Spring Break
Economic crisis doesn't discriminate
Editorial Board
Issue date: 10/10/08 Section: Ed-Op
In a time when our economy is in the most serious crisis since the Great Depression, when it is at the forefront of every debate, every headline, we as students should be especially careful of how we respond to this situation.
Though many people have been focusing on the baby boomer generation during this time, we as young people should be just as financially conscious.
In just the past 15 months, "The financial meltdown has demolished Americans' retirement savings, wiping out $2 trillion - or about 20% of value," according to an Oct. 8 USA Today article.
Think this doesn't matter to you? Think again.
We cannot just analyze this situation as students (though student loans and the cost of college are enough to worry about during this economic turmoil). Being that we are a co-op school, many of us already have 401(k) accounts issued to us through past co-ops or other jobs we have held while in school. The financial situation right now has led to trends in retirement delays, according to USA Today, and though this seems far into the future, planning for the years to come is something each and every student should not put off.
The Washington Post reported Oct. 8: "For many Americans, pensions and 401(k) plans are their only form of savings. The dwindling away of these assets … is another setback at a time when many consumers are grappling with higher gas and food prices, more credit card debt, declining home values and less access to loans."
Gas, food, credit card debt and loans - sound familiar?
Aside from the obvious money concerns, the economy can also add a challenge that, as Drexel students, we face even before graduation - the job market.
"As the economy weakens, starting salaries aren't keeping pace. ... A growing number of recent grads aren't likely to find jobs at all," the Wall Street Journal reported Oct. 8.
While the future seems bleak, it does not have to be. Start looking into how, where and in what you can afford to invest, and pay attention to how economic decisions such as the bailout are affecting you and your family.
Jobs and long-term finances are not the only ways students will feel the impact of the troubled economy - it's harder to get loans now too. Some lenders, such as Education Finance Partners, have shut down their student loan operations.
With the upcoming presidential election, look into which candidate's policies you support, and decide what kind of economic reform you would like to see.
This is no time to wait to plan our finances because the future is no longer quickly approaching - it is already taking stake in our daily lives and our wallets.
Take action now, and make sure you secure yourself instead of being in a position where you could lose a lot more later.
Though many people have been focusing on the baby boomer generation during this time, we as young people should be just as financially conscious.
In just the past 15 months, "The financial meltdown has demolished Americans' retirement savings, wiping out $2 trillion - or about 20% of value," according to an Oct. 8 USA Today article.
Think this doesn't matter to you? Think again.
We cannot just analyze this situation as students (though student loans and the cost of college are enough to worry about during this economic turmoil). Being that we are a co-op school, many of us already have 401(k) accounts issued to us through past co-ops or other jobs we have held while in school. The financial situation right now has led to trends in retirement delays, according to USA Today, and though this seems far into the future, planning for the years to come is something each and every student should not put off.
The Washington Post reported Oct. 8: "For many Americans, pensions and 401(k) plans are their only form of savings. The dwindling away of these assets … is another setback at a time when many consumers are grappling with higher gas and food prices, more credit card debt, declining home values and less access to loans."
Gas, food, credit card debt and loans - sound familiar?
Aside from the obvious money concerns, the economy can also add a challenge that, as Drexel students, we face even before graduation - the job market.
"As the economy weakens, starting salaries aren't keeping pace. ... A growing number of recent grads aren't likely to find jobs at all," the Wall Street Journal reported Oct. 8.
While the future seems bleak, it does not have to be. Start looking into how, where and in what you can afford to invest, and pay attention to how economic decisions such as the bailout are affecting you and your family.
Jobs and long-term finances are not the only ways students will feel the impact of the troubled economy - it's harder to get loans now too. Some lenders, such as Education Finance Partners, have shut down their student loan operations.
With the upcoming presidential election, look into which candidate's policies you support, and decide what kind of economic reform you would like to see.
This is no time to wait to plan our finances because the future is no longer quickly approaching - it is already taking stake in our daily lives and our wallets.
Take action now, and make sure you secure yourself instead of being in a position where you could lose a lot more later.
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