As the government begins a bailout of the financial system, some students are cutting back on spending in fear of the economy getting worse.
Meg Oldman, English graduate student from Harrisonburg, Va., said she is trying to control her money as best she can.
"I'm doing a lot of online banking and balancing my checkbook more than I usually do," Oldman said. "I'm making sure what I'm spending is for necessity and not for leisure."
Michael Newsome, economics professor at Marshall, said students should be prudent about their spending habits.
"Students should not build up their debt load unnecessarily and should not buy frivolous things on credit cards," Newsome said. "It is important for each student to think about what is the appropriate mix of debt and savings given his or her income, needs and risk preferences."
Eventually, the fact that money is tight will begin to affect the ability of the average person to access credit, making it more difficult to get loans for houses, cars and educational expenses, Newsome said.
Oldman said she has cut back on shopping and going out to eat in order to save money for the future.
While some students are cutting back, others have only made small changes to their spending.
Ashley Kennedy, senior elementary education major from Teays Valley, W.Va., said she has not been affected much by the economic crisis.
"I haven't been able to go home as much because of gas prices but since my parents pay all my bills, I get to keep the money I make from work, so I still shop a lot and still go out to eat a lot as well," Kennedy said.
The situation is different for Oldman. She said every time she is going to spend money she has second thoughts.
Newsome said students should know sound financial management, always considering their future needs, their risk preferences and their resources.
"It is a very good idea to have a financial buffer in case of emergencies," Newsome said. "This means students should save enough money to feel comfortable should their liquidity (money flow) get tight."
The United States government has developed many safeguards that keep the recession under control and the country is nowhere near the difficulties experienced in the Great Depression, Newsome said.
"Don't get too excited when things are going well," Newsome said. "Remember to make good decisions, not get in too much debt and don't get too worried when things are going poorly. The economy will get better."
Diana Calle can be contacted at calle@marshall.edu.
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