It didn’t Take A Robo-Adviser

“What did you do this summer to earn some money?” was the first question I asked the room of incoming freshman.  While a few stated they worked with a parent, most stared at me like I was a “robo-adviser” waiting for me to tell them what to say.   As I looked at each student, obviously from different backgrounds, I began to do what any good banker/grandmother would do, I started asked probing questions.

These questions led to lots of discussion about how each student spent money over the summer as I instructed them to list the items and amount spent. Students were then instructed to add-up items they purchased with money not earned but given to them.  Several in the group had been to the beach at least once and had eaten out on multiple occasions, many had been on vacation with family and most had recently been shopping for school clothes.

The light bulb seemed to shine when I simply stated, “While most of you didn’t EARN money this summer, you obviously had your hands on lots”.   With this statement, this group of well educated, cellphone in hand, brilliant minded students began to combine their amounts to come up with an overall total.  To their celebration and my total shock, this group had spent a combined $22,000 over the summer.

This was money spent on wants, not needs! None of this was saved or invested, nor was it used to feed the hungry was my first thought.  Then it hit me!  This money was invested! It provided jobs to mothers and fathers allowing them to feed their families, take them on vacations, and yes even buy new school clothes. The lesson learned, though not exactly how I planned was basic economics! Something I am not sure even a “robo-adviser” could explain!