College students have it hard these days. Students not only have to contend with the rising cost of a college education but also with heavy interest rates on student loans. Because they’re younger they have to pay more for certain insurance premiums, and because they’re enrolled in school, they have less time to work and make money.
With so many other school-related matters on their mind, the last thing any college student wants is to be shown up by a 10-year-old in the ways of money management. That’s because most 10-year-olds make more money than college students. Although it may seem counterintuitive to hear how kids who haven’t even learned algebra make more than the average college student, it’s true.
That Can’t Be Right…
Although most college students have part-time jobs or some source of discretionary income, 10-year-olds don’t. However, many kids receive a weekly allowance by assisting with various odd jobs and kid-friendly tasks like yard work, house cleaning and other simple household chores. And unlike the average student, everything they earn goes right into their pockets.
Kid-Sized Debt Burdens
Even if a kid only makes a few bucks for odd jobs here and there, they have one very powerful financial advantage over everyone else: their complete lack of debt. Remember how earning $10 meant you actually earned $10? The money was yours to spend—all of it. Every nickel and dime that kids earn can be spent frivolously, and because they have no financial obligations, they have no debt.
What Do College Students Have to Show for Their Work?
By contrast, college students have to contend with a variety of obligations. If they own or rent a home, they have to deal with monthly payments; if they own a car, they’re probably working to pay it off; and if they’re like the millions of other college students who’ve had to take out large student loans, they have to worry about those too.
Adding It All Up
Like most Americans, college students rely heavily on credit cards to pay for both larger and smaller purchases. In fact, at least 50 percent of college students say they own at least four credit cards or more. While using a credit card once in a while is perfectly acceptable, most college students rely on credit cards as their sole means of payment, leading to an average student credit card debt of over $3,000.
And Breaking It Down
The only reason kids have more money is because they’re free from the shackles of having to deal with monthly bills and other debt burdens. Did you know that the average four-year college graduate has over $24,000 in student loan debt? What’s more, the price of a college education has increased over 1000 percent in the last three decades. With all the financial struggles facing students nowadays, it’s no wonder why 10-year-olds make more than college students.
Interested in learning more about the rising cost of a college education? Take a look at CreditGUARD’s student debt statistics for more jaw-dropping stats and figures surrounding students and debt.