#Adulting Series Continues with Discussion on Budgeting

By Travis Richmiller

The #Adulting series continued with its second part on Monday, April 10. Its main topic of discussion was budgeting.

For the second part of the series, Professor of Accounting Mitch Ellison gave a presentation that helped students gain financial wisdom to help them budget their money now so that they are prepared for when they graduate and get their first big jobs.

Student Brady Loos was in attendance and knew this presentation would help him, especially since he is a business management major at Quincy University.

“I hope to learn how to manage my money better because you have more coming in after school to help pay student loans, etc.,” Loos said.

The presentation dealt with federal and state taxes, social security and the importance of tax deferral to 401k’s and IRA’s. It also discussed disposable income and where the typical household spends its money using information supplied by the Federal Reserve and other resources.  In his presentation, Ellison said that 27 percent of disposable income is spent on either buying a house or renting.

Ellison says that the purpose of the presentation is to show students that budgeting is needed because it forces them to plan their expenditures.

“If you plan your expenditures, you’re much more likely to be driven by logic than emotion,” he said.

Ellison felt that students who attended the event gained an awareness of tax planning, and he hopes that they gained an appreciation of where their money will go when they start earning it.

Ellison is very passionate about this subject and thinks that presentations like this one help not only students but also society as a whole as well.

“I think a financially literate society is very important. Throughout a person’s life, there will be all kinds of opportunities to spend and invest money incorrectly,” he said.  “If you yield to this temptation, you won’t have as high a quality of life, and you may be forced to work your entire life.”

Ellison also gave his opinion on debt.

“Debt should only be used for a few things, such as education and housing. Debt is sold as increasing your ability to spend, but, in reality, it decreases your ability to spend in the future,” he said. “Debt merely allows you to bring future spending to the present, which isn’t good. Interest is the rent that is used for the charge of this loaned money.”

The #Adulting series will continue on Monday, April 24 in the large classroom in the Student Success Center between 5 p.m. for its final presentation, which is on investing.

 

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