By Ariyana Griffin,
Special to the AFRO
A refund check is received when a student at a college or university has loan money or financial aid funds that are left over after paying for a semester. The school will use the funds provided for big ticket items such as tuition, books and room and board, with any remaining funds disbursed to the student in the form of a check or direct deposit. The infamous “refund check,” as it is often called, is usually dispersed several weeks after the start of the semester.
The amount ranges per person, it can be a few hundred or a few thousand. What students do with their refund money can help them tremendously in the future– if they budget and plan properly. But, sometimes this is the largest amount of money a student has seen at one time, making it hard to manage the money and make good decisions on how to utilize it.
While buying into the latest trends or splurging on your wish list seem like a great idea, there are a few alternatives that could help you throughout your collegiate career and beyond.
Yasmin Eady, a first year Ph.D. student at North Carolina A&T shared that using your refund to handle necessities first can really put you ahead of the game and have less stress throughout the semester.
“If you are going to buy a new laptop or tablet, keep the receipt so you can write it off on your taxes because you can use it for school,” she said. Eady also suggested using the money to pay off a few months of rent, or using the money to build up an emergency fund.
Similarly, Dr. Kelly Carter, an assistant professor of finance at Morgan State University’s Graves School of Business, expressed that saving the excess money– after taking care of necessities– is the best thing you can do.
“If you’ve made it without the refund check, you can continue to make it without the refund check. So that means take it, deposit it [and]leave it alone,” said Carter. He shared that paying off credit card debt is important, however it is important to only spend what you have on your credit card. “You only take on debt that you can afford, only debt that you can pay back,” he said.
Taylor Thomas, a senior biology student at Morgan State University and a student worker for the Office of Student Success and Retention expressed that she used her refund check to invest in herself.
“I invested into my schooling, whether that be new equipment in terms of laptops or iPads,” said Thomas. “I also am an out-of-state student, so I struggle with transportation. Over time, I was able to invest a down payment for a car,but I ensured that I had a job at the university that would cover payments and things like that.”
On the other hand if you feel like you deserve a break or vacation, and your refund check came just in time,just know that memories can be a great thing to invest in.
Christine Harris, a Shaw University alumna, shared that she used her check to go on her first solo trip.
“I went to Jamaica for a week. It was my first time traveling alone as when I traveled internationally it was studying abroad,” Harris said. “I don’t regret what I spent my money on. The memories I made were priceless.”
Erika Berry, a bank teller, encourages people to have fun and make memories that will last a lifetime as well.
“As a banker I could give you some great advice about saving or paying off debts but, instead I’m going to advise you to blow it! Now, before you just start throwing the money up in the air and rolling around on the fresh rainfall, I’m saying that I want to see you invest in yourself!” said Berry.
She brought up some good questions for someone with the new lump sum of money to think about.
“Do you have your passport? Is there some beat making software that you’ve been interested in? Perhaps you’d do well with a ring light to make better content for your page,” she said. All of these could be used as an investment in yourself and your career in the long run. However, think about what things you would need to invest, and how you can best use them.
“Basically, my advice would be to purchase things that will bring you joy now and later– being smart with your money doesn’t mean not having fun with it,” said Berry.
There are plenty of ways you can spend your money when you get a refund check, but the best thing you can do is put extra thought into how you want to spend the money before you do.
