Fidelity Investments instructed students and faculty on how to make the most out of their their money Monday, as part of the fourth annual Week of Well-Being (WOW).
A sold-out event hosted by Fidelity Investments, “Master Your Money” allowed students and young investors to learn the supposed secrets of personal finance. According to Fidelity, these secrets are the five personal finance lessons one needs to master before the age of 40. The speaker, Kelly Lannan, listed these lessons: budget, credit, debt, invest and retire. If they are managed correctly, they could lead to a better financial future, Lannan said. Assistant Vice President for Student Affairs Gilberto Arias was happy with the event, which began the week.
“Wow, this event is sold out and the week has just begun,” Arias said. “We hope faculty and students can all benefit from these personal finance tips.”
Lannan went through the five finance lessons for students to learn, providing anecdotal examples and answering questions along the way. Although these are all key to financial stability and prosperity, she said the most important one was “credit.”
After Richard Combs, an assistant director at the Toppel Career Center, asked a question on credit, the rest of the crowd followed. All these questions showcased the complexity and importance of credit that Lannan stressed.
“Your credit health can affect your financial options in the future. It could really do harm if not managed correctly,” Lannan said.
She showed how companies measure credit scores. According to Fidelity, payment history and credit utilization make up more than half of the credit score, while the rest comes from length of history, credit mix and new credit.
The rest of the lessons were covered in detail throughout. Budget serves as the foundation of a student’s financial plan, she said, while credit ensures future decisions; debt allows one to take on risks; investment serves as a way to increase capital, and retirement determines the endgame of finances.
According to UM’s newsletter e-Veritas, WOW is “aimed at transforming the way faculty, staff, and students think about their overall wellness.” Arias said they want to keep “Master Your Money” as part of the week for years to come.
Feature image courtesy Pixabay user Olichel.