Essay Contest Winners

1st Place: Micaela Romero

In the fourth grade, I drafted a detailed plan to fly across the Pacific Ocean in a hot air balloon with my best friend. Everything was accounted for, down to the balloon descension navigation, all that was left was the eye-opening reality of paying for it. After a couple of lemonade stands, my bestie and I realized that our shared $25 would better be put to use with some ice cream floats. Your story may not have been as extravagant as mine, but don’t we all have some goal or aspiration to take our life to new heights, only to discover the deflating reality of money? Young adults today face just that with college tuition, student loans, and credit cards, but the real culprit is the lack of financial literacy leading to the issues we face today financially.

According to the US Department of Education, the total student loan debt is over $1.7 trillion spread across 45 million Americans; with adults ages 18-29 making up 50% of the debt population. Not only does student debt drown our young Americans, but credit card debt too, with the average student owing $5000-6000 dollars. This statistic is scary, but more terrifying when it hits close to home. I’ve had countless friends begin their adult lives with uneducated decisions about credit cards resulting in enormous fees and low credit scores, making their ability to apply for loans slimmer in the years to come. Interestingly enough, Jumpstart Coalition created a Financial Literacy survey for graduating high school seniors in 1998 and has been tracking the results since. 10 years after their first survey they found that average scores dropped 10% to an average of 48.3%, a failing score. Educating our young people about the value of wisely handling money is crucial for society's well-being and the continuation of our economy.

However grand it would be to implement financial literacy classes as a part of the required curriculum for high schoolers, it’s not our present reality. To overcome these pertinent issues young adults face today is proactivity and better use of our resources. YouTube, credible bloggers and books, and trusted mentors are all available to us, allowing us to close gaps in our financial understanding. Not only this but being proactive in our time will also aid with our finances. Doing things like applying for scholarships, researching grants, and working all contribute to financial well-being. I’ve taken courses like Dave Ramsey’s, ‘Financial Peace University’ and read books like, ‘The Simple Path to Wealth’ by J.T. Collins that have given me a better grasp on my budgeting, investing, and day-to-day money handling. Additionally, working two jobs to pay for school has helped me greatly, teaching me the value of money, and the importance of work ethic and self-discipline to achieve my goals and continue through life near debt-free.

It's pivotal for young adults to take control of their money but it starts with us and our determination to succeed beginning with the basics-money.

2nd Place: Kurt Sernett - will be attending Texas A&M University, to pursue a master's degree in Management Information Systems

"I only have $5.16 in my bank account," said my friend. I looked at her with downcast eyes, "Yeah, I've got about 10 bucks myself. Just had to pay rent, my car payment, and my credit card bill. All the money from my paycheck was wiped out."

The more that I have spoken with friends the last few years, the more I have discovered this scenario is becoming the norm. Young adults in the United States are faced with soaring prices for everyday goods and services, including rent, car payments, groceries, clothes, and much more. To overcome this reality, young adults need to be frugal with their spending and forgo "subscription mania" (as I like to call it) to move toward financial milestones like building an emergency fund, buying a house, and paying down student debt.

Today's affordable housing crisis is one of the most urgent financial issues confronting young adults. Whether you rent or are trying to buy a home, shelter costs have ballooned out of control. Mortgage rates now hover near 7% when they were less than half this amount only four years ago. In my college town, an ordinance was passed making it illegal for more than four unrelated people to rent a single-family unit together. Due to this ruling, students will now have to pay at least double what they have been paying for rent in the past, which presents a significant challenge for many.

The burden of student loan debt is another hardship that young adults face. The cost of higher education has skyrocketed, especially at private institutions, yet the quality and return on investment of education has not caught up. Additionally, universities oftentimes sell the college "experience" to first generation students, who then fall prey to these marketing tactics and become saddled with debt that will take a long time to repay.

Lastly, the rise of subscription mania and "buy now, pay later" (BNPL) mechanisms have made it convenient for young adults to spend money without recognizing how much they are truly spending. Many young people with good spending habits have fallen prey to these practices because of their mainstream acceptance on social media. Zombie subscriptions silently eat away at your monthly budget, while BNPL charges fine-print fees and may even send in the debt collectors if you cannot pay on time.

To combat these challenges, young adults need to prioritize frugality and mindful spending, steering clear of subscription mania and the allure of BNPL. By curbing unnecessary expenses and being thoughtful about budgeting, they can free up income to tackle long-term financial goals. Developing multiple income streams is an alternative solution. Building an emergency fund is the primary goal, providing a buffer against unexpected expenses. Above all, young adults should leverage free financial literacy resources available online to educate themselves about personal finance topics. After doing these things, even though you may still have $5.16 in your bank account after paying your bills, you'll feel okay knowing you have hard-earned savings somewhere else.

3rd Place: Hannah Freeman - attends Biola University, pursuing a bachelor’s degree in Political Science and Pre-Law.

“Money doesn’t grow on trees,” my dad scolded after reviewing the monthly charges on my debit card. It was a wake-up call. I hadn’t realized how much money I had spent in the span of a month. Once soccer season started, I took a brief break from working, as my schedule was incredibly hectic. In addition to my busy schedule, I was constantly grabbing food with my friends after practice, buying Sonic before football games, and picking up Starbucks before school. I was shocked to discover I spent over $300 in the first month of soccer season without even realizing it.

As I have navigated through the many challenges that being young has brought me, one of the most challenging to overcome has been learning how to budget. One of the most pressing financial issues many young adults face daily is overspending due to not budgeting. To overcome this issue, young adults must restrict their spending and learn how to save. For example, during my first semester of college, I will not work a job so that I can focus on my academics and adjust to my new surroundings. As a result, it will become increasingly important that I know how to create a budget and practice healthy spending habits.

Another significant financial issue facing many young adults today is the need for more financial literacy. In other words, many young adults need to learn how to interpret their finances to make beneficial choices with their money and plan for their future. In a study conducted by the Zebra Research Center, around 88% of young adults reported struggling with financial planning in at least one way (Meyer). This critical issue, knowing how to plan financially and understand finances, is one of the primary keys to being financially stable. To address this challenge, young adults can utilize financial resources such as free online articles, books, and videos on how to handle their money better and plan for their futures. Watching bite-size videos in a series on social media platforms such as TikTok with quick lessons could be an excellent way to educate my generation. Many in my generation desire to be empowered to control their finances but do not know how and where to start.

As a young adult, I see my generation struggling with budgeting and overall financial literacy. I have personally learned the incredible importance of managing my money and saving for my future. As I prepare for college and my future beyond high school, I am improving my money management skills by living on a budget, which allows me to save more by spending less. My Sunward Account will help me track my spending, protect my money, and invest in my future. I hope others in my generation are learning similar financial skills and using available tools to help them succeed.