic crisis could be another reason students are interested in the class, but that they could benefit from the course in good times and bad.

“Needless to say, we’re all cognizant of what’s going on in the markets at this time,” said Lewis. “But the course is valuable at any time, not just now.”

And Personal Finance will help them in the future, as well. As a safety on KU’s Insight Bowl-winning football team, Darrell Stuckey gets a lot of attention. The senior in communication studies from Kansas City, Kan., says if he is lucky enough to become a professional athlete, he will use the knowledge he’s gained from the KU course to negotiate contracts, manage personal wealth and invest wisely.

No matter their major, their background or their future plans, all of the students agreed that Personal Finance was an important part of their KU education.

“I would definitely encourage my friends to take this class,” Webb said.

By Lauren Beatty