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Financial aid administrators can help their graduate and professional
students and other adult learners in the students’ efforts
to manage expenses. USA Funds® Life Skills® provides tips
for helping students live simply.
One approach that students can take to reign in spending is to
consider items’ “potential investment value”
before buying. Purchases with high investment value have the potential
to give you more than your return on your initial investment.
Purchases with low investment value are likely to significantly
depreciate your investment. And purchases with negative investment
value offer no financial return on your investment.
The following investment table categorizes some typical purchases:
High
investment value |
Low
investment value |
Negative
investment value |
| Home |
Car |
Dining out |
| Land |
Boat |
Computers |
| Stocks and bonds |
Jewelry |
Clothing |
| Mutual funds |
Fine art |
Toys |
| Savings accounts |
Collectibles |
CDs, DVDs and videotapes |
| Pension plans |
Antiques |
Carpeting |
| Other retirement plans |
Bicycle |
Furniture |
| Education |
Motorcycle |
Renting |
| Remodeling for resale |
Motor home |
Dry cleaning |
| IRAs |
Surfboard |
Cable TV and TIVO |
| Training or certification |
Gold clubs |
Vacations |
| Preventive medical and dental care |
Jet skis and wave runners |
Concert tickets |
| Limited partnerships |
Time-share and resort memberships |
Sporting events |
Students should be advised to make their own investment tables
and use the tables as they make purchasing decisions. To spend
wisely, they should try to minimize purchases with negative- or
low-investment value.
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