Handling money can be a confusing business when there seem to be more banks and account types to choose from than money to invest.
UCLA alone has eight banking options on or within walking distance of campus, including big names like Chase, Bank of America, Citibank and the University Credit Union. All offer different checking, savings and credit options.
With so many choices, the numerous types of accounts, fees and benefits are difficult to compare from bank to bank. Yet there is no centralized source to make banking jargon understandable for students; students should not be left to develop fiscal literacy skills on their own.
The Undergraduate Students Association Council’s Financial Supports Commission should offer more organized financial data to allow students to compare banking options. Doing so would develop smart fiscal habits early on and foster a more financially stable student body.
The Financial Supports Commission should make resources comparing banks and compile information about personal finance accessible to the student body.
Many undergraduates are taking their first steps toward becoming financially independent and, as such, they will need help developing personal banking skills.
For many, attending college offers the first opportunity to maintain bank accounts, make money and pay bills.
Without campus-wide access to information about different kinds of checking accounts, loan types and investment options, students are left at a disadvantage when it comes to managing their money.
Part of the challenge in providing support lies in the lack of a consolidated medium for finding help on campus, said Sahil Seth, USAC financial supports commissioner.
Although Seth said deficiencies in university funding for these programs further hinders the development of resources, all it takes to begin improving students’ personal finance is the introduction of a simple website to make comparing banking options an easier feat.
This would benefit students who are confused by the colossal number of financial options available in Westwood and thus is an important step that the Financial Supports Commission should take.
Seth said his office has discussed the option of an online platform for students, but such a website does not yet exist.
Nonetheless, the absence of student support groups aimed at educating UCLA students on finance clearly exemplifies an inadequacy in financial advisement.
One student group at UCLA, the Undergraduate Investment Society, which teaches students about investment banking.
The society is an undergraduate-run endeavor, which features occasional guest speakers including professional accountants and investment bankers.
Shane Sideris, the co-president of the Undergraduate Investment Society, said that at the beginning of the school year the group usually sees between fifty and seventy-five students seeking information about investing, but that number dwindles throughout the year.
The society provides the right kind of support to students, but on much too small a scale for the massive UCLA student body.
There is only one bank branch on campus – the University Credit Union. As it stands, the University Credit Union offers students limited options.
The credit union has two main types of checking accounts open to students. In one, account holders can deposit any amount of money and pay no fees; unfortunately, this account will not accumulate interest. It is essentially the same as stuffing money under a virtual mattress.
The second kind offers interest, but students must have at least $3000 in the account at all times or pay a $5 maintenance fee each month, according to the bank’s Schedule of Fees and Charges.
While this type of fee is common amongst banks for accounts accruing interest, $3000 seems like a steep minimum for a bank account that specifically targets students.
Christian St. Pierre, a second-year biophysics student who banks with the University Credit Union, said that while the credit union is helpful because of its student loan options, it fails to offer needed educational resources to students interested in long-term investing and planning.
Because some students use loans and work study paychecks to pay tuition bills, USAC should make student finance a priority to properly serve students. Centralizing resources that are already available will help increase the UCLA student body’s knowledge about personal finance.
Fiscal literacy is as imperative as any other kind of education for UCLA students and one that deserves more focus.
Email Shepherd at kshepherd@media.ucla.edu. Send general comments to opinion@media.ucla.edu or tweet us @DBOpinion.