Kara McGuire: Credit lessons

Better late than never. That phrase came to mind when I heard about new state legislation requiring Minnesota's technical, community and state colleges to offer some personal financial management help to students at registration.

I don't know about you, but waiting until college to teach young adults about credit and cash flow strikes me as a bit belated. Ideally, students should learn about money long before setting foot on a college campus, whether from a teacher, a banker or mom and dad.

But with pricey college tuition and statistics that show some students graduate with overwhelming debt, legislators figured they had to do something.

"We think it's a really good idea," said Susan Heegaard, director of the Minnesota Office of Higher Education. "People need to understand what it means to take care of their personal portfolio and what it means to take on debt."

Many colleges developed personal finance programming long before they were required to do so. The University of Minnesota has offered an online personal finance course to underclassmen called "Cash or Credit" since 2004, for example.

Those who don't want to dedicate time to a structured course can visit the U's One Stop website to learn about spending responsibly and getting help with financial problems as well as to test their financial IQ. (onestop.umn.edu/onestop/index.html) The U is thinking of adding money lessons to that site later this year.

To comply with the new law, the Minnesota State Colleges and Universities (MnSCU) system developed a brochure that includes tips about credit ratings and monthly budgeting.

But I wonder if a brochure handed out along with reams of college material will make an impact? Justin Klander, executive director for Minnesota State College Student Association, says it's a start. But he hopes for more to help a generation of students he sees overspending and taking on too much debt.

"iPods and laptops seem to be a 'necessity,'" he said. "People need to think long-term about their money." MnSCU will introduce an online module come spring.

Private colleges aren't required to teach money skills under the new law, but many are trying to educate their students about financial matters. Students at Concordia University in St. Paul used grant money to develop and train incoming freshmen about responsible credit use, among other topics, in a half-day seminar that they've also presented to high schoolers.

"A message like that is going to fall on more receptive ears if it's coming from someone who seems like them instead of a math professor up there flapping his lips," spokeswoman Jill Johnson said.

The College of St. Scholastica in Duluth started money seminars for international students in recent years. The college helped students who didn't grow up in a culture of credit to understand the fine print. An adviser took students on a field trip to open bank accounts.

"I didn't use a credit card back home," said Gunjan Piya of Nepal. "I didn't know how it even worked properly, like where's the money coming from and how do I repay it?"

Sadly, some kids who grew up here are no different.

What will it take to teach college students about money? Tell Kara McGuire: 612-673-7293 or kara@startribune.com. See Kara at the Star Tribune's booth at the State Fair today from 3:30 to 4:30 p.m.