1:25 p.m., Nov. 25, 2009----Twenty-one freshmen enrolled in a University of Delaware First Year Experience (FYE) personal finance course, "The Most Important Grade You Ever Earn," received sobering advice about responsible use of credit cards during a presentation by two officials from Bank of America on Thursday, Nov. 19.

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The presentation by Lisa Thornton, senior vice president and business support executive, and Connie Montana, assistant vice president and corporate social responsibility project manager, started with a video clip from Saturday Night Live, "Don't Buy Stuff You Can't Afford," which emphasized saving for purchases instead of running up credit card debt.

"You will be graded throughout your life; you will be graded once a month from a credit perspective," Thornton told the students.

All first-year students at UD participate in the FYE program, designed to help them succeed academically and socially in their first year at the University. All incoming bachelor and associate degree undergraduate students are required to register and successfully complete at least one FYE course.

Transfer students who registered and successfully completed at least one semester at another college or university are exempt, but certain first year seminars are required in the curriculum of particular majors regardless of transfer credits.

The lesson, which was taken by more than 20 different freshman classes during the semester, was presented by UD's Center for Economic Education and Entrepreneurship (CEEE).

During the presentation, the students participated in a true or false quiz that covered key points about credit card debt, including the fact that making minimum payments of $10 for an $800 purchase with annual interest of 18 percent would pay off the debt in 14 years and nine months with total payments of $2,034.

"Consumer credit was originally used to purchase expensive items. Good debt is that used for durables, such as furniture, appliances or education," Thornton said. "If you wear it, eat it or drink it, don't use a credit card to buy it."

Jill Leabman, a cognitive science major from West Hartford, Conn., said the lesson gave her very useful information.

"I didn't know all those things before. Nobody talked to me about all that; I learned something," Leabman said. "What I learned most about is whether to choose between paying for something up front or paying minimum payments every month."

Norma Gaines-Hanks, associate professor of human development and family studies, said many first year students -- and perhaps most college students -- do not recognize how easy it is to make uninformed financial decisions that can impact them long after they have left college.

"The example of the person buying an $800 stereo and paying the minimum due each month was eye-opening," Gaines-Hanks said. "If nothing else, I think when considering a big ticket purchase, the students will either save some money first or at least pay more than the minimum due. That's a lesson from which we can all benefit, regardless of our age."

Article by Martin A Mbugua
Photos by Ambre Alexander