Balancing a Tight Budget Isn't Always Easy, Students Say

With students shelling out thousands of dollars for tuition and fees, the occasional cafe stop or CD purchase often doesn't seem worth noting. But the costs eventually take their toll, and students have to somehow keep track of their dwindling bank accounts.

While a large majority of Harvard undergraduates take their finances seriously and often diligently pay their bills, the same students admit that they are unable to track exactly how their money is spent.

Josh Berson '97 says he always balances his checkbook, one way or another. "I balance it loosely," he says. "If I round up the figures every time I balance, I'm more apt to spend conservatively. It exaggerates my sense of loss."

Most Harvard students are like Berson and discover innovative methods to organize and regulate their cash flows.

Sofia I. Echegaray '97 is one of the exceptions. "I'm so completely unorganized in every single way," she says. "I can't even balance getting up in the morning with changing my clothes, much less my checkbook."

The Vice-President of Marketing at Cambridge Savings Bank Alison A. Charello estimates that 70 to 80 percent of their customers holding no-service-charge checking accounts are students.

"A lot of kids have never managed on their own before," she says. "But we've never had any trends of difficulties with students."

Charello says the bank sees students as future opportunities, since many stay in the area after college, and are likely to keep their same bank.

Most students say they have never bounced a check. Sunaina Maira '91, a second-year education graduate student, says it is more likely to happen in the summer when her finances are lower. "It's sinking feeling," she says. "I hate it."

Nearly all Harvard students say they pay their bills on time, with many writing the check immediately. But students say they do not usually make a budget for their funds.

Laura B. Pincus '98 budgets her money but says she knows the reason why. "It's probably because I'm a freshman, and all of a sudden I'm managing my own money," she says.

While most students only have one credit card, Carsten M. Reichel '98 admits he has four. "One's my mom's, and I got the rest because they gave away free t-shirts when I signed up," he says.

Many students, especially first-years, say they have joint credit card accounts, with bills going to their parents.

But credit cards can cause a slew of problems for students by encouraging the urge to shop.

Claudio S. Siniscalco '98 says that during his Christmas break in New York, he went on a spending spree. "It was horrible," he says, blaming his credit card for the moment of weakness.

Danger in the Coop

"I went crazy in the Coop once," says Jason J. Evans '98. "I went to buy a sweater and ended up spending $200...It's dangerous to go in the Coop."

Some students have avoided the temptations of New York or the Coop by passing up credit cards all together. "I don't believe in spending money you don't have," says Susannah D. Barbee '97.

Undergraduates say they are more likely to use cash when paying to resist the urge to spend more. Credit cards are the second choice, while few students seem to rely on checks.

"I get Mileage Plus [frequent flier miles] using my credit card," says Adri M. Herrera '95. "I buy food and everything with it."

Some students visit ATM machines twice a day, while others say they draw funds only three times a year. But most say they hit the machines about once a week.

Students who have jobs during the year say that their incomes often just cover their expenditures. "I have an idea of how much I earn every week, and I hate spending more," says Cindy C. Hayne '95.

Students say they tend to spend the most money each month paying their phone bills, with entertainment, food and music close behind.

The cost of keeping in touch is even more formidable for international students.

Sifiso G. Z. Ngwenya '97 pays two dollars a minute to call his home in South Africa. Because of an emergency at home, he currently owes $1200 for the last two phone bills.

"When I call [the phone company], they say, `Oh, Sifiso!'" Ngwenya says. But he insists, "it's not going to happen again. I can't afford it."

Most students seem to lack a clear knowledge of how much they spend in an average week.

"I've tried to figure this out so I can do something about it," Siniscalco says. "Honestly, I don't think $100 a week would be too far off. I average $400 a month, which I don't have."

Nearly everyone says spending is erratic. "When I buy, I buy a lot," says Hilary K. Snow '97. "I just don't buy a lot regularly."

Most students estimate either $10 or $50 spent each week, although answers range widely.

Ngwenya says he spends money only when the bills come through. "The creditors I avoided all summer because they didn't know where I was, now know. It's crunch time!"