Vivian Tu wasn’t always Your Rich BFF or your Wall Street guru — especially not while in college. “My roomies and I used to take turns sneaking into campus events to snag leftover sandwiches or bagels,” she tells Her Campus in an exclusive interview. “We’d make sure to grab enough for the whole apartment. It helped us avoid spending our own money on lunch, and instead, we could spend it going out on Fridays and Saturdays,” she laughs.
Just like me and you, while in college, Tu indulged in spending money on clothes, weekend nights out, and personal treats. She wasn’t necessarily focused on creating debt payoff plans or building credit. But, who can blame her (or us)? According to Tu, “The education system has not met students where they’re at to fill the financial literacy gap. Most schools don’t teach practical money skills, so you’re expected to figure out taxes, retirement accounts, and investing on your own.”
Luckily, to kick off Financial Literacy Month, SoFi is introducing the Future Wealth Summit — a national campus tour to help college students navigate key financial decisions, from managing spending and building credit to planning for life after graduation. The first tour stop will take place on April 24 at Rutgers University.
Uniquely designed for each university on the tour, students will gain exclusive information and helpful insights on budgeting, credit, saving, investing, and student loans. SoFi is also launching the Fund Your Future Sweepstakes, giving more than 60 students the chance to win cash prizes of $500, $1,000 and a $5,000 grand prize to kickstart their financial goals.
Tu knows first hand why these skills and this support are so important. “Financial literacy is at the core of both my and SoFi’s missions, so being able to bring these necessary skills to college students is not just exciting, it’s a real passion. I want to be able to equip students with the best tools to not only get through college, but also build a real financial future for the rest of their lives,” Tu says. “This is the guidance I wish I could’ve gotten at 21!”
Below, Vivian Tu talks exclusively with Her Campus all about her journey and approach to navigating finances, SoFi’s Future Wealth Summit, and her insightful reflections on her college years.
Why is financial literacy so important for college students, specifically?
Because this is when you start to build your financial foundation! The habits you create now stick with you, plus, you have the most valuable thing of all — time. Making a debt payoff plan early helps you stay ahead of any loan stress, building your credit early means you’ll be more likely to qualify for a future apartment or car, and even small amounts invested during your college years can grow into serious wealth by retirement because of compound interest.
Looking back on your own college years, what do you wish you knew more about regarding money during that time? How do you hope to change that for current college students?
Start building credit early, but do it smart. Your credit score affects everything from apartment rentals to job applications, and building good credit takes time.
Understand your student loan situation completely. Know the difference between subsidized and unsubsidized loans, what your interest rates are, and how much you’re actually borrowing in total. That monthly payment might seem manageable now, but calculate what you’ll owe after graduation, and what your living expenses might require. Life adds up fast. But having a clear, centralized view of all your finances can help you stay on top of it.
Research your major’s earning potential before you commit. It’s harsh but true, some degrees lead to much better financial outcomes than others, and you deserve to make that choice with full information.
Build an emergency fund, even if it’s tiny. Learn the basics of investing now.
How would your college self react to finding out you’re participating in a financial literacy summit for college students nationwide?
She’d probably laugh given how broke she was during college. Looking back, I’m grateful for my broke college days — they came with plenty of fun, zany stories. But I’m just as grateful to be a financially responsible adult who remembers how overwhelming money once felt.
If you won $5,000 in SoFi’s sweepstakes as a college student, what would you have spent it on? What do you recommend college students do with it, or any extra money that comes their way?
You know that phrase, do as I say, not as I do? If I’m honest, I probably would’ve spent the money on clothes, but I’m begging the actual winners to be smarter than me! Nowadays, knowing what I know, if I were a college student, I would use it to pay down any student loans I might have — private/unsubsidized, then federal/subsidized, in that order. If you’re lucky enough to be attending college debt-free, either through a scholarship or grant or parental assistance, I’d put the dollars towards expenses like books, food, or any potential travel you’d like to do as a student! The main key is to use the majority of the money for something responsible, but also set aside a little something to get yourself a treat. You deserve it!