Bank of America Survey Finds New York College Students' Personal Finances Don't Make the Grade

NEW YORK, Oct. 25 /PRNewswire/ -- At a time when New York area college students should be focusing on their studies, an unsettling 41 percent of them feel "stressed and overwhelmed" by their personal finances. Some of the stress may be warranted -- college students not only have to get good grades, they must also manage increasing amounts of debt. But much of that debt is due to poor management of their personal finances -- behavior that Bank of America believes students can correct with some financial know-how.

Three out of four students would rather spend money "socializing" than buying a needed winter coat (23 percent). Another 31 percent would call and ask Mom and Dad for money before trying to budget. One in five students have no real idea of how much money they have at any given time (18 percent guesstimate or don't keep track at all). In fact, only one in six students are able to tell their parents where their money goes (15 percent), and a majority of students (58 percent) don't have a budget.

These are just some of the many findings in a new survey released today by Bank of America revealing the financial attitudes and behaviors of New York area college students.

"New York area universities and colleges attract some of the country's best and brightest students, but many of these students still need guidance when it comes to managing their personal finances," said Jim DeBois, New York consumer market executive, Bank of America. "We want students to feel in control of their personal finances. A good start to avoiding stress would be to spend a few minutes speaking with an expert in our banking centers or using our online resources."

Debt and Designer Denim

While higher education is an expensive endeavor anywhere, going to school around New York City truly tips the scales. Not only do students have to contend with New York's high cost of living, but also the temptation to splurge. The average debt students will walk away with is a staggering $37,428 -- enough to make a quarter of all Sophomores and nearly a third of all Juniors consider taking a year off because of financial issues (25 percent, 30 percent respectively).

Clothes, eating out, cell phone bills and spring break all add to the tab. One in four students own a pair of jeans that cost more than $100 (26 percent). Designer denim is just one example. Half of New York area students (50 percent) make a habit out of purchasing items that cost more than they can comfortably afford to buy.

"Undergrads in the New York City area are some of the country's best students of math, science, and humanities," said DeBois. "But of all the lessons our kids learn in college, how to manage their personal finances will be one of the most important if they hope to be successful in the working world."

Tips For Campus Financial Fitness

DeBois offered a number of tips that parents should share with their college students.

1. Try keeping track of your everyday spending. Buy a small, pocketsize notebook and jot down everything you spend for a week. Or, use the budget calculator at http://www.bankofamerica.com/ to calculate what you'll need for college loans and everyday expenses. Then use that information to create a budget. 2. Bank online. If you aren't the type to track all of your everyday spending, your online account will at least give you an idea of where your money is going - you might be surprised at the number of late night ATM withdrawals. 3. Credit cards are necessary for establishing credit, but they can be a quick way to get into trouble if used improperly. Remember to pay off the balance each month. 4. Savings accounts are a beautiful thing. If you're planning a spring break vacation or making another major purchase during the school year, consider starting a savings account and add to it regularly. 5. Be on the lookout for free money. Seventeen percent of NY students have earned some sort of scholarship, you should be one of them. 6. Be on the lookout for more free money. Many businesses give students discounts. Take advantage of the perks. Methodological Notes

The Bank of America Campus Financial Fitness Study was conducted by Kelton Research during the period September 1-12, 2005 on location at 8 New York City area colleges and universities. Quotas are set on completed interviews by sex to ensure reliable and accurate representation of the total population of these 8 schools. Some students did not respond to every question and their answers were not included in the results. For this reason some percentages may not total 100 percent. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. In this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.96 percentage points from the result that would be measurable by the sample.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 38 million consumer and small business relationships with more than 5,800 retail banking offices, more than 16,700 ATMs and award-winning online banking with more than 14 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 150 countries and has relationships with 97 percent of the U.S. Fortune 500 companies and 79 percent of the Global Fortune 500. Bank of America Corporation stock is listed on the New York Stock Exchange.