Olivia Richman, General Assignment Reporter-
Seniors stepping out into the “real world” could definitely use financial advice from Nashad Warfield. Last week Warfield’s program, “Ultimate Money Skills,” came to Southern to “give information about how to manage money to build long-term wealth.”
According to Warfield, who is a motivational speaker working for Monster.com, 97 percent of Americans will retire dead broke.
“I want to inspire (students) to have money when they retire,” he said.
Warfield began the program by stating he had a way to turn anyone into a millionaire by the time they are 65 years old. Until he gave away his secret advice to success, Warfield started to tell the few students who attended that the average graduate is over $4,000 in credit card debt.
“More students drop out of college because of credit card debt than academic failure,” said Warfield.
Warfield said using a credit card is like spending money you don’t have. His advice? Use cash: that way, students know they are spending money they actually have. Since having a credit card equals borrowing money, according to Warfield, it’s better to use one’s own money instead of owing more money in the end. Plus, said Warfield, 99 percent of Americans will not pay off a credit card bill when their money comes in, which puts them at even more risk of going into credit card debt.
During his lecture, Warfield explained what different credit card lingo meant, from annual percentage rate to credit limit, to the fact that, unlike popular belief, one doesn’t need a good credit history or credit score to buy a house or car.
“At your age, they don’t expect you to have a salary,” said Warfield, “since you’re in college. Cash is king.”
Scott Alvord, a self-proclaimed “super senior” at SCSU, said he does have a credit card.
“I have one because I wanted to start building my credit score,” he said, “so later in life I could have a home and a car. You don’t need (a credit score) but you do need some sort of credit, to my understanding. The Federal Housing Association will give you a better deal and better interest rates. It shows that you’re trustworthy and responsible.”
On the other hand, Warfield said a lot of students don’t know that you don’t need a credit card or car payments.
“You don’t need those things. (Americans) have spent the last forty years without it,” said Warfield. “You don’t need student loans. You’ll be a lot happier if you live your life with cash. If you can’t afford it with cash, don’t buy it. Spend less than you make.”
Ray Nardella, the senior class council president, said they brought this money management program to SCSU because their advisor and himself wanted to prepare students for what they are going to face in reality.
“We have a financial workshop series we’re doing this semester,” said Nardella.
Even though not many students went to the event, Nardella said felt it was a success.
“Even though there wasn’t a massive amount of people,” he said, “it definitely benefited the people who came here nonetheless. (Warfield) was really good. I definitely learned saving skills that I didn’t know before all of this.”
Finally, Warfield exposed his advice on how to become a millionaire by the time Americans retire: at or around age 22, invest 200 dollars a month for 43 years. With an eight percent return rate, one will have exactly 1,000,000 dollars in the bank by the time they are 65.
“I think if students walk away knowing that they have some control over their money and can be wealthy during their lifetime this program was a success,” said Warfield. “I hope they feel more informed and know they have more power. Now they know.”
